Q My partner and I are hoping to buy our first home this year, using our KiwiSaver. We've been in KiwiSaver for seven years and have about $90,000 between us. We live in Tauranga. What help is there for people in our situation?
A Government policy is generally in favour of home ownership as it has benefits for society at large.
Home ownership allows people to raise their standard of living by improving their home; it is associated with higher wealth as, unlike renting, mortgage payments are a form of saving.
Home ownership also protects against rent inflation for those, like retired folk, on fixed incomes, and it may also provide a source of equity that can be drawn on in an emergency. A high level of home ownership also creates more stable communities as people are less inclined to move.
For these reasons it is important for the government to have tools such as the First Home Grant, the First Home Loan and the Kāinga Whenua First Loan Scheme all of which are aimed at encouraging and increasing home ownership.
With your KiwiSaver history, you may be eligible for the First Home Grant which is managed by Kāinga Ora (formerly Housing New Zealand). An eligible KiwiSaver member can get $1000 for each year that they have paid into KiwiSaver, up to a maximum of $5000, and up to $10,000 for a new build. To be eligible as a couple your combined income must be less than $150,000 per annum.