Labour Party

Helping families into home ownership

10.10.2007

Manukau East MP Ross Robertson said today that the government's major initiative to help first-time buyers into their own home has reached 3000 loans, providing two families a day with the security that comes with home ownership.

The Welcome Home Loan is a mortgage insurance scheme in which Housing New Zealand essentially underwrites private lenders, such as banks and building societies, to give home loans to people who would otherwise have difficulty getting a mortgage under traditional lending criteria.

It is designed to help families who can technically service a loan but are struggling to get into home ownership because they lack a large enough deposit or whose circumstances are complicated. The scheme enables households to borrow up to $200,000 with no deposit, and up to $280,000 with a smaller deposit than would normally be required.

Uptake of the scheme has continued to rise this year with up to 80 families a month benefiting from the scheme.

“In South Auckland 66 loans have been taken up to 30 September 2007, at a total loan value of $12,491,478,” said Ross Robertson.

“I’m delighted the scheme is offering two families a day the opportunities and security home ownership can bring,” he said.