National is promising to help more people buy their first home by expanding access to the government's low-deposit scheme, if it's re-elected.

The existing First Home Loan scheme run by Kāinga Ora allows buyers to purchase their first home with a 5% deposit, rather than 20%, which most banks require.

If elected, National would increase the income threshold so anyone earning less than $300,000 combined could access it - whether that was single income or combined income.

Housing spokesperson Chris Bishop said getting a deposit was a major constraint on home ownership.

The scheme's current cap of $95,000 for single buyers with no dependents, or $150,000 for multiple buyers or single buyers with dependents, was too restrictive, he said.

"Right now, a junior doctor on $100,000 can't access the scheme. Nor can a young couple, like an electrician on $85,000 and a teacher on $78,000, or two friends who have just graduated from police college and are earning $77,000 each," he said.

Around half of first-home buyers earned more than $146,000, said Bishop.

"So, while a combined income of $150,000 might sound like a lot of money, the reality is that plenty of young couples now earn more than that but still struggle to save for a 20% deposit while juggling the cost of rent, food, and childcare.

"National's changes will address those pressures and build on the work we have done in government to support more people into home ownership."

The loans are issued by some banks and other lenders, and underwritten by Kāinga Ora, allowing lenders to provide loans it otherwise would not.

Bishop said National intends to boost home ownership rate to 74%, up from 66% currently.

The party estimated widening access to the First Home Loan scheme would cost between $4 million and $6m, funded from existing baselines.

The scheme cost $14.5m to administer during FY2024/25 which included the cost of the government subsidising Lenders Mortgage Insurance, it said.

But in Budget 2025, the government substantially reduced its costs by requiring borrowers to meet the full cost of Lenders Mortgage Insurance.