A 10% deposit mortgage is possible in New Zealand — but your options depend on whether you’re buying an existing property or a new build, and whether you qualify for any government-backed schemes.
10% Deposit Options in New Zealand
| Route | Property type | Rate premium? | Additional restrictions |
|---|---|---|---|
| New build (standard LVR exemption) | New build only | No | Property must be within 12 months of CCC |
| First Home Loan (via Kāinga Ora) | Existing or new build | No | Income caps; price caps by region |
| Low equity loan (bank discretion) | Existing | Yes (0.25–0.75%) | Limited availability; bank’s own cap |
| Guarantor mortgage | Any | No | Eligible guarantor required |
New Build: 10% Deposit Without Rate Premium
The RBNZ’s LVR rules exempt new build properties from the standard 80% maximum. Owner-occupiers can borrow up to 90% of a new build’s value — meaning a 10% deposit is sufficient with no rate loading.
Requirements:
- The property must have received a Code of Compliance Certificate (CCC) within the last 12 months
- Or you’re purchasing off-plan (buying during construction)
- First sale by the developer (not resold by an owner)
This is the most common route to a 10% deposit mortgage for buyers who don’t qualify for the First Home Loan due to income.
See New Build LVR NZ for full eligibility detail.
First Home Loan: 5% Deposit (Better Than 10%)
If you’re a first home buyer and your income qualifies, the Kāinga Ora First Home Loan allows you to buy with just 5% deposit — less than 10%. Income caps: $95,000 single, $150,000 combined.
The First Home Loan can be used on both existing properties and new builds. If you qualify, this is a better option than a standard 10% deposit loan.
See First Home Loan NZ.
Low Equity Loan (Existing Property at 10% Deposit)
Banks have a limited allocation of high-LVR lending: since 1 December 2025, up to 25% of each bank’s new owner-occupier lending can go to borrowers with less than a 20% deposit (above 80% LVR). This includes loans at 85% LVR (15% deposit) and 90% LVR (10% deposit).
Implications of a low equity loan:
- Rate premium: Typically 0.25–0.75% above the standard rate
- Limited availability: Not always available — depends on whether the bank has capacity in its high-LVR allocation
- Strict income requirements: Banks are more conservative about serviceability for high-LVR loans
On $600,000 at 90% LVR:
- Loan: $540,000
- At 5.45% (2-year fixed): $3,049/month
- At 5.95% (with 0.5% rate premium): $3,229/month
- Extra cost of rate premium: $180/month = $4,320 over 2-year fixed term
Guarantor Mortgage: 10% Deposit (or Less)
A guarantor mortgage uses a family member’s home equity as additional security — allowing you to purchase without a 20% deposit and without the rate premium of a low equity loan.
Requirements:
- A parent or close family member with sufficient equity in their own home
- They guarantee a portion of your loan (typically the gap between your deposit and 20%)
- Their property secures that portion
See Guarantor Mortgage NZ for full detail on how guarantees work.
How Much You Need by Property Price
At 10% deposit:
| Property price | 10% deposit | Mortgage | Monthly repayment at 5.45% (30 years) |
|---|---|---|---|
| $550,000 | $55,000 | $495,000 | $2,791 |
| $650,000 | $65,000 | $585,000 | $3,299 |
| $750,000 | $75,000 | $675,000 | $3,807 |
| $850,000 | $85,000 | $765,000 | $4,315 |
| $950,000 | $95,000 | $855,000 | $4,823 |
Plus buying costs ($8,000–$15,000 above deposit).
Saving $65,000 (10% on $650,000)
| Monthly savings | Time to save $65,000 |
|---|---|
| $2,000 | 32 months (2 years 8 months) |
| $2,500 | 26 months (2 years 2 months) |
| $3,000 | 22 months (1 year 10 months) |
| $4,000 | 16 months (1 year 4 months) |
With KiwiSaver (assume $20,000 available): Each row above is approximately 10 months shorter.
Lender Appetite for 10% Deposit Loans
All five major NZ banks (ANZ, ASB, BNZ, Westpac, Kiwibank) have some capacity for 10% deposit owner-occupier lending, but:
- Availability varies — contact multiple banks or use a broker
- A broker will know which banks currently have high-LVR capacity
- New builds are often the most accessible route — all banks can lend at 90% on new builds without using their restricted LVR allocation
Further Reading
- 20% Deposit Mortgage NZ — the standard deposit requirement
- 5% Deposit Mortgage NZ — the minimum deposit option
- Low Deposit Mortgage NZ — all low-deposit options compared
- New Build LVR NZ — new build 10% deposit route
- First Home Loan NZ — 5% deposit programme
- Guarantor Mortgage NZ — family guarantee route
- LVR and Deposit Hub — all deposit guides