Home Start delivers for 85 first-home buyers

Tuesday, May 3, 2016

Eighty five first home buyers in Thames Coromandel/Hauraki have been helped in the first year of the Government’s Home Start scheme.

“The biggest challenge for young people getting into home ownership is pulling together funds for a deposit,” said Scott Simpson, MP for Coromandel.

“In the Thames Coromandel/Hauraki region it has helped 85 buyers with grants worth $488,000.

The $435 million Home Start scheme, which came into effect on 1 April 2015 to replace the KiwiSaver First Home Deposit Subsidy, has been projected to help 90,000 people over five years. Couples can apply for grants of up to $10,000 for a deposit on an existing home and up to $20,000 for a new-build.

“Now is a good time for families to buy a first home. Interest rates are at the lowest level for fifty years and the Home Start scheme is the most generous support a government has offered for first home buyers in a generation,” said MP Scott Simpson.

“The Home Start scheme is also another good reason for people to join up to KiwiSaver. Under it, a couple each earning $40,000 a year could withdraw up to $29,000 after five years for a house deposit. They can combine that with their HomeStart grant of $10,000 or $20,000.

“I also welcome the government’s latest tweaks to HomeStart which will help the scheme work better for second-chance homebuyers. It removes the income cap for people who have previously owned their own home but are struggling to get back into ownership after an event such as a separation or business failure.

“KiwiSaver HomeStart is part of the National-led Government’s wide, ongoing programme to improve housing supply and affordability. The overall programme includes freeing up more land for development, measures to help constrain building material costs and compliance costs, and steps to raise the productivity performance of the construction sector.”