FAQs

Typically, you will need at least 20% of the property’s value as a mortgage deposit. However, some mortgage lenders may offer loans with lower deposit requirements, particularly for first-time buyers.

Lower deposit home buyers are likely to have higher mortgage interest rates and fees compared to buyers who have a 20% deposit.

However, Kainga Ora offers several initiatives designed to support first home buyers in New Zealand, making home ownership more accessible! These include the First Home Loan and KiwiBuild initiatives. By reducing deposit requirements and providing financial grants, these initiatives help make home ownership more achievable for those with low to modest incomes.

See the FAQs below for more information on the key Kainga Ora First Home Loan products that could help you. Or just contact our mortgage brokers - we're here to help!

The First Home Loan, previously known as Welcome Home Loan, is designed to help first home buyers with low to modest incomes who can afford to make regular mortgage repayments, but just have difficulty saving for a large deposit.

With this loan, you may only need a 5% deposit to get a mortgage and buy your first home.

Other benefits to the First Home Loan are that it provides easier access to mortgage finance for eligible first home buyers, and there is no need for a guarantor or additional security.

Eligibility Criteria

Income Cap: The income cap is $95,000 for a single borrower and $150,000 for two or more borrowers.

Deposit: You need a minimum of a 5% deposit for your mortgage.

House Price Cap: The maximum house price is capped, and the amount varies depending on the region. For example, in Auckland, the cap is higher than in other regions.

Loan Limit: The loan amount you can borrow is subject to your ability to service the loan/mortgage.

Participating Lenders
Kainga Ora has partnered with several lenders, including major banks and credit unions, to provide First Home Loans.

We work with several of these lenders - so contact our Mortgage Brokers and let's start the journey of home ownership with you!

KiwiBuild is a government initiative aimed at increasing the supply of affordable homes for first home buyers. The program offers a range of newly-built affordable homes in various regions across New Zealand.

These homes are typically in high-demand areas, with good amenities.

Eligibility Criteria

Residency: You must be a New Zealand citizen, permanent resident, or a resident visa holder who intends to live in New Zealand permanently.

First Home Buyer: You must be a first home buyer or a 'second chancer' (someone who has previously owned a home/had a mortgage but no longer does, and meets specific criteria).

Income Cap: There is an income cap of $120,000 for a single person and $180,000 for a couple or multiple buyers.

Intention to Occupy: You must intend to live in the home as your principal place of residence for at least three years.

Contact our team of mortgage brokers to see if you're eligible for KiwiBuild.

To apply for KiwiBuild, you need to register your interest on the KiwiBuild website.

Once registered, you can participate in the ballot process for available homes.

Have more questions about KiwiBuild? Contact our mortgage brokers - we're here to help!

A fixed-rate mortgage has an interest rate that stays the same for a set period, while a variable-rate mortgage has an interest rate that can change over time.

Click here for more advice from our mortgage broker on which interest rate type is best for you.

A pre-approval is an indication from a lender of how much they are willing to lend you based on your financial situation.

It gives you a clear idea of your budget and can make you a more attractive buyer.

Want to get a pre-approval? Contact our mortgage brokers - that's what we do best!

When you make an offer on a house, you can make it subject to conditions that will be met by a specific date in the future.

Here are some examples:

Finance - Subject to arranging finance to fund the transaction, we can assist with a pre-approved mortgage if the house in question is going to auction. There can be delays with this so make sure you leave at least 3 weeks for this condition, and get onto us quickly.

Builders report - Obtain a pre-purchase builder's report to identify outstanding maintenance issues that will likely cost money. Make sure you also obtain a quote for what it costs to fix those issues. You can then go back and renegotiate the purchase price.

Survey report - If you plan to do something with the land, this report will determine whether the land can be used for your intended purpose.

Drug test - To make sure the house doesn’t have any poisonous residues and that it is going to be safe.

Subject to sale - If your property purchase is only possible once your own home has been sold.

Solicitor confirmation - This is where your lawyer has checked everything over (title etc) and is satisfied with the state of affairs.

Land Information Memorandum (LIM) - A report available from your local council providing general information about the land and surrounding areas.

Bridging finance is used when you are in the process of selling your house and purchasing another, and have a temporary need for additional finance (an additional mortgage, essentially) - usually because the settlement dates are different to each other (i.e: you're buying a house before your current one sells).

There are two types of Bridging Finance:

Closed Bridging Finance - This is when you are selling your house, and have an unconditional offer on the property - the sale is definitely going through. In this situation, banks are not too worried about meeting normal mortgage affordability criteria, provided the settlement dates are not too far away from each other.

Open Bridging Finance - This is when you are selling your house, but don’t yet have an unconditional offer on your property. In this situation, you do need to have an affordability assessment to make sure you can manage both your existing home loan and the proposed new mortgage repayments.

A Settlement Date is the day that you are completing the transaction for a house sale or purchase.