First Home Loan

How much could you borrow?

With a First Home Loan, the amount you can borrow depends on where you buy your new home. See below to find out how much you could borrow in your area.

How much deposit will you need?

You’ll need a deposit of at least 5% or more of the purchase price. This can be from your own savings, gifted, or from a KiwiSaver First Home Grant.

Get a head start with KiwiSaver

If you have been a member of KiwiSaver for at least three years, you may be able to get a head start buying your first home.

• You might have the option to withdraw your KiwiSaver savings, including government tax credits (this doesn’t include the initial $1,000 government kick starter payment).
• You could also qualify for the government KiwiSaver First Home Grant of $1,000 for each year you have saved. You could get up to $5,000 for existing houses or $10,000 for buying or building a new house. Couples may be eligible for up to $20,000. Kāinga Ora – Homes and Communities conditions apply.

What type of home can you buy? 

Your new home needs to fit the following criteria

• In a residential or rural zone
• Established house, on a single section (less than 1 hectare), serviced by road, power and water
• A freehold property, including cross lease and unit titles. Or a leasehold property that’s perpetually renewable, and reviewed not more than five years from the approval date of your loan
• A minimum floor size of 50 square meters. (That doesn’t include the balcony, car park and any external stairs or common areas.)
• An existing property that has previously been occupied
• A house purpose built for home living – not a conversion
• Common area is limited to driveways and grounds 
• Self-contained, having no shared kitchen, laundry or other facilities
• Own individual entry, stairs, or other access
• Not in a multi-level building (Your home can’t be more than a two level complex, or three level complex if a single unit title is all three levels)
• The house has a registered valuation report 

What type of home can’t you buy?

• Commercial or industrial property
• Special rural property like farms or vineyards
• Units in a hotel or motel, retirement complex or a serviced complex
• Mobile homes
• Hotel/motel conversions
• Flat-owning company share properties
• Maori Land
• Houses for relocation
• Multi-level complexes with shared access
• Moveable leisure homes

About repaying your First Home Loan

If you choose to apply for a First Home Loan, you’ll be able to make easy repayments that stay the same throughout the length of the loan, which is great for budgeting. This type of home loan structure is sometimes called a ‘Table Loan’. The proportion of interest you repay gradually decreases (subject to changes in interest rates) as the principal you repay increases, all while your repayment amount stays the same. You can choose to mix n’ match a range of interest rates, terms and repayment options to a home loan that suits you best.

Note: A Kāinga Ora – Homes and Communities (Lenders Mortgage Insurance) premium applies to First Home Loans at 1% of total borrowings.

Want to know more about buying your first home?

Take a look at the guides below from Kāinga Ora – Homes and Communities, to get all the information you need to know when taking the first step towards owning your first home:

First Home Loan – your first home is within reach
Buying your first home made easy with KiwiSaver and First Home Grant