How much deposit do first time home buyers need in NZ?

If you’re a first time home buyer NZ, you’ve likely heard a mix of answers when it comes to deposits. Ten percent, twenty percent, five percent, or simply whatever the bank decides. Here’s what’s actually true and how each pathway works.

The traditional rule: 20 percent deposit

Banks generally prefer a 20 percent deposit. For a $700,000 home, that means $140,000 between savings, KiwiSaver, or family support.

For many NZ first time home buyers, this benchmark is out of reach without additional support.

The 10 percent deposit option

Some banks accept 10 percent from buyers with strong financial profiles.

Typical requirements

• Stable income
  
  
• Low personal debt
  
  
• Clean credit history
  

Example

A couple earning $160,000 can purchase a $700,000 townhouse with $70,000 saved between KiwiSaver and personal savings. A low equity fee or slightly higher rate may apply, but it remains a realistic pathway.

The 5 percent deposit option

Some lenders now offer 5 percent deposits, especially for new builds. New homes are seen as lower risk because they meet modern standards and require less maintenance.

Example

A $650,000 new-build townhouse requires a $32,500 deposit. With KiwiSaver and personal savings combined, many first home buyers can reach this level sooner than they expect.

Kāinga Ora’s First Home Loan also supports 5 percent deposits for eligible borrowers.

Using KiwiSaver to boost your deposit

If you’ve been contributing to KiwiSaver for at least three years, you can withdraw most of your balance to help buy your first home.

Example

With $25,000 in KiwiSaver and $10,000 saved, you have a $35,000 deposit. This works for many 5 percent and 10 percent lending pathways.

How much will banks lend?

Banks usually lend around five to six times household income, depending on your spending, debts, and lifestyle costs.

Examples

• Couple earning $150,000: $700,000 to $750,000
  
  
• Single buyer earning $90,000: $400,000 to $450,000
  
  

A mortgage adviser can help clarify what each lender may offer.

Tips for getting deposit-ready

• Track your spending for three to six months
  
  
• Understand KiwiSaver withdrawal timing
  
  
• Explore 5 percent, 10 percent, and 20 percent pathways
  
  
• Consider new-build homes for clearer pricing and lower deposit thresholds
  
  

Why new builds make sense

New builds often require lower deposits and come with modern features that reduce long-term costs. Fixed prices also remove the uncertainty of auctions.

The bottom line

Most first time home buyers NZ will need a deposit between 5 percent and 20 percent, depending on their income, financial profile, and the home they choose. KiwiSaver, government-backed loans, and bank flexibility often make home ownership more achievable than expected.