First Home Buyers

Thinking of buying your First Home in New Zealand?

You need to be New Zealand resident or citizen.

Need 5% genuine savings that can be including your kiwisaver

Is combined household income $120,000 plus?

Confused with Bank jargon and constantly changing lending criteria?

Contact 0800Rachna for a free consultation. we guide you with our 6 step cycle for buying your first home to suit your needs and borrowing capacity.


  • Take a free consultation to know your borrowing capacity relevant to your situation
  • If you are ready , your adviser will Seek a pre-approval from the Bank for you
  • Start the search for your potential home, based on your requirements
  • Put your conditional offer the on house you like and do your due diligence before you go unconditional on your contract
  • Arrange for Life insurance to protect you and your family before the settlement
  • Get the keys for your home on the settlement date

    Watch a two minutes video on First Home Buyers

    FAQ’s for First home buyers:

    Can I get a loan when I am on a work permit?

     You need to be a New Zealand Resident or Citizen to be eligible to get a home loan. If you have 2 years of work permit and your spouse is a permanent resident or a citizen you could be eligible with a minimum 20% deposit. Please contact the team as lending criteria change from time to time.

    How long do I need to be in the Kiwisaver to use the funds towards my deposit of the first home?

    You need to be contributing to your Kiwisaver for a minimum of 3 years continuously to be eligible. To know your eligibility you need to contact your Kiwisaver provider

    How much can I expect from my home grant?

    Please contact Housing New Zealand to know your eligibility

    Is registered valuation compulsory when buying your first home?

    Bank will require a registered valuation in two instances. Either you have less than 20% deposit or in case if you are buying a property off-plan or getting a home and land package. 

    What first time home buyers need to know

    Bank assess the home loan application based on following three things

    Capacity: Capacity reflects your ability to borrow money from the Bank. It is your source of income ie whether you have permanent full time or part-time employment or you are self-employed. Do you have sufficient incomes to repay the loan and still continue living the lifestyle that you are currently living before taking the home loan.

    Collateral: This reflects the property that you wish to purchase, whether this property is acceptable as a security to the bank or not.

    Character: Character reflects the borrower’s account conduct, loan repayment ability, the age to asset ratio and credit check. 

    Bank usually expects borrowers to put 20% towards the deposit for the home purchase, however, if you are a first home buyer, the bank may let you borrow money with as little as 5% deposit of the purchase price at Bank’s discretion. The lending criteria are different from bank to bank and vary on a case by case basis. 

    As a first home buyer if you have less than 20% deposit for the property purchase the Bank requires the evidence of the genuine savings.


    Sources of deposit: 

    • Regular savings
    • Kiwisaver contribution
    • Home Buyer Grant
    • Gifting from a family member


    There are mainly 5 parties involved in the property purchase transaction.

    • Mortgage Adviser / Bank for arranging the finance
    • Real Estate Agent
    • Solicitor
    • Building Inspector (Optional)
    • Registered Valuer ( Depends on a case by case basis)


    There are different methods to put an offer on the property

    • Price by Negotiation
    • Asking Price
    • Tender
    • Auction

    Homebuyers should always do the correct due diligence before going unconditional on the purchase contract.

    What is first home buyers loan

    When you are buying your first property with the intention of owner occupancy Bank will consider this type of lending as First Home Buyer Loan. 

    There are different types of loan that Banks offer.

    Variable loan: Make extra repayments whenever you like. You can pay off your loan faster by making extra repayments or a lump sum payment whenever you like (e.g. if you get a bonus), with no fee charged – minimum repayment amount may apply

    • Reduce the interest you’ll pay.Making extra repayments may reduce your overall interest costs.
    • Adjust your loan if your situation changes. You can switch some, or all, of your Home Loan with a floating rate to a fixed rate at any time, if you want more certainty around your repayments in future.

    Fixed Loan: Regular fixed repayments to help you budget. Budget confidently by knowing your exact repayment amounts and timings.

      You choose the timeframe.Select a fixed-rate period that suits your needs. You can also choose to make repayments weekly, fortnightly or monthly.
    • Your interest rate is locked in.Have certainty and peace of mind by knowing exactly what your repayments will be and protection from interest rate rises. Interest rates may, however, fall during your fixed-rate period.
    • You can make one extra repayment up to 5% of the current loan amount each year of your fixed-rate period without being charged Early Repayment Recovery. (Please note this varies from Bank to Bank)

    Flexible Loan or Revolving credit facility: 

      Flexible access to credit at a competitive rate. An ANZ Flexible Home Loan gives you access to credit at a competitive rate when you need it, e.g. if you’re doing renovations.
      No regular repayments.There are no regular repayments (unlike an ANZ Home Loan with a fixed or floating rate) as long as you stay within your credit limit. You simply deposit money into your account to reduce your loan balance. So you need to be disciplined to get the most out of this loan.
    • Reduce the interest you’ll pay. You can put all your available money into this account to lower your outstanding balance – reducing the overall amount of interest you’ll pay.

    Total Money Offsetting Loan: A Total Money home loan could be great if you want to save on interest and pay off your home loan faster, using the balance of your everyday accounts. This loan looks at the combined balances of your TotalMoney everyday accounts and subtracts these from the balance of your TotalMoney home loan, so you only pay interest on the remaining amount.

    how does first home buyers grant work

    Home Buyer Grant and KiwiSaver withdrawal are two different things.

    Kiwisaver Withdrawal: For Kiwisaver withdrawal, you need to contact your KiwiSaver provider to seek a pre-approval for the amount you are eligible to borrow. Usually, they can email you on the same day with the outcome in regards to the eligibility.

    There are two ways you can use Kiwisaver towards the deposit

    • Towards the initial 10% deposit up on going unconditional
    • Towards the settlement


    Please note usually Kiwisaver team takes up to 10 working days for processing the withdrawal. Kiwisaver money will be credited only into solicitor’s trust account.

    First Home Buyer Grant: For First Home Buyer Grant you need to contact Housing New Zealand for your eligibility and approval. They take up to 10 working days for eligibility assessment. The eligibility is strictly based on income, location and age of the house( Existing home or brand new)

    Often people mix up between KiwiSaver withdrawal and home buyer grant. 

    Different between Home Buyer Grant and Kiwisaver:

    Kiwisaver is your own contribution and employer contribution that you are withdrawing to put towards the deposit for the purchase of your First Home. 

    First Home Buyer Grant is an additional benefit that the Government is offering based on your eligibility criteria.

    Kiwibuild Home: Kiwibuild home has very strict eligibility criteria, therefore it is highly recommended that if you wish to take advantage of Kiwibuild homes you contact them first for the eligibility and then seek a pre-approval for your loan.

    Why Choose Rachna?

    Home Loan - Simplified


    Paperwork Sorted


    Unparalleled Advice

    Strong Network

    5 Star Reviews

    Straight Talk

    Get the ball rolling

    Keeping up with the current trends in the home loan market, Team 0800RACHNA is here to help you achieve your financial goals.