How to Plan Your Deposit Goal in 12 Months or Less
Step 1: Know Your Target Number
Start by working out how much you need.
Most banks in NZ require a 20% deposit, but there are still options for 5–10% deposits through schemes like the First Home Loan.
For example:
A $700,000 home = $140,000 deposit (20%)
A $650,000 home = $32,500 deposit (5%)
Once you know your target amount, divide it by 12 months to see your monthly savings goal. Even if that number feels big, you’ll soon see ways to make it achievable.
Step 2: Boost Your Deposit with KiwiSaver
If you’ve been in KiwiSaver for at least three years, you may be able to withdraw nearly all your balance (leaving $1,000 in the account) when you buy your first home.
To grow your KiwiSaver faster:
Increase your contribution rate to 6% or 8% of your income.
Ask your employer about voluntary top-ups.
Check which KiwiSaver fund type you’re in — if you plan to buy within a year, a conservative fund is safer from market fluctuations.
Combining regular KiwiSaver contributions with cash savings can dramatically shorten your timeline to home ownership.
Step 3: Create a Realistic Budget
List your income, essential expenses, and areas where you can cut back. Many first-home buyers discover they can save far more once they track every dollar for a month.
Use a high-interest savings account and automate weekly transfers on payday — that way, you “pay yourself first.” Treat your savings like a non-negotiable bill.
Step 4: Add Extra Income Streams
To supercharge your savings:
Sell unused items on Trade Me or Facebook Marketplace.
Pick up extra shifts or freelance work.
Redirect tax refunds, bonuses, or KiwiSaver employer contributions straight into your deposit account.
Even small wins can add thousands over a year.
Step 5: Stay Accountable and Review Monthly
Set milestones every three months to track progress. Celebrate the wins — even reaching 50% of your goal is a big deal. If you’re falling behind, adjust your spending or savings plan early rather than giving up.
Final Thoughts
Building a house deposit in 12 months takes discipline, but it’s absolutely doable with a clear goal, smart use of KiwiSaver, and consistent action.
A mortgage adviser can help you calculate how much you really need, explore low-deposit lending options, and design a personalised roadmap — so your first home becomes a reality, not just a dream.