NZ First Home Buyers: Your Blueprint to Keys in Hand (KiwiSaver & Kāinga Ora Guide)

• The Kāinga Ora First Home Loan is the main government support, allowing eligible buyers to purchase with a 5% deposit.
• You can withdraw most of your KiwiSaver funds for a deposit after three three years of membership, leaving a minimum of $1,000.
• Getting pre-approval for your loan is a critical first step, giving you a clear budget before you start house hunting.
• The First Home Grant was discontinued in May 2024, so it's important to focus on the support that is still available.
• Avoiding common mistakes like skipping a building report or underestimating costs is key to a smooth process.

Buying your first home is a massive milestone. It's exciting, but let's be honest, it can also feel overwhelming. The paperwork, the jargon, the financial hurdles—it’s a lot to handle.

At ConveyOnline, we've helped countless Kiwis navigate the legal side of their first property purchase. We believe the journey to getting your keys should be straightforward and affordable. That’s why we’ve created this blueprint. Think of it as your guide to securing that all-important first home loan and turning your homeownership dream into a reality.

Before you even start looking at properties, you need to get your finances in order. Lenders want to see that you’re a reliable borrower. In our experience, this comes down to a few key things: a good credit history, stable employment, and a well-managed bank account that shows consistent savings.

Your first major step is getting pre-approval. This is an indication from a bank of how much they’re willing to lend you, based on your financial situation. It gives you a clear budget and shows sellers you’re a serious buyer.

Later in the process, you'll get formal approval. A formal, or unconditional, approval from a bank confirms that they've checked every detail of your application and are ready to lend you the money. This is the green light you need to go unconditional on a property.

For many first-time buyers, saving a 20% deposit is the biggest barrier. This is where government assistance becomes essential.

It's important to know that the First Home Grant was discontinued in May 2024. The primary support now available is the Kāinga Ora First Home Loan.

This scheme is designed to help Kiwis get onto the property ladder sooner. If you’re eligible, it allows you to buy a home with as little as a 5% deposit , as Kāinga Ora underwrites the loan to give the bank more security. You still apply for the loan through a participating bank or lender, not Kāinga Ora directly.

To qualify, you need to meet specific criteria. For example, an individual buyer must have earned $95,000 or less (before tax) in the last 12 months. For a couple or an individual with dependants, the combined income cap is $150,000. You also need to be a New Zealand citizen or permanent resident and plan to live in the house you buy.

Your KiwiSaver account is one of the most powerful tools you have for buying your first home. It’s your money, and you can use it to build your deposit.

To be eligible for a KiwiSaver first-home withdrawal, you must have been a member for at least three years. If you meet that condition, you can typically withdraw all but $1,000 of your total balance to put towards your purchase. This can significantly boost your deposit and bring your homeownership goal within reach.

The withdrawal process itself is managed by your legal team. We handle these applications all the time. It involves completing the correct forms and coordinating with your KiwiSaver provider to ensure the funds are ready for settlement day. It's a process that needs to be done right, so having an experienced hand guiding it is crucial. For a deeper look into the specifics, check out our guide to using KiwiSaver for your first home deposit.

Once your finances are lining up, the journey to ownership follows a clear path. Breaking it down into steps makes it far more manageable.

1. Get Pre-Approved

This is your starting line. Talk to a mortgage broker or your bank to find out how much you can borrow. This defines your budget and makes your house hunt focused and realistic.

2. Start House Hunting

Now for the exciting part. With your budget set, you can start visiting open homes and finding a property that fits your needs. This is also the time to learn more about what to expect when buying your first home.

3. Make an Offer

Found the one? It’s time to make an offer. Your offer will likely be "conditional" on a few things, like securing finance, getting a satisfactory building report, and your lawyer approving the title.

4. Finalise the Loan and Legal Work

Once your offer is accepted, it's time to work through those conditions. Your lawyer will review the Sale and Purchase Agreement, check the property title, and help you with your KiwiSaver withdrawal. This is where we step in to handle the details, ensuring everything is legally sound before you go unconditional.

5. Settlement Day

This is the day it all comes together. We'll coordinate with the bank and the seller's lawyer to transfer the funds. Once everything is settled, you get the keys. Congratulations, you're a homeowner!

We want your first home purchase to be a success story, not a cautionary tale. From our experience, a few common pitfalls can trip up first-time buyers. Being aware of them is the best way to avoid them.

Underestimating the Total Cost: The purchase price is just one part of the equation. You also need to budget for legal fees, a building report, a LIM report, moving costs, rates, and insurance. Forgetting these can put a real strain on your finances right from the start.

Skipping Due Diligence: It can be tempting to skip a building report to save a few hundred dollars, especially in a competitive market. Don't do it. A thorough inspection can uncover hidden issues that could cost you thousands down the line. It's one of the most important investments you'll make.

Not Understanding the Agreement: The Sale and Purchase Agreement is a legally binding contract. A common mistake we've observed is buyers not getting legal advice before they sign. You need to understand every clause and condition. That’s what we’re here for—to ensure your rights are protected. You can learn more about our property law services for home buyers and how we can help.

Securing a first home loan and buying a property is a detailed process, but it doesn’t have to be a stressful one. With the right preparation and the right team on your side, you can move forward with confidence.

Our goal at ConveyOnline is to provide transparent, affordable, and expert legal support for Kiwis everywhere. When you’re ready to make your move, we’re here to handle the legal heavy lifting, so you can focus on the excitement of getting your new keys.

_Disclaimer: The information provided in this article is for general informational purposes only and does not constitute financial or legal advice. You should consult with a qualified professional before making any financial decisions related to purchasing a property._