National is backing first home buyers
A re-elected National Government will back more first home buyers by widening access to 5 per cent deposits under the Government’s First Home Loan scheme, National’s Housing spokesperson Chris Bishop says.
“First home buyers are dominating the housing market under the National-led Government. In July this year, first home buyers made up 29 per cent of all purchases – the highest monthly share in more than 20 years.
“But getting a deposit for a first home is still a major constraint on home ownership, with most banks and lending providers requiring a minimum 20 per cent deposit.
“That’s why National will widen access to 5 per cent deposits by extending the income cap under the First Home Loan scheme to $300,000. Alongside our promise of no new taxes, this will help more New Zealanders buy their first home
“The First Home Loan scheme, administered by Kāinga Ora with participating banks and lenders, makes it easier for first home buyers to get into a home of their own by only requiring a 5 per cent deposit, rather than the standard 20 per cent.
“Since its inception in 2003, the scheme has supported over 33,000 households into home ownership, with Kāinga Ora approving more than 7,700 new First Home Loan applications between 1 July 2025 and 30 April 2026.
“However, the scheme’s current income caps are too restrictive and haven’t been updated since 2022. Single buyers with no dependents must earn $95,000 or less to be eligible, while multiple buyers combined or single buyers with dependents must earn $150,000 or less.
“So, right now, a junior doctor on $100,000 can't access the scheme. Nor can a young couple, like an electrician on $85,000 and a teacher on $78,000, or two friends who have just graduated from police college and are earning $77,000 each.
“The average gross income of first home buyers is around $146,000. That means around half of first home buyers earn over $146,000 now.
“So, while a combined income of $150,000 might sound like a lot of money, the reality is that plenty of young couples now earn more than that but still struggle to save for a 20 per cent deposit while juggling the cost of rent, food, and childcare.
“National’s changes will address those pressures and build on the work we have done in Government to support more people into home ownership.
“For three decades, a jungle of red tape constrained the supply of new homes, pushing rents higher and putting the dream of home ownership out of reach for tens of thousands of Kiwis. But for the first time in a generation, that’s changing.
“Our Government’s reforms have accelerated this success by enabling greater housing supply. We want to continue the momentum, with a vision of returning to peak home ownership rates of around 74 per cent, up from 66 per cent currently.
“National’s Backing First Home Buyers policy will support that vision, alongside a suite of other policies to help Kiwis get ahead. That includes introducing no new taxes, boosting KiwiSaver, extending paid parental leave, implementing a rates cap, and lowering the student loan repayment rate.
“National is sending a clear signal to ambitious young Kiwis that we back them to stay in New Zealand and get into a home of their own. It’s all part of our wider plan to fix the basics and build the future.”
Backing First Home Buyers PLAN
