First Home Buyers Grant NZ: Status, Eligibility & Alternatives

If you’ve been saving for your first New Zealand home and banking on a First Home Grant to bridge the gap, you’ll need to recalibrate your plans. The grant closed on 22 May 2024 — no new applications accepted — yet buyers who know the system still have real pathways to homeownership.

First Home Grant End Date: May 2024 · Max Grant Amount (existing home): $5,000 · Max Grant Amount (new build): $10,000 · First Home Loan Income Limit (no dependants): $95,000 · First Home Loan Income Limit (with dependants): $150,000

Is the first home buyers grant still available in NZ?

No — the government’s First Home Grant officially closed on 22 May 2024. New applications are no longer accepted, and no grants will be paid under that scheme. This was the grant that provided up to $5,000 for existing homes or $10,000 for new builds, administered through KiwiSaver.

Grant closure details

The closure marked a significant shift in New Zealand’s first home buyer support landscape. Before that date, eligible buyers could receive a lump sum deposit boost funded jointly by the government and their KiwiSaver savings. That pathway is now gone. According to MoneyHub NZ (financial guidance publication), the final grant payments were processed under the old rules, with no grandfather provisions for pending applications.

Impact on first home buyers

The implication for aspiring buyers is straightforward: one fewer tool in the deposit-building toolkit. However, the closure doesn’t mean the dream is dead. KiwiSaver first-home withdrawals remain available — you can access your savings after three years of membership — and several government-backed and private loan schemes have stepped into the gap. Canterbury Home Loans (mortgage advisory firm) confirms that alternatives exist for 2025 buyers willing to explore them.

What is the minimum deposit for a first home buyer in NZ?

Most New Zealand banks require a 20% deposit for standard home loans — that’s $60,000 on a $300,000 property. For first home buyers who haven’t accumulated that much, the First Home Loan through Kāinga Ora drops the requirement to just 5%. That same $300,000 property needs only $15,000 down.

Standard deposit rules

The New Zealand Government (housing guidance portal) confirms that traditional bank mortgages require a 20% deposit to avoid lenders’ mortgage insurance. This threshold puts homeownership out of reach for many savers who need five or more years to accumulate the sum. The 20% rule has been standard practice across major banks including ANZ, ASB, and BNZ.

Low-deposit options like First Home Loan

The First Home Loan from Kainga Ora (government housing authority) allows qualified buyers to purchase with a 5% deposit. Kāinga Ora acts as guarantor, covering the gap between your deposit and the standard 20% requirement. The loan is available through participating banks like Kiwibank and Westpac. Kiwibank (banking institution) notes that family gifts are permitted as part of the deposit for First Home Loan applications. Income caps apply: $95,000 or less for individual buyers without dependants, $150,000 or less for those with dependants or combined household income.

Who is eligible for a first home loan NZ?

The First Home Loan isn’t open to every buyer — income limits and property conditions apply. Getting approved depends on your earnings, your current property status, and whether the home you’re buying falls within regional price caps.

Income thresholds

Kainga Ora (official scheme administrator) sets the following limits: $95,000 or less for an individual buyer without dependants, $150,000 or less for individual buyers with dependants, or $150,000 or less combined for two or more buyers. Westpac NZ (participating bank) confirms these same caps are used in their First Home Loan assessments. The numbers have been stable since the scheme launched, though the government could adjust them in future Budgets.

Buyer status requirements

You must be a New Zealand citizen, permanent resident, or holder of an ordinarily resident visa. You need to be buying a primary residence — investment properties don’t qualify. You cannot already own other property, with an exception made for Māori land held under traditional tenure arrangements. The First Home Loan scheme also allows previous property owners who are in a similar financial position to first buyers, which broadens access for those who’ve sold prior homes.

Property limits

Regional price caps exist to target the scheme where housing affordability is most acute. Auckland properties are capped at $900,000; properties elsewhere in New Zealand are capped at $1,000,000. These limits are assessed at the time of application and apply to the purchase price, not the valuation. Trade Me Property (property marketplace) lists current cap details and confirms eligibility applies across all major regions under these thresholds.

How much deposit do you need for a first time home buyer in NZ?

The exact deposit figure depends on which loan programme you’re using and the purchase price of the home. Here’s how the numbers work out across common price points.

Deposit examples for different home prices

• $300,000 home: $15,000 with First Home Loan (5%) vs $60,000 with a standard bank loan (20%)
• $500,000 home: $25,000 with First Home Loan vs $100,000 with a standard loan
• $700,000 home: $35,000 with First Home Loan vs $140,000 with a standard loan
• $900,000 home (Auckland cap): $45,000 with First Home Loan vs $180,000 with a standard loan

The gap between what the government scheme offers and what banks require is substantial — $45,000 on a $900,000 Auckland property is the difference between qualifying for First Home Loan or needing a traditional mortgage. Buyers pursuing the 5% route must ensure all other lender serviceability criteria are met alongside the deposit.

KiwiSaver contributions

KiwiSaver members can withdraw their savings (except $1,000 locked in) after three years of membership to put toward a first home. Contributions made by your employer (3% of salary) compound over time, and first-home buyers who bought previously may have funds available again. The Eureka Financial (financial advisory) checklist for 2025 outlines the withdrawal process: apply through your KiwiSaver provider, provide settlement documentation, and funds are typically released before or on settlement day.

First home buyers grant nz eligibility — what you need to know

Since the government grant is closed, eligibility discussions now centre on the First Home Loan and related schemes. Here’s how to work through the process and what documents you’ll need.

Steps to check eligibility

• Confirm your annual income falls within the $95,000/$150,000 thresholds
• Verify you don’t currently own property (Māori land excluded)
• Check the property price against regional caps ($900k Auckland, $1M elsewhere)
• Confirm your visa or residency status meets criteria
• Apply through a participating bank — Kiwibank, Westpac, and others offer First Home Loan

Required documents

Banks processing First Home Loan applications will typically request: proof of identity, evidence of income (pay slips or IRD statements), KiwiSaver membership details, savings history showing the deposit funds, and a pre-approved mortgage amount from the bank. If using a gift from family, banks like Kiwibank accept this but require a signed declaration confirming the funds are a gift, not a loan. The full checklist from Kainga Ora (scheme administrator) covers documentation requirements for each applicant type.

Alternatives post-2024

Several pathways exist for buyers who don’t fit the First Home Loan criteria. The New Zealand Government’s housing portal lists additional options: the Tenant Home Ownership Grant offers up to $20,000 (10% of purchase price) specifically for Kāinga Ora tenants buying their rental property. The Kāinga Whenua Loan supports rural Māori land purchases. First Home Partner, a shared ownership scheme, required a 5% deposit with Kāinga Ora covering the remainder to be repaid over 15 years — however, this scheme is fully subscribed and not currently accepting new applications.

Non-bank lenders for first home buyers

When bank criteria feel out of reach, non-bank lenders offer a second route. These institutions assess applications on overall financial health rather than rigid tick-box processes, making them accessible to self-employed buyers, contract workers, and those with non-standard income patterns.

• Liberty Financial: Lends up to 90% LVR, offers extra repayment and redraw facilities, operating in New Zealand since 2007
• Avanti Finance: Near-prime loans from 6.35%, terms up to 30 years, flexible assessment criteria
• Pepper Money and Welcome Limited: Second-tier loan options for borrowers not meeting prime bank criteria
• Squirrel: Good option for buyers with strong income but smaller accumulated deposits
• Xceda: Investment loans from 7.10% pa effective 23 February 2026, requiring 30% deposit

Non-bank lenders typically charge higher interest rates than banks — Liberty offers Low Doc loans in the 10.14–14.45% range — but they serve borrowers the mainstream market has declined. One Stop Financial (financial advisory) notes that non-bank lenders assess your financial position, past credit history, and future goals holistically, which can benefit first home buyers with complex situations.

The implication for buyers is clear: non-bank lenders unlock access for those who don’t fit standard bank boxes, but that flexibility comes at a cost — interest rates that run several percentage points higher than government-backed alternatives.

“Liberty have been in the New Zealand market since 2007, and offer excellent flexibility with their loans such as extra repayments, redraw facilities.”

— One Stop Financial (financial advisory)

Steps to apply for First Home Loan in 2025

The application process follows a standard mortgage path with some scheme-specific steps. Here’s how to move from saving to signed-up.

1. Check your income against the caps — single without dependants: $95,000. With dependants or joint: $150,000 combined.
2. Confirm your deposit is in order — minimum 5% of purchase price must be saved or sourced as a genuine gift.
3. Apply to a participating bank — approach Kiwibank, Westpac, or another First Home Loan provider. Tell them you’re applying for First Home Loan specifically.
4. Receive mortgage approval in principle — the bank assesses serviceability, then Kāinga Ora confirms your eligibility against scheme rules.
5. Make an offer on a qualifying property — check the price against regional caps before going unconditional.
6. Settle — your deposit is paid, the loan draws, and Kāinga Ora’s guarantee sits behind your mortgage for the bank’s protection.

Key facts table — deposit and scheme comparison

Three deposit pathways, one key difference: government backing collapses the required deposit from 20% to 5% for qualifying buyers.

The pattern is clear: lower deposit requirements come with stricter income or eligibility filters. Standard mortgages offer no income ceiling but demand the largest upfront sum. First Home Loan balances accessibility with targeting. Non-banks accept higher risk, so rates rise to compensate.

Related reading: Home Loan Rates Forecast

Although the First Home Buyers Grant NZ closed in May 2024, grant status and alternatives outlines eligibility rules and viable options like low-deposit loans for 2025 buyers.

Frequently asked questions

Summary

The First Home Grant’s closure on 22 May 2024 removed a key deposit tool for New Zealand first home buyers, but it didn’t end government support for homeownership — it redirected it. The First Home Loan’s 5% deposit requirement and Kāinga Ora backing remain available to eligible buyers earning under $95,000-$150,000 annually. KiwiSaver withdrawals still supplement deposits tax-free. Non-bank lenders fill gaps for borrowers who don’t fit the standard profile. Buyers who qualify can enter the property market in 2025 with significantly less upfront savings than the traditional 20% deposit route demands. Those earning above the caps or carrying complex financial situations face a clear choice: save longer for standard mortgage terms, or accept higher interest rates from non-bank lenders in exchange for faster access to homeownership.