Buying Your First Home in NZ? We'll Help You Every Step
We help first home buyers across New Zealand find the best home loan from 25+ lenders, and it won't cost you a cent. Whether you're still saving or ready to buy, we'll guide you from deposit to settlement.
Am I Ready to Buy My First Home?
Before diving into the detail, here's a quick check. You're in a good position to start the process if you can tick a few of these:
Options exist from as low as 5% through the First Home Loan scheme, though more deposit opens up more lender options.
Banks want to see consistent employment when assessing your ability to service a loan.
Existing loans, credit cards, and buy-now-pay-later balances all affect how much you can borrow.
The minimum period before you can withdraw KiwiSaver funds for your first home (IRD).
Knowing where your money goes makes it much easier to plan for a mortgage repayment.
Talk to us and we'll help you build a plan to get there, even if buying is months away. That's what we're here for.
How Much Deposit Do I Need for My First Home?
Your deposit can come from personal savings, KiwiSaver, or family contributions. Here's what each level unlocks:
You don't need 20% to buy your first home. But the more deposit you have, the better your options and rates. We can map out exactly where you sit and what's available to you.
Using Your KiwiSaver to Buy Your First Home
If you've been a KiwiSaver member for at least 3 years, you may be able to withdraw most of your savings to put towards your first home deposit.
A minimum of $1,000 must remain in your KiwiSaver account. Funds transferred from Australian superannuation schemes also can't be withdrawn.
From 1 April 2026, the default contribution rate increases from 3% to 3.5% for both employees and employers — your balance will grow slightly faster if you're on the default. Want to stay at 3%? You can apply to IRD for a temporary rate reduction (3–12 months). The default is scheduled to rise again to 4% on 1 April 2028. Source: IRD
Planning to buy within 1–2 years? Consider switching to a conservative fund. Growth funds can lose value short-term, and you don't want your deposit shrinking when you need it most.
Your KiwiSaver provider processes the withdrawal at settlement through your lawyer. We can walk you through the timing and paperwork.
What is the First Home Loan Scheme?
A low-deposit loan scheme for first home buyers, underwritten by Kāinga Ora. It's designed for people who can afford regular mortgage repayments but are having trouble saving a full 20% deposit. With a First Home Loan, you can buy with a minimum deposit of just 5% of the purchase price.
- Eligible buyers can purchase with just a 5% deposit instead of 20%.
- Kāinga Ora underwrites the loan, which removes the standard low-equity margin banks normally charge on low-deposit loans.
- A one-off Lender's Mortgage Insurance premium of 1.2% of the loan amount is charged by Kāinga Ora, and this can be added to your loan. With some lenders we work with, 0.2% is covered for you, so you only pay 1%.
- You need a genuine 5% deposit from savings, KiwiSaver, or a combination.
- Be over 18 years old
- Be a New Zealand citizen, permanent resident, or resident visa holder
- Be a first home buyer, or a previous homeowner in a similar financial position to a first home buyer
- Have a before-tax income from the last 12 months less than:
- Have a minimum deposit of 5% of the purchase price
- Meet the lending requirements of a participating bank or lender
- Be buying the home to live in as your primary place of residence
- Pay a 1.2% Lender's Mortgage Insurance (LMI) premium, which can be paid upfront or added to the loan
- Pay any loan application fees charged by the lender
The First Home Grant (which previously provided $5,000 to $10,000 to eligible buyers) ended in May 2024 and is no longer available. The First Home Loan scheme is still active and is the main government support for first home buyers.
We can check your eligibility and apply to the right participating lender on your behalf. It's part of our completely free service.
Check My EligibilityFamily Help: Gifting, Guaranteeing & Family Loans
Getting help from family is more common than ever for first home buyers in NZ. There are three main ways family can help you into your first home.
A family member (usually parents) gives you money towards your deposit with no expectation of repayment. The bank will require a signed gifting declaration from the person giving the money, confirming the funds are a genuine gift, unconditional and non-repayable, with no expectation of repayment or interest.
- Gift duty was abolished on 1 October 2011, so there's no tax on the act of giving money.
- Banks typically still want to see genuine savings of your own on top, because a gift alone doesn't show your ability to save.
- Large gifts can affect the gifter's eligibility for certain government subsidies.
- If significant, the gifter should talk to an accountant or financial adviser first.
Instead of giving cash, a family member uses the equity in their own home as additional security for your loan. According to Consumer Protection NZ, a guarantor "promises to act as a back-up for someone signing a credit contract," meaning if you stop making repayments, they're legally obligated to step in.
- The bank takes security over part of the guarantor's home, on top of your own mortgage.
- Once you build enough equity (typically 20%), you can apply to release the guarantor, but this is at the lender's discretion.
- Some banks offer specific products like Westpac Family Springboard.
- Your guarantor's home is genuinely at risk. Consumer Protection NZ warns assets could be repossessed if you can't pay.
- Most lenders require independent legal advice from a separate lawyer before approving.
- The lender must check the guarantor can afford to take over the repayments.
Some families prefer a formal loan arrangement where the money must be repaid. This is typically documented through a Deed of Debt.
- Banks treat a family loan as a liability (debt), not a deposit. The expected repayments count against your serviceability, reducing how much the bank will lend you.
- For most first home buyers, a gift works better than a loan, if the family is willing.
The right approach depends on how much is being contributed, the family member's own financial position, and whether they want flexibility to get the money back. We'll work through the options with you and make sure everyone understands what they're committing to before anything is signed.
Can I Get a Mortgage with Bad Credit in NZ?
Bad credit doesn't automatically mean no mortgage. Plenty of people with defaults or past financial issues go on to buy their first home. It just takes a different approach.
A confidential credit assessment first
Before we submit anything to a lender, we'll review your situation and tell you exactly which lenders are likely to consider you, so you avoid unnecessary enquiries on your file.
Under New Zealand law, you have the right to request a free copy of your credit report from any of the three credit reporting companies. Each must provide your report at no cost within 20 working days (expedited reports delivered faster may incur a fee). It's worth requesting reports from all three, as they may hold slightly different information.
According to Consumer Protection NZ, the main types of negative information that show up on your credit file are:
Default payments: over $125 overdue by more than 30 days, where the lender has tried to recover the money
Missed payments on loans, credit cards, or other accounts
Court judgments for unpaid debts
Bankruptcy, No Asset Procedure (NAP), or hardship applications
Multiple recent credit enquiries: every loan or credit application is logged on your file
| Type of information | How long it stays |
|---|---|
| Default payments | 5 years |
| Bankruptcy | 4 to 5 years |
| Hardship applications | 4 to 5 years |
| Missed payments | 2 years |
| Identification info & multiple bankruptcies | Indefinitely |
In New Zealand, credit scores range from 0 to 1,000 (depending on the bureau's scale). Consumer Protection NZ notes that a score above 700 is generally considered good.
Most main banks will consider applications from borrowers in this range, though it's only one factor. Income, deposit, and recent history all matter too.
If the main banks decline, there are specialist (non-bank) lenders who consider applications that don't fit standard bank criteria. Rates are typically higher, but they're a pathway in, with the option to refinance to a main bank later once your credit history improves.
- Make every payment on time, including utility bills, phone bills, rent, and any loans or credit cards
- Pay off outstanding defaults. They stay for 5 years but "paid" is much better than "unpaid"
- Limit how often you apply for credit. Each application creates a footprint on your file
- Keep credit accounts open and in good standing. A track record of responsible use helps
If waiting a few months would significantly improve your position, we'll tell you. Better to apply once with the right lender than rack up declined applications.
Book a Free ChatPre-Approval vs Full Approval: What's the Difference?
Two stages, one goal. Here's what each one means and what you'll need from us to get there.
The bank confirms in principle that you meet their lending criteria and tells you the maximum amount they're willing to lend. It gives you a clear price range to work within when you're house hunting. Pre-approvals expire after a fixed period, so you'll need to update or resubmit before they run out.
Happens once you've found a specific property and the bank has assessed it alongside your financial situation. This is when the loan is actually approved for that particular purchase.
According to Kāinga Ora, banks and lenders typically ask for:
We handle the application for you. Just gather these documents and we'll do the rest.
What our clients say
Don't just take our word for it, hear from the people we've helped.
First Home Buyer FAQs
The questions we hear most from first home buyers across NZ.
You can buy with as little as 5% through the government-backed First Home Loan scheme. Most buyers aim for 10 to 20%. Your deposit can include savings, KiwiSaver, and gifted funds from family.
Yes. If you've been a KiwiSaver member for at least 3 years, you can withdraw most of your balance (minus $1,000) towards your first home. Your provider processes the withdrawal at settlement.
It's a low-deposit loan scheme underwritten by Kāinga Ora that lets eligible first home buyers purchase with just a 5% deposit. Income caps apply ($95K individual, $150K with dependants, $150K combined for couples). Participating lenders are Westpac, Kiwibank, The Co-operative Bank, SBS Bank, Unity, NBS, and NZHL. A 1.2% Lender's Mortgage Insurance premium applies and can be added to the loan.
Your borrowing capacity depends on your income, existing debts, deposit, and the bank's affordability assessment using a "test interest rate" (higher than the actual rate). Every bank calculates it differently. The most accurate way to know is to have us run a personalised assessment (it's free).
Yes. We compare products from 25+ lenders, handle the application, and negotiate on your behalf. The service is free, because we're paid by the lender, not by you. First home buyers benefit especially because the process can be complex and a broker handles the paperwork.
You'll need proof of income (payslips or tax returns), bank statements (3 months), KiwiSaver balance, photo ID, and details of any existing debts. We'll tell you exactly what's needed for your situation.
Approval timeframes vary between banks and depend on how quickly you can provide supporting documents, whether your application is straightforward, and current bank workload. Low-deposit applications typically take longer than standard approvals. We keep the process moving as efficiently as possible and let you know what to expect for your specific situation.
Pre-approval is an in-principle agreement that the bank will lend you up to a certain amount, letting you house hunt with confidence knowing your price range. Pre-approval has a fixed expiry period (typically around three months, depending on the lender). Full approval is confirmed once you've found a specific property and the bank has assessed it.
Ready to Start Your First Home Journey?
Before you start looking at houses, have a 15-minute chat with us. We'll help you work out:
- How much you can realistically borrow on your current income
- Whether you qualify for the First Home Loan (5% deposit) scheme
- Which lenders will back your deposit structure and employment type
- What cashback and rate you should be targeting as a first home buyer
