First-Home Buyer Guide: Your Complete Roadmap to Homeownership in New Zealand
Buying your first home is an exciting milestone—but it can also feel overwhelming with so many steps, rules, and financial considerations. This comprehensive First-Home Buyer Guide covers everything you need to know, from KiwiSaver withdrawals and government schemes to saving for a depositand navigating the mortgage process nationwide.
1. Understanding the First-Home Buying Process in NZ
Purchasing a home in New Zealand involves several key steps:
✅ 1. Check Your Eligibility – Review deposit requirements, income limits, and property price caps for government assistance.
✅ 2. Get KiwiSaver Ready – Ensure you meet the criteria for a first-home withdrawal.
✅ 3. Save for a Deposit – Most lenders require at least 10-20% deposit, depending on the loan type.
✅ 4. Get Pre-Approval – A conditional mortgage approval helps you know your budget.
✅ 5. House Hunting – Work with a real estate agent or search listings in your desired area.
✅ 6. Make an Offer – Negotiate price and conditions (e.g., building inspection, finance clause).
✅ 7. Finalise Your Mortgage – Submit documents for unconditional approval.
✅ 8. Settlement Day – Sign paperwork, pay remaining costs, and get the keys!
2. Using KiwiSaver for Your First Home
Can You Withdraw KiwiSaver for a House?
Yes! If you’re a first-home buyer, you may be able to withdraw most of your KiwiSaver funds (except the $1,000 government kickstart).
KiwiSaver First-Home Withdrawal Rules:
✔ Minimum 3 years membership (since joining KiwiSaver).
✔ Must be buying in NZ (not an overseas property).
✔ Intend to live in the home (not for investment).
✔ Some providers allow partial withdrawals if you don’t need the full amount.
KiwiSaver HomeStart Grant
Eligible buyers can get up to 10,000∗∗foranexistinghomeor∗∗20,000 for a new build (per person).
Income & Price Caps (2024):
| Region | House Price Cap (Existing Home) | House Price Cap (New Build) | Income Cap (Single) | Income Cap (Couple/Joint) |
|---|---|---|---|---|
| Auckland | $875,000 | $950,000 | $95,000 | $150,000 |
| Wellington, Queenstown, etc. | $750,000 | $875,000 | $95,000 | $150,000 |
| Rest of NZ | $650,000 | $750,000 | $95,000 | $150,000 |
3. Government Schemes for First-Home Buyers
First Home Loan (Previously Welcome Home Loan)
✔ Low-deposit option (5-10%) with approved lenders.
✔ Mortgage insurance required if under 20% deposit.
✔ Must meet income & house price criteria. Find out more
Tenant Home Ownership grant
If you are currently a Kāinga Ora tenant, you may be eligible for a grant to go towards purchasing the home you’re living in. The Tenant Home Ownership grant is a gift of 10% of the purchase price of selected Kāinga Ora houses up to a maximum of $20,000. The Tenant Home Ownership grant is not available in areas where there is high demand for state houses. More detail here
4. Deposit Requirements & Saving Tips
How Much Deposit Do You Need?
Standard loans: 20% deposit (to avoid low-equity fees).
First Home Loan: 5-10% deposit possible (with lender approval).
Investors: 40% deposit (under current LVR rules).
Tips to Save Faster:
💰 Set a Budget – Track spending and cut unnecessary costs.
💰 Use a High-Interest Savings Account – Earn more on your deposit savings.
💰 Consider a “Kiwisaver Boost” – Increase contributions to grow funds faster.
💰 Look at First-Home Buyer Schemes – Grants can boost your deposit.
5. Getting Mortgage-Ready
Pre-Approval Checklist:
✔ Proof of income (payslips, tax returns).
✔ Savings history (bank statements for 3-6 months).
✔ KiwiSaver statements (if using for deposit).
✔ Credit report (check for any issues).
Fixed vs. Floating Rates?
Fixed-rate (1-5 years) – Stable repayments, but break fees apply if you refinance early.
Floating rate – Flexible (no break fees), but rates can change anytime.
6. Final Steps: Making an Offer & Settlement
Making an Offer:
🔹 Unconditional Offer – No conditions (stronger but riskier).
🔹 Conditional Offer – Subject to finance, builder’s report, etc.
Settlement Day:
Final inspection (ensure the property is as agreed).
Sign loan documents & pay remaining costs (lawyer fees, rates).
Get the keys! 🎉
Final Tips for First-Home Buyers
✔ Start early – The sooner you save, the better.
✔ Get expert advice – A mortgage broker can help find the best loan.
✔ Don’t overstretch – Allow for rates, insurance, and maintenance costs.
✔ Consider location & future growth – Will the area suit your long-term needs?
Need Help? Talk to EasyMortgage Today!
Navigating the first-home buying process can be complex, but our mortgage advisors are here to simplify it for you.
📞 Book a free consultation to discuss your options and get pre-approved!
