How to Buy Your First Home in Mount Maunganui with a 5% Deposit

Living at “The Mount” is the ultimate Kiwi dream. The beach, the cafes, the walks up Mauao—it is a lifestyle that’s hard to beat.

But for first home buyers, it can also feel like a closed shop. With property prices often exceeding $1 million, many locals assume they have been priced out of the market forever, or forced to move out to the fringes.

Here is the truth: You can buy in Mount Maunganui with a small deposit, but you have to be smart about what you buy. By utilizing the First Home Loan (5% deposit) scheme, getting a foot in the door at the Mount is still possible in 2025.

The Maths: 5% vs 20% at The Mount

Let’s look at a realistic entry-level property at the Mount—likely a 2-bedroom unit or apartment in Arataki or near Bayfair, priced around $700,000.

• The Standard Way (20% Deposit): You need to save $140,000.
• The First Home Loan Way (5% Deposit): You only need to save $35,000.

If you have KiwiSaver, that $35k is likely already sitting in your account. The barrier isn’t the deposit; it’s knowing the rules.

The Secret: Apartments & Units

You likely won’t be buying a standalone house on Oceanbeach Road for your first home. But the Mount has a high density of Apartments and Townhouses that fall within an affordable price bracket.

However, lending on apartments can be tricky. Here is what you need to know:

1. The “Size” Rule

Banks can be fussy about small apartments. Generally, if an apartment is smaller than 40sqm or 50sqm, many lenders will demand a 50% deposit.

• The Fix: As your local Mortgage Broker in Tauranga, we know which lenders are more flexible with apartment sizes and which buildings in the Mount (like the ones on Maunganui Road) are “bank-friendly.”

2. Body Corporate Fees

When you buy an apartment or unit, you will likely pay Body Corp levies. When calculating if you can afford the mortgage, the bank counts these fees as an expense.

Tip: Look for properties with lower amenities (no pool/gym) to keep these fees down and increase your borrowing power.

Am I Eligible for the 5% Loan?

To use the Kāinga Ora First Home Loan at the Mount, you must meet the income caps (verified over the last 12 months):

• $95,000 (before tax) for a single buyer.
• $150,000 (before tax) for a couple or single with dependents.

“But houses at the Mount are expensive!” Since the government removed the Price Caps, you can now buy anyproperty at the Mount using this loan, provided you can service the mortgage payments. This opened up the market significantly for buyers with good incomes who just haven’t been able to save a $150k deposit.

Where to Look: The “Hidden” Mount

If you want to use a 5% deposit, focus your search on these pockets where value still exists:

• Arataki / Bayfair: The area between Girven Road and Sandhurst Drive is full of sturdy 1980s brick units and cross-lease properties that often sell for under $750k.
• Maunganui Road Apartments: There are older apartment blocks along the main strip that offer the lifestyle without the luxury price tag.
• Mount Central: Look for older “sausage block” units. They aren’t glamorous, but they get you the postcode.

For a complete first home buyer guide, see our comprehensive resource:
[First Home Buyers Guide] – Learn more

Summary: How to Make it Happen

1. Check your Income: Are you under the $150k/$95k cap?
2. Check the Property Size: Ensure the unit is over 40-50sqm to avoid high-deposit rules.
3. Get Pre-Approved: In a competitive market like the Mount, you need to move fast. Agents take 5% deposit offers seriously if they see a pre-approval attached.

Don’t give up on the beach lifestyle just yet.

Contact Us to Check Your Eligibility We specialize in helping First Home Buyers in the Bay.