The standard: 20 percent
A 20 percent deposit puts you outside low-equity lending. You avoid low-equity margins and fees, you have access to every lender's sharpest rates, and your application is assessed on standard criteria.
On an $800,000 purchase that is $160,000 — a large number, which is why most first-home buyers look seriously at the alternatives below.
Buying with 10 percent or less
Banks can write a limited share of their new lending to owner-occupiers with less than a 20 percent deposit, under Reserve Bank loan-to-value restrictions. That allocation is finite, so low-deposit applications are assessed more tightly and approvals can depend on timing.
Expect a low-equity margin added to your interest rate or a one-off low-equity fee, stronger scrutiny of your genuine savings history, and less tolerance for other debt.
What counts towards your deposit
Lenders look for genuine savings, but several other sources are accepted.
- Cash savings with a demonstrated savings history.
- A KiwiSaver first-home withdrawal, leaving the required $1,000 in the account.
- A gift from family, usually with a signed gifting certificate confirming it is not repayable.
- Equity in another property used as security.
- Proceeds from the sale of a vehicle or other significant asset, with a clear paper trail.
Costs beyond the deposit
Your deposit is not your only cash requirement at settlement. Budget separately for these so the deposit is not eroded on the day.
- Legal fees, typically $1,500 to $2,500.
- A builder's report and, where relevant, a registered valuation.
- LIM report from the local council.
- Moving costs and immediate essentials for the property.
- Insurance in place from the date the contract goes unconditional.
Deposit versus servicing
Growing your deposit is worthwhile, but it only lifts your purchase price if income servicing supports the loan. Before saving for another year, it is worth checking which of the two is actually limiting you — the answer changes what you should do next.
Common questions
Can I buy a first home with a 5 percent deposit in New Zealand?
It is possible in limited circumstances, usually through specific low-deposit lending or a Kāinga Ora backed option where eligibility applies. Criteria are strict and the pool of lenders is small, so advice is worthwhile before you commit to a purchase.
Does KiwiSaver count as a deposit?
Yes. A first-home withdrawal can make up all or part of your deposit, provided you have been a member for at least three years and leave $1,000 in the account.
Do banks accept gifted deposits?
Most do, with a signed gifting certificate confirming the money is a gift and not a loan. Some lenders also want to see a portion of genuine savings alongside the gift.
How long does the deposit need to be in my account?
Lenders generally want to see savings history over three months or more. Recently deposited funds without explanation will be questioned.