21 Nov 2025
For years, Wellington first-home buyers were told a simple rule: you need a 20% deposit to buy a house. But lending criteria, government schemes and lender flexibility have evolved — meaning some Wellington buyers can now enter the market with as little as 5 %, depending on eligibility and property type.
If you’ve been wondering how much deposit first-home buyers need, the answer in 2025 is: Wellington first-home deposits range from 5% to 20%. Your pathway depends on your income, credit history, property choice, and whether you qualify for Kāinga Ora’s First Home Loan programme. Let’s unpack what’s really happening in Wellington right now.
The 20 % rule came from the Reserve Bank’s loan-to-value (LVR) restrictions, designed to manage risk across the housing market. It became real-estate folklore — passed down from parents to kids — even though modern lending and government support have changed the rules.
Today, some first-home buyers in Wellington are purchasing with 5% deposits (via the First Home Loan scheme). Deposits of 7–10% may also be possible where lenders permit and risk criteria are met — though this is less common.
While a 20% deposit still helps reduce loan costs and low-equity fees, it’s no longer a fixed requirement for all buyers.
|
Suburb |
Median Price (2025 est.) |
5% Deposit |
10% Deposit |
20% Deposit |
|
Newtown |
$790,000 |
$39,500 |
$79,000 |
$158,000 |
|
Johnsonville |
$730,000 |
$36,500 |
$73,000 |
$146,000 |
|
Miramar |
$850,000 |
$42,500 |
$85,000 |
$170,000 |
|
Te Aro (apartment) |
$695,000 |
$34,750 |
$69,500 |
$139,000 |
*Based on REINZ March 2025 data and Lowe & Co sales records (indicative only). The Wellington regional median price in March 2025 was around $800K (REINZ Monthly Report April 2025). In October 2025, Wellington's medium price was $760,000.
With Wellington’s median home price in the ballpark of $800,000 (REINZ, March 2025), smaller deposits can open doors in suburbs once out of reach. The city’s stable employment base and public sector workforce also help lenders remain flexible.
If you have a stable income but modest savings, this scheme lets you buy with just 5 % down
Eligibility (as at 2025):
Sources: Kāinga Ora – First Home Loan (2025) | RNZ Budget 2025 Report
Saving isn’t the only way to build your deposit. First-home buyers are combining multiple tools to close the gap faster.
After three years of contributions, you can withdraw nearly your entire KiwiSaver balance (keeping $1,000 in the account) to fund your first home. You may also qualify for up to $10,000 in First Home Grants.
To be eligible, you must: - Have been a KiwiSaver member for at least three years (Inland Revenue) - Leave at least $1,000 in your account after withdrawal - Intend to live in the home you’re buying (it must be in New Zealand) - Apply before settlement, as withdrawals usually take up to 10 business days to process (Smith Partners)
You can withdraw your contributions, your employer’s contributions, and investment returns — but not the original government kick-start or funds transferred from an Australian super scheme. (Kāinga Ora)
Gifted deposits are increasingly common — most banks accept them if a signed declaration confirms the funds don’t need repayment. Some parents are also using their home’s equity as security, creating a “family springboard.”
If you already own property, you may borrow against your equity to fund another purchase — seek independent mortgage and legal advice first. Source: BNZ – Using Home Equity (2025)
Before signing, first-home buyers should always ask:
Bonus tip: Viewing a new build? Prepare a checklist of questions to ask when viewing a new build house — including build guarantees, completion dates, and title handover.
As of November 2025, the Reserve Bank has proposed allowing banks to allocate up to 25 % of new owner-occupier loans to borrowers with less than 20 % deposit, if the proposal is implemented. If credit conditions stay stable, 2026 could bring even more flexible low-deposit products from major lenders.
You don’t need to wait years to reach a perfect 20% deposit. In Wellington’s evolving market, the right strategy can help you move from saving to owning much sooner.
Your next steps:
Q: How much deposit do first-home buyers need in Wellington?
Anywhere from 5% – 20%, depending on lender and scheme eligibility.
Q: How does KiwiSaver work for first-home buyers?
After three years, you can withdraw your balance (leaving $1,000) and may qualify for up to $10,000 in grants.
Q: Can I use equity from one house to buy another?
Yes — but consult your lender about risks and conditions.
Q: What’s the lowest deposit available in NZ right now?
5% under Kāinga Ora’s First Home Loan.
Q: What should I ask when viewing a new build house?
Ask about warranties, completion timelines, and compliance certificates.
Ready to Make Your Move?
Connect with Wellington’s most awarded real-estate team — Lowe & Co Realty. Our agents work closely with local lenders and buyers to help you navigate deposits, KiwiSaver, and new-build opportunities.
Disclaimer: This article is for general information only and does not constitute financial or legal advice. Lending criteria, income caps and interest rates change frequently and differ by lender. Readers should seek independent advice from a licensed mortgage adviser or lender before making any decisions. Lowe & Co Realty does not provide financial services or brokerage advice under the Financial Markets Conduct Act 2013.
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