National has unveiled a new election policy aimed at making it easier for first-home buyers to purchase a property with a 5% deposit.
If re-elected, the party would lift the income cap for the government's First Home Loan scheme to $300,000, National housing spokesperson Chris Bishop announced today.
The scheme, administered by Kāinga Ora through participating banks and lenders, allowed eligible first-home buyers to purchase a property with a deposit of as little as 5%, rather than the 20% typically required by lenders.
Currently, single buyers without dependants must earn $95,000 or less to qualify, while the income cap for individual buyers is $150,000.
Bishop said those limits, which had not been updated since 2022, were now excluding many prospective first-home buyers.
"Right now, a junior doctor on $100,000 can't access the scheme. Nor can a young couple, like an electrician on $85,000 and a teacher on $78,000, or two friends who have just graduated from police college and are earning $77,000 each," he said.
Under National's proposal, the income cap would instead be set at $300,000, widening the number of people able to apply for a First Home Loan.
Bishop said the average gross income of first-home buyers was around $146,000, while saving for a deposit remained a major barrier to home ownership.
"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."
National said more than 33,000 households had used the First Home Loan scheme since it began in 2003, including more than 7700 applications approved by Kāinga Ora between July 2025 and April this year.
Bishop said first-home buyers accounted for 29% of all property purchases in July, which he described as the highest monthly share in more than 20 years.
National said the policy formed part of its wider goal of lifting New Zealand's home ownership rate from about 66% to its previous peak of around 74%.
The party has also campaigned on introducing no new taxes, changes to KiwiSaver and paid parental leave, a rates cap and lowering the student loan repayment rate.
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