The First Home Loan is a Kāinga Ora-backed mortgage scheme that allows eligible first home buyers in New Zealand to purchase with as little as 5% deposit — compared to the standard 20% most banks require. Used alongside a KiwiSaver first home withdrawal, it makes homeownership achievable for buyers who have been saving but can’t reach a full 20% deposit.
The First Home Grant (previously up to $10,000 per person) was closed in May 2024 and is no longer available.
What Is the First Home Loan?
The First Home Loan is not a government loan — it is a standard mortgage from a participating bank or lender, but with Kāinga Ora underwriting the low-deposit risk. This means:
- You borrow from a bank (not the government)
- Kāinga Ora guarantees the low-deposit portion to the lender
- You pay a standard mortgage — but with only 5% deposit instead of 20%
- You pay a small Lenders Mortgage Insurance (LMI) premium (built into the loan or paid upfront)
This is structurally similar to lenders mortgage insurance in Australia, but administered through Kāinga Ora.
First Home Loan Eligibility (2026)
Income caps
| Buyer type | Maximum gross income |
|---|---|
| Single buyer | $95,000/year |
| Two or more buyers | $150,000/year combined |
Income is assessed on the previous 12 months of gross income. These figures are current as of April 2026 — check the Kāinga Ora website for any updates.
House price caps
House price caps vary by region and are updated periodically. As a guide:
| Region | Existing home cap | New build cap |
|---|---|---|
| Auckland | $875,000 | $925,000 |
| Wellington | $750,000 | $800,000 |
| Canterbury | $650,000 | $700,000 |
| Other NZ | $625,000 | $675,000 |
Check current Kāinga Ora figures — these may have been updated since publication.
Other eligibility requirements
- NZ citizen, permanent resident, or eligible visa holder
- Purchasing to live in (not as investment)
- First home buyer, or meet the “second chance” criteria
- Have not previously received a First Home Loan
- Minimum 5% deposit (can be from KiwiSaver withdrawal, savings, or a combination)
- Pass standard bank lending criteria (income, credit history, expenses)
How Much Deposit Do You Actually Need?
With the First Home Loan, you need 5% of the purchase price as a deposit. Your KiwiSaver first home withdrawal can form all or part of this.
Example — $700,000 property in Christchurch (within cap):
| Component | Amount |
|---|---|
| 5% deposit required | $35,000 |
| KiwiSaver withdrawal (3 years saving) | $28,000 |
| Additional savings needed | $7,000 |
| Mortgage | $665,000 |
For a couple where both have KiwiSaver, the combined withdrawal could cover the entire 5% deposit with no additional savings.
See the KiwiSaver house deposit guide for how to calculate your likely withdrawal amount.
Which Lenders Offer the First Home Loan?
The First Home Loan is offered by participating banks and non-bank lenders. Participating lenders have included:
- ANZ
- ASB
- BNZ
- Westpac
- Kiwibank
- Kāinga Ora’s own lending programme (for eligible Māori and Pacific applicants in some cases)
- Some non-bank lenders
Not all branches or mortgage advisers will proactively offer the First Home Loan — you may need to ask specifically. A mortgage broker familiar with first home buyer schemes is often the fastest path.
First Home Loan vs Standard Lending
| Feature | Standard mortgage | First Home Loan |
|---|---|---|
| Minimum deposit | 20% | 5% |
| Income limit | None | $95k single / $150k joint |
| House price limit | None | Varies by region |
| Lenders mortgage insurance | No | Yes (small premium) |
| Availability | All banks | Participating lenders only |
| Who it suits | Any buyer with 20% | First home buyers under income caps |
DTI Limits and the First Home Loan
From July 2024, the Reserve Bank (RBNZ) introduced debt-to-income (DTI) limits. Owner-occupier borrowers are generally limited to borrowing 6× their gross income.
For a single buyer earning $90,000:
- Maximum DTI at 6×: $540,000 loan
- With 5% deposit on $570,000 property: $541,500 loan — at the limit
DTI limits interact with house price caps in high-cost regions. In Auckland, where the price cap is $875,000, a single buyer at $95,000 income would need a $43,750 deposit (5%) but the 6× DTI limit would cap their loan at $570,000 — meaning the effective house price ceiling is lower than the Kāinga Ora cap.
For many first home buyers, the DTI limit is a binding constraint before the First Home Loan price cap becomes relevant.
How to Apply
- Confirm eligibility — income, house price, first home buyer status
- Get your KiwiSaver withdrawal estimate — contact your provider or check online
- Choose a participating lender or use a mortgage broker
- Apply for pre-approval — the lender assesses your income, credit, and deposit
- Find a property — within the regional house price cap
- Apply for first home withdrawal — your solicitor handles this at unconditional stage
- Settle — KiwiSaver funds arrive at settlement, mortgage draws down
Allow 6–10 weeks from pre-approval to settlement for a standard purchase.
Frequently Asked Questions
Can I use KiwiSaver as the entire 5% deposit? Yes, if your KiwiSaver balance is sufficient. For a $600,000 property, you need $30,000 (5%). If your KiwiSaver balance minus $1,000 exceeds this, no additional savings are required for the First Home Loan deposit.
Does the First Home Loan cost more than a standard mortgage? The interest rate is the same as a standard mortgage from the same lender. There is a Lenders Mortgage Insurance (LMI) premium — typically 0.5%–1% of the loan value — but this is often significantly less than the years of additional saving required to reach 20%.
Can two people both qualify for the First Home Loan? Yes — two buyers can jointly apply. The combined income cap is $150,000. Both must be first home buyers (or meet second chance criteria).
Is the First Home Loan available for new builds? Yes. New builds often have higher house price caps under the scheme, making the First Home Loan particularly useful for new build purchases.
What happened to the First Home Grant? The First Home Grant (previously up to $10,000 per person from Kāinga Ora) was closed in May 2024. It is no longer available. The First Home Loan remains active.
What to Read Next
- KiwiSaver House Deposit Guide — how much you can withdraw
- KiwiSaver First Home Withdrawal Guide — full process and rules
- First Home Withdrawal Eligibility — confirm you qualify
- First Home Withdrawal Checklist — step-by-step process
- How Much to Contribute to KiwiSaver — build your deposit faster
- KiwiSaver for Beginners — KiwiSaver fundamentals