New Zealand’s ruling National Party pledged to widen access to low-deposit mortgages for first-home buyers if it wins November’s election. National would raise the income ceiling for the First Home Loan program to NZ$300,000 ($176,000) for all applicants, the party’s housing spokesperson Chris Bishop said in a statement. The initiative lets eligible buyers purchase a property with a deposit as low as 5%, compared with the 20% typically required by lenders.

The proposal could bring more buyers into a housing market battered by a prolonged downturn and high borrowing costs, while handing National a voter-friendly pitch on affordability. The current income cap to participate is NZ$150,000 for a combined income, which is too restrictive, Bishop said. Meanwhile, the cap is set at NZ$95,000 for a single buyer without dependents.

More than 7,700 First Home Loan applications were approved between July 2025 and April 30, according to Bishop. New buyers accounted for almost 30% of property purchases in July, their highest monthly share in more than two decades. Home prices fell to their lowest level in more than three years in August, data released last week showed.

The Reserve Bank of New Zealand raised interest rates for a second straight meeting last week as it sought to contain inflation.