Important: The First Home Grant closed to new applications in May 2024 as part of the New Zealand government’s Budget 2024 changes. No new applications are being accepted. If you are a first home buyer researching your options, skip to what is still available.
If you have been searching for the First Home Grant and finding conflicting information online, this guide explains what the grant was, how much it provided, and — most importantly — what assistance programmes are still open to first home buyers in New Zealand today.
What Was the First Home Grant?
The First Home Grant (previously called the HomeStart Grant before a rebrand in 2021) was a government-funded grant administered by Kāinga Ora – Homes and Communities. It provided eligible first home buyers with a cash grant that could be used as part of their deposit — separate from, and in addition to, their KiwiSaver withdrawal.
The grant was means-tested and subject to income caps and property price caps. It had been operating for many years as one of the key pillars of first home buyer support in New Zealand, alongside the KiwiSaver first home withdrawal and the First Home Loan.
Why was it closed?
As part of Budget 2024, the New Zealand government announced it would close the First Home Grant, directing the funds instead towards increasing housing supply. The grant closed to new applications in May 2024.
How the Grant Worked (Historical Reference)
This section documents how the grant worked, which is useful for understanding references in older articles, discussions on social media, and advice from friends or family who bought before 2024.
Eligibility criteria
To receive the First Home Grant, a buyer needed to:
- Be a New Zealand citizen or permanent resident living in New Zealand
- Be a first home buyer (or meet the second-chance withdrawal criteria via Kāinga Ora)
- Have been a KiwiSaver member for at least 3 years with regular contributions
- Have an individual income below $95,000 (or combined household income below $150,000 for two or more buyers)
- Purchase a property below the applicable regional house price cap
- Intend to live in the property (not invest)
Grant amounts
The grant was calculated based on years of KiwiSaver membership, up to a maximum of 5 years:
Existing (older) homes:
| Years in KiwiSaver | Grant per person |
|---|---|
| 3 years | $3,000 |
| 4 years | $4,000 |
| 5+ years | $5,000 |
New build homes:
| Years in KiwiSaver | Grant per person |
|---|---|
| 3 years | $6,000 |
| 4 years | $8,000 |
| 5+ years | $10,000 |
For couples, both partners could each receive the grant if both were eligible — meaning a couple with 5+ years membership each could receive up to $10,000 (existing home) or $20,000 (new build).
Regional house price caps
The grant applied only to properties below certain price thresholds, which varied by region. Auckland had higher caps than most provincial centres, reflecting local property prices. These caps were a common point of frustration for buyers in high-cost areas where even entry-level properties exceeded the limits.
Relationship to KiwiSaver withdrawal
The grant was separate from and in addition to the KiwiSaver first home withdrawal. A buyer could use both in the same purchase — withdrawing their KiwiSaver balance (minus $1,000) and layering the grant on top. Combined with a First Home Loan at 5% deposit, some buyers were able to enter the property market with a very small amount of their own cash savings.
What Is Still Available for First Home Buyers
Even without the First Home Grant, there are two major government-backed pathways still open to eligible first home buyers in New Zealand.
1. KiwiSaver first home withdrawal (still active)
This remains the most significant financial tool available to first home buyers. If you have been a KiwiSaver member for at least 3 years and meet the eligibility criteria, you can withdraw your entire KiwiSaver balance minus $1,000 to use as part of your deposit.
Unlike the grant, the KiwiSaver withdrawal has:
- No income cap — any income level can apply
- No property price cap — you can use it on any property price
- No maximum amount — the larger your balance, the more you can access
For a buyer with a $60,000 KiwiSaver balance, that means $59,000 available for a deposit. This is often a far larger sum than the grant ever provided.
Key resources:
- KiwiSaver first home withdrawal eligibility — the six criteria you need to meet
- How much can I withdraw from KiwiSaver for my first home? — how to estimate your balance
- KiwiSaver first home withdrawal guide — the full process from application to settlement
2. First Home Loan (still active)
The First Home Loan, also administered by Kāinga Ora, allows eligible buyers to purchase with a 5% deposit (rather than the standard 20%) through a participating lender — primarily Kiwibank, Westpac, and some smaller lenders.
The key benefit: most banks require 20% deposit unless you pay a low-equity margin fee. The First Home Loan lets you get in with just 5%, using Kāinga Ora as a guarantor on the loan, so lenders are comfortable accepting the lower deposit.
Eligibility for the First Home Loan:
| Criteria | Requirement |
|---|---|
| Income (single buyer) | Up to $95,000 gross |
| Income (two or more buyers) | Up to $150,000 combined gross |
| Deposit | Minimum 5% of purchase price |
| Property type | Existing or new build |
| Residency | NZ citizen or permanent resident |
| Prior property ownership | Must be a first home buyer (or second-chance eligible) |
House price caps apply and vary by region — check the Kāinga Ora website for current limits.
The First Home Loan is particularly useful when combined with a KiwiSaver withdrawal. Many buyers use their KiwiSaver balance to fund the required 5% deposit and then borrow the remaining 95% under the First Home Loan scheme.
Example: $650,000 purchase with 5% First Home Loan
| Source | Amount |
|---|---|
| KiwiSaver withdrawal | $29,000 |
| Personal savings | $3,500 |
| Total deposit (5%) | $32,500 |
| First Home Loan (95%) | $617,500 |
How to Maximise Your Position as a First Home Buyer Today
Without the grant, the focus shifts to building the largest possible KiwiSaver balance. Here is what makes the biggest difference:
Contribute at least 3% — and consider more
Every increase in your contribution rate adds to your withdrawal amount. Moving from 3% to 6% on a $70,000 salary adds roughly $2,100 more per year to your balance — plus additional investment growth on that amount. See KiwiSaver contribution rates for a full comparison.
Capture the government Member Tax Credit every year
IRD contributes up to $521.43 per year in free money if you contribute at least $1,042.86 yourself in each KiwiSaver year (1 July – 30 June). This is one of the few remaining government contributions still available to first home buyers. Over 5 years, it adds approximately $2,600 to your balance before growth.
See KiwiSaver government contribution (Member Tax Credit) for how to ensure you claim the full amount every year.
Employer contributions add up significantly
Your employer must contribute at least 3% of your gross salary on top of your own contributions. On a $70,000 salary over 5 years, that is roughly $7,350–$8,500 reaching your account (net of ESCT), before any investment growth.
See KiwiSaver employer contributions for details on ESCT and how to confirm your employer is paying correctly.
Be in the right fund for your timeline
If you are 1–3 years away from buying, switching to a conservative or moderate fund protects your balance from market falls. If you are 3+ years away, staying in a growth or balanced fund allows more investment growth to accumulate.
See How to choose a KiwiSaver fund for guidance.
Make voluntary top-up contributions before settlement
You can make one-off lump sum contributions directly to your provider at any time. Doing this before settlement increases your withdrawal amount. See how much you can withdraw for timing considerations.
Comparing Grant vs Withdrawal: Why Withdrawal Is the Larger Tool
Many buyers who read about the First Home Grant assumed it was the main government support. In reality, even when the grant was available, the KiwiSaver withdrawal was almost always the larger contribution to the deposit.
Example: 5-year KiwiSaver member, $70,000 salary (when both were available)
| Source | Amount |
|---|---|
| KiwiSaver withdrawal (balance − $1,000) | ~$36,000 |
| First Home Grant (existing home, 5+ years) | $5,000 |
| Combined | ~$41,000 |
The grant added roughly 14% on top of the withdrawal in this scenario. Now that it is closed, buyers simply have the withdrawal — which was always the primary mechanism.
This is why growing your KiwiSaver balance through higher contributions and staying in a growth fund during the early years of membership has always been, and remains, the most impactful thing a first home buyer can do.
Frequently Asked Questions
Can I still apply for the First Home Grant?
No. The First Home Grant closed to new applications in May 2024. Applications submitted after the closure date were not accepted.
I heard there might be a new first home grant. Is that true?
There has been no announcement of a replacement grant programme as of 2026. The government redirected the funding to housing supply initiatives. Check the Kāinga Ora website for any new programmes that may be introduced.
Can I still use my KiwiSaver to buy my first home?
Yes. The KiwiSaver first home withdrawal is entirely separate from the grant and remains fully operational. See KiwiSaver first home withdrawal eligibility for the criteria.
Is the First Home Loan the same as the First Home Grant?
No. The First Home Loan is a separate scheme that lets you buy with a 5% deposit. The grant was a cash payment; the First Home Loan is a subsidised lending arrangement. The First Home Loan is still available as of 2026.
Does the closure of the grant affect my KiwiSaver first home withdrawal?
No. The KiwiSaver withdrawal is administered entirely separately. The grant closure has no impact on your ability to withdraw your KiwiSaver for a first home purchase.
I am buying with my partner. Can we get any extra government assistance beyond KiwiSaver?
You can each make a KiwiSaver withdrawal independently, so your combined deposit can be the sum of both balances minus $1,000 each. You may also each be eligible for the First Home Loan if your combined income is below the threshold. No additional grants are currently available for couples beyond these mechanisms.
What happened to the HomeStart Grant? Is it the same thing?
Yes. The HomeStart Grant was renamed the First Home Grant in 2021. They are the same programme, which was subsequently closed in May 2024.
I contributed to KiwiSaver for over 5 years hoping to maximise the grant. Can I get anything for that?
No. The grant required an active application during the period it was open. However, those additional years of contributions will have substantially increased your KiwiSaver balance, which you can still withdraw for your first home purchase.
Key Takeaways
- The First Home Grant closed in May 2024 — no new applications are being accepted
- The grant provided up to $5,000 per person (existing home) or $10,000 per person (new build) based on years of KiwiSaver membership
- The KiwiSaver first home withdrawal is still fully operational and typically provides a far larger sum than the grant ever did
- The First Home Loan (5% deposit via Kāinga Ora) is still available for eligible buyers under income thresholds
- The most effective strategy for first home buyers today is to maximise KiwiSaver contributions, capture the annual Member Tax Credit, and manage fund type as the purchase approaches
For a complete overview of using KiwiSaver to buy your first home, start with the KiwiSaver first home withdrawal guide and check your eligibility for a withdrawal.