First Home Buyer Loans in New Zealand

Your complete guide to buying your first home in NZ. Get pre-approved with as little as 5% deposit.

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First Home Buyer Benefits in 2026

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Low Deposit Options

Get a home loan with as little as 5% deposit through the First Home Loan scheme. Learn more about low deposit loans →

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First Home Grant

Access up to $10,000 for existing homes or $20,000 for new builds to help with your deposit.

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KiwiSaver Withdrawal

Withdraw your KiwiSaver savings (minus $1,000) for your first home deposit.

Welcome Home Loan

Government-backed loans for low-to-middle income earners with competitive rates.

How Much Deposit Do First Home Buyers Need?

Standard Home Loan: 20% Deposit

Most banks require a 20% deposit for standard home loans. This avoids low equity premiums and gives you access to the best interest rates.

Example: $700,000 home = $140,000 deposit required

Low Deposit Home Loan: 10-15% Deposit

Some banks offer low deposit loans with 10-15% deposit, but you'll pay a low equity margin (typically 0.25-1.00% extra).

Example: $700,000 home = $70,000-$105,000 deposit

First Home Loan: 5% Deposit

Through Kainga Ora's First Home Loan scheme, eligible buyers can purchase with just 5% deposit.

Example: $700,000 home = $35,000 deposit

Eligibility: Must meet income caps, be buying your first home, and meet price caps in your region.

First Home Grant: Get Up to $20,000

The First Home Grant (formerly HomeStart Grant) provides financial assistance to first home buyers who meet specific criteria.

Existing Homes

$10,000

For houses that already exist

New Builds

$20,000

For new or off-the-plan properties

Eligibility Requirements:

  • Be 18 years or older
  • Be buying your first home (or haven't owned a home in the last 3 years)
  • Have been in KiwiSaver (or equivalent) for at least 3 years
  • Meet income caps ($95,000 for singles, $150,000 for couples)
  • Property price must be under the regional cap (e.g., $875,000 in Auckland)
Check Your Eligibility

Using Your KiwiSaver for a First Home

As a first home buyer, you can withdraw your KiwiSaver savings to use as a deposit (you must leave at least $1,000 in your account).

What You Can Withdraw:

  • Your contributions minus $1,000
  • Employer contributions (excluding employer tax)
  • Investment returns on all contributions
  • Government contributions cannot be withdrawn

Important: You must have been in KiwiSaver for at least 3 years to make a first home withdrawal.

5 Steps to Buying Your First Home in NZ

1

Save Your Deposit

Aim for at least 5-20% of the property value. Use KiwiSaver and the First Home Grant to boost your deposit.

2

Get Pre-Approved

Know exactly how much you can borrow before you start house hunting. Pre-approval shows sellers you're serious.

Get pre-approved now
3

Find Your Home

Work with a real estate agent, attend open homes, and make offers within your pre-approved budget.

4

Finalize Your Mortgage

Once your offer is accepted, complete your formal mortgage application and arrange a building inspection.

5

Settlement & Move In

Complete the legal paperwork, pay the deposit, and get the keys to your new home!

Common First Home Buyer Questions

Can I buy a house with no deposit?

It's very difficult to buy a house in NZ with no deposit. The minimum is typically 5% through the First Home Loan scheme, though most lenders require 10-20%. Some guarantor loans may allow lower deposits if a family member guarantees part of the loan.

What's the minimum income needed?

There's no set minimum income, but lenders typically want your mortgage payments to be less than 30% of your gross income. For a $600,000 loan, you'd typically need a household income of at least $100,000.

Should I get a mortgage broker?

Yes! Mortgage brokers are usually free (paid by the bank) and can compare rates from multiple lenders, saving you time and potentially thousands of dollars. They also help with paperwork and can access better deals than going directly to a bank. Read our complete mortgage broker guide →

How long does pre-approval last?

Pre-approval typically lasts 3-6 months, depending on the lender. Your circumstances must remain the same (same income, no new debts, etc.) for the pre-approval to stay valid.

Ready to Buy Your First Home?

Get pre-approved in 24 hours and start your home buying journey today

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Last updated: March 24, 2026 | Rates and information verified with RBNZ, Kāinga Ora