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First Home Loan

Buy your first home with a 5% deposit.

The Kāinga Ora First Home Loan may help you into your first home sooner, through participating lenders. Here's who may qualify and how it works.

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First home buyers outside their new home

At a glance

5%

minimum deposit, if eligible

$95k / $150k

income caps before tax (see below)

$0

usually what our advice costs for home loans

How it works

How the First Home Loan works

The First Home Loan is a government scheme. Kāinga Ora backs part of the loan, so participating lenders may lend to you with a 5% deposit instead of the usual 10% to 20%.

You still apply through a lender, and the lender still decides whether you can afford the repayments. Each lender has its own rules on the property and your income, so choosing the right one matters.

Eligibility

Who may qualify for a First Home Loan

Income (before tax, last 12 months) up to $95,000 for a single buyer, or up to $150,000 for a single buyer with dependants or for two or more buyers combined.

First home buyer, or a previous owner in a similar financial position (Kāinga Ora confirms this).

You'll live in the home: not for investment properties.

NZ citizen or permanent resident. Some resident visa holders who've lived here for 12 months or more may also qualify.

At least 5% deposit from savings, KiwiSaver or a family gift. It can't be borrowed.

The lender still checks you can afford the loan, and its own rules apply to the property.

Criteria are set by Kāinga Ora and may change.

Your options

Is it right for you?

It may suit you if

  • You have a 5% to 10% deposit and steady income under the caps.
  • You're ready to buy now rather than save for years.
  • You can comfortably afford repayments on a bigger loan.

Think it through if

  • Your income is close to the cap or likely to rise soon.
  • The property type may not suit every lender (for example some apartments or new builds).
  • A family guarantee or a slightly bigger deposit could give you more choice of lenders.

A one-off fee may apply to the loan. We'll explain the costs before you decide.

Your path

Your path with a First Home Loan

  1. 1

    Check your eligibility

    We look at your income, deposit and borrowing capacity first.

  2. 2

    Find your home

    Make a conditional offer, usually subject to finance, with a clear idea of your price range.

  3. 3

    Apply with the right lender

    We prepare your application for a participating lender that suits your situation.

  4. 4

    Settle and move in

    We work with the lender and your lawyer through to settlement day.

Talk to Mortgage Pundit

Questions we hear often

First Home Loan questions

Still have a question?

Call us or book a time. There’s no obligation.

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Can I use my KiwiSaver for the deposit?

Often, yes. If you've been a member for at least 3 years, you may be able to withdraw your savings towards your 5% deposit.

Can my parents gift me the deposit?

A gift from family may be accepted if it's genuinely a gift, not a loan. Lenders usually want a signed gift letter.

I've owned a home before. Can I still apply?

Possibly. If your financial position is similar to a first home buyer's, Kāinga Ora may confirm you're eligible.

Can I buy with a partner or friend?

Yes. Two or more buyers together must have a combined income of $150,000 or less (before tax).

Is the interest rate higher?

Rates vary by lender. Talk to us and we'll compare options for you.

Do I pay for your advice?

For home loans, usually not. In most cases the lender pays us when your loan settles.

Find out if you qualify.

A quick call is all it takes. No obligation.

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This is general information only, not financial advice, and doesn't take your circumstances into account. Lender criteria, terms and fees apply.