Two families a day now helped into home ownership

Major milestone reached of 3000 families taking up Welcome Home Loans.

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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, Housing Minister Chris Carter said on a visit to Christchurch today.

"I am delighted today to announce that Christchurch couple Richard Jenkins and Korina Rangihuna are the 3000th borrowers to benefit from the Welcome Home Loan scheme since its introduction" Mr Carter said. "This is a fantastic result in what is a very difficult market for first-time home buyers."

Korina and Richard have bought a home in Linwood, Christchurch, using a $265,000 Welcome Home Loan which they were able to top up with a gift.

Korina said: "This is a fantastic opportunity for us. We were struggling to get banks to lend to us, but we persevered with our dream and thanks to the Welcome Home Loan, it's paid off."

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.

The Welcome Home Loan scheme is having a big impact in helping first-time buyers in provincial areas in particular. There has been a significant uptake of the scheme in the Manawatu, Taranaki, Wairarapa, Waikato, King Country and the South Island.

"I'm delighted the scheme is offering two families a day the opportunities and security home ownership can bring," Mr Carter said.