First Home Loan
A helping hand for first home buyers who don't have a 20% deposit. Buy your first home with as little as 5% deposit through the Kainga Ora First Home Loan scheme.
Key Points About First Home Loan
- Buy your first home with as little as 5% deposit (instead of 20%)
- Income cap: $95,000 single / $150,000 combined for couples
- Price caps have been removed - buy any property that meets lender approval
- Available through 7 participating lenders including Kiwibank and Westpac
- You must live in the property for at least 6 months
- Lender's Mortgage Insurance fee of 1.2% applies (can be added to loan)
Important Update
First Home Grant discontinued: As of 22 May 2024, the First Home Grant is no longer available. However, the First Home Loan scheme remains active and continues to help first home buyers get onto the property ladder with a lower deposit.
What is a First Home Loan?
The First Home Loan is a government-backed scheme designed to help lower-income households buy their first home with as little as 5% deposit. Unlike standard mortgages that typically require 20% deposit, this scheme makes homeownership accessible sooner.
First Home Loans are issued by selected banks, building societies, and credit unions. The loans are underwritten by Kainga Ora, which allows these lenders to accept borrowers who might not meet their normal lending criteria.
Why It Matters for First Home Buyers
Eligibility Requirements
Income Caps
Your gross (before-tax) annual income based on the previous 12 months must fall within these limits:
Single Buyer
$95,000
or less
Two or More Buyers
$150,000
combined, or less
Note: The caps relate to your previous 12 months' earnings, not your current salary. This is important if your circumstances have recently changed.
Residency
You must be a New Zealand citizen, permanent resident, or a resident visa holder who is "ordinarily resident in New Zealand." Temporary work visas or student visas do not qualify.
Property Ownership
You must not currently own any other houses or land in New Zealand or overseas.
Owner-Occupancy
You must live in the property as your primary residence for at least 6 months. First Home Loans cannot be used for investment or rental properties.
Employment
You must have been in your current job for at least 12 months, or demonstrate you've been in the same industry or profession for at least 24 months.
Age
You must be at least 18 years old.
Second-Chance Buyers
If you previously owned a home but are now in a similar financial position to a first-home buyer, you may qualify as a "second-chance buyer." Kainga Ora assesses these cases individually, typically requiring at least 3+ years since you last owned property.
Deposit Requirements
You need a minimum 5% deposit. This can come from multiple sources:
KiwiSaver Withdrawal
Use your KiwiSaver first-home withdrawal (after 3 years membership)
Cash Savings
Your own savings demonstrate financial discipline to lenders
Gift from Family
The entire deposit can be a gift from family members
Asset Sale Proceeds
Proceeds from selling assets like a car or investments
Fees & Costs
Lender's Mortgage Insurance (LMI)
You'll need to pay a Lender's Mortgage Insurance premium to reimburse the lender for the insurance Kainga Ora charges.
LMI Fee
1.2%
of the loan amount
Good news: This amount can be added to your loan rather than paid upfront, so you don't need additional savings for this fee.
Participating Lenders
First Home Loans are available through 7 approved lenders. Not all banks offer this product - you must apply through one of these participating institutions:
Kiwibank
Government-owned bank with competitive rates
Westpac
One of the major banks offering First Home Loans
Co-operative Bank
Customer-owned bank with first home focus
SBS Bank
Regional bank based in Southland
Unity Money
Credit union with first home options
NBS
Nelson Building Society
NZHL
New Zealand Home Loans
Tip: A mortgage adviser can help you navigate which lender is best for your situation and handle the application process on your behalf.
How to Apply
Applications are made directly through participating lenders, not through Kainga Ora. Here's the process:
Check Your Eligibility
Review the income caps and other requirements above to ensure you qualify.
Gather Your Documents
Prepare proof of income (12 months), ID, KiwiSaver statements, and deposit evidence.
Apply Through a Participating Lender
Submit your application directly to one of the 7 participating lenders or through a mortgage adviser.
Lender Assessment
The lender assesses your application including your ability to repay, debt levels, and credit history.
Our advisers can help you prepare and submit your First Home Loan application
Frequently Asked Questions About First Home Loan
Frequently Asked Questions
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Our mortgage advisers can help you navigate the application process and find the best lender for your situation.