Buying your first home in New Zealand is one of the most exciting — and sometimes overwhelming — financial decisions you'll make. This guide walks you through every step of the process, from understanding your borrowing power to signing on the dotted line.
Step 1: Know Your Borrowing Power
Before you start browsing listings, you need to understand how much a bank will lend you. This is based on your income, existing debts, living expenses, and deposit amount. A mortgage adviser can run a full assessment for free and give you a realistic number — which is always the best starting point.
Step 2: Save Your Deposit
Most lenders require a 20% deposit, though the First Home Loan scheme allows as little as 5% for eligible buyers. Your KiwiSaver is likely your biggest deposit asset — after 3 years of contributions you can withdraw most of your balance for a first home purchase. The First Home Grant can also top up your deposit by up to $10,000 for existing homes, or $20,000 for new builds.
Step 3: Get Pre-Approval
A pre-approval (also called a conditional approval) gives you a confirmed borrowing limit before you start making offers. It's not a guarantee of final approval, but it signals to sellers and agents that you're a serious buyer. Pre-approvals typically last 60–90 days and can be renewed.
Step 4: Find Your Home & Make an Offer
Once you have pre-approval, you can start making offers. Always include a finance condition and a due diligence period. Get a building inspection done — the cost (~$500–700) is well worth it for peace of mind. Your lawyer will review the LIM report and sale and purchase agreement.
Step 5: Unconditional & Settlement
Once all conditions are satisfied, your offer goes unconditional. Your lawyer manages the legal process, and your adviser coordinates the final loan approval with the lender. On settlement day, funds transfer and you receive the keys. Congratulations — you're a homeowner!
Ready to start your first home journey? Book a free consultation with SKFG today.