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The government in New Zealand have changed rules relating to KiwiSaver withdrawal for buying a house in the country. Building and Housing Minister Dr Nick Smith said that the new withdrawal rules will make it easier for second-chance homeowners.
Dr Smith said, “The government is tweaking one aspect of the KiwiSaver home buyer programme in response to feedback in respect of second-chance home owners. The current scheme limits KiwiSaver withdrawals to first home buyers and people who have previously owned property but have low assets and earnings. The asset limit is twenty percent of the house price caps of $550,000, $450,000 and $350,000, and the income limit is $120,000 for a couple and $80,000 for an individual.”
He also said that the income levels are being removed from 2016. This will mean that a second-chance homeowner with small assets will be able to use KiwiSaver funds to buy a home without restrictions linked to the level of income. The change is expected to help many thousands of mid-life, middle-income New Zealanders.
The minister also released the first full year results of the HomeStart scheme showing that a total of 11,943 people benefitted from the scheme and moved into their homes with combined grants of $55.6 million. The number and the value is about double that of the previous scheme in the previous year. Officials said that the $435 million HomeStart scheme came into effect on 1 April 2015 to replace the KiwiSaver First Home Deposit Subsidy. The scheme is expected to help as many as 90,000 people over five years.
