Full Breakdown
National Party Proposes Major Expansion of First Home Loan Scheme
9/6/2026, 1:52:31 AM
Policy Details and Intended Changes
The National Party plans to widen eligibility for the First Home Loan scheme by raising the individual income cap to $300,000 and removing the distinction between single and multiple borrowers. The change would apply uniformly regardless of the number of applicants. National estimates the reform will double the scheme’s size, adding $4-$6 million in annual Crown costs (about $16-$32 million over four years), which it says will be funded from existing baselines. The party frames the adjustment as a response to rising incomes that have outpaced the current caps, which were last updated in 2022.
Background of the First Home Loan Scheme
The programme began as the In-Reach loan in 2003, was rebranded as the First Home Loan in 2019, and is administered by Kainga Ora. Until now, the income ceiling has been $95,000 for a single buyer without dependents and $150,000 for multiple buyers or a single buyer with dependents. The scheme has helped over 33,000 households achieve home ownership, and between July 1 2025 and April 30 2026 more than 7,700 applications were approved.
Data and Projected Impact
National points to an average gross income of first-home buyers of around $146,000, noting that roughly half of buyers now earn above that level. The party’s broader housing goal is to raise home-ownership rates from the current 66 % to a “peak” of about 74 %. The policy is presented alongside other measures such as no new taxes, boosted KiwiSaver contributions, an extended paid-parental-leave entitlement, a rates cap, and a lower student-loan repayment rate.
Official Statements & Responses
National’s housing spokesperson, Bishop, argues that the existing caps are “too restrictive” and have not been updated since 2022, leaving many junior professionals and young couples unable to save a 20 % deposit. He contends that the reforms will “address those pressures” and build on supply-side changes introduced by the current government, which he says have accelerated housing supply.
Verbatim Quotes
- “The scheme’s current income caps are too restrictive and haven’t been updated since 2022,” — Bishop
- “National’s changes will address those pressures and build on the work we have done in Government to support more people into home ownership,” — Bishop
- “National is sending a clear signal to ambitious young Kiwis that we back them to stay in New Zealand and get into a home of their own. It’s all part of our wider plan to fix the basics and build the future,” — Bishop
