What are Welcome Home Loans?

Wellington families2

Posted 2 years ago by Pope & Co. Mortgages

The Welcome Home Loan is offered by banks and lenders, supported by Housing New Zealand, and designed for first-home buyers who can afford to make regular repayments on a the loan but have trouble saving for a large deposit.

With a Welcome Home Loan you only need a 10% deposit, not the 20% normally required by lenders.

To be eligible for a Welcome Home Loan your combined household income for the last 12 months must have been $85,000 or less (before tax) if you are the sole borrower. If you are partnering with one or more borrowers to buy a house, then you can have a combined household income up to $130,000 (before tax).

Pope & Co. Mortgages have access to many banks and lenders who offer Welcome Home Loans. They each have subtle differences, so Pope & Co. can help coordinate the best fit.

You can, in selected areas, buy up to $650,000—which requires a deposit of 10% of the purchase price. That deposit can also be gifted. Three or more friends or family members who will be living together can also team up to purchase a home.

You will also need to meet the specific lending criteria of the participating lenders, and applicants must be New Zealand citizens or permanent New Zealand residents (holding a permanent resident visa).

The maximum amount you can borrow with a Welcome Home Loan depends on the region you are buying in, as each has a house-price cap. The maximum loan for each region is the cap less your 10% deposit. 


New Build: Existing House:

Auckland $650,000 $600,000

Hamilton City, Tauranga City, Western Bay of Plenty, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Nelson City, Tasman District, Waimakariri District, Christchurch City, Selwyn District, Queenstown Lakes District

$550,000 $500,000
All other areas

$500,000 $400,000

We also advise that first-home buyers with KiwiSaver accounts may qualify for a KiwiSaver HomeStart Grant of up to $20,000, or make a withdrawal from their KiwiSaver account.

The Welcome Home Loan is only available from selected lenders who have their own specific credit criteria that you will need to meet along with some standard Welcome Home Loan eligibility criteria. Pope & Co. Mortgages can help guide you through which lender might be the best fit for you.

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