First Home Loan plan wins adviser support ahead of Saturday’s vote
Mortgage and financial advisers have welcomed plans from both major parties to widen access to First Home Loans, while one industry leader expects the property market to adapt over time to Labour’s proposed capital gains tax, as New Zealand heads to the polls on 7 November 2026.
With official results not due until 27 November, and the housing policies of a fragmented government still uncertain, the proposals on the table could change how advisers support both first-home buyers and investors.
The election is already weighing on activity, with a net 36% of agents in independent economist Tony Alexander’s New Zealand Home Loans (NZHL) Property Report saying prices are falling as buyers wait out the vote.
Deposits and income caps in focus
Cameron Marcroft (pictured left), director and senior financial adviser at Loan Market, said widening the First Home Loan scheme would help younger working professionals start their property journey earlier, noting the current $150,000 income cap for two people is very hard to meet in Auckland. He named the scheme as the policy many in the industry are most looking forward to. “I am glad that both parties support this,” he said.
Labour has pledged to lift the First Home Loan income cap to $300,000 and bring more banks into the scheme, matching National’s proposed cap.
Nick Hakes (pictured centre), chief executive of Financial Advice New Zealand, said the higher income cap could offer a more realistic path into homeownership, particularly in regions where prices remain a barrier, provided enough housing supply sits behind it to avoid adding pressure on prices.
Bruce Patten (pictured right), chief executive and managing director of New Zealand Financial Services Group (NZFSG), also welcomed the plan. He said first-home buyers already account for about 29% of the market, and wider access could bring more of them in, though it might push some prices higher.
First-home buyers remain the main source of demand, with a net 30% of agents in the NZHL survey reporting more of them.
Capital gains tax: early impact, longer-term adjustment
Labour proposes a 28% tax on investment property gains from 1 July 2027, with the family home and farms exempt. ASB’s 2026 election guide notes Labour would also keep landlord interest deductibility, and that the tax would cover commercial property.
Patten expects the tax to affect advisers, investors, and the wider market at first, but said markets overseas with similar taxes have adjusted over time. Once introduced, he believes the regime is unlikely to change again.
That adjustment may already be under way, with agents in the NZHL survey reporting fewer investors by a net 47%.
Hakes said managing capital gains has long been part of advice in jurisdictions such as Australia, and the detail of how a New Zealand regime works in practice would be critical. With Labour indicating that shares, KiwiSaver, and other financial investments would sit outside the tax, he said investors may reconsider how they allocate capital across asset classes.
Supply, rates, and what advisers want next
On housing supply, Patten was sceptical of both National’s planning reform and Labour’s pledge of 6,000 additional state houses. “Politicians always make promises but rarely do they come through with a result,” he said. Hakes said the impact would vary by region, as some areas see softer rents and more townhouses while others still face affordability challenges.
The parties also differ on the Reserve Bank of New Zealand’s (RBNZ) mandate, a debate that comes after the RBNZ held the official cash rate at 2.75% on 28 October in a 4–3 vote. National would keep the bank’s sole focus on inflation, while Labour would restore a dual mandate including employment.
Patten said a dual mandate tends to add uncertainty to monetary policy, while a single mandate usually brings more aggressive moves, causing short-term pain in exchange for longer-term stability.
ASB doesn’t expect either approach to change how the bank operates much in practice, though it warned a dual mandate could lead investors to expect a softer stance on inflation, pushing up longer-term rates.
Hakes said the mandate was a matter for elected governments. “Good financial advice is not built around predicting short-term interest rate movements,” he said.
Looking beyond the vote, Patten said the most popular outcome would be lower interest rates through a more stable market. Hakes said Financial Advice New Zealand’s main request of any incoming government is recognition of the role advisers play.
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