The First Home Grant Is No Longer Available: Here's What You Need to Know
I believe that people who are determined to build a better life—and willing to take small, consistent steps—are the ones who actually become homeowners. Even when the rules change.
And the rules did change.
Many first-home buyers still ask me: "Can we get the First Home Grant?"
It's an understandable question.
For years, the First Home Grant was one of the best-known forms of government assistance available to New Zealand first-home buyers.
But the rules have changed.
The First Home Grant closed to new applications on 22 May 2024 and is no longer available.
I know that feels discouraging—especially if you'd been counting on that $10,000 to complete your deposit. You might be wondering: "Does this mean I have to wait even longer?"
Here's what I want you to know: The end of the First Home Grant doesn't mean your plans are over. It means we need to recalculate your position and build a clear plan from there.
Depending on your circumstances, you may still be able to use:
Your KiwiSaver savings toward your first home
A First Home Loan with a deposit as low as 5%
Your personal savings or gifted funds
Certain low-deposit lending options offered by individual banks
The important thing is understanding which options apply to your situation. That's what Step 1 of The Home Ready Method does—it helps you know your real numbers, not outdated assumptions.
A Real Example: When the Grant Disappeared from Their Plan
Just last week, I spoke with a couple who had been planning to use the First Home Grant. They'd found an online calculator from 2023 that still included it. When they realized the grant was no longer available, they thought their plans were over.
But here's what happened: We went through Step 1 of The Home Ready Method together. We recalculated their position. And we discovered they were actually only 4 months away from having enough deposit without the grant—they just needed to optimize their KiwiSaver fund type and reduce one small debt.
They got their keys in August.
Not because they got lucky. Because they were willing to get clarity and take action.
What Happened to the First Home Grant?
The First Home Grant previously provided eligible buyers with a contribution toward their first-home deposit.
The amount depended on factors such as:
How long they had contributed to KiwiSaver
Whether they were buying an existing property or a new build
Their income
The purchase price of the property
The Government discontinued the scheme in May 2024.
That means first-home buyers can no longer submit new applications for the grant.
Unfortunately, I still speak to buyers who have included the grant in their deposit calculations because they found an older article, calculator or social media post online.
This can create a gap in their buying plan.
For example, a couple may believe they have:
$45,000 in KiwiSaver
$15,000 in personal savings
$10,000 from the First Home Grant
They may therefore believe their total deposit is $70,000.
In reality, without the grant, their usable deposit may only be $60,000.
That difference could affect the price range they can consider, the lender options available to them and how soon they are ready to buy.
This is why current information matters. This is why Step 1 of The Home Ready Method exists—to help you know your real numbers, not guesses.
Can You Still Use KiwiSaver to Buy Your First Home?
Yes.
The KiwiSaver first-home withdrawal remains available for eligible buyers.
You will generally need to have been a member of KiwiSaver, or another qualifying complying fund, for at least three years.
You may be able to withdraw most of your KiwiSaver balance, but you must usually leave at least $1,000 in the account.
Your available withdrawal may include:
Your own contributions
Employer contributions
Government contributions
Investment returns
The withdrawal is not automatic.
You need to apply through your KiwiSaver provider, and it is important to start the process early enough to meet the deadlines in your sale and purchase agreement.
You should also avoid assuming that the balance displayed in your KiwiSaver app is exactly the amount you will receive.
Your provider can confirm your estimated available withdrawal.
Step 3 of The Home Ready Method is all about optimizing your strategy—making sure you're not leaving money on the table with your KiwiSaver fund type, contribution rate, or withdrawal timing.
Is the First Home Loan Still Available?
Yes.
The First Home Loan is different from the First Home Grant.
The grant was money contributed toward your deposit.
The First Home Loan is a home loan supported by Kāinga Ora and offered through participating lenders. It can allow an eligible buyer to purchase with a deposit as low as 5%.
To qualify, you must meet several requirements, including income, residency and lending criteria.
Current income limits include:
Up to $95,000 before tax for an individual buyer without dependants
Up to $150,000 before tax for an individual buyer with dependants
Up to $150,000 combined before tax for two or more buyers
Other rules and exceptions may apply, including for certain multi-generational households.
Meeting Criteria Doesn't Guarantee Approval
Meeting the Kāinga Ora criteria does not guarantee approval.
You must also satisfy the participating lender's requirements regarding:
Income
Expenses
Account conduct
Existing debt
Credit history
Property suitability
Ability to afford the proposed repayments
This is an important distinction.
A 5% deposit may get you through the first door, but the lender must still be comfortable that the home loan is affordable and responsible.
Can You Buy with Less Than a 20% Deposit Without the Scheme?
Potentially, yes.
It Depends on Your Full Financial Position
A 20% deposit is not always required for a first-home purchase.
Some banks may consider buyers with a deposit of 10%, while limited options may occasionally exist below 10%.
What Lower-Deposit Lending Involves
However, lower-deposit lending can involve:
Fewer lender options
Stricter affordability assessment
Low-equity margins or additional costs
Restrictions around the type of property
A requirement to have an accepted offer before the application is assessed
Greater scrutiny of debts, expenses and account conduct
The right option depends on your full financial position—not simply the size of your deposit.
This is why two couples with the same income and the same deposit can receive very different lending outcomes.
What Can Make Up Your Deposit Now?
Without the First Home Grant, your deposit may come from a combination of:
KiwiSaver
Eligible first-home buyers may be able to withdraw most of their KiwiSaver savings.
Personal Savings
Money held in savings accounts or term deposits can form part of your deposit.
Gifted Funds
A family member may be able to provide an unconditional gift.
The bank will normally require confirmation that the money is genuinely a gift and does not need to be repaid.
Equity or Other Acceptable Assets
This is less common for first-home buyers, but some applicants may have other acceptable sources of funds.
First Home Loan
This does not contribute money to the deposit, but it may reduce the minimum deposit required to 5% for eligible buyers.
What Should You Do If You Were Relying on the Grant?
Do not assume that your plans are over.
This is exactly what Step 1 of The Home Ready Method does—it helps you recalculate your position with real numbers, not outdated assumptions.
Start by establishing:
Your confirmed KiwiSaver withdrawal amount
Your genuine personal savings
Whether any gifted funds are available
The home loan amount you could potentially qualify for
The minimum deposit required for your likely lender
A realistic purchase-price range
You may discover that you are still in a position to buy.
Alternatively, you may find that you need another few months to save, reduce debt or strengthen your application.
Both outcomes are useful because they give you clarity.
A Smaller Deposit Is Not the Only Consideration
First-home buyers often focus entirely on getting their deposit to 5%, 10% or 20%.
But deposit size is only one part of the lending decision.
The bank will also look at matters such as:
Car loans
Personal loans
Credit card limits
Afterpay and other Buy Now Pay Later facilities
Student loans
Number of dependants
Living expenses
Stability of income
Recent account conduct
Someone with a 10% deposit and very little debt may be in a stronger position than someone with a larger deposit but significant monthly commitments.
That is why your first question should not simply be: "How much deposit do I need?"
A better question is: "Based on my income, debt, expenses and deposit, what position am I actually in?"
Step 2 of The Home Ready Method helps you answer that question—not with generic advice, but with a personalized roadmap based on your specific situation.
How The Home Ready Method Helps
The Home Ready Method is my five-step process for helping first-home buyers move from uncertainty to a clear plan.
Step 1: Discover Your Position
Establish your real deposit, potential borrowing position and likely purchase-price range.
Step 2: Build Your Plan
Identify what needs to change before you apply for a home loan.
Step 3: Optimize Your Strategy
Make the most of KiwiSaver, savings, debt reduction and available lending pathways.
Step 4: Track Your Progress
Review your progress and adjust the plan as your position changes.
Step 5: Get Your Keys
Complete the approval and purchasing process with guidance and confidence.
The end of the First Home Grant may have changed one part of the journey.
It has not changed the importance of knowing your numbers and having a clear plan.
What Is The Home Ready Method?
The Home Ready Method is my proven 5-step process that takes first-home buyers from "I don't know if I'm ready" to "Here are my keys."
Step 1: Discover Your Position — Get your real numbers (not guesses)
Step 2: Build Your Plan — Create a personalized roadmap
Step 3: Optimize Your Strategy — Maximize every opportunity (KiwiSaver, savings, deposit strategies)
Step 4: Track Your Progress — Stay on track with ongoing support
Step 5: Get Your Keys — Navigate the mortgage process with confidence
Final Thoughts
The First Home Grant is no longer available.
However, eligible buyers may still be able to use KiwiSaver and, in some cases, access a First Home Loan with a deposit as low as 5%.
Other low-deposit bank options may also be available, depending on the strength of the application.
But here's what hasn't changed:
I believe that people who are determined to build a better life—and willing to take small, consistent steps—are the ones who actually become homeowners. Even when the rules change.
The mistake is not missing out on the grant.
The mistake is assuming you cannot buy without first checking your real position.
Do not rely on old articles or someone else's experience.
Get the current information. Understand your numbers. Then build your plan from there.
That's what The Home Ready Method does.
Ready to Understand Your Options?
Chat with Lucy —no judgment, no pressure, just clarity.
Lucy is Lookahead's free AI first-home buyer assistant. She can help you think through early questions about your deposit, KiwiSaver, debts, borrowing position and what to do next before speaking with a Mortgage Adviser.
No email required. Instant answers. NZ-specific guidance.
Or if you'd rather talk to a human: Book a free clarity call . Let's recalculate your position together and build a clear plan from there.