Step 1: Save a deposit
Most banks want a 20% deposit for a home you’ll live in. They can lend to people with less, but only for a quarter of their new loans, so a smaller deposit usually means a higher rate or a low-equity fee. Home loan deposit and debt-to-income rules explains the limits.
- 5%: First Home Loan Kāinga Ora-backed, with income limits
- $35,000
- 10%: Low-deposit bank loan Limited, and usually costs more
- $70,000
- 20%: The usual deposit The best rates, and no low-equity fees
- $140,000
Your KiwiSaver can usually go towards any of these, except $1,000 that stays in your account.
Using your KiwiSaver
Once you’ve been a member for 3 years, you can withdraw your KiwiSaver to buy your first home:
- You can take out everything except $1,000: your own contributions, your employer’s, the government’s and the returns.
- Money transferred from an Australian super fund can’t be used.
- The home must be in New Zealand and you must live in it, not rent it out.
- Apply through your KiwiSaver provider well before settlement. Your lawyer usually handles it.
Example: with $42,000 in KiwiSaver, you can put $41,000 towards your deposit.
Your KiwiSaver grows faster from 1 April 2026, when the default contribution rate rose from 3% to 3.5% for you and your employer (rising to 4% in April 2028). The government adds 25 cents for every dollar you put in, up to $260.72 a year, unless you earn over $180,000. The KiwiSaver calculator shows what you’ll have.
The First Home Grant closed in May 2024 and isn’t coming back.
Step 2: Consider a First Home Loan
A First Home Loan is a bank loan backed by Kāinga Ora, so you only need a 5% deposit:
- Your income before tax over the last 12 months must be $95,000 or less on your own, or $150,000 or less if you have dependants or are buying with others.
- You pay a 1.2% mortgage insurance premium, and you can’t own other property.
- There’s no price cap, and you must live in the home.
You apply through a participating bank, such as ASB, Westpac or Kiwibank.
Step 3: Work out how much you can borrow
Banks can only make a limited share of loans where your total debts would be more than 6 times your income, and they test your repayments at a higher rate than you’d actually pay. Credit card limits and other loans count against you, even if you don’t use them.
How much can I borrow? works it out with your income and deposit.
Step 4: Budget for the costs
| Cost | What to expect |
|---|---|
| Stamp duty | None |
| Lawyer (conveyancing) | $2,000 to $3,500 |
| Building inspection | $500 to $1,200 |
| LIM report from the council | $200 to $400 (more for a quick turnaround) |
| Low-equity fee or premium | With less than a 20% deposit |
| House insurance | Needed before the bank will lend; varies a lot by area |
| Moving and furnishing | Varies |
Step 5: The buying process
- Get pre-approval from a bank so you know your budget.
- Do your checks: get a LIM report and a building inspection, and have your lawyer check the title.
- Make an offer with conditions, such as finance, a building report and a LIM. At an auction or most tenders your offer has no conditions, so do your checks first.
- Sign the sale and purchase agreement. Once it’s unconditional you usually pay a deposit, and apply to withdraw your KiwiSaver.
- Settlement: your lawyer pays the seller, and you get the keys.
Not sure buying beats renting where you live? Try the rent vs buy calculator.