Getting a hand up: FAQs for NZ first home buyers

Buying your first home in New Zealand can feel overwhelming, especially with changing rules and disappearing grants. Below, we’ve rounded up the most common questions we hear from NZ first time home buyers, along with what help is still available today.‍

What happened to the first time home buyers grant NZ?

The government scrapped the First Home Grant in May 2024, so no new applications are being accepted. If you had an application underway before the cut-off, it may still be processed, but for everyone else this grant has ended.

Today’s first home buyers need to rely on other tools such as KiwiSaver withdrawals, the Kāinga Ora First Home Loan, or government-supported new build initiatives designed to improve housing supply.

What is the Kāinga Ora First Home Loan?

This remains one of the most useful pathways for first time home buyers NZ. The Kāinga Ora First Home Loan allows eligible buyers to purchase a home with as little as a 5 percent deposit. Because the loan is government-backed, banks feel more confident lending to you.

Key points

• Five percent minimum deposit
  
  
• Income and regional price caps apply
  
  
• Applications go through participating lenders
  
  
• Kāinga Ora guarantees part of your loan
  
  

Example

Buying a $600,000 townhouse in Naenae requires a $30,000 deposit under this scheme, a significant shift from the $60,000 to $120,000 many banks usually expect.

Can I still use my KiwiSaver for a deposit?

Yes. For many NZ first time home buyers, KiwiSaver remains the biggest boost toward getting on the property ladder.

If you’ve been in KiwiSaver for at least three years, you can withdraw most of your balance, leaving $1,000 in the account.

Example

You have $25,000 in KiwiSaver. You can use $24,000 toward your deposit, making a 5 percent or 10 percent pathway far more achievable.

What is the Government Build Scheme?

This scheme focuses on supporting new-build homes rather than offering direct grants. The aim is to increase supply and make it easier for first home buyers to access modern, energy-efficient homes.

Typical benefits of new builds

• Lower deposit thresholds
  
  
• Exemptions from some lending restrictions
  
  
• Modern warranties and insulation
  
  
• Fixed-price certainty from reputable developers
  
  

At Faisandier, we’ve seen many first home buyers secure modern townhouses with only 5 percent down and avoid the stress of auctions.

Why new-builds are still a smart move?

Even without the First Home Grant, new-build homes remain one of the strongest pathways for NZ first time home buyers.

Benefits

• Low maintenance
  
  
• Modern heating, insulation, and glazing
  
  
• Building warranties
  
  
• Fixed pricing with no auctions
  
  

The bottom line

Although the first time home buyers grant NZ is gone, the dream of home ownership is still achievable. KiwiSaver withdrawals, the Kāinga Ora First Home Loan, and government-backed build schemes remain strong pathways.

If you’re ready to explore your options, Faisandier can connect you with trusted advisers and developments that suit your goals.