Buying first home is now easier

A change to the KiwiSaver rules will make saving for a first home considerably easier, says Minister of Housing Phil Heatley.

From April 1, the amount employees will have to save to qualify for the KiwiSaver first home subsidy will drop from 4 per cent to 2 per cent of their pay. For non-employees - including the self employed, beneficiaries and others out of the workforce - the same principle will apply. Mr Heatley said more detail would be announced before April 1.

The subsidy ranges from $3000 to $5000. For a couple, it's $6000 to $10,000.

The change is in line with the reduction of the minimum KiwiSaver employee contribution from 4 per cent to 2 per cent of pay from April 1. But the Government only decided yesterday to drop the contribution requirement for the first home subsidy.

To read the full NZ Herald story click here

Posted: 11 Mar 2009

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