Step 1: Know your numbers
Start with two figures: your realistic deposit, including any KiwiSaver first home withdrawal, and your assessed borrowing power. Together they set your maximum purchase price.
Do this before you look at listings. Most disappointment in a first purchase comes from viewing properties above the price the numbers actually support.
Step 2: Tidy your financial position
Lenders review three months of bank statements closely. Reduce or close unused credit card limits and buy-now-pay-later accounts, avoid new finance, and keep your account conduct clean — no unarranged overdrafts or missed payments.
Step 3: Get pre-approved
Pre-approval gives you a conditional lending limit, usually valid for around 90 days. It lets you make offers credibly and tells agents you are a serious buyer.
Step 4: Search with your conditions ready
Line up your solicitor, builder's report provider and insurance before you find the property, not after. When you make an offer you will need to move quickly.
- A solicitor to review the sale and purchase agreement and the title.
- A builder's report for any established home.
- A LIM report from the council.
- Insurance quoted and ready to bind.
Step 5: Make an offer
Private treaty sales let you offer subject to finance, a builder's report and a LIM. Auctions do not — bids are unconditional, so all due diligence and finance must be settled beforehand.
Step 6: Unconditional and settlement
Once your conditions are satisfied you confirm the contract unconditional, pay the deposit, and your solicitor and lender coordinate settlement. Your KiwiSaver withdrawal needs to be with your solicitor before settlement day.
On settlement the loan draws down, the balance transfers, and you get the keys.
Common first-home mistakes
Most of these are avoidable with a few weeks of planning.
- Buying a car on finance during the pre-approval period.
- Leaving the KiwiSaver withdrawal application until the final week.
- Bidding at auction with finance that is still conditional.
- Budgeting the deposit but not legal fees, reports and moving costs.
- Assuming a decline from one bank means every lender will decline.
Common questions
What is the first step to buying a first home in New Zealand?
Establish your deposit and your assessed borrowing power. Every later decision, including which suburbs are realistic, depends on those two numbers.
How long does buying a first home take?
Commonly three to six months from starting the finance process to settlement, though the search itself is the most variable part.
Should I use a mortgage adviser or go straight to my bank?
Your own bank assesses you against one policy. An adviser compares several lenders, which matters most when your income or deposit is not straightforward.
Is the First Home Grant still available?
The First Home Grant closed to new applications in 2024. KiwiSaver first home withdrawals continue, and other support may apply depending on your circumstances.