Changes to First Home Buyer Subsidy (18th August 2013)

The Government has announced changes to the Kiwisaver Deposit Subsidy that will come into effect on 1st October 2013. The changes include new house price caps, new income caps, and a 10% deposit is now required to access the subsidy.

The changes are as follows:-

  • Auckland's house price cap will be $485,000
  • Wellington City and Queenstown house cap will be $425,000
  • Christchurch City and Selwyn district house cap will be $400,000
  • House cap for Thames/Coromandel, Waimakariri, Hamilton City, Western Bay of Plenty, Hutt City (Lower Hutt), Upper Hutt, Kapiti Coast, Tasman/Nelson, Tauranga City and Porirua City will be $350,000
  • For the rest of New Zealand, the house price cap will be $300,000
  • Applicants will need to have a deposit that is 10% or more of the purchase price. ┬áThe 10% deposit includes the money you can withdraw through the Kiwisaver savings withdrawal feature, the deposit subsidy amount you may be eligible for, plus any other funds, such as savings, term deposits, or funds already paid to the real estate agent
  • Income caps will change to a new 2-tier system of $80,000 for one buyer and $120,000 for two or more buyers.
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