First Home Buyers
From saving your deposit to signing on settlement day — everything you need to know about buying your first home in New Zealand, explained clearly.
In this guide
In New Zealand, most lenders require a minimum 20% deposit for an owner-occupied property — meaning you need at least $120,000 for a $600,000 home. This is driven by Reserve Bank of New Zealand (RBNZ) loan-to-value ratio (LVR) restrictions, which limit how much banks can lend at high LVRs.
You can still buy with less than 20% — some lenders can lend up to 90% of the property's value (10% deposit) — but your options narrow and you'll likely pay a low-equity premium (an extra interest rate margin) until you build up equity.
The most straightforward source. Banks want to see genuine savings — typically 3–6 months of demonstrated saving behaviour in your bank statements. A pattern of regular savings is more important than just having a lump sum appear.
If you've been a KiwiSaver member for 3 or more years, you can withdraw most of your KiwiSaver balance (minus a small residual amount) to put towards your first home deposit. There's no upper limit on the amount you can withdraw.
The First Home Grant was permanently closed on 22 May 2024 and is no longer available. No applications are accepted. Focus on the KiwiSaver withdrawal and First Home Loan options below instead.
Family members can gift funds towards your deposit (the bank will ask for a letter confirming it's a gift, not a loan). Family can also act as guarantors — using equity in their own property to support your borrowing — though this has implications for them if you can't service the loan.
Knowing what you can borrow is just as important as knowing what you have saved. Banks assess your borrowing capacity based on your income, expenses, existing debts, and the stress-tested repayments on the new loan.
Banks use a debt-to-income (DTI) assessment combined with a stress-tested interest rate — typically 1–3% above the current lending rate — to ensure you can still service the loan if rates rise. They look at:
As a rough guide, most lenders will lend up to 5–6x your gross annual household income — but this varies significantly by lender and your specific circumstances.
New Zealand has several government schemes to help first home buyers into the market. Eligibility rules apply to all of them — we'll check which you qualify for as part of our process.
The First Home Grant was permanently closed by the Government on 22 May 2024 and is no longer available. No new applications are accepted. The two remaining schemes below are still fully active.
Withdraw most of your KiwiSaver balance (after 3+ years) to use as part of your deposit. No dollar limit — whatever you've accumulated can be used (minus a small residual required to remain).
Must be your main home. Cannot be used for investment properties.
A government-backed scheme that allows eligible buyers to borrow with as little as a 5% deposit — even though banks are usually restricted from lending at this LVR. Participating lenders include most major banks.
Income and property price caps apply. Must be a new-to-homeownership buyer.
Kāinga Ora (Housing NZ) can co-purchase a share of your home, reducing the amount you need to borrow. You buy their share back over time as your equity grows.
Strict eligibility criteria. Not available in all regions. We can check if you're eligible.
Pre-approval (sometimes called approval in principle or conditional approval) is a conditional commitment from a lender that they'll lend you up to a certain amount — subject to finding a suitable property. It's not a guarantee of lending, but it's an essential tool before you start seriously house hunting.
Pre-approvals are typically valid for 60–90 days and can be renewed. We'll manage the application for you across multiple lenders to find the best fit.
With pre-approval in hand, you can search for property with a clear and confident budget. New Zealand's property market can move fast — particularly in Auckland and Wellington — so it pays to be prepared before you start looking.
Always get an independent building inspection before purchasing — especially for older homes. A qualified inspector will check for structural issues, leaks, weather-tightness problems, electrical and plumbing, and more. Typically costs $500–$900 but can save you tens of thousands.
A Land Information Memorandum (LIM) from the local council includes information about the property's consenting history, rates, zoning, and any known hazards. Costs $200–$400 and is essential reading before you commit to a purchase.
Your bank may require a registered valuation to confirm the purchase price is in line with market value. This is particularly common for unique properties or when borrowing at higher LVRs. Typically costs $700–$1,200.
Your solicitor will search the property title to check for any encumbrances, covenants, easements, or caveats that could affect your use or ownership of the property. Budget $1,500–$2,500 for full legal conveyancing costs.
In New Zealand, properties are sold either by negotiation, tender, or auction. How you make an offer — and what conditions you include — depends on the sale method.
You make a written offer via a Sale and Purchase Agreement (S&P). This typically includes conditions such as finance approval, building inspection, and LIM approval — usually with a 5–15 working day period to satisfy them. If conditions aren't met, you can walk away without penalty.
You submit a confidential offer by a set deadline, usually unconditional or with limited conditions. You don't know what others are offering. If yours is accepted, you're committed. Tenders suit buyers who have their finance and due diligence sorted in advance.
Bidding is done in public on auction day. The winning bidder signs an unconditional S&P immediately. This means you must have your building inspection, LIM, and formal finance approval sorted before you bid — not after. Pre-approval is essential for auction buying.
Once your conditions are satisfied (finance, building inspection, LIM), you go unconditional — meaning you're legally committed to buying the property. The clock is now counting down to settlement day.
Settlement typically occurs 4–8 weeks after going unconditional, though it can be longer for new builds. The exact date is agreed in your S&P. We coordinate with your lender throughout so funds are ready on the day — delays in lending can cause settlement delays with legal and financial consequences, so we stay on top of every step.
The purchase price is just one number. First home buyers often underestimate the additional costs of buying. Budget for these on top of your deposit:
As a general rule, set aside 1–2% of the purchase price for purchase-related costs on top of your deposit.
Your lender will require home insurance from settlement day — without it, they won't release the funds. But insurance also protects you and your family beyond the building itself.
Protects the physical structure and your belongings inside it. Required by your lender as a condition of your mortgage. Get this sorted before settlement day — you don't want to be scrambling on the day.
If you die or become seriously ill, life insurance ensures your mortgage can be repaid and your family isn't left with debt they can't service. Taking on a mortgage without reviewing your life cover is a risk most people don't think about until it's too late.
If illness or injury stops you from working, income protection pays a portion of your income — so you can continue to meet your mortgage repayments. Especially important for single-income households or self-employed buyers.
A more specific form of protection that pays your mortgage directly if you're unable to work due to illness, injury, or redundancy. Some lenders offer this — but adviser-placed policies are typically more comprehensive.
As part of our process, we review your insurance position alongside your mortgage — not as an afterthought, but as an integral part of protecting your new home. Learn more about personal insurance →
This guide is general in nature and is not financial advice. Eligibility criteria, government scheme rules, rates, and lender policies change regularly. Always seek advice specific to your situation before making decisions. Read our disclosure statement →
