Buying your first home in New Zealand is both exciting and daunting. With deposit requirements, KiwiSaver withdrawals, government grants, and fluctuating interest rates, it’s easy to feel overwhelmed. This comprehensive guide walks you through every step — from how to boost your deposit using KiwiSaver and the First Home Grant, to navigating mortgage pre-approval, low-deposit loans, gifting rules, and off-the-plan purchases. No matter where you’re buying in New Zealand, this guide is built to help Kiwis take confident, informed action.
KiwiSaver First-Home Withdrawal: What You Can Access
If you’ve been contributing to KiwiSaver for at least three years, you can likely withdraw almost all of your balance to put toward your first home or a section of land. This is often the largest source of deposit funding for first-home buyers in New Zealand.
Key points:
You must leave at least $1,000 in your account
The funds must go toward a first home or land to build on
You must submit documents before settlement
Step-by-step process:
Request the withdrawal form from your KiwiSaver provider
Provide a statutory declaration confirming first-home status
Attach a signed sale and purchase agreement
Include proof of ID and deposit
Submit at least 10 working days before your settlement date
It’s important to keep communication clear between your KiwiSaver provider and your solicitor to ensure a timely release of funds.
First Home Grant: Up to $10,000 from Kāinga Ora
If you’re a KiwiSaver contributor, you may qualify for a First Home Grant of up to $10,000 per person for a new build or $5,000 for an existing home. This grant can be a powerful top-up to your deposit, and it doesn’t need to be repaid — but it does come with conditions.
Eligibility criteria:
Minimum 3 years of KiwiSaver contributions
Income under $95,000 (individual) or $150,000 (couple)
Buying within regional price caps
Property must be your primary residence
| Property Type | Grant Per Person |
|---|---|
| Existing Homes | Up to $5,000 |
| New Builds | Up to $10,000 |
How Much Deposit Do You Need?
Banks in NZ generally prefer 20% deposits, but first-home buyers can often qualify with just 10% or even 5% through government schemes. That said, the size of your deposit will influence the interest rate, loan conditions, and whether you’ll need to pay a low equity premium.
Ways to build your deposit:
Withdraw from KiwiSaver
Apply for the First Home Grant
Add personal savings
Use gifted funds from your family
Explore shared ownership options
A larger deposit usually means lower repayments and a stronger financial position in the eyes of lenders.
Read our full guide on deposits here.
Working with a Mortgage Broker
Mortgage brokers offer expert help comparing lenders, navigating pre-approvals, and accessing low-deposit products. They’re especially valuable if you’re self-employed, using multiple income streams, or buying with less than 20%.
Why use one:
Access to banks and non-bank lenders
Help with KiwiSaver and grant paperwork
Free service (they’re paid by lenders)
Tailored guidance for your situation
Contact us to help you find the best mortgage broker for you.
Mortgage Pre-Approval: Why It Matters
Pre-approval is your first step in understanding your budget. It’s a lender’s indication of how much they’ll lend you — and it’s often required before you can make a serious offer, especially at auction.
What you’ll need:
Valid photo ID
Income proof (payslips or IRD summary)
Bank statements (3–6 months)
Proof of deposit (savings, KiwiSaver, gifting letter)
Your mortgage broker will submit an application based on your financial situation to lenders, who will then provide you with a conditional pre-approval. Learn more about conditional pre-approvals in our ultimate mortgage guide.
Steps to Buying Your First Home (2025)
Check your KiwiSaver balance and contribution history
Apply for the First Home Grant
Get mortgage pre-approval
Start house hunting within your cap
Get a conditional Sales and Purchase agreement signed.
Order LIM and builder reports
Withdraw your KiwiSaver
Finalise lending and confirm settlement
Move in and celebrate!
Keep a checklist and bring in professionals (lawyer, broker, inspector) to help you each step of the way.
First Home Grant Price Caps by Region (2025)
| Region | Existing Homes Cap | New Builds Cap |
|---|---|---|
| Auckland | $875,000 | $875,000 |
| Wellington City | $750,000 | $925,000 |
| Christchurch | $575,000 | $775,000 |
| Regional NZ | $400,000–$625,000 | Varies |
Caps are updated regularly. Always double-check via Kāinga Ora’s website.
Hidden Costs First-Home Buyers Should Budget For
Buying a home costs more than just the deposit. Don’t forget:
Legal fees: $1,200–$3,000
LIM report: $250–$550
Builder’s report: $500–$1,250
Moving and setup: $500–$1,000+
Insurance, rates, and first-year maintenance
Tip: Keep $5,000–$10,000 as a contingency buffer.
Common Pitfalls First-Home Buyers Should Avoid
Skipping pre-approval or lawyer review
Buying a cross-lease or leasehold without understanding the risks
Underestimating ongoing ownership costs
Forgetting about finance expiry dates (especially with new builds)
Avoid emotional buying and stay grounded — use a broker and lawyer to check every box.
New Build vs Existing Home
| Feature | New Build | Existing Home |
|---|---|---|
| Grant Amount (per person) | Up to $10,000 | Up to $5,000 |
| Deposit Requirement | Often lower with First Home Loan | Typically 20% |
| Warranty | 10-year builder warranty (often) | None |
| Settlement Timeline | Delays possible | Usually quicker |
New builds are great for grants and warranties. Existing homes can be faster and sometimes more affordable — just budget for repairs.
First Home Loan (Kāinga Ora) – Low Deposit Option
The First Home Loan is a Kāinga Ora-supported scheme that allows you to buy with just a 5% deposit. Available through approved banks, it’s a good option if you have steady income but low savings.
Eligibility checklist:
Income under $95,000 (single) / $150,000 (couple)
Buying under the price cap
At least 5% deposit (genuine savings or gifting)
Owner-occupier only
Participating lenders: Kiwibank, Westpac, SBS, Co-operative Bank, NZCU, and others.
Gifting for a Deposit (From Family)
Gifting is common in NZ and perfectly acceptable, but banks need documentation.
What banks require:
A signed gifting letter confirming it’s not a loan
Proof of the funds transferred
(Sometimes) a history of the funds in your account (90 days+)
Use your lawyer to draft the letter early to avoid delays.
Buying Off-the-Plans in NZ: What You Should Know
Pros:
10% now, settle later
Access to the full First Home Grant
Brand new home and builder warranty
Risks:
Construction delays
Finance expiry
Sunset clauses that favour the developer
Have your solicitor review all contracts and ensure your pre-approval remains valid through to settlement.
Tools & Resources
Frequently Asked Questions
How much can I withdraw from KiwiSaver for my first home?
All but $1,000 of your balance, as long as you’ve contributed for 3+ years.
Can I combine KiwiSaver and the First Home Grant?
Yes, and many first-home buyers do. It’s a great way to increase your deposit.
Do I need to pay back the First Home Grant?
No, it’s a grant, but you must live in the home for at least 6 months.
What’s the difference between the First Home Grant and First Home Loan?
The Grant is a cash top-up. The Loan is a separate programme offering low-deposit mortgages through select lenders.
Can I buy with a friend or family member?
Yes, but combined income and KiwiSaver contributions are assessed for eligibility.
