How Much Deposit Do You Need to Buy a House in NZ Right Now?
If you’re dreaming of buying your first home in New Zealand, one of the first questions you’ll ask is: “How much deposit do I need?” The answer depends on a few key factors — the type of property, your financial situation, and which bank or lender you go with.
Let’s break down what’s required in 2025 and how you can get your foot on the property ladder sooner.
The Standard Deposit: 20%
For most buyers, the golden rule still applies — a 20% deposit is the standard requirement for home loans in New Zealand.
If you’re buying a $700,000 home, that means you’ll typically need a $140,000 deposit.
This amount helps reduce your risk to the bank and usually gives you access to lower interest rates, smaller repayments, and more flexible lending options. A 20% deposit also means you avoid paying for lender’s mortgage insurance (a cost banks can charge when they take on higher-risk borrowers).
Buying with Less Than 20%
The good news? You don’t always need a full 20% deposit.
First Home Loan (Low-Deposit Option)
The First Home Loan—backed by Kāinga Ora—allows eligible buyers to purchase with as little as 5% deposit. You’ll need to meet specific income caps, and lending criteria, but it’s an excellent option for first-home buyers who have stable income and good credit but not a large savings balance.
10% Deposit Loans Through the Banks
Many mainstream lenders also offer low-deposit options (typically 10%) for strong applicants — especially if you’re buying your first home, have good job stability, or can demonstrate good financial habits.
Some lenders may apply slightly higher interest rates or additional lending conditions for these loans, but they can still make home ownership possible much sooner. There is however a bank that is currently offer 5% deposit home loans for borrowers with good incomes and low debts.
Using KiwiSaver for Your Deposit
If you’ve been contributing to KiwiSaver for at least three years, you may be able to withdraw nearly all your balance (leaving $1,000 behind) to put towards your first home deposit.
Combining your KiwiSaver savings with other contributions — such as personal savings or family support — can often make the difference between “not yet” and “ready now.”
Other Ways to Build Your Deposit Faster
Gift or Family Support: Parents or relatives can gift part of the deposit, or act as guarantors for your loan.
Shared Ownership: Co-buying with friends, family, or a housing provider helps lower individual deposit requirements.
Regular Saving Plans: Automate contributions into a high-interest savings account dedicated to your home deposit.
The Bottom Line
In 2025, most first-home buyers in NZ will need between 5% and 20% deposit, depending on their situation. Don’t assume you have to wait years — there are more flexible pathways than ever before.
A mortgage adviser can assess your income, KiwiSaver balance, and lender options to help you buy your first home sooner — sometimes with far less deposit than you think.