After COVID-19 things can get easier for first home buyers…
From October last year the Welcome Home Loan became First Home Loan and the KiwiSaver HomeStart Grant became the First Home Grant, the rules got easier. Minimum deposits were halved to 5% and the minimum deposit required to get the benefit of the First Home Grant from the government dropped to 5%.
This had a huge impact on first home buyers who often struggle to get their 10% deposit together. For example, a $500,000 house did need a $50,000 cash deposit and many people simply do not have $50,000 even after their KiwiSaver cash is used, now the same house only needs a $25,000 minimum deposit which is within easy reach for many KiwiSaver Scheme owners. Add to this a grant of up to $10,000 First Home Grant for a couple who qualify and the deposit becomes very reachable.
Now, as NZ works it’s way back from the COVID-19 lock-down, the economic projections are suggesting a fall in house prices for perhaps six months (ASB economist Mike Jones) before a possible strong rebound after this “… low interest rates are expected to have a “cushioning effect” on the market and would be the “starting point of strong excess demand.” While nobody has a perfect crystal ball, the indicators are that now is a good time to be thinking about getting into a home of your own and starting again.
These changes along with today’s low interest rates on offer have improved your ability to own your own home. It is a great time for first home buyers to look at a mortgage pre-approval and be ready to get into their first home, contact us now for a free no obligation discussion. Have your questions answered, don’t miss this one!