That can be painful if you've already signed the sale and purchase agreement.
Here are some tips to help you avoid some common (and not so common) pitfalls:
■You must be a first home buyer or in the same position financially as a first home buyer. See Tinyurl.com/secondtimebuyers
■HomeStart is usually paid out on settlement and won't be paid out if settlement has already occurred. Housing New Zealand requires at least 20 working days to process the application.
■You can't use KiwiSaver money to buy an investment property.
■The HomeStart grant has income caps of $85,000 for one person or $130,000 for two or more people. Previous home owners only qualify if they have realisable assets of less than $120,000 in Auckland and between $80,000 and $100,000 elsewhere.
■There is a price cap on the HomeStart grant. In Auckland the maximum is $600,000 for existing properties and $650,000 for new homes. Elsewhere in New Zealand the grant ranges from $400,000 to $550,000. There are plenty of decent homes for far less than this in many regional areas or on the outskirts of Auckland.
■If you're having a first home built for you, the grant may be paid prior to settlement, but the money will be held in trust or escrow until settlement.
■A "new home" is one that received its building code compliance certificate less than six months before the grant application date.
■You must apply to your KiwiSaver provider for first home withdrawals, not Housing New Zealand.
■You can't withdraw the government's $1000 kick start nor any annual tax credits you've received.
Anyone who plans to use their KiwiSaver money for their first home should check out hnzc.co.nz to see the latest rules and to also sign up a mortgage broker and lawyer early.
