LAWRENCE GULLERY Hastings is setting a prime example for other regions when it comes to the number of people suitable and qualifying for the Government's Welcome Home Loan scheme.
The loan is a mortgage insurance scheme which Housing New Zealand underwrites lenders such as banks and building societies to give
home loans to people who had difficulty getting a mortgage under traditional lending criteria.
The loan is designed to help families who can service a loan but are struggling to get into home ownership because they lack a large enough deposit or whose circumstances are complicated.
The scheme enables households to borrow up to $200,000 with no deposit and up to $280,000 with a smaller deposit than would normally be required.
The initiative started in September 2003 and reached 3000 loans by October this year, totalling $441,648,707.
Kiwibank communications manager Bruce Thompson said Hawke's Bay was one of the best areas when it came to the number of people opting to take on the Welcome Home Loan scheme. Kiwibank had approved 248 loans to Hawke's Bay people since the initiative began in 2003. Of those, 114 were from Hastings; 89 from Napier and 45 in the greater Hawke's Bay area.
In total, Kiwibank had loaned $32 million to Bay people. Mr Thompson said the figure was for loans approved by Kiwibank only as there were other banks and lending houses which could also offer the Welcome Home Loan in Hawke's Bay. "The number in Hastings is very high and is one of the strongest areas for the scheme where people are qualifying for the loan and are finding affordable homes.
"In some places, people qualify but can't find a place they can afford. Areas like Hastings have homes that are at a price which is affordable," he said.
Mr Thompson said the loan scheme had worked well in Hastings, Napier, and Palmerston North.
Housing New Zealand figures also suggested Bay of Plenty, 194 loans, Waikato/Coromandel/King Country, 315 loans, were also keen to pick up on the initiative.
