Your complete guide to buying your first home in New Zealand

Everything you need to know to buy your first home in New Zealand, from understanding home loans, deposit options, open homes and the whole buying process! Because we know that buying your first home is a huge step and the information out there is limited. We are here to change that.

General information only — not financial advice. We may connect you with an FSPR-registered adviser if you request it.

Current NZ First Home Loan Rates — 2026

These rates give you a starting point for understanding what's available. They're indicative and updated periodically — always confirm with a lender or adviser as rates change frequently.

Lender6mo1yr18mo2yr3yr4yr5yrFloating
Loading rates...

Rates indicative only. Source: ratesapi.nz. Not a recommendation.

First Home Buyer Calculators

Estimates only. Does not account for fees, rate changes, or lender-specific conditions.

$100k$1.2m
2%10%
5 years30 years
Repayment
$3,479 per month
Total interest
$652,296
Total repaid
$1,252,296
Principal vs Interest by Year

The First Home Guide

Buying your first home is one of the biggest financial decisions you'll make. This guide walks you through every stage — from saving your deposit to getting the keys — in plain English. General information only; for advice specific to your situation, speak with an FSPR-registered mortgage adviser.

What is a deposit and why does it matter?

A deposit is the upfront cash you contribute when purchasing a property. It's your skin in the game — the portion of the purchase price you pay yourself, with the remainder covered by your mortgage. In New Zealand, the size of your deposit directly affects the interest rate you'll pay, the fees you'll face, and even whether a bank will lend to you at all.

The difference between 10% and 20% deposit (and why 20% saves you money)

Most NZ banks require a minimum 10% deposit for first home buyers. However, 20% is the magic number. With less than 20%, you'll pay a Low Equity Margin (LEM) — an additional loading on your interest rate that can cost thousands over the life of your loan. On a $600,000 mortgage, an LEM of 0.75% adds roughly $4,500 per year in extra interest. That's money that could be going toward paying off your home faster.

Low Equity Margins (LEM) explained

A LEM is a risk margin banks charge when your Loan-to-Value Ratio (LVR) exceeds 80%. The higher the LVR, the higher the margin — typically 0.25% for 80–85% LVR, up to 1.5% for LVRs above 90%. The LEM is removed once you've built enough equity to drop below 80% LVR, either through repayments or property value increases.

Registered valuation — required if your deposit is under 20%

If your deposit is less than 20% of the purchase price, your bank will almost certainly require a registered valuation. This is a formal assessment of the property's market value carried out by a registered valuer — it's separate from the council's rateable value or a real estate agent's appraisal. Budget $750–$1,000 for this. The bank uses the valuation to confirm the property is worth what you're paying, which is especially important when they're lending a high percentage of the value.

What other upfront costs do first home buyers pay?

Beyond your deposit, budget for: legal/conveyancing fees ($1,800–$3,000), building inspection ($400–$800), registered valuation ($750–$1,000 — required if deposit under 20%), moving costs ($500–$3,000+), and immediate home setup costs. Total additional costs typically range from $4,000 to $9,000.

How long does it realistically take to save a deposit in NZ?

At the national median house price of around $780,000, a 10% deposit is $78,000. For a couple saving $2,000 per month, that's roughly 3–4 years (excluding KiwiSaver). In Auckland, where median prices are higher, it can take significantly longer. KiwiSaver withdrawals and the First Home Loan scheme can meaningfully reduce this timeline.

Tips for saving faster

Maximise your KiwiSaver contributions (consider increasing your rate to 8% or 10%). Set up automatic transfers to a dedicated savings account. Review your spending for areas to cut back, even temporarily. Consider whether a side income or overtime could accelerate your timeline. And make sure you're aware of all the government support available — KiwiSaver withdrawal and the First Home Loan.

Can I use my KiwiSaver to buy a house?

Yes. If you've been a KiwiSaver member for at least 3 years, you can apply to withdraw most of your balance to put toward your first home purchase. The funds go directly to your lawyer's trust account as part of your deposit.

How much can I withdraw from KiwiSaver for a first home?

You can withdraw your full KiwiSaver balance minus $1,000. This includes your own contributions, employer contributions, government contributions, and any investment returns. There is no cap on the withdrawal amount — it's everything in your account less the $1,000 minimum.

What KiwiSaver balance do you leave behind?

You must keep a minimum of $1,000 in your KiwiSaver account. Your account stays open and contributions continue as normal after the withdrawal.

Eligibility rules: how long you need to have contributed

You need to have been a KiwiSaver member for at least 3 continuous years. You must be purchasing your first home (or be in an equivalent financial position). The property must be intended as your primary residence, not an investment.

How to apply for a KiwiSaver first home withdrawal — step by step

Step 1: Confirm your eligibility with your KiwiSaver provider. Step 2: Get finance pre-approved and sign a Sale and Purchase Agreement. Step 3: Complete your provider's withdrawal application form. Step 4: Provide supporting documents (S&P agreement, solicitor details, ID). Step 5: Your provider processes the withdrawal (typically 10–15 working days) and pays funds to your solicitor.

What happens to your KiwiSaver after you withdraw?

Your account remains open with $1,000. Regular contributions from you and your employer continue. Over time, your balance rebuilds. Many people are surprised by how quickly it recovers once contributions resume.

Should you maximise KiwiSaver contributions when saving for a home?

It depends on your timeline and financial situation. Higher contributions (8% or 10% of your salary) mean more in your KiwiSaver to withdraw, plus you get more employer contributions (minimum 3%). However, the money is locked in until you buy — if you need flexible access, building cash savings alongside KiwiSaver may be more practical. For the latest rules, visit kiwisaver.govt.nz.

What is the First Home Loan?

The First Home Loan is a government-backed scheme that allows eligible first home buyers to purchase a property with as little as 5% deposit. Unlike standard bank lending which typically requires 10–20%, this scheme is designed to help buyers who are ready to service a mortgage but haven't yet saved a full deposit.

How does a 5% deposit home loan work?

The loan is provided by a participating bank (not the government directly). Kāinga Ora underwrites a portion of the lending risk, which allows banks to lend at higher LVRs than they normally would. You still need to meet the bank's standard affordability criteria — the 5% deposit doesn't mean easier approval, just a lower deposit requirement.

Eligibility criteria: income caps, price caps, property requirements

Income caps: $95,000 for a single buyer, $150,000 combined for two or more. Property price caps vary by region. The property must be your primary residence — investment properties don't qualify. You must intend to live in the home.

Which banks offer First Home Loans?

Major participating banks include ANZ, ASB, BNZ, Westpac, and Kiwibank. Some smaller lenders also participate. Not all branches may be familiar with the scheme, so working with a mortgage adviser who understands the First Home Loan process can be helpful.

What are the risks of borrowing with only 5% deposit?

With 95% LVR, you have very little equity buffer. If property values decline even slightly, you could end up in negative equity. You'll also pay higher Low Equity Margins, and your repayments will be larger because you're borrowing more. Stress-test your budget: could you still afford repayments if rates increased significantly?

Is the First Home Loan right for you?

It depends on your situation. If you have stable employment, manageable expenses, and the capacity to handle higher repayments, it can be a valuable pathway into homeownership. But if your budget is already tight, borrowing at 95% LVR adds financial risk. A mortgage adviser can help you weigh the pros and cons for your specific circumstances.

Buying your first home isn't a solo mission. You'll work with a team of professionals, each playing a specific role. Here's who you need, what they do, and what they cost.

Mortgage Adviser

A mortgage adviser will help you through the whole buying process — from understanding how much you can borrow, what your repayments will look like, and which lender or loan suits you best to make sure you're getting the best deal. They'll guide you step by step from understanding your options to navigating paperwork, so you feel supported and confident every step of the way to owning your first home.

Budget: Free — mortgage advisers are paid by the lenders, not you.

Connect with a mortgage adviser here →

Real Estate Agent

When buying your first home, a real estate agent is there to guide the seller through the sale, using their expertise in pricing, marketing, and negotiations to achieve the best outcome for their client.

As a buyer, you'll interact with a lot of agents. You can work directly with the seller's agent, but it's also worth knowing about buyer's agents — professionals who represent you, the buyer. They help you find properties, understand market value, and negotiate with confidence, ensuring your interests are looked after every step of the way.

Lawyer / Conveyancer

A property lawyer or conveyancer reviews sale and purchase agreements, checks for hidden clauses or risks, handles the title transfer, and ensures your legal interests are protected. They're essential for making sure the property you're buying has no legal issues like covenants, caveats, or zoning problems.

It's standard practice to review both the LIM report and property title for any property you're considering. While some parts may be straightforward, it's always best to have your solicitor review these documents to flag any conditions or restrictions you should be aware of.

If you're using your KiwiSaver for your first home, your solicitor will also need to complete part of the withdrawal application and submit it to your provider on your behalf.

Budget: $1,800–$3,000 depending on complexity.

Accountant (if self-employed)

For self-employed first home buyers, an accountant helps prepare financial statements, explain income, and structure ownership wisely. They ensure tax efficiency while maximising borrowing power, presenting your business finances clearly to lenders, and guiding long-term planning so your mortgage remains sustainable.

Building Inspector

Not all builders are trained to inspect properties properly. A licensed building inspector is trained to assess the condition of a home including foundations, structure, moisture, plumbing, roof, insulation, and more. They provide a formal report which can be used to understand the condition of the property before you commit.

Budget: $400–$800 depending on house size and location.

Justice of the Peace (JP)

A JP is often needed to witness or certify documents like ID copies, statutory declarations, or other legal paperwork during the buying process. They do this free of charge. You can find a local JP at community centres, libraries, or online at justiceofthepeace.org.nz.

Tip: Book in advance if you're on a tight timeline — JPs can be busy.

Insurance Broker

An insurance broker helps home buyers secure life insurance, income protection, and mortgage protection — ensuring your loan repayments and financial security are covered if unexpected events occur. They tailor coverage to your individual needs and protect both your personal and family finances throughout the homeownership journey.

What is mortgage pre-approval?

Pre-approval (also called conditional approval or approval in principle) is a written indication from a bank or lender that they'd be willing to lend you a specified amount, subject to certain conditions. It's not a guarantee of final approval, but it gives you confidence about your budget when house hunting.

Why you should get pre-approval before house hunting

Pre-approval tells you what you can realistically afford, prevents you from falling in love with properties outside your budget, strengthens your position when making offers (sellers and agents take pre-approved buyers more seriously), and gives you time to address any issues before the pressure of a purchase.

What banks look at when assessing you (the 5 C's of credit)

Character (credit history), Capacity (income vs expenses), Capital (your deposit and assets), Collateral (the property itself), and Conditions (employment stability, market conditions). Banks assess all of these holistically when deciding whether and how much to lend.

Documents you'll need to gather

Typically: last 2 payslips, last 2 years of IRD summaries (from MyIR), 3 months of bank statements for all accounts, proof of deposit/savings, photo ID, and details of any existing debts. Self-employed borrowers need 2 years of financial statements and tax returns.

How long does pre-approval take?

Generally 3–10 working days if you have all documents ready. Some lenders can be faster. A mortgage adviser who submits a complete application with all documentation can often expedite the process.

How long does pre-approval last?

Usually 60–90 days. After expiry, you'll need to reapply. If your financial situation or rates have changed, the new pre-approval amount may differ.

What can cause pre-approval to be declined?

Common reasons include: insufficient income relative to the loan amount, poor credit history, too much existing debt, unstable employment, or spending patterns that raise affordability concerns. If declined, ask your mortgage adviser why and what you could change.

Does getting pre-approval affect your credit score?

Yes — the lender will do a "hard" credit inquiry which appears on your credit file. Multiple applications in a short period can lower your score. Using a mortgage adviser minimises this, as they typically submit one targeted application rather than multiple.

What is a fixed rate mortgage?

A fixed rate mortgage locks your interest rate for a set period (typically 6 months to 5 years). Your repayments stay the same throughout, giving you certainty for budgeting. When the fixed period ends, you choose a new rate — this is called "refixing."

What is a floating (variable) rate mortgage?

A floating rate can change at any time based on market conditions. When the OCR drops, floating rates typically fall too. The trade-off for uncertainty is flexibility — you can make extra repayments or repay the loan in full without break fees.

What is a split mortgage?

A split mortgage divides your loan into portions with different rate structures. For example, you might fix 60% for two years and leave 40% floating. This gives you certainty on the fixed portion and flexibility on the floating portion.

How does the OCR affect mortgage rates in NZ?

The Official Cash Rate (OCR) set by the RBNZ influences all interest rates in the economy. When the OCR rises, borrowing costs increase and mortgage rates follow. When it falls, rates typically drop — though not always immediately or by the same amount. Fixed rates are also influenced by wholesale swap rates, which reflect market expectations about future rate movements.

Fixed vs floating: pros and cons

FeatureFixedFloating
Rate certaintyYesNo
Extra repaymentsLimitedUnlimited
Break feesMay applyNone
Typical rate levelLowerHigher
Best when rates are...Rising or stableFalling

What are break fees and when do they apply?

If you break a fixed-rate mortgage early (by repaying, refinancing, or restructuring before the term ends), the bank may charge a break fee. The fee depends on rate movements and how much time remains on your fixed term. Break fees can be zero or several thousand dollars.

How long should you fix for?

In the current NZ environment (2026), with short-term rates near their lows and longer-term rates starting to edge up, many borrowers are fixing for 1–2 years to lock in competitive rates while retaining flexibility. Others are splitting across multiple terms. There's no single right answer — it depends on your risk tolerance and financial situation.

What is a revolving credit mortgage?

A revolving credit facility works like a large overdraft secured against your home. Your salary is deposited into the account, reducing the balance and the interest charged daily. You then draw down for expenses. It rewards financial discipline by reducing interest costs, but can be expensive if you spend freely.

Mortgage adviser vs going direct to a bank — what's the difference?

When you go to a bank directly, you only see that bank's products and rates. A mortgage adviser works across multiple lenders, comparing options to find the best fit for your situation. They handle the application process, paperwork, and negotiation on your behalf.

How are mortgage advisers paid? (and why it's free for borrowers)

Mortgage advisers are typically paid a commission by the lender when your loan settles. This means their service is free to you — the borrower. The commission comes from the lender's margin, not as an additional cost to you. Advisers are legally required to disclose their commission structure.

What is a Financial Advice Provider (FAP) licence?

Under New Zealand's Financial Markets Conduct Act, anyone providing financial advice must hold a Financial Advice Provider (FAP) licence issued by the FMA (Financial Markets Authority). This ensures advisers meet competency, ethical, and conduct standards designed to protect consumers.

What is the FSPR and how do you check someone is registered?

The Financial Service Providers Register (FSPR) is a public register of all financial service providers in New Zealand. You can search it online to verify that any mortgage adviser you're dealing with is properly registered and authorised to provide advice.

Questions to ask a mortgage adviser

How many lenders do you work with? What's your experience with first home buyers? Are you a registered Financial Advice Provider? How are you paid? Will you help me through the entire process until settlement? Can you help with my KiwiSaver withdrawal and First Home Loan applications?

What a mortgage adviser cannot do

A mortgage adviser cannot guarantee your loan will be approved — that decision rests with the lender. They cannot override a bank's lending criteria or credit assessment. They provide advice and facilitate the process, but final approval depends on meeting the lender's requirements.

How FindMyMortgage connects you with an adviser

FindMyMortgage is an information resource. When you request a connection through our adviser match form, we introduce you to an FSPR-registered mortgage adviser. We may receive a referral fee for this introduction. The adviser is legally required to act in your best interests, and the referral fee doesn't influence the advice you receive. You're under no obligation — it's a free, no-pressure introduction.

Step 1: Work out your budget and get pre-approval

Before you start looking at properties, understand what you can afford. Use our calculators for a rough guide, then get formal pre-approval from a lender. This confirms your budget and shows sellers you're a serious buyer.

Step 2: Find a property (working with real estate agents)

Search online listings (Trade Me Property, realestate.co.nz), attend open homes, and register with local agents. Remember that real estate agents work for the seller — they're helpful, but their obligation is to get the best result for the vendor.

Step 3: Make a conditional offer

You can buy by negotiation (making a written offer through the agent), tender, or auction. Most offers are conditional — typically on finance and a satisfactory building inspection. Your lawyer should review the Sale and Purchase Agreement before you sign. At auction, offers are unconditional, so all due diligence must be completed beforehand.

Step 4: Due diligence — building inspection, title search

Once your conditional offer has been accepted, it's time to investigate the property thoroughly. Get a building inspection ($400–$800) and have your lawyer check the title for any issues. Doing your due diligence after placing a conditional offer helps save costs — you only pay for inspections once your offer has been accepted, rather than spending money on properties you may not end up buying. This is your protection against expensive surprises.

Step 5: Going unconditional

Once your conditions are met (finance confirmed, inspections satisfactory), you go unconditional. This means you're legally committed to the purchase. Do not go unconditional until you're completely satisfied — once you do, backing out can have serious financial consequences.

Step 6: Final checks before settlement

In the weeks before settlement, your lawyer prepares the transfer documents, your bank finalises the loan, and you should do a final property inspection to ensure nothing has changed since your initial visit.

Step 7: Settlement day — what happens and what to expect

On settlement day, your lawyer transfers the purchase price to the vendor's lawyer. The title is transferred to your name. You don't usually need to be present — your lawyer handles everything. The process typically takes a few hours.

Step 8: Getting the keys

Once settlement is confirmed (usually by early-to-mid afternoon), the real estate agent will release the keys to you. Congratulations — you're a homeowner. Time to change the locks, set up utilities, and start making it your own.

Not getting pre-approval before making an offer

Without pre-approval, you risk falling in love with a property you can't afford, or scrambling to arrange finance under time pressure. Get pre-approved before you start seriously looking.

Underestimating total upfront costs

Your deposit is just one part of the cost. Legal fees, inspections, valuations, and moving costs add $3,000–$8,000+. Budget for these from the start so they don't catch you off guard.

Only talking to one bank

Different banks have different criteria, rates, and appetites. The bank you've banked with your whole life may not offer the best deal. A mortgage adviser compares multiple lenders to find the right fit.

Ignoring the mortgage fine print (revert rates, fees)

Pay attention to what happens when your fixed term ends — the "revert rate" (usually a high floating rate). Also check for early repayment fees, account fees, and the conditions attached to any cashback offer.

Making big financial changes before settlement

Between pre-approval and settlement, avoid changing jobs, taking on new debt (including BNPL), or making large purchases. Banks can (and do) reassess your situation before final drawdown, and changes can jeopardise your approval.

Not using a lawyer — or using the wrong one

A property lawyer is legally required for the transaction, but not all lawyers are equally experienced in property. Choose one who specialises in residential conveyancing and can guide you through the process, not just process paperwork.

Overextending on price and becoming "house poor"

Just because a bank will lend you $800,000 doesn't mean you should borrow that much. Consider your lifestyle, future plans (children, career changes), and the ongoing costs of homeownership. Leave a financial buffer — being "house poor" (where mortgage repayments consume most of your income) is stressful and risky.

Forgetting to budget for ongoing home ownership costs

Council rates, home and contents insurance, maintenance and repairs, body corporate fees (for apartments/townhouses) — these ongoing costs can add $5,000–$15,000+ per year depending on the property. Factor them into your budget before committing.

Amortisation
The process of gradually paying off a loan through regular repayments that cover both principal and interest. Over time, more of each repayment goes toward the principal as the interest portion decreases.
Break Fee
A charge your bank may apply if you repay, switch, or restructure a fixed-rate mortgage before the fixed term ends. Break fees compensate the bank for lost interest income and can range from nothing to several thousand dollars.
Bridging Loan
A short-term loan that covers the gap when you're buying a new property before selling your existing one. Bridging loans carry higher interest rates and are typically repaid once your existing property sells.
Cashback
A lump sum incentive some banks offer to attract new borrowers. Typically $2,000–$5,000 paid on settlement. Cashback offers may come with conditions like minimum loan terms, and the associated interest rate may not be the most competitive.
CCCFA
The Credit Contracts and Consumer Finance Act — NZ legislation that governs how lenders assess borrowers. Amended in 2021 to require more detailed affordability assessments, including scrutiny of living expenses and spending habits.
Conditional Approval
Also called pre-approval or approval in principle. A lender's written indication they'd be willing to lend you a certain amount, subject to conditions like a satisfactory property valuation. Not a guarantee of final approval.
Conveyancing
The legal process of transferring property ownership from seller to buyer. Handled by your lawyer or conveyancer, it includes title checks, contract preparation, and managing settlement.
DTI (Debt-to-Income Ratio)
A measure of your total debt compared to your gross income. Banks use DTI ratios to assess how much you can safely borrow. A DTI of 6 means your total debt is six times your annual gross income.
Due Diligence
The investigation and checks you carry out before committing to a property purchase. Includes building inspections, title searches, and confirming finance. Essential before going unconditional.
FAP (Financial Advice Provider)
Under NZ law, any person or business giving financial advice must hold a Financial Advice Provider licence. This ensures advisers meet competency, ethical, and conduct standards.
First Home Loan
A government-backed scheme allowing eligible first home buyers to purchase with just 5% deposit. The loan is provided by participating banks with Kāinga Ora underwriting part of the risk.
Floating Rate
A mortgage interest rate that can change at any time based on market conditions. Floating rates are typically higher than fixed rates but offer flexibility — you can make extra repayments or repay the loan without break fees.
FSPR (Financial Service Providers Register)
A public register of all financial service providers in New Zealand. You can search the FSPR to verify that a mortgage adviser or financial adviser is properly registered and licensed.
Guarantor
A person (usually a family member) who guarantees your home loan. If you default on repayments, the guarantor becomes responsible. Using a guarantor can help you borrow more or avoid Low Equity Margins, but carries significant risk for the guarantor.
Kāinga Ora
New Zealand's government housing agency (formerly Housing New Zealand). Administers the First Home Loan scheme and provides public housing.
KiwiSaver
New Zealand's voluntary workplace savings scheme. Members contribute a percentage of their salary (3%, 4%, 6%, 8% or 10%), matched by a minimum 3% employer contribution. Funds can be withdrawn for a first home purchase after 3 years of membership.
LEM (Low Equity Margin)
An additional interest rate margin charged by banks when you borrow more than 80% of a property's value (LVR above 80%). Typically adds 0.25%–1.5% to your rate and is removed once your LVR drops below 80%.
LMI (Lender's Mortgage Insurance)
In NZ, low-equity borrowers typically pay a Low Equity Margin (LEM) rather than a separate insurance policy. LMI is more common in Australia. The effect is similar — borrowers with less than 20% equity pay more.
LVR (Loan-to-Value Ratio)
The percentage of a property's value that you're borrowing. If you buy a $600,000 home with a $120,000 deposit, you're borrowing $480,000 — an 80% LVR. The RBNZ sets LVR restrictions that limit high-LVR lending.
OCR (Official Cash Rate)
The interest rate set by the Reserve Bank of New Zealand (RBNZ) that influences all other interest rates in the economy. Changes to the OCR flow through to mortgage rates, though not always immediately or proportionally.
Offset Mortgage
A mortgage structure where your savings balance is offset against your loan balance for interest calculation purposes. If you owe $500,000 and have $50,000 in savings, you only pay interest on $450,000.
Pre-Approval
A written indication from a lender that they're willing to lend you up to a specified amount, subject to conditions. Usually valid for 60–90 days. Also called conditional approval or approval in principle.
Principal
The amount you actually borrowed — as distinct from the interest charged on it. Each mortgage repayment is split between principal (reducing your debt) and interest (the cost of borrowing).
Purchaser
The person buying a property — you, the buyer. The legal term used in Sale and Purchase Agreements and property law.
RBNZ (Reserve Bank of New Zealand)
New Zealand's central bank. Sets the Official Cash Rate (OCR) and monetary policy, regulates banks, and sets lending restrictions like LVR limits. Its decisions directly influence mortgage rates.
Refix
When your fixed-rate mortgage term expires, you "refix" by choosing a new fixed term and rate. This is an opportunity to restructure your loan — change your term length, split your loan, or switch to floating.
Registered Valuation
A formal property valuation carried out by a registered valuer. Banks may require one to confirm the property's value before approving your loan. Costs $700–$1,200 and is different from a real estate agent's appraisal.
Revolving Credit
A mortgage structure that works like a large overdraft. Your salary is deposited into the account (reducing the balance and interest), and you draw down for expenses. Rewards financial discipline but can be costly if mismanaged.
Security Property
The property that secures your mortgage. If you default on your loan, the bank has the right to sell the security property to recover the debt.
Settlement
The date when the property purchase is legally completed. Your lawyer transfers the purchase funds, the title is transferred to you, and you receive the keys.
Settlement Date
The agreed date on which the property transaction is completed. Set in the Sale and Purchase Agreement. Typically 4–6 weeks after going unconditional, but can vary.
Split Loan
Dividing your mortgage into multiple portions with different rate structures — for example, half fixed and half floating. Allows you to balance certainty with flexibility.
Test Rate
The higher interest rate banks use when stress-testing your ability to afford a mortgage. Currently around 6.80%. Even if your actual rate is lower, the bank needs to know you could still afford repayments if rates rose significantly.
Unconditional
When all conditions on a property purchase have been satisfied or waived, the agreement becomes unconditional. At this point, you're legally committed to completing the purchase. Do not go unconditional until you're certain about finance, inspections, and due diligence.
Vendor
The person selling a property — the seller. The legal term used in Sale and Purchase Agreements and property law.

First Home Buyer FAQs — Every Question Answered

Real questions from real first home buyers in New Zealand. General information only — for advice specific to your situation speak with an FSPR-registered mortgage adviser.

Deposits & Saving

Most banks require a minimum 10% deposit for first home buyers, though 20% is ideal. With 10% you'll pay a Low Equity Margin (LEM) — an additional fee charged by lenders when you borrow more than 80% of the property value. With the Kāinga Ora First Home Loan, eligible buyers can purchase with as little as 5% deposit. The exact amount you need depends on the purchase price, lender, and your full financial situation.
A LEM is an additional interest rate margin applied when you borrow more than 80% of a property's value. It typically adds 0.25%–1.5% to your interest rate and can cost thousands of dollars over the life of your loan. Reaching a 20% deposit (or paying down your loan to below 80% LVR) removes the LEM.
Yes, most banks accept gifted funds as part of a deposit, but they'll want a signed statutory declaration from the giftor confirming it's a gift (not a loan). If it is a loan from family, banks will factor in the repayments when assessing your borrowing capacity.
It varies significantly by income, location, and property price. At the national median house price of around $780,000, a 10% deposit is $78,000 — which could take 3–7 years for a typical couple saving $1,000–$2,000 per month. KiwiSaver contributions and the First Home Loan scheme can meaningfully help.
Yes. Since the CCCFA changes, banks scrutinise at least 3 months of bank statements. Regular spending on gambling, BNPL services (Afterpay, Laybuy), and large irregular withdrawals can raise concerns. This doesn't mean you can't enjoy life, but patterns that suggest financial stress or risk can affect approval.

KiwiSaver

Yes, if you've been a KiwiSaver member for at least 3 years you can withdraw most of your balance to put toward your first home. You must leave a minimum of $1,000 in your account. The withdrawal process takes around 10–15 working days so plan ahead.
You can withdraw your full balance minus $1,000, including your contributions, employer contributions and fund returns. If you've been contributing for 3+ years, there's no cap on the amount you can withdraw for a first home purchase.
Generally, if you're planning to buy within 1–3 years, a conservative or balanced fund reduces the risk of your balance dropping just before you need it. If your timeline is 5+ years away, a growth fund typically delivers higher long-term returns. This is general guidance — speak with a financial adviser about what's right for your situation.
Yes. Your employer contributions (minimum 3% of your gross salary) are included in the withdrawal amount.
Your KiwiSaver account stays open but with only $1,000 remaining. Contributions from you and your employer continue as normal after the purchase. You can build your balance back up over time.

First Home Loan

The First Home Loan is a government-backed scheme through Kāinga Ora that allows eligible first home buyers to purchase with just 5% deposit. The loan itself is provided by participating banks (ANZ, ASB, Westpac, BNZ, Kiwibank and others). Eligibility requires meeting income caps and property price caps, and the property must be your primary residence.
For a single buyer, the income cap is $95,000 gross per year. For two or more buyers, the combined cap is $150,000. These are based on your income for the 12 months before your application. Check kaingaora.govt.nz for current thresholds as these can change.
Yes — eligible buyers can use both simultaneously. Many first home buyers use their KiwiSaver withdrawal alongside the First Home Loan to maximise their deposit and reduce Low Equity Margins.

Pre-Approval & Applying

Pre-approval (also called conditional approval or approval in principle) is a lender's written confirmation that they'd be willing to lend you up to a certain amount, subject to conditions like a satisfactory property valuation. You don't legally need it to buy a home, but without it you risk making offers on properties you can't finance.
Typically 3–10 working days if you have all your documents ready. Some lenders can do it faster. Going through a mortgage adviser can speed the process as they know exactly what each bank needs.
Typically: last 2 payslips, last 2 years IRD summary of earnings (MyIR), 3 months of bank statements for all accounts, proof of deposit/savings, photo ID, and details of any existing debts or liabilities. Self-employed borrowers need 2 years of financial statements and tax returns.
Usually 60–90 days. After that it expires and you'll need to reapply. If rates or your financial situation have changed, the new pre-approval may differ from the original.
Yes. Each time a lender does a "hard" credit check, it leaves a mark on your credit file. Multiple applications in a short period can lower your score. Using a mortgage adviser who applies on your behalf to one suitable lender helps minimise this.
NZ banks don't publish specific minimum credit score thresholds, but a clean credit history is important. Defaults, missed payments, or large numbers of credit applications can affect approval. You can check your credit score for free via Centrix, Equifax or Illion.
Yes, but it can be more complex. Banks typically want 2 years of financial statements (prepared by an accountant) and 2 years of tax returns. They'll use your average or lower of the two years' net profit when assessing income. A mortgage adviser who works with self-employed borrowers can be valuable here.

Interest Rates

This depends on your circumstances, risk tolerance, and view on where rates are heading. In 2026, short-term rates are near their lows but longer-term rates are edging up as markets price in future OCR hikes. Many borrowers are fixing for 1–2 years or using a split mortgage. This is general information — speak with an adviser about what suits your situation.
The Official Cash Rate (OCR) is the interest rate set by the Reserve Bank of New Zealand (RBNZ). It influences the rates banks pay to borrow money, which flows through to mortgage rates. When the RBNZ cuts the OCR, mortgage rates typically fall. When it raises the OCR, mortgage rates rise.
A split mortgage divides your loan into multiple portions — for example, half fixed at one rate and half floating. This gives you some certainty (on the fixed portion) and some flexibility (on the floating portion, which you can repay faster without break fees).
If you repay or restructure a fixed-rate mortgage before the term ends, your bank may charge a break fee. This compensates the bank for the difference between your contracted rate and current rates. Break fees can be zero or thousands of dollars depending on rate movements and how much time is left on your term.
A revolving credit mortgage works like a big overdraft secured against your home. Your salary is credited to the account, reducing the balance (and interest) daily. You draw down as needed for expenses. It rewards financial discipline — if you spend freely it can cost more than a standard mortgage.
Some banks offer cashback incentives — typically $2,000–$5,000 — to attract new borrowers or refinancers. The money is paid when your loan settles. Cashback offers often come with strings attached (like a minimum loan term) and the rate offered may not be the most competitive. Factor in the full cost of the loan, not just the cashback.

The Buying Process

A building inspection is carried out by a registered building inspector before you purchase a property. They check for structural issues, moisture, weathertightness, plumbing, and other defects. It typically costs $400–$800 and can save you from buying a property with expensive hidden problems.
When you make a conditional offer on a property, your purchase is conditional on certain things — usually getting finance and completing due diligence. Going unconditional means you've waived those conditions and are legally committed to completing the purchase. Do not go unconditional until you're certain your finance is confirmed and you're satisfied with all inspections.
Settlement is when the property legally transfers from the seller to you. Your lawyer handles the exchange of funds and documents. You don't usually need to be present. By the end of settlement day, you'll receive the keys and become the legal owner.
Yes. A property lawyer (or conveyancer) is legally required to handle the title transfer and settlement. Legal fees typically range from $1,500–$3,000. Choose a lawyer who specialises in property transactions.
Conveyancing is the legal process of transferring property ownership from seller to buyer. Your lawyer handles this — checking the title, preparing and reviewing sale and purchase agreements, liaising with the other party's lawyer, and managing the settlement.
For most purchases (not auctions), you can make a conditional offer first, then complete your due diligence during the conditions period. This saves you money — you only pay for building inspections and other checks once your offer has been accepted, rather than spending on properties you may not end up buying.

Costs & Budgeting

Budget for: legal fees ($1,800–$3,000), building inspection ($400–$800), registered valuation ($750–$1,000 — required if your deposit is under 20%), moving costs ($500–$3,000+), and initial home setup costs. After purchase, ongoing costs include council rates, home and contents insurance, and maintenance. Total upfront costs beyond your deposit typically range from $4,000–$9,000.
Yes — if your deposit is less than 20% of the purchase price, your bank will almost certainly require a registered valuation. This is a formal assessment of the property's market value carried out by a registered valuer (not a real estate agent's appraisal or council rateable value). It typically costs $750–$1,000. The bank needs it to confirm the property is worth what you're paying, which is especially important when they're lending a high percentage of the value. Even with 20%+ deposit, the bank may still require a valuation for non-standard properties or new builds.
A registered valuation typically costs $750–$1,000, though complex or high-value properties may cost more. The valuer visits the property, inspects it inside and out, and compares it with recent sales of similar properties in the area to arrive at a market value. This is arranged through your bank or mortgage adviser, and the cost is paid by you. Budget for this as part of your upfront buying costs — especially if your deposit is under 20%.
In NZ, low-equity borrowers typically pay a Low Equity Margin (LEM) — an interest rate loading — rather than a separate insurance policy as in Australia. The effect is similar: borrowers with less than 20% deposit pay more. Some lenders do offer low equity fee structures that differ — check with your mortgage adviser for details.

First Home Buyer News & Guides

Interest RatesMarch 2026

NZ Mortgage Rates in 2026: Where Are They Heading?

Short-term rates have hit their lows, but longer-term rates are edging up. We break down the outlook and what it means for first home buyers deciding when and how to fix.

General information only — not financial advice.

After a sustained period of OCR cuts through 2024 and into 2025, the Reserve Bank of New Zealand has paused at 2.25%. Short-term mortgage rates have followed the OCR down, with 6-month specials sitting around 4.49% at most major banks. But the picture for longer-term rates is different — and that's where it gets interesting for first home buyers.

Where rates sit right now

As of early 2026, the most competitive rates are at the short end. Six-month fixed rates are around 4.49% at ANZ, BNZ, Kiwibank, and Westpac. One-year rates sit around 4.45%–4.55%. But two-year rates are higher at 4.69%–4.85%, and five-year rates have climbed to 5.29%–5.49%. The gap between short and long-term rates tells you that markets expect rates to rise from here.

What the banks are saying

ANZ expects the OCR to stay at 2.25% throughout 2026 but sees all fixed mortgage rates rising toward 5% over the next 12 months. ASB believes the rate-cutting cycle is over and markets are already pricing in future hikes. BNZ thinks the downtrend is almost over but expects many fixed rates to stay below 5% for much of the year. Westpac sees the OCR holding until mid-2027 before rate hikes begin.

What this means for first home buyers

If you're buying now, you're entering at a relatively favourable point in the rate cycle. Short-term rates are near their lows, which means lower repayments in the immediate term. However, you should plan for rates to increase when you refix. Stress-test your budget at higher rates — if you can afford repayments at 6%+ you'll be in a solid position.

Fix short, fix long, or split?

Many borrowers are opting for 1–2 year fixes to capture today's lower rates while retaining flexibility to refix relatively soon. Others are splitting their mortgage across multiple terms — for example, half on a 1-year fix and half on a 2 or 3-year fix. This hedges against uncertainty and gives you regular opportunities to restructure.

If you're unsure how the current rate environment affects your specific situation, a mortgage adviser can help you model different scenarios and choose a structure that works for your budget and risk tolerance.

KiwiSaverFebruary 2026

KiwiSaver First Home Withdrawal: A Step-by-Step Guide for 2026

Everything you need to know about withdrawing your KiwiSaver balance to help buy your first home — eligibility, how much you can take, the application process and timeline.

General information only — not financial advice.

Your KiwiSaver balance can be one of the most powerful tools in your first home deposit toolkit. Here's everything you need to know about the withdrawal process.

Am I eligible to withdraw?

To withdraw your KiwiSaver for a first home, you need to meet several criteria. You must have been a KiwiSaver member for at least 3 years. You must be purchasing your first home (or be in the same financial position as a first home buyer, which Kāinga Ora can assess). The property must be your primary residence — not an investment property. And you must intend to live in the property.

How much can I withdraw?

You can withdraw your entire KiwiSaver balance minus $1,000. This includes your own contributions, your employer's contributions, government contributions, and any investment returns earned. There is no cap on the withdrawal amount — if your balance is $80,000, you can withdraw $79,000.

The step-by-step process

Step 1: Get your finance approved. Your mortgage pre-approval or loan approval should be in place before applying for the KiwiSaver withdrawal.

Step 2: Sign a Sale and Purchase Agreement. You'll need a property under contract before the withdrawal can be processed.

Step 3: Contact your KiwiSaver provider. Each provider has their own application form. You'll typically need to provide your Sale and Purchase Agreement, proof of identity, and your solicitor's details.

Step 4: Your provider processes the withdrawal. This typically takes 10–15 working days, though some providers are faster. The funds are paid directly to your solicitor's trust account, not to you personally.

Step 5: Your solicitor applies the funds to your property purchase on settlement day.

Important timing considerations

The 10–15 working day processing time is critical. If your settlement date is tight, make sure you apply for the withdrawal as early as possible. Your lawyer can advise on timing, and your mortgage adviser can help coordinate the process.

After the withdrawal

Your KiwiSaver account remains open with the $1,000 minimum balance. Your regular contributions (and your employer's) continue as normal. Over time, your balance will rebuild. Many people are surprised by how quickly their balance grows again once regular contributions resume.

For the latest eligibility criteria and application forms, visit your KiwiSaver provider's website or kiwisaver.govt.nz.

BorrowingJanuary 2026

5% Deposit Home Loans: Is the First Home Loan Right for You?

Kāinga Ora's First Home Loan lets eligible buyers purchase with just 5% deposit. We look at who qualifies, which banks offer it, and the pros and cons of borrowing with a small deposit.

General information only — not financial advice.

For many first home buyers, the biggest barrier to homeownership is the deposit. The First Home Loan scheme aims to lower that barrier by allowing eligible buyers to purchase with as little as 5% deposit.

How the First Home Loan works

The First Home Loan is a government-backed scheme administered by Kāinga Ora. Under this scheme, eligible first home buyers can borrow up to 95% of the property value (a 95% LVR), compared to the standard maximum of 80–90% for other borrowers. The loan itself is provided by participating banks — the government doesn't lend the money directly but underwrites a portion of the risk.

Who qualifies?

To be eligible, you need to meet income caps (single buyer: $95,000, two or more: $150,000 combined gross), purchase below regional price caps, and the property must be your primary residence. You also need to demonstrate that you can service the loan — banks still assess your ability to make repayments at their standard test rates.

Which banks participate?

Several major banks offer the First Home Loan, including ANZ, ASB, BNZ, Westpac, and Kiwibank, along with some smaller lenders. Not all bank branches may be familiar with the scheme, so it can help to work with a mortgage adviser who knows which lenders to approach.

The pros

The obvious advantage is getting into the property market sooner. Instead of saving $78,000 for a 10% deposit on a $780,000 home, you'd need $39,000 (5%). For many buyers, this could shave years off their saving timeline. You can also combine the First Home Loan with your KiwiSaver withdrawal.

The risks to consider

Borrowing with a 5% deposit means you start with very little equity. If property values drop even slightly, you could find yourself in negative equity — owing more than your home is worth. You'll also face higher costs through Low Equity Margins, and your repayments will be higher because you're borrowing more. It's important to stress-test your budget: could you still afford repayments if rates rose significantly?

Making the decision

The First Home Loan can be a valuable pathway into homeownership, but it's not the right choice for everyone. Consider your job security, your ability to handle unexpected costs, and whether you'd be comfortable with higher repayments. A mortgage adviser can help you model different scenarios and decide whether a 5% deposit purchase makes financial sense for your situation.

SavingJanuary 2026

How Long Does It Really Take to Save a House Deposit in NZ?

We ran the numbers for Auckland, Wellington, Christchurch and regional NZ. Here's how long it realistically takes on different incomes — and how KiwiSaver can help.

General information only — not financial advice.

One of the most common questions we hear from aspiring first home buyers is: "How long will it take me to save enough?" The honest answer is: it depends on where you want to buy, how much you earn, and how aggressively you can save. Let's look at the numbers.

The deposit targets

For most first home buyers, you're aiming for either a 10% deposit (the minimum most banks will accept) or a 20% deposit (which avoids Low Equity Margins). With the First Home Loan, 5% is possible for eligible buyers.

Auckland

With a median house price around $1,000,000, you're looking at a $100,000 deposit for 10% or $200,000 for 20%. A couple saving $2,000 per month would take roughly 4 years and 2 months to reach 10%, or over 8 years for 20%. Adding KiwiSaver balances can significantly reduce these timelines.

Wellington

The Wellington median sits around $780,000. A 10% deposit is $78,000 and 20% is $156,000. At $2,000 per month savings, you'd reach 10% in about 3 years and 3 months. More affordable than Auckland, but still a significant commitment.

Christchurch

Christchurch median prices around $620,000 make deposits more achievable — $62,000 for 10% or $124,000 for 20%. At $2,000 per month, a couple could reach 10% in about 2 years and 7 months.

Regional New Zealand

Outside the main centres, median prices vary widely but can be significantly lower. In some regions, median prices around $450,000–$550,000 mean a 10% deposit of $45,000–$55,000. This makes homeownership achievable in a much shorter timeframe.

How KiwiSaver helps

For a couple who have both been contributing to KiwiSaver for 5+ years, combined balances of $40,000–$80,000 are common. Combined with your cash savings and possibly the First Home Loan scheme, you could have a significant deposit without decades of saving.

Tips to save faster

Maximise your KiwiSaver contributions (consider increasing to 8% or 10% of your salary). Automate your savings so money goes into a dedicated account before you can spend it. Consider whether your household expenses can be reduced — even temporarily — while you're in saving mode. And explore whether you qualify for the First Home Loan, which only requires 5% deposit.

Remember, these are estimates based on median prices. Your actual timeline will depend on the specific property you're targeting, your combined savings rate, and whether you can access KiwiSaver withdrawals.

Interest RatesFebruary 2026

Fixed vs Floating in 2026: What Should First Home Buyers Do?

With short-term rates near their lows and longer-term rates rising, first home buyers face a key decision. We break down both options and what factors to consider.

General information only — not financial advice.

As a first home buyer stepping into the mortgage market, one of the first decisions you'll face is whether to fix your interest rate or go floating. In 2026, with short-term rates near their lows but longer-term rates trending upward, this decision carries real significance.

What is a fixed rate?

A fixed rate mortgage locks in your interest rate for a set period — typically 6 months to 5 years. During this time, your repayments don't change regardless of what happens to market rates. When the fixed period ends, you "refix" at whatever rate is available at that time.

What is a floating rate?

A floating (or variable) rate moves up and down with market conditions. When the OCR drops, floating rates typically fall. When it rises, so does your rate. The advantage is flexibility — you can make extra repayments or repay the loan in full without break fees.

The 2026 context

The RBNZ has paused the OCR at 2.25% after a series of cuts. Most bank economists believe the easing cycle is over and rates may start rising in the second half of 2026 or 2027. Short-term fixed rates (6 months to 1 year) are near their lowest point, while longer-term rates have already started to edge up as markets price in future OCR hikes.

The case for fixing

Fixed rates give you certainty. You know exactly what your repayments will be, making budgeting easier — which is especially valuable for first home buyers adjusting to homeownership costs. Current 1–2 year fixed rates are very competitive, and locking in now protects you if rates start rising sooner than expected.

The case for short-term fixing

Fixing for a short period (6 months to 1 year) captures today's low rates while giving you the opportunity to reassess relatively soon. If rates remain stable, you simply refix at a similar level. The trade-off is less certainty than a longer fix.

The split mortgage approach

Many borrowers — especially in uncertain rate environments — use a split mortgage. You might fix 60% of your loan for 2 years (for stability) and leave 40% on a 6-month or 1-year fix (for flexibility). This hedges your position and gives you the best of both worlds.

What should you do?

There's no universally right answer. Consider your risk tolerance (can you handle rate fluctuations?), your budget flexibility (how tight is your cash flow?), and your time horizon. A mortgage adviser can model different scenarios and help you structure your loan in a way that suits your circumstances.

Remember: trying to perfectly time interest rates is like trying to time the stock market. Focus on what gives you confidence and financial stability, rather than trying to pick the absolute lowest rate.

BuyingJanuary 2026

Conditional Offers Explained: How to Protect Yourself When Buying

Most first home purchases in NZ are made with conditions attached. We explain what conditions are, why they matter, and how they can save you thousands in unnecessary costs.

General information only — not financial advice.

When you find the right property, the last thing you want is to rush into a commitment you can't back out of. That's where conditional offers come in — and understanding them is one of the most important things a first home buyer can learn.

What is a conditional offer?

A conditional offer is a written offer to purchase a property that includes specific conditions that must be met before the sale becomes binding. The most common conditions are: finance (your bank formally approving the loan), a satisfactory building inspection, and a solicitor's approval of the title and Sale and Purchase Agreement.

Why conditions protect you

If any of your conditions aren't met — for example, the building inspection reveals major defects, or your bank doesn't approve the loan — you can withdraw from the purchase without penalty. Without conditions, you'd be legally committed to buy regardless.

How conditions save you money

A smart approach is to make your conditional offer first, then complete your due diligence during the conditions period. This means you only pay for building inspections and other checks once your offer has been accepted — rather than spending hundreds of dollars on every property you're interested in. Over a search that might span several properties, this can save you thousands.

Typical condition timeframes

Most conditions are set for 10–15 working days. Finance conditions often need 10–15 days for bank processing. Building inspections can usually be arranged within a few days. Your lawyer may need 5–10 working days to review the title and agreement. Make sure your timeframes are realistic — rushing can lead to mistakes.

When you can't use conditions

At auction, all offers are unconditional — you must have your finance approved and due diligence completed before auction day. This is a key difference from buying by negotiation, and it's why many first home buyers prefer to buy by negotiation where conditions give them a safety net.

Going unconditional

Once all your conditions are satisfied, you "go unconditional" — confirming your commitment to complete the purchase. Do not go unconditional until you are 100% satisfied with your finance, inspections, and legal review. Once unconditional, backing out can have serious financial and legal consequences.

Your lawyer and mortgage adviser can guide you through this process and make sure your conditions are properly drafted to protect your interests.

Book a call with one of our trusted advisers

You've done your research — the best way forward is to book a quick call with a mortgage adviser. This is so you can get advice tailored to your situation.

This is completely free to you. We have commercial relationships with licensed advisers and may receive a referral fee when we make an introduction. This doesn't influence the advice you receive — advisers are legally required to act in your best interests.

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