Government announces changes to KiwiBuild

 Changes to the KiwiBuild price caps

The income cap for multiple buyers has increased from $180,000 to $200,000.

• This opens the KiwiBuild programme up to more prospective first home buyers and acknowledges the higher cost of KiwiBuild homes – particularly those with three or more bedrooms.

A new income cap category has been introduced for ‘individual buyers with dependents’, with an income cap of $150,000.

• This new category recognises that individual buyers with dependents may need to purchase a KiwiBuild home with more bedrooms, which requires a higher income to afford.

• A person who has dependents has the responsibility for part-time or full-time care of a child/children or other dependents. In most cases dependents will be children, but this definition applies equally to dependent adults in the household.

The definition of an eligible KiwiBuild buyer will revert to “first home buyers” and “second chancers” (someone who has previously owned a home and meets the KiwiBuild eligibility criteria)

• As part of the economic response to COVID-19, the Government temporarily expanded the definition of KiwiBuild eligibility to include existing homeowners who sought to relocate due to COVID-19, or were selling their home to purchase a KiwiBuild home (provided that at the end of the transaction they only own one home). This will now revert to the original definition, to focus on first home buyers.

What do these changes mean for first home buyers? 

The changes are intended to encourage the delivery of more KiwiBuild homes and provide greater opportunities for first home buyers to achieve home ownership.