The First Home Grant Has Closed: What First Home Buyers Can Use Instead
The Kāinga Ora First Home Grant stopped taking applications on 22 May 2024 and hasn't been replaced. If you were counting on it, here's what's still available to help with your deposit — and how to put it together.
What happened to the First Home Grant
The Kāinga Ora First Home Grant paid eligible first home buyers up to $5,000 per person for an existing home, or up to $10,000 per person for a new build. It closed to new applications on 22 May 2024, when the Government announced in Budget 2024 that the funding would be redirected to social housing.
It has not been replaced with a new grant. If you see a website or social media post describing the First Home Grant as currently available, it's out of date.
What's still available
| Option | What it does | Key points |
|---|---|---|
| KiwiSaver first home withdrawal | Lets you use most of your KiwiSaver savings towards your first home. | Generally available after three years of membership. You must leave at least $1,000 in the account. Withdrawn funds are paid to your solicitor for settlement. |
| Kāinga Ora First Home Loan | Lets eligible buyers purchase with a 5% deposit through participating lenders, with Kāinga Ora underwriting the loan. | Income and other eligibility criteria apply. Check the current criteria on Kāinga Ora's website. |
| New-build exemption | New builds are exempt from the Reserve Bank's low-deposit speed limits. | Some lenders offer new-build lending with a smaller deposit than for an existing home. See the Reserve Bank's LVR settings. |
| Family guarantee | A family member uses equity in their own home as extra security for part of your loan. | No cash changes hands. The guarantor takes on real risk, so they need independent legal advice. |
| Gifted deposit | Family gives you money towards the deposit. | Most lenders accept a genuine gift with a signed gift letter confirming it doesn't need to be repaid. |
| Low-deposit bank lending | Banks can lend a limited share of their new lending to owner-occupiers with less than 20% deposit. | Usually comes with a low-equity margin or fee, and stricter criteria. |
How the numbers change without the grant
For a couple buying a new build, losing the grant could mean up to $20,000 less towards the deposit. On an existing home, up to $10,000 less. That gap is usually closed in one of three ways:
- Using the 5% deposit route. The Kāinga Ora First Home Loan, or low-deposit new-build lending, reduces the deposit you need in the first place.
- Adding family support. A guarantee or gift can cover the shortfall without delaying your purchase.
- Waiting and saving. Sometimes a few more months of KiwiSaver contributions and savings is the simplest answer — especially if it moves you over a deposit threshold that improves your rate.
Work out what you can borrow with the borrowing power calculator, and see how much deposit you need.
Putting your deposit together
- Check your KiwiSaver eligibility and balance. Ask your provider for your withdrawable amount.
- Add up savings and any family gift. Lenders want to see where every dollar came from.
- Decide on new build or existing. It changes which low-deposit options are open to you.
- Check First Home Loan eligibility if your deposit is under 20%.
- Get pre-approved before you start making offers, so you know your real budget.
Our first home buyer guide covers the full process, and the KiwiSaver withdrawal guide explains the withdrawal in detail.
This article explains how New Zealand lenders generally assess these situations. It is general information, not personalised financial advice, and lender policy changes often — check your own position with a registered adviser. Official sources: Reserve Bank of New Zealand for lending policy and the OCR, and Sorted.org.nz for independent government-backed money guidance.
First Home Grant: common questions
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