First home Grants – Are you eligible?
Kāinga Ora First Home Grants are financial grants provided by the New Zealand Government to assist first-time homebuyers with additional funds for their initial home deposit. The eligibility criteria were updated in the May 2022 budget, and the following details reflect those changes.
These grants come directly from the NZ Government, specifically from Kāinga Ora, and are separate from your KiwiSaver account. They are in addition to any KiwiSaver First Home Withdrawals.
To be eligible for a First Home Grant, you must:
- be over 18
- have earned less than the income caps in the last 12 months:
- $95,000 for a single buyer without dependents
- $150,000 for a single person with at least one dependent
- $150,000 for couples
- not currently own any property or land, this does not include ownership of Māori land
- have been contributing at least the minimum amount to KiwiSaver (or complying fund or exempt employer scheme) for 3 years or more
- purchase a property that is within the regional house price caps
- agree to live in your new house for at least 6 months.
- have been consistently contributing the minimum required income to a KiwiSaver Scheme, complying fund, or exempt employer scheme for at least three full years.
- buy the property as your primary residence (not for renting) for at least six months from the settlement date for existing properties or when the code of compliance is issued for new builds.
- have a minimum 5% deposit, which can include funds withdrawn from your KiwiSaver, the First Home Grant money, personal savings, or a gift from family, but cannot include a loan from family members or a guarantee.
- also make sure the house or land you want to buy meets the property requirements.
- intend to purchase a property in their own name(s), not through a family trust or shared fund.
If you’ve previously owned a property
If you’ve previously owned property but don’t currently own any, you might still qualify for a First Home Grant. Kāinga Ora will assess whether your financial situation is similar to that of a first-time homebuyer. They consider your realisable assets (cash/savings or items that can be sold for cash) should be less than 20% of the housing cap price for your buying area.
The regional price caps for First Home Grants vary by location to reflect property values. For example, in Auckland, the cap is $875,000 for both existing properties and new builds. Then your realisable assets would need to be less than $175,000 which is 20%.
The amount you receive
The amount you receive depends on your KiwiSaver contribution history and whether you’re purchasing a new build or an existing house. Grants range from a minimum of $3,000 to a maximum of $5,000 for individuals and $10,000 for couples when buying an existing home. For new builds, the grant increases to a minimum of $6,000 and a maximum of $10,000 for individuals and $20,000 for couples.
It’s important to note that the First Home Grant cannot be used to cover the 10% deposit typically required by real estate agents when purchasing a property. You’ll need alternative funds for that.
If you’re buying a property off the plans
A ‘off the plans’ can be a vacant residential section with a fixed-price build contract, a house and land package bought from plans, a new apartment built from plans, or a newly built dwelling with a building code compliance certificate issued less than six months before your application. The grant cannot be used for building on land already owned by the KiwiSaver member.
Applications for the First Home Grant should be made directly to Kāinga Ora and can be completed on their website. If you’re buying a off the plans, it’s advisable to have your solicitor review agreements and contracts before signing.
Supporting Documents
Supporting documents, such as income statements, KiwiSaver contribution records, identification, payslips, sale and purchase agreements, and the fixed-price building contract (if applicable), need to be submitted with your application.
The application process typically takes at least 10 working days for pre-approved applicants and a minimum of 20 working days for those without pre-approval. It’s crucial to factor in these timeframes when negotiating purchase agreements.
To ensure a smooth process, apply for pre-approval, allow sufficient time for finance conditions, and have your property lawyer review the sale and purchase agreement to align with Kāinga Ora’s requirements.
At Convey Law, we promise to be clear and honest with you. We’ll keep you in the loop during the entire process so you can feel confident and safe while you start your journey to becoming a homeowner.
Contact Convey Law today to learn more about how we can help you buy your first home.
House Price Caps are correct as of 15 May 2023 and subject to change.
| Region | Existing properties ($) | New properties ($) |
|---|---|---|
| Far North District | 400,000 | 675,000 |
| Whangārei District | 600,000 | 800,000 |
| Kaipara District | 525,000 | 875,000 |
| Auckland | 875,000 | 875,000 |
| Thames-Coromandel District | 875,000 | 925,000 |
| Hauraki District | 550,000 | 650,000 |
| Matamata-Piako District | 625,000 | 800,000 |
| Hamilton Urban Area (Hamilton City, Waipā District, Waikato District) | 650,000 | 775,000 |
| Ōtorohanga District | 400,000 | 650,000 |
| South Waikato District | 400,000 | 650,000 |
| Waitomo District | 400,000 | 650,000 |
| Taupō District | 575,000 | 825,000 |
| Tauranga Urban Area (Tauranga, Western Bay of Plenty District) | 800,000 | 875,000 |
| Rotorua District | 525,000 | 650,000 |
| Whakatāne District | 500,000 | 800,000 |
| Kawerau District | 400,000 | 650,000 |
| Ōpōtiki District | 400,000 | 650,000 |
| Gisborne District | 450,000 | 650,000 |
| Wairoa District | 400,000 | 650,000 |
| Napier-Hastings (Napier City, Hastings District) | 625,000 | 825,000 |
| Central Hawke’s Bay District | 500,000 | 650,000 |
| New Plymouth District | 525,000 | 675,000 |
| Stratford District | 400,000 | 650,000 |
| South Taranaki District | 400,000 | 650,000 |
| Ruapehu District | 400,000 | 650,000 |
| Whanganui District | 425,000 | 650,000 |
| Rangitikei District | 400,000 | 650,000 |
| Manawatū District | 525,000 | 650,000 |
| Palmerston North City | 575,000 | 700,000 |
| Tararua District | 400,000 | 650,000 |
| Horowhenua District | 525,000 | 650,000 |
| Wairarapa (Masterton District, Carterton District, South Wairarapa District) | 600,000 | 800,000 |
| Wellington Urban Area (Kāpiti Coast District, Upper Hutt City, Porirua City, Lower Hutt City, Wellington City) | 750,000 | 925,000 |
| Nelson-Tasman (Nelson City, Tasman District) | 650,000 | 875,000 |
| Marlborough District | 550,000 | 650,000 |
| Kaikōura District | 700,000 | 700,000 |
| Buller District | 400,000 | 650,000 |
| Grey District | 400,000 | 650,000 |
| Westland District | 400,000 | 650,000 |
| Hurunui District | 425,000 | 650,000 |
| Christchurch Urban Area (Waimakariri District, Christchurch City, Selwyn District) | 575,000 | 775,000 |
| Ashburton District | 400,000 | 650,000 |
| Timaru District | 400,000 | 650,000 |
| Mackenzie District | 500,000 | 650,000 |
| Waimate District | 400,000 | 650,000 |
| Waitaki District | 400,000 | 650,000 |
| Central Otago District | 525,000 | 800,000 |
| Queenstown-Lakes District | 875,000 | 925,000 |
| Dunedin City | 500,000 | 675,000 |
| Clutha District | 400,000 | 650,000 |
| Southland District | 500,000 | 650,000 |
| Gore District | 400,000 | 650,000 |
| Invercargill City | 400,000 | 650,000 |
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