New Zealand's First Home Loan lets eligible first-home buyers borrow with a 5 percent deposit instead of the usual 20 percent, with Kāinga Ora underwriting the risk. National and Labour have both pledged to lift the income eligibility cap to $300,000 if they lead the next government after Saturday's election.
These are campaign pledges, not law. Banks would still assess whether you can afford the repayments.
How the scheme works now
Under the current First Home Loan, buyers who meet the rules can put down 5 percent. RNZ, citing Housing Minister Chris Bishop, reported the income caps last updated in 2022:
- $95,000 for a single buyer with no dependents
- $150,000 for multiple buyers, or a single buyer with dependents
About 4,000 of the 25,000 first-home buyers who purchased last year used the scheme, according to figures cited with National's announcement.
What National pledges
RNZ reported in September that National, if re-elected, would lift access so anyone earning less than $300,000 combined could use the low-deposit loan. National estimated the fiscal cost at $4–6 million from baselines.
National also says it wants home ownership to rise from 66 percent to 74 percent. That is a long-term goal, not a guarantee for any individual buyer.
What Labour pledges
Labour's election housing page says it would lift the income eligibility cap to $300,000, keep the 5 percent deposit, and bring more banks into the scheme.
Labour also pledges First Home Loans for rent-to-buy purchases. For eligible working Kāinga Ora and community housing tenants, Labour says $100 a week ($5,200 a year) would be credited to a deposit held in trust. Tenants would buy at an independent valuation. Labour says that for every public home sold, Kāinga Ora would build three more, and that it would deliver 1,500 or more community housing places a year.
The Post has reported both major parties matching the $300,000 income-cap figure.
What does not change
Even if Parliament later lifts the income cap, lenders still check your income, debts, deposit and the property. A higher income limit does not mean automatic approval.
Mortgage pricing still matters. Current fixed and floating rates are covered in our November 2026 mortgage rate round-up. First-home buyers already make up a large share of recent purchases — we reported that in first-home buyers' record share in October 2026.
Election day is Saturday 7 November 2026. Check Kāinga Ora and your bank for the rules that apply today, not the campaign brochure.
Sources: Labour Party, Buy your first home election policy page; RNZ, National promises wider access to low-deposit home loans if re-elected (6 September 2026); The Post coverage of both parties' $300,000 income-cap pledges.
