Wellington, Nov 23 NZPA - The Government has raised the limit on the amount first home buyers in high priced areas can borrow under the Welcome Home mortgage insurance scheme.

Housing Minister Phil Heatley said that from today the maximum had been raised from $280,000 to $350,000 because of the changing market and the need to help first home buyers in areas like Auckland and Wellington.

Under the scheme, selected banks and credit unions issue loans and Housing New Zealand insures them.

It was introduced in 2003 and up to October this year 5402 loans had been settled, representing home finance of $910.6 million.