Getting on the property ladder in New Zealand
Buying your first home is one of the biggest financial decisions you'll make. The New Zealand property market can feel daunting, but with the right preparation and knowledge, homeownership is achievable. This guide walks you through every step — from saving a deposit to settling on your new home.
How much deposit do you need?
Most New Zealand banks require a minimum deposit of 20% of the property's purchase price. However, first home buyers may qualify for a loan with as little as 5–10% deposit, depending on the lender and the Reserve Bank's LVR (Loan-to-Value Ratio) speed limits.
For example, on a $650,000 property:
| Deposit % | Deposit Amount | Loan Amount |
|---|---|---|
| 5% | $32,500 | $617,500 |
| 10% | $65,000 | $585,000 |
| 20% | $130,000 | $520,000 |
Use our mortgage calculator to see how different deposit amounts affect your repayments.
KiwiSaver First Home Withdrawal
If you've been a KiwiSaver member for at least three years, you can withdraw most of your balance (minus $1,000) to put toward your first home. This can be a significant boost to your deposit — many first home buyers have $30,000–$80,000+ saved in KiwiSaver.
First Home Grant
Kāinga Ora offers the First Home Grant for eligible buyers. You can receive up to $5,000 for an existing home or $10,000 for a new build (per person). Couples buying together can double these amounts. Eligibility depends on income caps and regional property price caps.
Getting pre-approved
Before you start house-hunting, get mortgage pre-approval from a bank or broker. Pre-approval tells you exactly how much you can borrow and shows sellers you're a serious buyer. It typically lasts 60–90 days and doesn't commit you to that lender.
Choosing the right mortgage
New Zealand borrowers generally choose between:
- Fixed rate — your interest rate is locked in for a set term (1–5 years). Great for budgeting certainty.
- Floating rate — your rate moves with the market. More flexibility but less certainty.
- Split loan — a mix of both, hedging your bets.
Compare current mortgage rates from all NZ banks and lenders to find the best deal.
Extra costs to budget for
Beyond the deposit, budget for these common costs:
- Solicitor/conveyancer fees — $1,000–$2,500
- Building and property inspections — $400–$1,000
- Registered valuation — $600–$1,000
- Moving costs — $500–$2,000
- Mortgage application or establishment fees — $0–$700
Tips for first home buyers
- Get pre-approved before looking at open homes
- Factor in all costs, not just the purchase price
- Consider using a mortgage broker for access to multiple lenders
- Don't stretch to your absolute maximum — leave room for rate rises and life changes
- Use the mortgage repayment calculator to understand what you can actually afford
Frequently asked questions
How much do I need to save for a deposit as a first home buyer in New Zealand?
Most lenders require a minimum 10% deposit for first home buyers, though some offer 5% deposits with added costs. KiwiSaver first home withdrawal eligibility can significantly reduce the amount you need to save upfront. Check your KiwiSaver balance and eligibility before finalising your target.
Can I use my KiwiSaver to help buy my first home?
Yes, if you've been contributing to KiwiSaver for at least three years, you can withdraw your full balance (member contributions + employer contributions + growth) to buy your first home. Your partner's KiwiSaver can also be used if they're a first home buyer.
What is a first home buyer's grant and am I eligible?
The First Home loan guarantee (previously the First Home Buyer assistance scheme) helps reduce your deposit requirement. Eligibility depends on your income, the property price, and your KiwiSaver contributions. Use our mortgage calculator to estimate your position.
What is mortgage pre-approval and why should I get it?
Mortgage pre-approval shows sellers you're a serious buyer with confirmed borrowing power. Learn what documents you'll need and how the process works to speed up your purchase.
What type of mortgage is best for a first home buyer?
Most first home buyers choose fixed rate mortgages for payment certainty and budget control. Review fixed vs floating rates to understand the trade-offs, then use our mortgage optimizer to compare lender options.
Ready to compare your first mortgage?
Use our free mortgage comparison to see current rates from all NZ lenders and estimate your weekly repayments.