Step 1: Work Out If You're Ready

Before anything else, it helps to honestly assess where you're at financially. Ask yourself:

• How much have I saved for a deposit?
• How much do I have in KiwiSaver?
• What does my income look like — is it stable?
• Do I have any significant debts or liabilities?

You don't need to have everything perfect to get started. But knowing your starting point helps you set a realistic timeline and a plan.

Step 2: Understand How Much Deposit You Need

For most first home buyers in New Zealand, you'll need at least a 20% deposit to access standard mortgage rates. However, there are options if you have less:

• First Home Loan: Backed by Kāinga Ora, this scheme lets eligible buyers purchase with as little as a 5% deposit. Income caps and house price caps apply.
• Low equity lending: Some banks will lend with a 10–15% deposit, but you may pay a low equity premium (an additional interest margin).

Your KiwiSaver balance counts towards your deposit — and if you've been contributing for at least three years, you can withdraw most of it for your first home purchase.

Step 3: Check Your KiwiSaver Eligibility

KiwiSaver is one of the most valuable tools available to first home buyers in New Zealand. Here's what you need to know:

• KiwiSaver First Home Withdrawal: After three years of contributions, you can withdraw your savings (plus employer contributions) to use as a deposit. You must leave a minimum balance of $1,000 in your account.
• First Home Grant (via Kāinga Ora): If you've been contributing at least 3% to KiwiSaver for three or more years, you may be eligible for a grant of up to $5,000 for an existing home or $10,000 for a new build. Income and house price caps apply.

Talk to your KiwiSaver provider and a mortgage adviser early — the grant application process takes time.

Step 4: Get Mortgage Pre-Approval

Pre-approval (sometimes called conditional approval or approval in principle) is a letter from a lender stating how much they're willing to lend you, subject to certain conditions. It's not a guarantee of a loan — but it does give you:

• A clear budget for house hunting
• Confidence to make offers
• An advantage with vendors, who see you as a serious buyer

Getting pre-approval before you start viewing properties is one of the smartest things a first home buyer can do. The process involves submitting your financial information to a lender for assessment — a mortgage adviser can do this on your behalf across multiple banks to find the best fit.

Step 5: Find Your Home and Make an Offer

Once you have pre-approval, the fun part starts — finding your home. Here are a few things to keep in mind:

• Get a building inspection: Always invest in a professional building inspection before going unconditional. It's a few hundred dollars that could save you tens of thousands.
• Understand the sale method: New Zealand homes are sold by negotiation, auction, tender, or deadline sale. Each has different rules around conditions, so it's worth understanding which you're dealing with.
• Talk to a lawyer early: You'll need a property lawyer (conveyancer) to review the sale and purchase agreement. Don't sign anything without legal advice.

Step 6: Go Unconditional and Prepare for Settlement

Once your offer is accepted and your conditions are met (finance, building inspection, etc.), you'll go unconditional. This means the sale is legally binding. From here, your lawyer and mortgage adviser will work together to prepare for settlement day — the day you get your keys.

Settlement typically happens 10–20 working days after going unconditional, though this can vary. Your lender will draw down your mortgage on settlement day, and your lawyer will handle the transfer of ownership.

Frequently Asked Questions: First Home Buyers NZ

Can I use my KiwiSaver for a first home deposit?

Yes. After three years of contributing to KiwiSaver, you can withdraw your savings to put towards a first home deposit. You must leave $1,000 in the account. You may also be eligible for the First Home Grant on top of this.

What is the First Home Loan NZ?

The First Home Loan is a government-backed scheme (via Kāinga Ora) that allows eligible buyers to purchase a home with just a 5% deposit. It is offered through select lenders including ANZ, ASB, BNZ, Westpac, and others. Income caps and house price caps apply by region.

How long does mortgage pre-approval take?

Pre-approval typically takes 3 to 10 working days once you've submitted all required documents. A mortgage adviser can speed this process up by ensuring your application is complete before it goes to the lender.

Do I need a mortgage broker as a first home buyer?

You don't legally need one, but working with a mortgage adviser is highly recommended — especially for first home buyers. An adviser has access to multiple lenders, can find the best rates and structures for your situation, and handles a lot of the paperwork for you. The advice is typically free, as advisers are paid by the lender.

What is LVR and why does it matter?

LVR stands for Loan-to-Value Ratio. It's the percentage of the property's value that you're borrowing. For example, if you have a 20% deposit and borrow 80% of the purchase price, your LVR is 80%. A lower LVR generally means better interest rates and fewer restrictions from your lender.

Your First Home Journey Starts Here

At Mortgage Mates, we've helped countless first home buyers across Canterbury and New Zealand go from overwhelmed to holding the keys to their own home. We know how daunting it feels at the start — and how incredible it feels at the end.

Whether you're just starting to save, or you've got your deposit ready and want to start the process, we'd love to have a chat. No jargon, no judgement — just good advice from people who genuinely want to see you get there.

Get in touch with Brent or Becs today, or use our Mortgage Calculator to start understanding the numbers.

Mortgage Mates is based in Rangiora, North Canterbury and provides mortgage advisory services to first home buyers across New Zealand. Brent Findlay and Becs Parker are experienced mortgage advisers and proud to be part of the Kiwi homeownership journey.

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