2 Aug 2008

First applicants get shared equity home loans

9:01 am on 2 August 2008

Pre-approval has been given to 28 of the first 58 applicants for the Government's shared equity home loan scheme.

The $35 million scheme gives first home buyers an interest free loan of between 10% and 30% of the cost of a house, to help them get on the housing ladder.

Those who have pre-approval are now able to start looking for a home to buy.

Applicants must have a combined yearly income of between $55,000 and $85,000 and a deposit of at least 5% of the purchase price of the house they intend to buy.

The Government's contribution to deposits will vary by area.

Those buying homes in Queenstown, where houses up to $385,000 in value come under the scheme, could get the highest deposit contribution.

The scheme also operates in Auckland, Nelson, Christchurch and Wellington.