Unlocking the Door to Your First Home: A Guide to Financial Help in New Zealand
The journey to owning your first home is one of life’s most exciting milestones. But for many Kiwis, navigating the financial side of things—especially saving for that all-important deposit—can feel daunting.
The good news is that there are government-backed schemes and financial tools designed to help you bridge the gap and get your foot on the property ladder. As property law specialists, we see clients successfully use these options every day.
This guide will walk you through the key financial assistance available from Kāinga Ora and how you can leverage your KiwiSaver savings.
Your KiwiSaver: The Key to Your Deposit
For most first-home buyers, their KiwiSaver account is their most powerful tool.
KiwiSaver First-Home Withdrawal
If you have been a member of a KiwiSaver scheme for at least three years, you may be able to withdraw a significant portion of your savings to put towards your deposit.
- What you can withdraw: You can typically withdraw all your savings, except for the initial $1,000 government kick-start (if you received it).
- How to apply: You need to apply directly to your KiwiSaver provider. They will guide you through the process and paperwork.
What if I’ve Owned a Home Before?
You may still be eligible! If you have previously owned property but are now in a financial position similar to a first-home buyer, you can apply to Kāinga Ora for a determination. If they approve your application, they will provide a letter you can submit to your KiwiSaver provider.
Other Superannuation Funds
If you contribute to a non-KiwiSaver superannuation fund, check with your scheme provider. Some also allow for early withdrawals for a first home purchase.
Getting a Helping Hand from Kāinga Ora
Kāinga Ora – Homes and Communities offers several key products to support first-home buyers. Here are the primary schemes currently available.
1. The First Home Loan: Bridging the Deposit Gap
The biggest hurdle for many is the standard 20% deposit required by most banks. The First Home Loan is designed to overcome this.
- How it works: With a First Home Loan, you may only need a 5% deposit. Kāinga Ora underwrites the loan, which gives participating banks the confidence to lend to you on a lower deposit.
- Key Criteria: You will need to meet specific income caps and regional house price caps.
- Find a Lender: You can check your eligibility and find a list of participating banks and lenders on the Kāinga Ora website.
2. Kāinga Whenua Loan: Building on Māori Land
This specialised loan provides an opportunity for Māori to build, purchase, or relocate a house onto ancestral Māori land. These loans are available to individuals and to Māori collectives, such as land trusts, and have specific criteria related to the unique nature of Māori land ownership.
3. Tenant Home Ownership Grant
If you are currently a tenant in a Kāinga Ora home, you may be eligible to buy the house you live in. Eligible tenants can receive a grant of 10% of the purchase price, up to a maximum of $20,000, to help with the purchase. Note that this is only available for selected properties in certain areas.
Important Update: Schemes That Are No Longer Available
The landscape of government support changes over time. To avoid confusion, it’s important to know that the following schemes are now closed to new applications:
- The First Home Grant: This grant, which provided up to $10,000 towards a deposit, ended in May 2024 and is no longer available.
- First Home Partner: This shared ownership scheme is now full and is not accepting new applicants.
Always refer to the official Kāinga Ora website for the most current information.
A Note for Overseas Buyers
New Zealand has specific rules regarding the purchase of residential property by overseas persons. The regulations determine who can buy property and whether consent is required from the Overseas Investment Office (OIO). We recommend using the online tools provided by Land Information New Zealand (LINZ) 和 Immigration New Zealand to determine your eligibility before you begin your property search.
The Path Forward: From Financial Approval to Legal Ownership
Securing your deposit and gaining pre-approval is the first major step. Once you have your finances in order, the next crucial phase is the legal conveyancing process.
This is where our expertise comes in. An experienced property lawyer will ensure your interests are protected, from reviewing the Sale and Purchase Agreement and title records to managing the final settlement.
Feeling overwhelmed by the options? Or ready to make an offer? Contact our expert property law team today. We are here to provide the clear, practical advice you need to navigate your purchase with confidence and make your dream of home ownership a reality.
Disclaimer: This blog post provides general information only and does not constitute legal advice. The availability and criteria for government grants and loans are subject to change. We recommend seeking personalised financial and legal advice for your specific situation.
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