Buying a home is the largest financial decision most New Zealanders ever make. The gap between thinking you’re ready and actually being ready is often significant. This checklist covers the financial steps to work through before you sign anything.
Before buying a house in NZ you need: at least a 10–20% deposit (as low as 5% may be possible via a Kāinga Ora First Home Loan), a solid credit history, pre-approved lending, and a buffer for purchase costs (legal fees, building inspection, LIM report) of $3,000–$6,000. Many first-home buyers also need to confirm KiwiSaver first-home withdrawal eligibility and whether they qualify for a Kāinga Ora First Home Loan (the separate First Home Grant was discontinued in May 2024).
1. Confirm Your Deposit
Most NZ buyers need at least a 10–20% deposit, due to RBNZ LVR restrictions — though banks are permitted to lend a limited share of loans to first home buyers with as little as 5% deposit, including via the Kāinga Ora First Home Loan. However:
| Deposit level | What it means |
|---|---|
| 5–10% | Low deposit — possible with a Kāinga Ora First Home Loan or if you have a guarantor; fewer lenders available |
| 10–15% | Standard first-home buyer zone; most banks will lend, but may charge a low-equity margin on the rate |
| 20%+ | Full access to all lenders; best interest rates; no low-equity premium |
What counts as deposit:
- KiwiSaver first-home withdrawal (after 3 years of membership, if eligible)
- Personal savings
- Cash gifts from family (the bank will ask about this)
- Home loan guarantee from a family member
Note: the Kāinga Ora First Home Grant (a cash grant on top of your deposit) was discontinued for new applications from 22 May 2024. It no longer counts toward your deposit — see Section 3 below.
2. Check KiwiSaver First Home Withdrawal Eligibility
You may be able to withdraw your KiwiSaver balance (except $1,000, any savings transferred from an Australian superannuation scheme, and any government contributions for periods when New Zealand was not your principal place of residence) for your first home if:
- You have been a KiwiSaver member for 3 years or more
- You have never owned a home or land before, in NZ or overseas (an interest in Māori land does not count, and previous owners can ask Kāinga Ora for a decision)
- You intend to live in the property (not investment)
Apply to your KiwiSaver provider well before settlement: providers ask for your complete application a set time before the payment date, commonly 10 to 15 working days (MAS, for example, asks for at least 10 business days and Fisher Funds 15 working days before settlement), so check yours.
3. Check Kāinga Ora First Home Loan Eligibility
The Kāinga Ora First Home Grant (a cash grant of up to $10,000 for a new build or $5,000 for an existing home) was discontinued from 22 May 2024 — Kāinga Ora no longer accepts new applications for it.
The First Home Loan (a government-backed low-deposit loan, letting eligible buyers borrow with as little as 5% deposit) is still available. To qualify:
- Income under $95,000 (single, no dependants) or $150,000 (single with dependants, or two-or-more buyers combined)
- Deposit of at least 5%
- No regional house price caps apply — these were removed entirely from 1 June 2022
- Buying through a lender that offers the First Home Loan (check current participating lenders via kaingaora.govt.nz)
Apply through a participating lender or broker well before you plan to buy (processing takes time).
4. Understand LVR Restrictions (RBNZ)
The Reserve Bank of NZ limits how much banks can lend at high LVR (Loan-to-Value Ratio):
| Buyer type | LVR limit |
|---|---|
| Owner-occupier (most buyers) | Must have 20% deposit (80% LVR max) |
| Owner-occupier (first home) | 10% deposit acceptable — banks have a small high-LVR allocation for this |
| Investor | Generally needs a 30% deposit for an existing property (20% for a new build); banks can make up to 10% of their new investor lending to investors with less than a 30% deposit |
5. Get a Pre-Approval
Home loan pre-approval (also called conditional or indicative approval) tells you:
- How much the bank will lend you
- What interest rates and terms you qualify for
- Whether any conditions apply
Documents banks typically require:
- 3 months payslips (or 2 years IR3 if self-employed)
- 3–6 months bank statements (all accounts — they will see your spending)
- Proof of KiwiSaver balance
- Evidence of other debts (car loans, personal loans, BNPL)
- Current ID and address verification
Pre-approval is usually valid for 60–90 days.
6. Budget for Purchase Costs (Beyond the Deposit)
Many first-home buyers don’t budget for the costs on top of the purchase price:
| Cost | Typical range |
|---|---|
| Legal fees (conveyancer / lawyer) | $1,500 – $3,000 |
| Building inspection | $600 – $1,200 |
| LIM report (from council) | $250 – $450 |
| Registered valuation (if required by bank) | $700 – $1,200 |
| Mortgage registration fee | $100 – $200 |
| Home insurance (first year) | $1,200 – $3,000 |
| Moving costs | $500 – $3,000 |
| Total purchase cost buffer | $4,850 – $12,050 |
Always have at least $5,000 set aside beyond your deposit.
7. Review Your Credit File
Banks check your credit history with credit agencies (Centrix, Equifax, Illion). Before applying for pre-approval:
- Get a free credit report from Centrix, Equifax, and Illion
- Check for errors — dispute anything incorrect
- Pay off any outstanding defaults, overdue accounts, or BNPL accounts
- Avoid applying for new credit in the 6 months before a home loan application
8. Assess Your Income Stability
Banks assess your income carefully:
| Employment type | What banks look for |
|---|---|
| Permanent employee | 3 months continuous employment |
| Fixed-term employee | Duration of contract; how many fixed terms you’ve completed |
| Self-employed | 2 years of IR3 returns; averaging last 2 years |
| Contractor | May require longer history; depends on industry |
9. Understand What You Can Actually Afford
Getting pre-approved for $700,000 doesn’t mean you should spend $700,000. Run through your own sums:
- What are your monthly mortgage repayments at your target loan amount? (Use a mortgage calculator)
- What’s your monthly take-home pay after the mortgage is paid?
- How much would you have left for rates, insurance, maintenance, and living?
A common rule of thumb: Housing costs (mortgage + rates + insurance) should ideally be under 35% of take-home pay.
10. Learn the Offer Process
- NZ property is sold by auction, tender, negotiation (price by negotiation / deadline sale)
- Auctions are unconditional — have your legal and building checks done before bidding
- Negotiations and tenders can include conditions (subject to finance, building inspection, LIM)
- A LIM report (Land Information Memorandum from the council) reveals consents, zoning, flood risk, and more
Final Checklist Summary
- Deposit saved (at least 10%, ideally 20%)
- KiwiSaver withdrawal eligibility confirmed and application started
- Kāinga Ora First Home Loan eligibility checked (if applicable — the First Home Grant no longer exists)
- Credit file reviewed and cleaned up
- Home loan pre-approval obtained
- Purchase cost buffer of $5,000+ available beyond the deposit
- Budget stress-tested at higher interest rates
- Building inspection process understood
- LIM report process understood
- Lawyer / conveyancer chosen and briefed