Mortgage Broker NZ

First Home Buyers

Everything you need to understand about buying your first home in New Zealand — from deposit and KiwiSaver through to settlement day.

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Deposit and LVR requirements

Most lenders require a 20% deposit to lend at standard interest rates. This is described as an 80% loan-to-value ratio (LVR) — the bank is lending 80% of the property's value and you're contributing 20%.

Buying with less than 20% deposit is possible in some circumstances. The main low-deposit pathways available to first home buyers in New Zealand are:

Standard (20% deposit)

Access to all lenders at standard rates. The most straightforward path.

First Home Loan (5% deposit)

Government-backed via Kāinga Ora. Income eligibility criteria apply. Available through participating lenders.

First Home Grant — CLOSED 22 May 2024

The First Home Grant is no longer available to new applicants. It was closed by the New Zealand Government in May 2024.

Using your KiwiSaver

KiwiSaver is one of the most important tools available to first home buyers. If you have been a member for at least three years, you can withdraw your savings (except for a minimum $1,000 which must remain in the account) toward the purchase of a first home.

KiwiSaver first home withdrawal — key rules

  • ✓Minimum 3 years of KiwiSaver membership required
  • ✓Can withdraw everything except the minimum $1,000 balance
  • ✓You must intend to live in the property as your principal residence — investment purchases are not eligible
  • ✓Applies to both existing homes and new builds
  • ✓If you have previously owned property, you may still be eligible — talk to your KiwiSaver provider and an adviser

Check your KiwiSaver balance and eligibility with your provider. The withdrawal application is submitted to your provider, not the lender.

The first home buying process — step by step

01

Work out your deposit

Add up your savings, KiwiSaver balance, and any gifted funds. A 20% deposit is standard. If you have less, the First Home Loan (5% minimum) may be an option — subject to income eligibility criteria.

02

Understand your borrowing power

Use the borrowing calculator for a quick estimate, or talk to Jeremy for a more detailed assessment. Your gross income, debts, and expenses all affect how much a lender will offer.

03

Get pre-approved

Pre-approval involves a credit check and a review of your financials. It confirms your budget and makes your offer more credible to sellers. Most pre-approvals are valid for 3–6 months.

04

Find a property and make an offer

Once you have pre-approval, you know your price range. You can make offers conditional on finance, building inspection, and LIM report. A conditional period typically runs 10–15 working days.

05

Go unconditional and finalise the loan

Once all conditions are satisfied, you go unconditional and the sale is binding. Your lender finalises the loan documentation. Your lawyer handles the legal transfer and registration.

06

Settlement day

Settlement is the day the purchase price is paid and title transfers to you. Your lawyer coordinates with the vendor's lawyer. At the end of settlement day — you get the keys.

Documents you'll need

Having these ready before you apply to a lender will speed up the process considerably.

Income verification

3 months of recent payslips, or 2 years of financial statements if self-employed

Bank statements

3–6 months of transaction history showing income and savings habits

Identification

Passport or driver's licence (NZ or foreign if resident)

Existing liabilities

Statements for any credit cards, personal loans, car finance, or student loans

KiwiSaver statement

Recent balance statement from your provider

Deposit evidence

Bank statements showing deposit savings, or a gift letter if funds are partly gifted

Ready to start?

Run the borrowing calculator to get an indicative figure, then talk to Jeremy about your specific situation. First home advice is free with no obligation.

Check borrowing power →Talk to Jeremy

Common questions

How much deposit do I need to buy my first home?
The standard deposit requirement for most lenders is 20% of the purchase price (an 80% LVR loan). However, a smaller deposit is possible. The government-backed First Home Loan allows eligible buyers to purchase with as little as 5% deposit through participating lenders. Some banks also have their own low-deposit products with conditions. A lower deposit will typically mean paying a low-equity premium or margin on top of the standard interest rate.
Can I use my KiwiSaver to buy my first home?
Yes. If you have been a KiwiSaver member for at least three years, you can withdraw your KiwiSaver savings (except for a minimum $1,000 which must remain in the account) to put towards the purchase of your first home. You must intend to live in the property — it cannot be an investment purchase. This applies to existing properties and new builds.
What is the First Home Loan?
The First Home Loan is a government-backed scheme administered by Kāinga Ora that allows eligible first home buyers to purchase with a 5% deposit instead of the usual 20%. Income eligibility criteria apply — check the current Kāinga Ora website for current thresholds. The scheme is available through participating lenders including the major banks.
Is the First Home Grant still available?
No. The First Home Grant was closed by the New Zealand Government on 22 May 2024. It is no longer available to new applicants. The First Home Loan (5% deposit scheme) remains available for eligible buyers.
What is pre-approval and why do I need it?
Pre-approval (sometimes called conditional approval or approval in principle) is a lender's assessment of how much you could borrow, subject to the property meeting their criteria. It typically involves a credit check and review of your income and financial position. Pre-approval gives you confidence when making offers and shows sellers you are a serious buyer. It is usually valid for 3–6 months. Note that pre-approval is not a guarantee — final approval depends on the specific property you buy.
What documents will I need for a mortgage application?
Most lenders require recent payslips (usually 3 months), your last 1–2 years of tax returns or IRD summary if self-employed, 3–6 months of bank statements showing your savings, identification (passport or driver's licence), and a list of any existing debts, credit cards, and regular financial commitments. Having these ready before you apply speeds up the process considerably.
How long does it take to buy a first home?
The timeline varies. Getting pre-approved typically takes 1–2 weeks. Once you find a property and make an offer, the period between a conditional sale and unconditional typically runs 10–15 working days (during which you arrange your building report, LIM, and final approval). Settlement — the day you get the keys — is usually agreed at contract signing and might be 4–6 weeks after going unconditional.
What is a LIM report and do I need one?
A LIM (Land Information Memorandum) is a report from the local council that summarises all the information the council holds about a property — including consented works, zoning, natural hazards, and rates outstanding. Most mortgage advisers and conveyancing lawyers strongly recommend getting a LIM for any property purchase. It typically costs a few hundred dollars and takes 10 working days, though urgent LIMs are available for a higher fee.

Related

→First home buyer mortgage broker guide→Deposits, pre-approval and borrowing questions→Home loan borrowing calculator→Current NZ mortgage rates→Mortgage guides→Get first home buyer advice