Buying your first home with a 5% deposit
The Kāinga Ora First Home Loan lets eligible first-home buyers borrow 95% of the price. Here is who qualifies, what it costs, and the other routes to buying with under 20%.
The First Home Loan at a glance
Deposit
At least 5%, from savings, KiwiSaver or a family gift. Not borrowed.
Income cap
$95,000 single, no dependants. $150,000 single with dependants, or buying together. Before tax, last 12 months.
Fee
Lenders’ mortgage insurance, about 1% of the loan, paid to Kāinga Ora and can be added to the loan.
Where
Through participating banks and lenders, who also run their usual affordability checks.
As at 12 October 2026, from participating lenders’ published criteria. Kāinga Ora sets the rules; a higher income cap has been proposed for after the 7 November 2026 election. Confirm with Kāinga Ora or a lender before you rely on it.
What 5% looks like
A $650,000 home with a $32,500 deposit, at today’s lowest advertised 1-year rate. Change any figure.
Mortgage repayment calculator
With under a 20% deposit most banks charge a low-equity margin or fee and lend less freely. How low-deposit loans work.
The rate is held for the whole term here, which no New Zealand loan is: fixed terms run out and are refixed at whatever rates are then. Interest is charged each repayment period. A guide, not a lending offer.
If rates rise
| Rate | Repayment, a fortnight | Interest over 30 years |
|---|---|---|
| At 6.00% | $1,708 | $714,662 |
| At 7.00% (+1) | $1,895 | $860,787 |
| At 8.00% (+2) | $2,090 | $1,012,958 |
Year-by-year balance
| Year | Interest | Principal | Owing at year end |
|---|---|---|---|
| 1 | $36,834 | $7,572 | $609,928 |
| 2 | $36,366 | $8,039 | $601,889 |
| 3 | $35,870 | $8,536 | $593,354 |
| 4 | $35,342 | $9,063 | $584,291 |
| 5 | $34,783 | $9,623 | $574,668 |
| 6 | $34,188 | $10,217 | $564,451 |
| 7 | $33,557 | $10,848 | $553,603 |
| 8 | $32,887 | $11,518 | $542,085 |
| 9 | $32,176 | $12,229 | $529,856 |
| 10 | $31,421 | $12,985 | $516,871 |
| 11 | $30,619 | $13,787 | $503,084 |
| 12 | $29,767 | $14,638 | $488,446 |
| 13 | $28,863 | $15,542 | $472,904 |
| 14 | $27,903 | $16,502 | $456,401 |
| 15 | $26,884 | $17,522 | $438,880 |
| 16 | $25,802 | $18,604 | $420,276 |
| 17 | $24,653 | $19,753 | $400,523 |
| 18 | $23,433 | $20,973 | $379,551 |
| 19 | $22,137 | $22,268 | $357,283 |
| 20 | $20,762 | $23,643 | $333,639 |
| 21 | $19,302 | $25,104 | $308,535 |
| 22 | $17,751 | $26,654 | $281,881 |
| 23 | $16,105 | $28,300 | $253,581 |
| 24 | $14,357 | $30,048 | $223,533 |
| 25 | $12,501 | $31,904 | $191,628 |
| 26 | $10,531 | $33,875 | $157,754 |
| 27 | $8,438 | $35,967 | $121,787 |
| 28 | $6,217 | $38,188 | $83,598 |
| 29 | $3,858 | $40,547 | $43,051 |
| 30 | $1,354 | $43,051 | $0 |
Other ways in with under 20%
Banks lend a share of their new loans to owner-occupiers with under 20% deposit, within Reserve Bank limits, usually with a low-equity margin on the rate or a one-off fee. New builds are exempt from those limits. A mortgage adviser knows which lenders are lending at low deposits this month.
Questions
Who can get a First Home Loan?
First-home buyers (and some previous owners in a similar position) buying a home to live in, with a deposit of at least 5% and household income before tax of up to $95,000 for a single buyer without dependants, or $150,000 for a single buyer with dependants or two or more buyers together.
What does a First Home Loan cost?
The lender’s usual rates, plus a lenders’ mortgage insurance fee paid to Kāinga Ora, about 1% of the loan, which can be added to the loan. Lenders still apply their own affordability and credit checks.
Can my deposit be a gift or KiwiSaver?
Yes. The 5% can come from savings, a KiwiSaver first-home withdrawal or a gift from family that does not have to be repaid. It cannot be borrowed.
What if my income is over the cap?
Banks also lend with under 20% deposit on their own terms, within the Reserve Bank’s limits, often with a low-equity margin or fee. New builds are exempt from those limits, which can make a low-deposit loan easier to get.
More home loan tools
Mortgage repayment calculator
Weekly, fortnightly or monthly repayments and the interest over the loan.
How much can I borrow?
An indicative borrowing limit and a readiness check, from your own figures.
Pay off your mortgage faster
What extra repayments or a lump sum save.
Break fee calculator
A rough cost of breaking a fixed rate early.
Switching banks
Whether moving your mortgage pays, after every cost.
Buying your first home
The steps from saving a deposit to settlement day.
What could your KiwiSaver buy?
Your balance as a price, and homes at it in the suburb you pick.
KiwiSaver first-home withdrawal
What your KiwiSaver could put toward a deposit.
Mortgage pre-approval
What it is, what to bring, and how long it lasts.
Today’s mortgage rates
Every lender’s advertised rates, side by side.
Home loan affordability by town
What a median home costs against local incomes, town by town.
Find a mortgage adviser
Advisers and firms near you.