First Home Loans

If you have been a KiwiSaver member for at least three years, you may be able to withdraw most of your KiwiSaver balance to purchase your first home.

You normally need to:

• Intend to live in the property
• Meet the eligibility requirements
• Leave at least $1,000 in your KiwiSaver account

The withdrawal can include your contributions, employer contributions and eligible government contributions.

If you have owned a home previously, you may still qualify in some circumstances if Kāinga Ora determines that you are in a similar financial position to a first-home buyer.

A 20% deposit is generally considered the benchmark for an owner-occupied home, but it is not always essential.

Reserve Bank rules currently allow banks to make a portion of their new owner-occupier lending above 80% LVR, meaning some borrowers may be able to purchase with less than a 20% deposit. Individual banks still apply their own lending policies and may charge additional low-equity costs or apply different interest rates.

Your deposit can potentially come from sources including:

• Cash savings
• KiwiSaver
• Sale proceeds from another property
• Equity in an existing property
• A family gift
• In some circumstances, family support or additional security

We can help you work out the most appropriate deposit strategy rather than simply assuming you need 20%.

Potentially, yes.

Banks are permitted to undertake a limited amount of lending to owner-occupiers with deposits of less than 20%. As at October 2026, up to 25% of a bank's new owner-occupier lending can be above 80% LVR.

Approval will depend on the strength of your overall application, including income, affordability, credit history, property type and the amount of your deposit.

Low-deposit lending can also involve additional costs or a higher interest rate, so it is worth understanding the complete picture before making a decision.

In many cases, yes.

A pre-approval can give you a better understanding of:

• How much you may be able to borrow
• The price range you can realistically consider
• Any conditions the bank may require
• Whether there are issues that should be addressed before making an offer

However, a pre-approval is not an unconditional promise to lend. The bank will normally still need to approve the property you eventually choose and may require information such as a valuation, sale and purchase agreement or building-related reports.

Your borrowing capacity depends on more than just your income.

Banks typically consider:

• Your income and how it is earned
• Existing debts and credit limits
• Household and living expenses
• Number of dependants
• Your deposit or available equity
• The type of property you are buying
• Your credit history
• The proposed loan term
• The bank's servicing or test interest rate
• Debt-to-income requirements

Two people earning the same income can have quite different borrowing capacities.

We can review your circumstances and give you a clearer indication of what may be achievable before you start seriously looking for property.

Earlier is usually better.

You don't need to wait until you have found a property.

Talking to us early can help identify:

• Your likely borrowing capacity
• An appropriate deposit
• Issues that could affect approval
• How to structure your accounts
• Whether debts or credit limits should be reduced
• What documentation you will need
• Which lenders may suit your circumstances

That can put you in a much stronger position when the right property comes along.