Lift the First Home Loan income cap to $300,000
Pitched as helping more working New Zealanders into their first home with a 5 percent deposit.
π National: Giving more Kiwis access to 5% first home deposits, September 2026 β
What it does
- The First Home Loan scheme, run by KΔinga Ora with participating banks and lenders, lets eligible buyers purchase with a 5 percent deposit instead of the usual 20 percent.
- National would apply one $300,000 income cap to all applicants, replacing the current caps of $95,000 for single buyers without dependants and $150,000 for couples or single buyers with dependants, which National says have not been updated since 2022.
- Chris Bishop said the average first home buyer's gross income is about $146,000 and that he expects thousands more people to use the scheme. RNZ reported an estimated cost of $4 million to $6 million, funded from existing baselines.
- Lifting the cap is listed in National's 100-day plan.
The debate
Bishop said the deposit is the biggest barrier young people face in getting into the housing market. Labour leader Chris Hipkins called the scheme "good policy" but said National "can't be trusted" with housing because it cut grants for first home buyers (NZ Herald). Labour later announced it would also lift the First Home Loan income cap to $300,000 (Interest.co.nz).
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Key milestones
National pledges wider access to 5 percent deposits
Chris Bishop said a re-elected National Government would extend the First Home Loan income cap to $300,000 for all applicants, saying the current caps of $95,000 and $150,000 shut out many working buyers.
Cost put at $4 million to $6 million
RNZ reported the change would cost $4 million to $6 million from existing baselines, and that 4,000 of last year's 25,000 first home buyers used the scheme. Bishop said he expects thousands more to use it.
Included in National's 100-day plan
National's 100-day plan commits to lifting the First Home Loan income cap to $300,000 so more buyers can purchase with a 5 percent deposit.
Sources
- National: Giving more Kiwis access to 5% first home deposits (policy page) β
- National is backing first home buyers (National Party, 6 Sep 2026) β
- National promises low deposits for more first home buyers (RNZ, 6 Sep 2026) β
- National pledges to make it easier for first-home buyers to get 5% deposits (NZ Herald, 6 Sep 2026) β
- Labour promises rent to buy for state homes, income cap lift for First Home Loan scheme (Interest.co.nz) β
- National's 100 Day Plan to secure our future (National Party, 25 Oct 2026) β