7 December 2004

More families now eligible for Kiwibank home loans

More families will be a step closer to home ownership following changes to Kiwibank In Reach home loan eligibility criteria, Housing Minister Steve Maharey said today.

The household income cap for a Kiwibank In Reach home loan will increase from $55,000 to $65,000, effective tomorrow.

Kiwibank In Reach is a two-year pilot programme to improve access to home ownership for low to middle income earners. It is a partnership between Kiwibank and Housing New Zealand Corporation.

Steve Maharey said the income cap adjustment recognises changes in the housing market and the need for people to have greater buying capability, particularly when there are families involved.

“Many households are on joint incomes, with one primary earner and one part-timer, yet they are unable to get finance under standard lending criteria and previously would have earned too much to be eligible for a Kiwibank In Reach home loan," Steve Maharey said.

"These changes will give more working families across New Zealand opportunities to become home owners – that's what it's all about."

Steve Maharey said that although the income cap for Kiwibank home loans had increased, affordability was still the key driver in lending decisions.

“We want people to succeed in home ownership. Loans will only be approved for people who are able to service a loan, have a good credit rating and meet other eligibility criteria. “

To find out more about a Kiwibank In Reach home loan, call 0800 272 278.

ENDS

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