The Welcome Home Loan scheme offers those who traditionally fail to qualify for a mortgage a chance to own their own home. Under the scheme, people could borrow up to $200,000 with no deposit, or borrow up to $280,000 with a small deposit.
The scheme was launched as a pilot programme with Kiwibank in July 2003, with its criteria last altered in 2006. However, Housing New Zealand would not confirm if the thresholds would be widened.
"We cannot comment at this stage,'' Housing New Zealand spokesman Mike Webber said.
The strong uptake in the South was due to two reasons, he said.
"Firstly, housing affordability is greater in this region and, secondly, the strength of the Welcome Home lenders in the region.''
From its inception until March 31, 2008, 3341 Welcome Home Loans had been approved.
Southland had the largest uptake in the country with 499, followed by Otago with 226. The average loan size in Southland was $123,096 and $158,782 in Otago, compared with the national average of $148,903.
Of the 3341 loans, only three claims had been made from lenders to Housing New Zealand. No mortgagee sales were from Otago or Southland.
There was no Welcome Home Loan uptake in the Queenstown area because of the "prevailing house prices'', he said.
In 2007, Housing New Zealand assisted the Queenstown Lakes District Council in establishing the Queenstown Lakes Community Housing Trust to address the issue of housing affordability in the region.
The pilot programme, Shared Ownership, has so far had an uptake of 10 households from Queenstown and other parts of Otago.
Welcome Home Loan Scheme Uptake (March 31, 2008)
- Dunedin City 167
- Central Otago District 6
- Clutha District 25
- Queenstown Lakes District 0
- Waitaki District 28
- Invercargill City 378
- Southland District 46
- Gore District 75
