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Greens come up with home deposit plan

NZ Newswire logoNZ Newswire 24/11/2016

The Greens want people with student loans to be able to defer payments while they save for a deposit on a home.

MP Gareth Hughes says many young people struggle to raise a deposit.

Under his scheme, anyone earning over the repayment threshold of $19,000 could defer part or all of their mandatory 12 per cent student loan repayment and put it into a first home savings account.

"Combined with KiwiSaver, this would make a huge difference for young people who are struggling with low wage growth and rapidly rising house prices, " he said on Friday.

"For example, a bachelor's graduate on a median wage could save $18,000 over five years."

Mr Hughes has drafted a member's bill that would put the scheme in place.

It will go into the ballot.

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