National’s proposed first-home buyer policy

If re-elected, National is promising to lower the first-home buyer deposit to five per cent under the government’s First Home Loan scheme, which it says will help more young Kiwis onto the property ladder.

Announced just yesterday, National’s housing spokesperson Chris Bishop says the policy is in line with the party’s goal of increasing home-ownership rates to around 74 per cent, up from the 66 per cent it currently sits at.

“In July this year, first home buyers made up 29 per cent of all purchases – the highest monthly share in more than 20 years,” Bishop says.

“But getting a deposit for a first home is still a major constraint on home ownership, with most banks and lending providers requiring a minimum 20 per cent deposit.”

Bishop says National will widen access to five per cent deposits by extending the income cap under the First Home Loan scheme to $300,000.

“The First Home Loan scheme, administered by Kāinga Ora with participating banks and lenders, makes it easier for first home buyers to get into a home of their own by only requiring a 5 per cent deposit, rather than the standard 20 per cent,” he says.

The scheme has so far supported over 33000 households into home ownership, Bishop says, with Kāinga Ora approving more than 7700 new First Home Loan applications between 1 July 2025 and 30 April 2026.

But the scheme’s current income caps are too restrictive and have not been updated since 2022, Bishop says.

“Single buyers with no dependents must earn $95000 or less to be eligible, while multiple buyers combined or single buyers with dependents must earn $150,000 or less.

“The average gross income of first home buyers is around $146,000. That means around half of first home buyers earn over $146,000 now.

“So, while a combined income of $150,000 might sound like a lot of money, the reality is that plenty of young couples now earn more than that but still struggle to save for a 20 per cent deposit while juggling the cost of rent, food, and childcare,” Bishop says.

As the election campaign ramps up and parties announce new policies, National says its plan to help more Kiwis into home ownership is part of its broader plan to fix the basics and build the future.