Where to Start

Buying your first home in New Zealand can feel overwhelming. This guide breaks the process into manageable steps, covering everything from KiwiSaver to settlement day. Let's start with the most important question:

Can you afford to buy? The answer depends on your income, existing savings, KiwiSaver balance, and monthly expenses. Use the Finch Borrowing Power Calculator or book a free consultation to find out exactly where you stand.

Deposit Requirements

The standard requirement for first home buyers in NZ is 20% deposit. However, there are several ways to buy with less:

  • Welcome Home Loan (Kāinga Ora): Buy with 5% deposit if you meet income and price caps
  • KiwiSaver First Home Withdrawal: Access most of your balance after 3+ years of contributions
  • First Home Grant: Up to $10,000 grant on top of your KiwiSaver withdrawal
  • Family Guarantee: Use a parent's home equity to supplement your deposit
  • Specialist lenders: Some non-bank lenders offer loans at 10–15% deposit

KiwiSaver for First Home Buyers

KiwiSaver is one of the most powerful tools for first home buyers in NZ. If you've been contributing for at least 3 years, you can withdraw most of your balance towards a home deposit.

Important: You must leave a minimum $1,000 in your KiwiSaver account. The withdrawal must be used on the same day as settlement β€” your solicitor handles this. Finch coordinates the process with your KiwiSaver provider.

First Home Grant

The Kāinga Ora First Home Grant tops up your deposit on top of your KiwiSaver withdrawal:

  • Existing home: $1,000 per year of KiwiSaver contributions, up to $5,000
  • New build: $2,000 per year, up to $10,000
  • Eligibility: Income caps apply ($95K single, $150K combined) and house price caps by region

Getting Pre-Approved

Pre-approval is a conditional commitment from a lender to lend you up to a specified amount. It's essential before you start property hunting β€” especially for auctions where the sale is unconditional.

Finch applies to the most suitable lender for your situation (not just the cheapest advertised rate), maximising your approval odds and securing the best terms.

Other Costs to Budget For

Beyond the deposit, first home buyers should budget for:

  • Legal/conveyancing fees: $1,500–$3,000
  • Building inspection: $400–$700
  • LIM report: $200–$400
  • Registered valuation: $700–$1,200 (usually required by lender)
  • Moving costs: $500–$3,000 depending on distance