Financial Planning for New Homeowners: Insurance, Wills, and More
Buying your first home is one of the most exciting milestones in life — but it also comes with a new level of financial responsibility. Once the keys are in your hand, the focus often shifts to furniture, renovations, and housewarming parties. But smart new homeowners know that financial planning doesn’t stop at settlement day. Putting the right structures in place early can protect your investment, reduce stress, and give you peace of mind for years to come.
Here’s what you should prioritise as a new homeowner in New Zealand.
1. Get the Right Insurance Cover
Your home is likely your biggest asset — and your lender will require you to have house insurance in place before settlement. But not all policies are created equal.
House Insurance: Make sure your policy is based on a realistic “sum insured” figure, which covers the full rebuild cost of your home (including demolition, consents, and professional fees). Use a rebuild cost calculator and review this amount annually.
Contents Insurance: Don’t underestimate how much your belongings are worth. Replacing everything after a fire, burglary, or flood can cost far more than you think.
Life and Income Protection Insurance: Consider how the mortgage would be paid if you were unable to work due to illness, injury, or death. Many first-home buyers protect the mortgage amount with a simple life cover policy, so their partner or family isn’t left under pressure.
2. Update or Create a Will
For many first-home buyers, purchasing a property is their first significant asset — and that’s a game-changer when it comes to estate planning. If something unexpected happens, a will ensures your property is passed on according to your wishes, rather than leaving it to be decided under New Zealand’s intestacy laws.
A simple will is inexpensive to set up, and many community law centres offer affordable services. This is also a good time to set up enduring powers of attorney (EPAs) so someone you trust can make decisions on your behalf if you are ever unable to do so.
3. Build an Emergency Fund
Owning a home means you’re responsible for every burst pipe, broken appliance, or leaky roof. Having an emergency fund — even a few thousand dollars — can prevent you from needing to rely on high-interest credit cards when the unexpected happens. Aim to build three months of expenses over time.
Your costs don’t end with the mortgage. Rates, insurance premiums, maintenance, and utilities can add up quickly. Track your spending for the first few months and adjust your budget so you’re not caught short.
Final Thoughts
Buying a home is just the beginning. By sorting your insurance, creating a will, building a buffer, and reviewing your finances regularly, you’ll protect both your property and your peace of mind. Financial planning may not be as exciting as decorating your new lounge, but it’s one of the smartest investments you can make as a new homeowner.