Published 24 May 2022

This Guide was edited on 27 May 2024 to reflect the disestablishment of the First Home Grant on 22 May 2024.

Getting a home deposit together is a tough task.

In this guide we explain the Government-related financial options available to first home buyers, how to access this money and what eligibility criteria you’ll need to meet. The options we explore in this guide are for homes you’ll be living in – you cannot use them to buy an investment/rental property. You also cannot own any other property.

Our team can help you right through the application processes, gathering the necessary documents and making sure the process is as straightforward and stress-free as possible.

Let’s begin by finding out more about what’s available.

First Home Loans

First Home Loans are issued by selected banks and other lenders and underwritten by Kāinga Ora. With a First Home Loan you only need a 5% deposit – whereas usually most lenders will require you to have a minimum of 20%.

Who can access these loans?

Your income (or combined income) must be within the same thresholds as for the First Home Grant (the individual with dependent is a new category which comes into effect 1 June 2022).
As of 1 June 2022, there is no cap on the price of the property you wish to purchase.
You will need a minimum 5% of the purchase price of the house you are wishing to buy.
You will need to meet the specific lending criteria of the participating lender you choose - the list of lenders can be found here.
You must not currently own any property (however this does not include ownership of Māori land).
You must live in the property you are buying (a First Home Loan can’t be used to buy investment or rental property).
First Home Loans also require borrowers to pay a 1% Lender’s Mortgage Insurance premium.

What to do next:

To find out more, head to the Kāinga Ora First Home Loan webpage. Then talk to your preferred lender who can help you understand if you will meet their criteria.

KiwiSaver First Home Withdrawal

If you have been a contributing to KiwiSaver for at least three years, you may be able to withdraw most of those savings available to put towards buying your first home. There is no cap on the value of the home you plan to buy, or on your income level to be eligible to withdraw these savings.

Who can access this option?

It must be for your first home, and you must intend to live in that home for at least 6 months after the settlement date.
At least $1000 must remain in your KiwiSaver account after withdrawing the money.
Breaks in making contributions during this time don’t count towards the 3 years – for example, if you took a 6-month contribution holiday, you’ll need to contribute for another 6 months to make it up to 3 years.
You must intend to live in the property. It cannot be used to buy an investment property.

What to do next:

After you’ve found a home to buy, you’ll need to tell us you would like to use some or all of your KiwiSaver funds to help fund the purchase. We will help you:

Complete the application form which includes a statutory declaration made by you in front of us.
Prepare a letter from us confirming to your provider that we will receive your KiwiSaver funds into our Trust Account and only use it for the purchase of your home (if it is not used, we must return it to your provider).
If you are applying as a previous home owner, you will need your approval letter from Kāinga Ora.
Obtain a copy of the signed Agreement for Sale and Purchase
Certify your identity documents.
Submit the application to your KiwiSaver provider.

What if I owned a home in the past but don’t now?

Previous homeowners may be eligible for the KiwiSaver first home withdrawal and First Home Grant if they have not accessed these (or similar grants) before and are deemed to be in the same financial position as a first home buyer.

To access either option you will need to get approval from Kāinga Ora. Not sure if you meet the criteria? Kāinga Ora’s First Home Decision Tool is a quick online tool which helps you see what assistance you might be eligible for.

First Home Partner

First Home Partner is a new shared home ownership scheme launched by Kāinga Ora in 2021.

Its aim is to help first home buyers that have a deposit and home loan, but it’s not enough to purchase a house that meets their needs. Under this scheme, you are the majority homeowner and occupier of the house but Kāinga Ora own a share in the home, that you buy out over time. The maximum contribution Kāinga Ora can make towards a home purchase is 25% or $200,000 (whichever is lower). To be eligible you need to:

Have a good credit rating
A total household income of no more than $130,000
Commit to living in the home for at least 3 years

Find out more about the scheme here.

First Home Buyer Series #2: Help with your deposit