Kāinga Ora First Home Loan – Helping Kiwis Into Their First Home
For many New Zealanders, saving for a home deposit is the biggest barrier to buying a first home. The Kāinga Ora First Home Loan was created to make this milestone easier. Backed by the Government and offered through selected lenders, the scheme is designed to help first home buyers who have good financial habits but struggle with the large deposits usually required by banks.
With the minimum deposit reduced from 10% to just 5%, this makes the process easier, but there are additional things to consider, when purchasing a home less then 20% deposit.
A Kāinga Ora First Home Loan is a special mortgage option for eligible kiwi’s. Unlike a standard home loan that typically requires a 20% deposit, this loan allows first home buyers to purchase a property with as little as 5% deposit.
For example:
A $600,000 home previously needed a $60,000 deposit (10%).
Under the new rules, buyers only need $30,000 (5%).
Kāinga Ora First Home loan Eligibility
To apply for a Kāinga Ora First Home Loan, you’ll need to meet certain criteria:
Income caps:
$95,000 or less before tax for a single buyer.
$150,000 or less before tax for a couple.Residency: You must be a New Zealand citizen, permanent resident, or resident visa holder.
Property price caps: The property must fall within regional price limits set by Kāinga Ora.
First home buyer status: You generally need to be buying your first home (though some previous homeowners who no longer own property may also qualify).
Alongside the reduced deposit, first home buyers may also be able to access:
The First Home Grant, which offers up to $10,000 toward your deposit if you’ve been contributing to KiwiSaver.
The ability to combine both the First Home Grant and First Home Loan, creating an even stronger deposit position.
Things to Consider
Lenders will still assess your financial situation carefully to ensure you can afford the repayments. This involves looking at your daily spending, how you budget and the level of savings you put aside each month.
Not all banks or credit unions participate in the Kāinga Ora scheme, so choosing the right lender is essential. We can help advise on the right one for you.
Our Mortgage Brokers can help identify your First Home loan Eligibility
Navigating home loan options can feel overwhelming, especially when it’s your very first home loan, but this is an exciting time for you and we are here to guide you. As mortgage brokers, we can:
Check your eligibility and guide you through the application.
Compare participating lenders.
Tailor your loan structure to suit your budget and long-term goals.
We are here to help you
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