People who have previously owned a home will be able to access their KiwiSaver funds to buy again under changes aimed at assisting so-called 'second chance' buyers who may be coming back from a major setback in their professional or personal lives.
Under the previous rules, an individual who had assets below 20 per cent of the house price cap for an area and who earned below $80,000 a year or $120,000 for a couple could access their KiwiSaver funds, as well as a grant of up to $10,000.
The house price cap is $550,000 for Auckland, $450,000 in major cities, and $350,000 for the rest of New Zealand. Now the Minister for Building and Housing, Nick Smith, has removed the income cap.
He argued it would help those who had a setback in the middle of their lives.
"This change will help many thousands of mid-life, middle-income New Zealanders who have been through a separation or business failure and are struggling to get back into home-ownership by enabling them to access their KiwiSaver funds," he said.
