Buy your first home
with a 5% deposit.
Buy your first home with a deposit as low as 5%. The Kāinga Ora First Home Loan helps eligible first-home buyers get in sooner, at normal bank interest rates. Here's how it works and whether you qualify.
What the First Home Loan is
It's a government-backed scheme run through Kāinga Ora. Rather than lend you the money itself, Kāinga Ora guarantees your loan to a participating bank. That guarantee lets the bank say yes with a smaller deposit than usual, at standard interest rates, not a higher one. You still apply through a bank or a mortgage broker like us.
Do you qualify?
The main things the scheme looks at. If most of these sound like you, it's worth a conversation.
- ✓You're a first home buyer (or you've owned before and are now in a similar financial position to one), and you don't currently own another home.
- ✓Your income is under the caps: $95,000 for a single buyer with no dependants, or $150,000 for a single buyer with dependants, or for two or more buyers combined. There's no house price cap, so your income is the real limit.
- ✓You have at least a 5% deposit in genuine cash, which can include your KiwiSaver.
- ✓You'll live in the home, and you're a New Zealand citizen, permanent resident, or resident-visa holder ordinarily resident here.
Or check the detail yourself with the official Kāinga Ora First Home Decision Tool.
How it works
What happened to the First Home Grant?
The First Home Grant, a cash payment of up to $10,000, was scrapped in May 2024 and is no longer available. The funding was redirected towards building more homes.
The good news: the First Home Loan above is still running, and you can still use your KiwiSaver towards your deposit. See how your KiwiSaver can help.
Common questions
What is the difference between the First Home Loan and the First Home Grant?
The First Home Loan is a scheme that lets you buy with a 5% deposit, and it's still running. The First Home Grant was a separate cash payment of up to $10,000, and it was scrapped in May 2024. So the grant is gone, but the low-deposit loan is not.
How much deposit do I need?
As little as 5%, if you qualify for the First Home Loan. Your deposit needs to be genuine cash, which can include your KiwiSaver, but it can't be borrowed or gifted by the seller.
Does my KiwiSaver count towards the 5%?
Yes. If you've been contributing for at least three years, you can usually withdraw most of your KiwiSaver to put towards your first home, and that counts as part of your deposit.
What are the income limits?
To qualify for the First Home Loan, your before-tax income from the last 12 months needs to be under $95,000 for a single buyer with no dependants, or under $150,000 for a single buyer with dependants, or for two or more buyers combined.
Is there a maximum house price?
No. The First Home Loan has no house price cap and no maximum loan amount. In practice your income sets the ceiling, since the most you can borrow is limited by what you earn and can comfortably repay.
Which banks offer the First Home Loan?
Only some banks take part, and not all of them at the same time. Part of our job is knowing which lenders are currently offering it and which one suits your situation, so you apply in the right place.
Are there any fees?
Yes, and it's worth knowing up front. Because you're buying with a low deposit, there's a one-off Lender's Mortgage Insurance premium added onto your loan, on top of the usual loan setup costs. The exact amount depends on the lender, so we'll show you the real numbers for your situation before you commit to anything.
Can I use it if I have owned a home before?
Possibly. The scheme is mainly for first home buyers, but if you've owned a home before and are now in a similar financial position to a first home buyer, you may still qualify. We can check where you stand.
Not sure if you qualify? Let's find out.
It takes one quick, free conversation to know whether the First Home Loan could get you in sooner. The lender pays us, not you.
Book your free discovery call