Buying your first home in New Zealand is exciting, but it can also be overwhelming. From understanding your borrowing capacity to securing a mortgage and making an offer, there are many steps involved. This guide shares the best tips for first home buyers in NZ to help make the process as smooth and informed as possible.
Know How Much You Can Borrow
Before you start house hunting, it is important to know how much you can afford. This depends on your income, expenses, deposit size, and other financial commitments. Getting pre-approval from a lender or mortgage broker will give you a clear budget range and make you a more attractive buyer when making offers.
Use our mortgage calculator to get an idea of how much you can afford to spend on a house.
Save for Your Deposit Early
In New Zealand, most lenders require a deposit of at least 20% of the property’s purchase price for owner-occupied homes, though some options exist for lower deposit loans. Start saving early and take advantage of your KiwiSaver balance to boost your deposit.
Read our full guide on deposits here.
Understand Additional Costs
Your deposit is only part of the equation. Budget for legal fees, building inspections, insurance, rates, and moving expenses. Being prepared for these costs will help you avoid financial surprises later.
Read our full guide on additional costs here.
Get Mortgage Advice
Navigating home loans can be complex, especially for first-time buyers. Talking to a mortgage adviser can help you understand different loan options, interest rates, and structures. A good adviser can help you secure the best deal and manage the paperwork. Check our mortgage guide for step-by-step help to better understand the mortgage process.
Do Thorough Property Research
Not all homes are created equal. Research different areas, property types, and market trends. Consider factors such as school zones, transport links, potential for capital growth, and overall liveability. Attend open homes and compare recent sales to better understand market value.
Consider Future Needs
Think long-term when buying your first home. Consider how your lifestyle may change over the next five to ten years. Is there room for a growing family? Is the location suitable for commuting or working from home? Buying smart can save you from needing to sell and upgrade too soon.
Conclusion
Buying your first home in New Zealand is a big step, but with careful planning and expert advice, it can be a rewarding one. By understanding your budget, researching the market, and making use of available schemes and expert support, you can make informed decisions and move into your new home with confidence.
Frequently Asked Questions
How much deposit do I need for my first home in NZ?
Typically, 20% of the purchase price for owner-occupied homes, though some low-deposit options may be available.
What government help is available for first home buyers in NZ?
KiwiSaver first-home withdrawals are available to eligible buyers.
Do I need mortgage pre-approval to buy a house?
While not mandatory, pre-approval is highly recommended as it strengthens your position and clarifies your budget.
What other costs should I budget for besides the deposit?
Consider legal fees, building reports, insurance, council rates, and moving costs. Read our hidden cost guide here.
Is it worth using a mortgage broker?
Yes. Brokers can access a wide range of lenders, help you compare loans, and guide you through the application process. Contact us here.
