Buying a House in NZ: The Complete First Home Buyer Guide

Work out what you can actually afford

Before looking at a single listing, get a real number for what you could borrow. This isn't the same as what a bank's online calculator spits out from a couple of fields; it depends on your actual income, existing debt, and day-to-day spending, since banks now look closely at real bank statements, not just stated income.

Start with the Borrowing Power Calculator for a rough figure, then get it properly checked before you commit to viewing houses in a price range you might not actually qualify for.

The costs of buying a house in NZ

Your deposit isn't the only cost. Budget for one-off costs such as solicitor or conveyancer fees, a building inspection, a LIM report, a valuation if your lender asks for one, and moving costs, plus a buffer for surprises. Once you own the home you'll also have ongoing costs: loan repayments, home and contents insurance, council rates, utilities, maintenance, and body corporate fees for an apartment or townhouse.

When is the deposit paid? Usually once your sale and purchase agreement goes unconditional, or on the day if you buy at auction. The rest of the price is paid on settlement day. A KiwiSaver first-home withdrawal is paid at settlement, so it can't cover an auction deposit.

Understand your deposit options

Most first home buyers use a combination of savings, KiwiSaver, and sometimes the Kāinga Ora First Home Loan to reach their deposit.

• KiwiSaver withdrawal: if you've been contributing for at least 3 years, you can generally withdraw most of your balance toward a first home, leaving a minimum of $1,000 in the account. One catch: the withdrawal is paid at settlement, so it can't be used as your deposit if you're buying at auction.
• Kāinga Ora First Home Loan: allows a deposit as low as 5% for eligible buyers, made up of savings, gifts and KiwiSaver. Income caps apply (there's no house price cap), the home must be under 1 hectare and you can't own any other property or land. A 1.2% lender's mortgage insurance premium applies. These criteria change from time to time, so always check current figures directly at kaingaora.govt.nz rather than relying on a number you saw somewhere else.
• Standard bank lending: most banks lend at a 10% deposit for first home buyers without needing Kāinga Ora involvement at all.

For a deeper look at how the First Home Loan and KiwiSaver work together, see the full Kāinga Ora explainer on the blog.

Get pre-approved before you start looking

Pre-approval means a lender has confirmed, in principle, how much they'll lend you, before you've found a property. It matters for two reasons: it stops you falling in love with a house you can't actually get finance for, and it makes your offer more credible to a vendor competing against other buyers.

Pre-approval usually lasts 60 to 90 days depending on the lender, so timing it against your actual house-hunting window matters too, an adviser can help sequence this properly.

Know what lenders actually check

Beyond income, lenders look closely at:

• Real spending patterns from 3 to 6 months of bank statements, including subscriptions, buy-now-pay-later, and discretionary spending
• Existing debt, including credit card limits (not just balances) and any personal loans
• Employment stability, particularly for self-employed or recently-changed roles
• Your genuine savings history, lenders want to see evidence of disciplined saving, not just a lump sum that appeared recently

Tightening up spending in the 3 to 6 months before applying can genuinely change the outcome.

Decide: mortgage adviser or bank direct?

Going directly to your own bank means you only see what that one bank offers. A mortgage adviser compares your situation across multiple lenders, including ones you might not have considered, and the advice is free: advisers are paid by the lender you go with, not by you.

Jagdip is a Financial Adviser (FSP1010098) providing advice through All Seasons Mortgage Limited (FSP1007045). See her Disclosure Statement for exactly how this works.