Kiwibank to work with Government on home ownership scheme
The Minister of Housing Steve Maharey has announced a two-year Government initiative with Kiwibank to make access to home ownership easier for low and modest income earners.
From September 2003, individuals or couples who earn up to $50,000 a year, or up to $100,000 if there are more than two main sources of household income, maybe able to get a home loan. They'll also need a good credit history and be able to afford repayments.
Mr Maharey said those who qualify won't need a deposit if buying a house up to $100,000, and only a 5% deposit if buying a house over $100,000.
"This is possible because we've developed and are funding an insurance policy to the value of $5.3 million as part of this trial, to allow Kiwibank to approve home loans for these people."
"For many people, such as Housing New Zealand Corporation tenants paying market rent, home ownership is only just out of reach," he said.
"Either their income is just slightly too low, or they aren't able to save a deposit. Yet once in a house they would be able to manage the repayments and keep a reasonable standard of living.
"The business partnership with Kiwibank aims to make access to home ownership easier for these people," Mr Maharey said.
The trial starts in September 2003 and will run for two years.
For further information visit the Housing New Zealand Corporation website or contact:
Kiwibank Communications Manager
(04) 460 6831