Spring is here!
It’s time to get ready to buy a house.
There have been some changes in the rules for buying a house through the Welcome Home Loan and HomeStart Grant schemes that are run by the government.
The changes effect both First Home Buyers and Second Chance Buyers.
As of the 1st of October 2019, the following changes will apply;
The Welcome Home Loan will now be called the First Home Loan.
The Home Start Grant will now be called the First Home Grant.
Previously, buyers were required to have a minimum of 10% deposit. The new amount will be a minimum of a 5% deposit for new and existing homes.
This can be made up of Kiwisaver funds, personal savings, gifted amounts and the First Home Grant.
ASSET CAPS FOR SECOND CHANCE BUYERS
Previously, clients who wished to apply for a "Second Chance" purchase were asset tested. This meant that there were restrictions on the amount of assets that they could have. In Dunedin this cap was set at $80,000.
The changes made to this scheme is that there will be NO asset testing for these clients.
These changes couldn't have come at a better time. Spring is upon us and this is our busiest time of year.
If you would like to discuss your home buying options, please contact Tim on 021 0295 6499 to arrange a free, no obligation chat.