Know Your Numbers
Before you start house hunting, get a clear picture of where you stand financially. Lenders will scrutinise your last 3–6 months of bank statements under the CCCFA, so the more organised you are upfront, the smoother the process.
- Calculate your monthly take-home income and regular expenses
- Check your credit score for free at centrix.co.nz or equifax.co.nz
- Total up your genuine savings — banks typically want to see 3+ months of savings history
- Budget for purchase costs on top of your deposit: legal fees (~$1,500–$2,500), building inspection (~$500–$800), LIM report (~$200–$400), moving costs
- Reduce discretionary spending (dining out, Afterpay, streaming) for at least 3 months before applying
Access Your KiwiSaver
KiwiSaver is one of the most powerful tools available to NZ first home buyers. If you’ve been a member for at least 3 years, you can withdraw almost your entire balance to put toward your deposit.
- Confirm you have been a KiwiSaver member for at least 3 years
- Log in to your provider’s app or website to check your current balance
- You can withdraw your full balance minus $1,000 (which must remain in your account)
- If buying with a partner, each of you can make a separate withdrawal
- Request a withdrawal letter early — it takes 10–15 working days to process
- Your employer contributions and the government $521/year contribution are all included
- This must be your first home (you must not have previously owned property in NZ)
Your KiwiSaver withdrawal goes directly to your lawyer’s trust account on settlement day — it does not come to you in cash. Make sure your lawyer is aware well in advance so the timing aligns with your settlement date.
If you have been out of KiwiSaver or made a hardship withdrawal in the past, contact your provider to confirm your eligibility.
Apply for the First Home Grant
The Kāinga Ora First Home Grant is a cash grant of up to $10,000 per person for an existing home, or up to $20,000 for a new build. It is paid directly to your lawyer on settlement and does not need to be repaid.
- Check your income is within the caps (see table below)
- Check the house price cap for your target region
- You must have been a KiwiSaver member for at least 3 years
- Apply through kaingaora.govt.nz before signing a Sale and Purchase Agreement (or include grant approval as a condition)
- You must intend to live in the home for at least 6 months after settlement
Consider the First Home Loan (5% Deposit)
Standard NZ banks require a 20% deposit (LVR restriction). The Kāinga Ora First Home Loan allows eligible buyers to purchase with as little as 5% deposit through a government guarantee.
- Income caps are the same as the First Home Grant ($95,000 single / $150,000 combined)
- The same regional house price caps apply as for the First Home Grant
- Available through participating lenders: ANZ, ASB, BNZ, Westpac, Kiwibank, SBS Bank, Co-operative Bank, TSB
- A 0.5% Kāinga Ora guarantee fee applies (added to your loan or paid upfront)
- You can stack this with the First Home Grant and KiwiSaver withdrawal
Get Mortgage Pre-Approval
Pre-approval (also called conditional approval) gives you a realistic budget before you start making offers. It typically lasts 60–90 days and is not a guaranteed final approval.
- Compare at least 2–3 banks, or use a mortgage broker (brokers are free to you — paid by the bank)
- Gather documents: last 3 months of payslips, last 3 months of bank statements, passport or driver’s licence, KiwiSaver statement
- Provide a list of all assets (savings, KiwiSaver, car, investments) and liabilities (credit cards, student loan, car loans)
- If self-employed: provide 2 years of financial statements and tax returns
- Note your pre-approved amount and factor in a buffer — don’t borrow right at your maximum
NZ’s Credit Contracts and Consumer Finance Act (CCCFA) requires lenders to assess whether you can comfortably afford repayments — not just right now, but if interest rates rose by 2–3%. Lenders stress-test at rates well above the current rate, which reduces the amount you can borrow.
Search for Properties
With pre-approval in hand, you can house hunt with confidence. Understanding the different sale methods in NZ will help you move fast when the right property comes up.
- Set up alerts on trademe.co.nz/property, realestate.co.nz, and oneroof.co.nz
- Register with local real estate agents — they are paid by the vendor, not you
- Attend open homes on weekends and take notes on each property
- Set price: advertised price, straightforward offer and acceptance
- Price by negotiation: no listed price, negotiate directly with the vendor
- Tender: submit a sealed bid by a deadline; vendor can accept, reject, or negotiate
- Auction: bidding on the day, unconditional if you win — see Step 8
- Consider new builds — they often have lower deposit requirements and different contracts (turnkey vs. progress payments)
Do Your Due Diligence
This is the most important step for protecting yourself from a costly mistake. In NZ, buyers are responsible for their own research. Never skip this step.
- LIM Report (Land Information Memorandum): order from the council (~$200–$400, allow 5–10 working days). Shows zoning, consents, drainage, natural hazards, flooding, and any council notices on the property
- Building inspection: hire a licensed building inspector (~$400–$800). Check for moisture, structural issues, roof condition, plumbing and electrical
- Title search: your lawyer will check for easements, covenants, caveats, and encumbrances that could affect your use of the property
- For apartments: request the body corporate minutes for the last 2–3 years and check for deferred maintenance, special levies, or disputes
- For pre-1990 construction: check for asbestos (common in textured ceilings, floor tiles, and fibro cladding)
- Check flood plain, liquefaction, and natural hazard maps on your regional council website
NZ experienced a widespread weathertight crisis during this period. Homes with mono-pitched roofs, Mediterranean-style plaster cladding (EIFS), or recessed windows and balconies are at higher risk. Repair costs can reach $100,000–$500,000+. Always get a specialist weathertight inspection on homes built during this era.
Make an Offer
In NZ, offers are made using a Sale and Purchase Agreement (S&P Agreement), typically the ADLS/REINZ standard form. Always have your lawyer review it before you sign.
- Include standard conditions: subject to finance (5–10 working days), subject to building report, subject to LIM
- You can also add: subject to solicitor’s approval (gives your lawyer time to review the agreement)
- Research recent comparable sales on QV.co.nz or via your agent to support your price
- The vendor may counter-offer — negotiate on price, conditions, and settlement date
At auction, the winning bid is unconditional — no finance, building report, or LIM conditions are possible. Before bidding, ensure you have: full pre-approval from your bank for that property, a completed building inspection, your LIM report, and legal advice. If you win, you sign the agreement on the spot and pay a 10% deposit immediately.
Go Unconditional
Once all your conditions are satisfied (or waived), the agreement becomes unconditional. At this point, the sale is legally binding for both parties.
- Finance condition: contact your bank with the property address and agreed price to get written formal approval
- Building report condition: review the report with your inspector and decide whether to proceed
- LIM condition: review with your lawyer and confirm there are no issues you cannot accept
- Sign the unconditional notice and confirm your settlement date
- Pay your deposit — typically 10% of the purchase price, held in the agent’s trust account until settlement
- Arrange home insurance immediately — most lenders require proof of insurance before settlement
Settlement & Moving In
Settlement day is when ownership officially transfers to you. Your lawyer coordinates everything — funds, title transfer, and handover of keys.
- Ensure all settlement funds are in your lawyer’s trust account at least 2 working days before settlement
- Do a final walk-through of the property the day before settlement to confirm it is in the agreed condition
- Your lawyer transfers funds to the vendor’s lawyer and the title transfers to your name on LINZ
- Collect keys from the agent once settlement is confirmed (usually mid-afternoon)
- Register with your local council for rates (your lawyer may handle this)
- Update your address with IRD, NZTA, your bank, KiwiSaver provider, and employer
- Arrange power, gas, internet and take water/electricity meter readings on moving day
Useful calculators for your home buying journey
Use our free NZ property calculators to run the numbers at every step of the process.