First Home Buyer Costs NZ: What Does It Really Cost to Buy a House?

Saving a deposit takes years. It takes discipline, sacrifice, and a lot of saying no to things you'd rather say yes to.

And when you finally get there — when the number in your savings account matches the number you've been working towards — it can feel like the hardest part is behind you.

In some ways, it is.

But there's something I want you to understand before you start making offers.

Saving the deposit is usually the biggest financial hurdle for a first-home buyer. But one of the mistakes I see is assuming that once you've saved your deposit, you've saved everything you need.

You haven't.

There are costs involved in finding, checking, purchasing, settling and then owning a property. Some are relatively small compared with the purchase price, but together they can add up.

More importantly, I don't like seeing clients use every dollar they have simply to get through settlement.

I've worked in financial services for more than 20 years, including nine years assessing home loan applications for a major bank. Twenty years ago, I was also a first-home buyer sitting across from an adviser who didn't explain any of this properly — and that experience is part of why I cover it in detail now. When I'm helping first-home buyers, I'm not just looking at whether the bank will approve the mortgage. I'm also looking at whether the clients can realistically afford to own the home once they've moved in.

So, what should you budget for in addition to your deposit?

Your Deposit Is Only the Starting Point

Imagine you're buying an $800,000 property with a 10% deposit.

Your deposit is: $800,000 × 10% = $80,000

It's tempting to think that if you have $80,000 available, you're ready to buy.

But I'd want to know something else:

What money will you have available for everything else?

Depending on the property and the lender, there could be solicitor's fees, a registered valuation, a building inspection, a LIM, insurance, moving expenses and other costs.

Then, once you own the home, you'll have ongoing expenses such as council rates, insurance, repairs and maintenance.

Official NZ home-buying guidance makes the same point: buyers should budget for costs beyond the deposit, including legal fees, property inspections, LIM reports, moving expenses and ongoing costs such as rates, insurance and maintenance. Settled

That's why I don't look at the deposit in isolation.

What Costs Should a First-Home Buyer Budget For?

Every purchase is different, so I don't think it's sensible to tell every buyer they need exactly the same amount on top of their deposit.

However, these are some of the costs I discuss with my clients.

Solicitor/conveyancing

I commonly suggest allowing approximately $1,500–$2,000, but obtain a quote for your circumstances

Registered valuation

If required, a standard valuation I've recently seen can be around $1,110

Urgent valuation

An urgent valuation may cost approximately another $250 in the example above

Building inspection

Cost varies by inspector and property

LIM report

Cost varies by council and urgency

Home insurance

Property-specific and an ongoing expense

Council rates

Ongoing expense and property-specific

Moving costs

Truck/movers, connections and other moving expenses

Initial home expenses

Repairs, appliances, furniture, locks, curtains, garden equipment, etc.

Body corporate levies

Relevant to many unit-title properties

These are starting-point numbers. Your situation will differ — which is exactly why I'd rather give you a real picture based on your actual property and circumstances than a generic estimate.

For example, Settled's published guidance gives indicative LIM costs of around $250–$450 and property inspection costs of around $400–$800, which illustrates why you need to check the actual cost for the property you're considering rather than assuming one fixed NZ-wide price. Settled

1. Solicitor or Conveyancer Fees

I sometimes think first-home buyers look at legal fees as simply another expense they would like to minimise.

I'd look at it differently.

You're potentially committing hundreds of thousands of dollars to a property. This isn't an area where I recommend selecting a professional simply because they're the cheapest.

You want someone who is thorough and who will give you the advice you need.

A property lawyer or conveyancer can be involved throughout the transaction, including reviewing the sale and purchase agreement, checking the title, advising on conditions, reviewing the LIM and council information, helping with KiwiSaver withdrawal where applicable, dealing with mortgage documentation and completing settlement. Consumer Protection recommends getting legal help before signing the sale and purchase agreement. Consumer Protection

In my experience, you might allow around $1,500–$2,000 for legal and conveyancing costs as an initial budgeting figure, but the actual amount depends on the firm and complexity of the transaction.

Ask for a quote.

And don't judge that quote on price alone.

A good question is:

What am I getting for that fee?

2. Building Inspection

A building inspection is another cost I generally don't think buyers should try to avoid simply to save money.

It helps you understand the physical condition of the property.

There may already be a building report supplied by the vendor. Personally, I prefer my clients to consider obtaining their own independent building inspection.

Why?

Because a report commissioned for the vendor was not commissioned by you.

An independent inspector working for you can identify issues with the property and help you make a more informed decision. Settled also recommends using a qualified property inspector and cautions buyers about relying solely on reports supplied by sellers. Settled

When you're potentially spending $700,000, $800,000 or $1 million on a property, saving a few hundred dollars by cutting corners on due diligence can be a false economy.

3. LIM Report

A building inspection and a LIM aren't the same thing.

A simple way of thinking about the difference is:

Building inspection: What is physically happening with the house?

LIM: What does the council know about the property?

A Land Information Memorandum can contain council-held information relating to matters such as zoning, natural hazards, building and resource consents and other information concerning the property. Settled

From a mortgage perspective, banks very rarely ask me for the LIM itself.

Instead, a bank's approval will typically make it the purchaser's responsibility to obtain appropriate legal advice and complete the necessary due diligence.

That's an important distinction.

The bank approving the property as security doesn't mean the bank has completed your property due diligence for you.

Your solicitor or conveyancer can review the LIM and other documentation and advise you on anything that needs further investigation. Consumer Protection

4. Registered Valuation

A registered valuation may also need to be factored into your budget.

This can be particularly relevant with low-deposit lending because the bank has less equity protecting it if the property's value is lower than expected.

But there's an important qualification here:

Having less than a 20% deposit does not automatically mean every lender will require a registered valuation.

In my experience, valuation requirements differ between lenders. For example, I deal with a lender that may not require a registered valuation on a sub-20% deposit application where the property satisfies its internal valuation parameters.

Valuations can also be required with new builds, turnkey purchases and construction lending, depending on the lender and property.

If a valuation is required, I've recently seen a standard registered valuation cost around $1,110, with an urgent valuation costing approximately $250 more.

Those are examples, not fixed industry prices.

Before ordering anything, I recommend confirming with your mortgage adviser or lender whether a valuation is required and what type of valuation the bank will accept.

5. Home Insurance

Home insurance isn't simply something to think about after you've bought the house.

It can be relevant to the mortgage approval itself.

When I prepare a home loan application, I include an estimate of the home insurance premium as part of the client's ongoing expenses.

One lender I work with requires me to provide evidence of the actual insurance quote so the bank can confirm that its servicing criteria are met.

Banks will also generally require the property to be appropriately insured before settlement. Settled

This is one reason I recommend investigating insurance before going unconditional on a property.

You don't want to discover too late that the property is difficult or particularly expensive to insure.

6. Council Rates

Rates are another cost first-home buyers sometimes overlook because they may never have paid them directly as renters.

I include rates when assessing affordability.

If we already know the property the client wants to buy, I'll use the actual council rates for that property.

If the client hasn't found a property yet, I'll use an estimate based on their proposed purchase price and circumstances.

The point is that your mortgage repayment isn't your complete housing cost.

For example, if you're comparing your current rent with your future mortgage repayment, you should also be thinking about:

Mortgage + rates + insurance + maintenance

— not just the mortgage.

There may also be adjustments for rates and other relevant charges as part of settlement, which your solicitor or conveyancer handles.

7. What About Apartments and Body Corporate Fees?

If you're buying an apartment or another unit-title property, there may be another significant ongoing cost: body corporate levies.

These can contribute towards expenses such as building insurance, management and common-area costs, as well as long-term maintenance.

You should understand not only the current levy but also the body corporate's financial position, maintenance plans and potential future costs. Settled recommends reviewing matters such as body corporate rules, meeting minutes, the long-term maintenance plan and information about regular fees. Settled

Again, these costs need to form part of the affordability calculation.

8. Don't Forget the Cost of Actually Moving In

Then there are all the costs that appear around settlement day.

You may need to pay for:

• movers or a moving truck

• electricity and internet connections

• furniture

• appliances

• curtains or blinds

• changing locks or improving security

• lawn and garden equipment

• immediate repairs or maintenance

• painting or decorating

• unexpected things you only discover after moving in.

You won't necessarily have all these expenses.

But in my experience, something usually comes up.

Official buyer guidance similarly recommends allowing for moving and reconnection costs, furniture and appliances, as well as future repairs and maintenance. Settled

That's one of the reasons I'm uncomfortable when clients arrive at settlement with virtually no money left.

9. Keep a Financial Buffer After Settlement

Let's say you've calculated that you can just afford the deposit and all the purchase costs.

After settlement, your bank account will be almost empty.

Technically, the purchase might work.

Would I be comfortable with that?

No.

Getting the keys is supposed to feel like a milestone — one of the best days of your life. Not the start of a financial stress spiral.

It puts unnecessary strain on the household finances when you have nothing left. A car might need repairing. The washing machine might break. Something might need fixing at the house. Your first power bill might be higher than expected.

If you have no savings left, you could end up going back to a bank or another lender and borrowing money simply to get by.

That's not how I like to structure a first-home purchase.

I prefer clients to retain an appropriate financial buffer.

How much that should be depends on your income, expenses, dependants, property and overall financial position. I don't believe there is one magic emergency-fund number that works for everybody.

Could an Offset or Revolving Credit Facility Help?

In appropriate circumstances, we can also look at how the mortgage itself is structured.

For example, instead of putting every available dollar into the deposit, it may be possible to retain some cash in an offset or revolving credit facility, depending on the lender and the client's circumstances.

That could mean contributing a slightly smaller deposit while keeping access to cash for emergencies, with those funds helping reduce the effective interest cost of the relevant mortgage portion.

Whether that's appropriate depends on the individual situation and lender criteria.

But the principle is important:

Don't structure your first-home purchase just to get through settlement day. Structure it so you can comfortably live in the home afterwards.

What About Low-Deposit Buyers?

If you're buying with less than a 20% deposit, there can be additional costs or lending considerations.

These vary by lender.

For eligible buyers using the First Home Loan, Kāinga Ora currently states that participating lenders charge a fee to reimburse the Lenders Mortgage Insurance premium. As at 2026, this is 1.2% of the loan amount, and it can be added to the loan. Individual participating lenders can also have their own interest rates, fees and credit criteria. Kāinga Ora – Homes and Communities

Other low-deposit lending can involve lender-specific low-equity margins, premiums or pricing.

That's why I'd avoid assuming that the only difference between a 10% and 20% deposit is how much money you need upfront.

Ask what the total cost and lending conditions will be.

Good Professional Advice Is Part of the Cost of Buying a Home

One of the strongest pieces of advice I can give first-home buyers is this:

Don't automatically choose the cheapest professional.

That doesn't mean the most expensive solicitor or building inspector is automatically the best either.

It means looking for people who are experienced, thorough and prepared to explain what they're finding.

Buying a property is a major financial decision.

A good solicitor might identify something in the sale and purchase agreement, title or LIM that you didn't understand.

A good building inspector might identify an issue that could cost thousands of dollars to repair.

Settled makes a similar point: paying professionals to help with a first-home purchase can be a worthwhile investment because the consequences of poor advice or inadequate due diligence can be expensive. Settled

I'd much rather see a client spend reasonable money obtaining good professional advice than save a few hundred dollars and discover a major problem after settlement.

So, How Much Money Do You Really Need to Buy Your First Home?

There isn't one number I can give every first-home buyer.

Instead, I'd break it into four parts:

1. Your deposit How much do you need for the type of lending you're applying for?

2. Your purchase and due-diligence costs Solicitor, valuation if required, building inspection, LIM and other transaction costs.

3. Your ongoing ownership costs Mortgage repayments, council rates, insurance, maintenance and body corporate levies where applicable.

4. Your financial buffer What will you have left once you've moved into the house?

That last question is often overlooked.

Having enough money to settle doesn't necessarily mean you're financially ready to own the property.

The Deposit Isn't the Finish Line

Saving your first-home deposit is a major achievement.

But I don't want clients concentrating so much on reaching a particular deposit percentage that they forget what happens next.

The real question isn't simply:

"Have I saved my deposit?"

It's:

"Can I afford to buy this property, complete the appropriate due diligence, pay the ongoing costs of owning it and still have enough financial breathing room afterwards?"

If the answer is yes, you're in a much stronger position to take the next step.

And if it isn't yet, that doesn't necessarily mean you can't buy a home.

It may simply mean we need to work out what needs to change first.

I believe that people who take the time to understand the full picture — not just the deposit number — are the ones who make genuinely confident decisions. That's who I'm here for.

Not Sure Where You Stand?

If you're thinking about buying your first home but aren't sure whether your deposit, income and current financial position are enough, you can complete my free 3-Minute Mortgage Quiz.

It will help you identify where you currently stand and what your next step could be.

Take the Free 3-Minute Mortgage Quiz

This article provides general information only and is not personalised financial, legal or property advice. Lending criteria, fees and bank policies can change. Obtain advice appropriate to your circumstances before making a property purchase.