The short answer
Can I buy a first home in New Zealand with less than a 20% deposit?
Twenty percent is a useful benchmark, but a smaller deposit can be possible depending on the lender, your finances, the property and any scheme you qualify for. The deposit is only part of the picture: you also need to account for legal work, inspections, insurance, moving costs and repayments you can sustain.
Work out usable funds
Add savings, any eligible KiwiSaver first-home withdrawal and family help that the lender accepts. Keep a separate allowance for due diligence and settlement costs. The deposit paid under a sale and purchase agreement is not always the same thing as the total equity a lender requires.
Ask what happens if some of your deposit cannot be accessed by the date the purchase agreement requires. Your lawyer can explain the agreement's deposit and settlement obligations.
A smaller deposit changes the lender choice
Some lenders can consider lower deposit applications, subject to their lending criteria and applicable restrictions. Kāinga Ora's First Home Loan is another possible route for eligible borrowers; its criteria and each participating lender's assessment both matter.
A lower deposit may change interest pricing, fees or the options available for a particular property. Compare the full cost and do not assume a pre-approval from one lender applies to all property types.
Start with a realistic buying range
The amount you can put down and the amount you can comfortably repay set different limits. Build a budget including rates, insurance, maintenance and any body corporate cost, then seek an assessment before making an offer.
For your own situation
What to have ready
- Savings and eligible KiwiSaver amount
- Gift or family support documentation if relevant
- Money reserved for legal and property checks
- Comfortable repayments including ownership costs
- Property type and lender criteria
Explore the detail
Independent tools and reading
Talk through the numbers
Get a clear next step.
Nathan can review your lending position and the options relevant to you. Start with the question you are trying to answer; there is no need to send sensitive documents through the public enquiry form.
Send an enquiry Or email Nathan directlyUseful sources
General information only. Rates, policies and eligibility can change. Personal advice depends on your circumstances and the terms actually available.