11. RUSSELL FAIRBROTHER (Labour) Link to this
to the Minister of Housing
What changes did the Government recently announce to the Welcome Home Loan scheme, which assists New Zealand families to buy their first home?
Hon CHRIS CARTER (Minister of Housing) Link to this
Changes to the Housing New Zealand Corporation’s Welcome Home Loan scheme from this month will enable eligible families to buy a $200,000 home on no deposit, or a home worth up to $280,000 on a reduced deposit. These changes reflect the Labour-led Government’s commitment to assisting modest and middle income families to purchase their own homes.
Russell Fairbrother Link to this
What reports has the Minister seen on reactions to these changes to the Welcome Home Loan scheme?
I have seen many glowing reports from regional New Zealand, where we expect there will be great take-up of the Welcome Home Loan scheme. For example, Palmerston North mortgage broker Lee Johnson said it was exciting and would give people on the cusp of affording a house an opportunity. I have also seen a bizarre comment accusing the Government of encouraging young people into debt. This was from National’s Phil Heatley, who cannot produce a single case of anyone defaulting on a Welcome Home Loan. Over 1,800 individuals or couples have already taken advantage of the scheme. Does National not support homeownership?
Pita ParaoneTēnā koe, Madam Speaker. Will the Government increase the borrowing and income limits in line with both general and house price inflation, to ensure the Welcome Home Loan scheme remains relevant to the market; if so, how often will the limits be revised?
Our recent adjustment to the scheme reflects our continued monitoring of house prices. We have also announced, of course, that we are looking at new products, like shared equity schemes, to assist people to buy their own homes in a higher-cost housing market.
Phil HeatleyWhen exactly will this Parliament see the details of the Minister’s shared equity scheme, which was first announced in July 2003, announced again in April 2004, then announced again in July 2005 as an election promise of an up to fifty-fifty equity deal, then announced yet again recently, and mentioned today in this House; when will we finally see the details of this silver bullet—now 3 years on?
The Government has not announced a shared equity scheme yet. What we have foreshadowed is that we will be announcing one before the next Budget.
I seek leave to table a range of documents outlining the announcement of the shared equity scheme. One in—
Madam SPEAKERDo members—from both sides of the House—wish to remain in the House? This is your last warning. There are little pockets of members with penetrating voices. So would you please not make any comment during points of order.
I seek leave to table a range of documents announcing the shared equity scheme: one dated July 2003, one dated 2004, another dated 2005, and one dated 2006. We are yet to see the details but I would like to table these announcements.
I seek leave to table an editorial from the Nelson Mail dated Tuesday, 15 August 2006 that states among things: “Welcome Home, then, provides a necessary step up on to the first rung of the home ownership ladder.”
I seek leave to table an article from the Manawatu Standard dated 16 August stating “easier foot in the door for homeowners” about the Government’s announced homeownership scheme.
I seek leave to table an article entitled “Government help for home buyers likely”, which states the home equity scheme announced here in March 2005 will be rolled out in April 2005.
Paula Bennett, I am sorry but I specifically issued a warning about interjections during points of order. Would you please leave the Chamber.
I seek leave to table a document from the Hawke’s Bay Today newspaper dated 15 August praising the Welcome Home Loan scheme, and saying that plenty of $200,000 houses are available in Hawke’s Bay.
I seek leave to table an article from the Greymouth Evening Star dated 15 August praising the home loan scheme, and stating that there are plenty of houses on the West Coast in the price range, and that the home loan scheme will not push up prices.