A Labour government will provide more help for first home buyers in a third term, Housing Minister Steve Maharey announced today.
'Labour in government will introduce an Equity Share Scheme and increase the number of low-interest loans and grants available through the Housing Innovation Fund,' Steve Maharey said. 'This will build on the substantial help for first-home buyers already announced in the budget.' Steve Maharey said equity share schemes - where government provides a portion of the purchase price as an equity contribution - were an innovative way to help to help low and middle-income households into their first home.
'Both Housing New Zealand and the purchaser will have an equity stake in the home, meaning a first home becomes more affordable for low income families. The purchaser is required to repay Housing New Zealand's share if they sell or move out of the property.
'Equity Share works best in areas where there is high growth in property prices and strong demand for housing. A similar scheme in the UK has been hugely successful in helping families to own their own home.'
'The scheme will complement existing home loan assistance such as Welcome Home loans and will work alongside KiwiSaver when it kicks in. It will be especially helpful for households trying to buy in higher priced areas, such as Auckland.' The Housing Innovation Fund encourages third sector group and local government to increase their involvement in providing rental housing and home ownership opportunities to low-income earners and those with special needs.
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