KiwiBuild has been accused of normalising high debt and giving first-home buyers an unrealistic and false sense of security by focusing on low interest rates in marketing material for its housing scheme.

But a spokesman for Housing Minister Phil Twyford said the $500,000 home-loan figure it used and the example of how much people could save with lower interest rates was designed to be illustrative only.

An email sent on Tuesday to the 50,000 people who have registered an interest in KiwiBuild said interest rates were falling, making a KiwiBuild home "even more affordable".

"Interest rates are at their lowest