the Government has announced a number of changes to the eligibility criteria for the KiwiSaver HomeStart grant and Welcome Home Loans From 1 August 2016.
There are three main changes:
Income caps – the income caps have increased to $85,000 for an individual buyer and to $130,000 for two or more buyers. These amounts are based on income earned in the last 12 months and are before tax.
House price caps – the house price caps have increased by $50,000 to $400,000, $500,000 and $600,000. This set of caps will be used exclusively for those buying existing/older properties. In addition, a new set of caps has been introduced for assessing those buying new properties. These are $450,000, $550,000 and $650,000.
Realisable assets – when assessing a previous home owner's eligibility, the realisable asset test will now be based on the house price cap for the existing/older properties.
A fact sheet that identifies the changes and how they compare to the criteria prior to 1 August 2016 is below.
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