Mortgage Brokers Stunned as Government Cancels First Home Grant: Impact on Buyers

Date Published: 24 May 2024

Key Facts

• The New Zealand government has eliminated the First Home Grant, surprising most prospective homeowners.
• Mortgage brokers are now facing a rise in customer inquisitions following this unexpected development.
• The First Home Grant was a popular initiative that provided eligible first home buyers with up to $10,000 for a couple buying a new home or up to $5,000 for an existing home.
• This change is a part of the government’s new housing package aimed at cooling New Zealand’s boiling housing market.
• Mortgage brokers are advising prospective homebuyers to stay calm and explore other financing options available.

Article Summary

The recent unexpected elimination of the First Home Grant by the New Zealand government has led to a surge in inquiries for mortgage brokers. The First Home Grant helped many first-time homeowners by offering up to $10,000 for couples purchasing a new home or $5,000 for an existing home. This shift has resulted in bewilderment among potential homeowners, catching many by surprise.

The government’s abrupt action is a part of a larger housing package intended to address and dampen the overheated housing market in New Zealand. The goal is to curtail skyrocketing property prices and promote a more equitable distribution of housing wealth.

In response to rising client queries, mortgage brokers are trying to alleviate concerns by advising customers to stay patient and explore other available financing options. While the removal of the grant is a setback, brokers stress that other avenues still exist to support first-home buyers in their pursuit of homeownership.

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