The HomeStart scheme has helped 128 first-time buyers with grants worth $659,000 in the Bay of Plenty region this year.

The Government's $435 million HomeStart scheme came to effect on April 1, 2015, replacing the KiwiSaver First Home Deposit Subsidy.

Bay of Plenty MP Todd Muller says now is a good time for families to buy their first home.

Under the scheme, couples are can apply for grants of up to $10,000 for a deposit on existing homes and up to $20,000 for new-builds.

'Now is a good time for families to buy a first home. Interest rates are at the lowest level for fifty years and the HomeStart scheme is the most generous support a government has offered for first home buyers in a generation,” says Bay of Plenty MP Todd Muller says.

Within its first year, the scheme has provided $55.6 million to in grants to 11,943 New Zealanders to help them buy their first home.

'The HomeStart scheme is also another good reason for people to join up to KiwiSaver. Under it, a couple each earning $40,000 a year could withdraw up to $29,000 after five years for a house deposit. They can combine that with their HomeStart grant of $10,000 or $20,000.

'I also welcome the government's latest tweaks to HomeStart which will help the scheme work better for second-chance homebuyers. It removes the income cap for people who have previously owned their own home but are struggling to get back into ownership after an event such as a separation or business failure.

'KiwiSaver HomeStart is part of the National-led Government's wide, ongoing programme to improve housing supply and affordability. The overall programme includes freeing up more land for development, measures to help constrain building material costs and compliance costs, and steps to raise the productivity performance of the construction sector.”