As well as having a 10% deposit, you need to meet certain criteria including an income cap and regional house price cap. You will also need to meet the speciﬁc lending criteria of the participating lender you choose.
The criteria are listed below along with an easy guide to check at a glance if you are eligible to apply.
Below is a quick guide with the minimum criteria you need to meet to be eligible to apply for the welcome home loan.
You can have a maximum yearly income of up to $85,000 (before tax) for 1 person. Or a combined maximum yearly income of $130,000 (before tax) for 2 or more people.
You will need a minimum 10% of the purchase price of the house you are wishing to buy.
House price cap
The price of the house you are buying with a Welcome Home Loan must be less than the regional house price cap.
New Zealand citizen
You are a New Zealand citizen or permanent New Zealand resident.
To be eligible for a Welcome Home Loan your 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 teaming up with one or more borrowers to buy a house, then you can have a combined household income up to $130,000 (before tax) in the last 12 months.
In addition to meeting the governments criteria for a Welcome Home loan, you will also need to meet the lending criteria of your bank or credit union before your loan can be made.
Participating lenders may have slightly different lending criteria but they will include your financial ability to repay the loan, your level of debt, your credit history and the way you’ve conducted your bank accounts in the past.
Some participating lenders allow you to build a new house with a Welcome Home Loan. Please ask your preferred lender if they do and what their criteria is.
The maximum amount you can borrow with a Welcome Home Loan depends on the region you are buying in. Each region has a house price cap. The maximum loan for that region is the house price cap less your 10% deposit.
House price cap for existing/older properties
House price cap for new properties
|Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Tasman District, Nelson City, Waimakariri District, Christchurch City, Selwyn District, Queenstown Lakes District||$500,000||$550,000|
|Rest of New Zealand||$400,000||$450,000|
From the list of Welcome Home Loan lenders shown on the lenders page, select the lender that you would prefer to work with, then talk to them about Welcome Home Loan and your circumstances.
Whilst Housing New Zealand sets the eligibility criteria, it is the lender that assesses Welcome Home Loan applications, and makes their lending decision.