1 May 2025
Stepping onto the property ladder can feel daunting, but with the right guidance, first-home buyers can approach the journey with confidence and clarity. Whether you’re beginning to save for a deposit, sorting out your mortgage options, or navigating the sometimes-baffling world of property purchases, understanding each step is key to success.
Here’s our step-by-step guide to buying your first home in New Zealand.
Plan Early, Save Smart – A deposit of 20% is generally required for most home loans; however, some first-home buyer schemes allow lower deposits if eligibility criteria are met.
First-home buyer schemes like Kāinga Ora’s First Home Loan can allow you to purchase with as little as 5%. Still, the larger your deposit, the more lending options you’ll unlock—and the lower your mortgage repayments will be.
Set up an automatic savings plan and consider using KiwiSaver. Many buyers are eligible to withdraw from their KiwiSaver accounts or apply for a First Home Grant. Make sure you’re contributing enough to meet grant requirements if you plan to go down this path.
Tip: Stay disciplined. Every dollar you save now improves your buying power later.
Getting Pre-Approved – Before you even start browsing properties, it’s wise to get pre-approval from a lender. This gives you a clear understanding of your budget and makes you a more attractive buyer to vendors.
Fixed vs. Floating Rates – New Zealand lenders offer a variety of mortgage types. Fixed-rate loans offer certainty around repayments, while floating rates offer flexibility if you plan to make extra payments or expect interest rates to fall further. Many buyers choose a mix of both to balance security and adaptability.
Loan-to-Value Ratios (LVRs) – Lenders are subject to LVR restrictions, meaning there are limits on the amount they can lend relative to a property’s value. Being aware of these requirements helps you target realistic property options.
Work with a Trusted Real Estate Professional – Buying your first home is not just a financial transaction—it’s an emotional one too. A good agent will help you understand the market, negotiate effectively, and guide you through the process with care and transparency.
Do Your Homework – Always obtain a LIM report, a building inspection, and review the title before making an offer. These steps protect you from unexpected surprises post-purchase.
Making an Offer – In New Zealand, you’ll typically purchase a home through either negotiation, tender, or auction. Each method requires a different strategy:
Tip: Never feel rushed. Even in competitive markets, taking the time to understand the terms can save you serious headaches later.
Several initiatives exist to support first-home buyers in New Zealand, including:
Be sure to check current eligibility criteria through official channels, as these can change with government policy updates.
Buying your first home is a major milestone—and while it can feel overwhelming at times, having the right information and support makes all the difference.
Here at Lowe & Co Realty, we believe every first-home buyer deserves straightforward advice, expert negotiation, and a partner they can trust through every step of the journey.
Whether you're just starting to dream or ready to sign on the dotted line, we’re here to help you turn your homeownership goals into reality.
Helpful Resources:
Tips on Getting the Right Mortgage Deal
What Record-High Listings Mean for Buyers and Sellers
The Impact of OCR Cuts: Renewed Buyer Interest in New Zealand
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