Mortgages for First Home Buyers

Looking to buy your first home?
Match with a Mortgage Adviser who will fight to get you on the property ladder with the lowest rates.

First-Home-Buyer-Selected
I'm looking at
yellow corner

First Home Lenders We Work With

Our Mortgage Advisers work with New Zealand’s leading first home loan providers…

asb logo
anz logo
westpac logo
bnz logo
kiwibank logo

Compare the rates across New Zealand’s major lenders

decorative circle and dots
vertical stripes

Get The Wheels Moving on Your First Home

Match with a mortgage adviser who’ll help you get on the property ladder

Buying your first home can be a daunting task.

Whether it’s racing between open homes, constantly checking for new listings, or worse – losing your latest dream house at auction.

Actually finding your first home is hard enough, so why not make getting a mortgage easy?

first home buyers couple on a laptop

With Mortgage Matcher...

Get matched with a Mortgage Adviser who can

Streamline Your Application Process

Answer Your Questions

3

Help You Get Into Your First Home

3

Compare Rates*

Lender Floating 6M 1Y 18M 2Y 3Y 4Y 5Y
ANZ 8.64 7.35 7.24 6.89 6.79 6.65 7.34 7.34
ASB 8.64 7.39 7.29 6.89 6.85 6.65 6.55 6.55
BNZ 8.69 7.39 7.29 6.99 6.85 6.65 6.55 6.55
Kiwibank 8.50 7.39 7.35 6.89 6.75 6.69 6.59
Westpac 8.64 7.39 7.29 6.95 6.89 6.65 6.59 6.39

See a rate you like? Talk to an adviser about making your first home happen today.

*The live mortgage rates supplied by interest.co.nz are designed to be updated on an hourly basis, however sometimes updates may not occur as intended. Therefore the displayed rates are for reference only and we recommend you always check with a mortgage adviser or lender directly to confirm the latest rates on offer. The rates highlighted above are the ‘leading’ bank rate of the day, these rates may not be available to everyone. The highlighted rates may be ‘specials’, have ‘LVR requirements’ are for ‘owner occupiers’, or other ‘fine print’ to meet the eligibility criteria. Please check with your adviser directly to get information specific to your own circumstances.

Lender
Floating
6 Months
1 Year
18 Months
2 Years
3 Years
4 Years
5 Years
Lender
anz logo
Floating
8.64
6 Months
8.64
1 Year
8.64
18 Months
8.64
2 Years
8.64
3 Years
8.64
4 Years
8.64
5 Years
8.64
Lender
asb logo
Floating
8.64
6 Months
8.64
1 Year
8.64
18 Months
8.64
2 Years
8.64
3 Years
8.64
4 Years
8.64
5 Years
8.64
Lender
bnz logo
Floating
8.14
6 Months
8.14
1 Year
8.14
18 Months
8.14
2 Years
8.14
3 Years
8.14
4 Years
8.14
5 Years
8.14
Lender
kiwibank logo
Floating
8.25
6 Months
8.25
1 Year
8.25
18 Months
8.25
2 Years
8.25
3 Years
8.25
4 Years
8.25
5 Years
8.25
Lender
westpac logo
Floating
8.64
6 Months
8.64
1 Year
8.64
18 Months
8.64
2 Years
8.64
3 Years
8.64
4 Years
8.64
5 Years
8.64

Competitive First Home Rates

Choosing the right bank or lender is important as you could secure more competitive repayment terms, interest rates, cashback offers, and better customer experience. You want to find a deal that let’s you live and grow into your house, not just get by in it.

first home buyer furniture
vertical stripes

Benefits of using a
Mortgage Broker for
your First Home

Whether your goals are simply to find the right rates and lowest repayments possible, explore possible cashback opportunities, consolidate higher interest debt, or simply just shopping around, get matched with an adviser today to find out more.

first home buyers couple moving couch

About Mortgage Matcher

At Mortgage Matcher, we help Kiwis get the right deal for their situation. We’ll find our customers the lowest rates, cashback options, and overall home loan package that fits their goals today – and tomorrow.

Whether you’re buying your first home or you’re simply looking for the best rates, we understand that finding the right mortgage package can be overwhelming and confusing.

Our experienced senior advisers will help you throughout the process, and ensure you get the right deal.

Why work with us?

first home buyers Couple on moving day

Our clients and their
Success Stories

black dots

Frequently Asked Questions

Minimum Deposit Requirement: While the majority of lenders favour clients who can provide a 20% deposit, they also extend loan options to individuals with as little as a 10% deposit. Certain lenders even participate in the government’s First Home Loan Scheme with Kainga Oara, which allows clients with as little as a 5% deposit to access lending opportunities.

First Home Loan (Kainga Ora): A First Home Loan can simplify your path to owning your first home by requiring only a 5% down payment. These loans are made available through specific banks and lenders, with support from Kainga Ora. This collaboration enables lenders to offer loans to individuals who may not meet their usual lending criteria.

If you’re interested in a First Home Loan, one of our advisers can help you understand Kainga Ora’s process and tailor the loan to suit your unique circumstances.

First Home Grant: The First Home Grant is a government subsidy that can help eligible first home buyers with their deposit. The amount of the grant depends on various factors, including your income, the location of the property, and the number of years you have been contributing to Kiwisaver. If purchasing an existing property you may be eligible for up to $5,000 & for new builds as much as $10,000 for an individual.  

Lenders’ Policies: While 20% is the general guideline, most lenders have funding available for lower deposit loans. Keep in mind that if your deposit is less than 20%, you might need to pay Lenders Equity Premium (LEP), which protects the lender if you’re unable to make repayments. Banks also require registered valuations for loans where less than a 20% deposit is provided. 

Other Costs: Apart from the deposit, you’ll also need to consider other costs associated with buying a home, such as legal fees, property valuation fees, and potential building inspections. These costs can add up, so it’s important to budget for them.

While a 20% deposit is a common guideline for home loans in New Zealand, it’s not an absolute requirement. Lenders typically prefer a 20% deposit because it reduces their risk, and it also helps borrowers avoid paying Lenders Equity Premium (LEP), which is an insurance that protects the lender if the borrower defaults on their loan.

There are several options available for first home buyers that allow for a lower deposit such as the Kainga Ora First Home Loan program, First Home Grant subsidy, and using guarantors.

If you want to buy a home with just a 5% deposit, you need to meet certain rules set by the Kainga Ora First Home Loan program.

These rules include things like being a real first-time homebuyer or having a similar situation. You also have to put down at least 5% of the home’s price, plan to actually live in the home, and not earn more than Kainga Ora’s income caps.  Your chosen lender will also have their own rules about loans and qualifications. 

To get all the details, talk to your current adviser or fill out our form here to talk to a qualified adviser who can help you. It’s important to find professional advice and someone who can help you understand everything you need to know.

The major banks in New Zealand can provide loans to customers who can provide a 10% deposit. But it’s important to note that there’s a limited pool of funds for such low deposit loans, and availability may vary. Generally, these banks give priority to existing clients or those who already have a contract in place for a property when reviewing loan applications.


To manage the higher risk associated with low deposits, banks typically impose a low equity premium or fee, which is an additional cost on your interest rate. Furthermore, when your deposit is less than 20%, banks typically ask for official property valuations, and they have stricter rules regarding your ability to service the debt.

Lenders Mortgage Insurance (LMI) is a type of insurance that is designed to protect lenders (such as banks or financial institutions) in the event that a borrower defaults on their mortgage payments and the property is subsequently sold at a loss. It’s important to note that LMI does not provide any protection to the borrower; instead, it safeguards the lender’s interests.

In New Zealand, LMI is generally required when a borrower’s deposit (or equity) in a property is below a certain threshold, often around 20% of the property’s value. If the deposit is less than this threshold, the lender might consider the loan to have a higher risk, as there is less equity to cover potential losses if the borrower defaults.

LMI is a one-time premium paid by the borrower, typically added to the overall loan amount. The premium cost varies based on factors such as the loan amount, the size of the deposit, and the borrower’s financial profile. It can add a significant cost to the home loan, so it’s important for borrowers to understand the implications before proceeding.

Here’s a breakdown of how LMI works:

  1. Borrower’s Deposit: If the borrower’s deposit is less than 20%, the lender may require LMI.

  2. LMI Premium: The borrower pays an LMI premium, which is a one-time payment or can sometimes be capitalised into the loan amount.

  3. Lender’s Protection: If the borrower defaults on the mortgage and the property is sold at a loss, the lender can make a claim to the LMI provider to recover a portion of the outstanding loan balance.

  4. No Borrower Benefit: It’s important to emphasise that LMI doesn’t provide any benefit to the borrower. It’s solely for the lender’s protection.

LMI can enable borrowers to secure a home loan with a smaller deposit, but it’s crucial to consider the overall cost and impact on your loan repayments.

If both you and the person you’re purchasing the home with are eligible KiwiSaver members, you can individually apply for a First Home Withdrawal to use your KiwiSaver savings for the purchase. Each of you can withdraw your eligible funds and put them towards the property purchase. This can significantly boost the amount you have available for the deposit.

Having a deposit that is over 20% of the property’s purchase price offers some advantages, banks typically offer special discounted rates & cash incentives. However whether you receive a discount on the interest rate or other aspects of your mortgage would depend on the specific policies of the lender you are working with.

It’s important to note that lending policies can vary among different financial institutions, and market conditions can change. While some lenders might offer benefits for larger deposits, others might not provide significant discounts on interest rates. It’s advisable to research and compare various lenders and their offerings to determine the best option for your situation.

Some benefits that you may receive by having a greater than 20% deposit are:

  1. Lenders Mortgage Insurance (LMI) Avoidance: One of the most significant advantages of having a deposit over 20% is that you can avoid paying LMI. LMI is typically required by lenders when the deposit is less than 20% of the property’s value. Avoiding LMI can result in cost savings on your loan.
  2. Lower Risk Profile: Lenders often view borrowers with larger deposits as lower risk, as they have more equity in the property. This might make you more attractive to lenders and could potentially lead to more favorable loan terms.
  3. Interest Rates: Some lenders might offer more competitive interest rates to borrowers with larger deposits, as they pose less risk to the lender. However, this isn’t always the case, and interest rates are influenced by various factors, including the lender’s policies, market conditions, and your creditworthiness.
  4. Loan Approval: Having a larger deposit might improve your chances of loan approval, especially if you’re close to meeting a lender’s preferred loan-to-value ratio (LVR) criteria.
  5. Borrowing Capacity: A larger deposit can also positively impact your borrowing capacity. With a lower loan amount relative to the property’s value, your loan repayments might be more manageable.

No, you do not necessarily have to switch banks when obtaining a mortgage. You have the option to keep your existing bank or choose a different bank for your mortgage, depending on your preferences and financial situation.

A few points to consider would be:

  • what is your existing relationship like with your bank?
  • have you enquired with other banks/lenders to see what they’d be willing to offer you?
  • Is your existing bank’s current interest rate offering competitive compared to other lenders in the market 
  • if you are thinking about switching, what could the costs be especially when it comes to direct debits and automatic payments?

This can be due to a variety of internal bank reasons, however we often find that a client’s existing bank can be limited to their own internal costs of funding, and may not be able to offer as competitive rates as other providers at that moment in time.This is where we find our advisers can prove their value and access other lenders to help sharpen interest rates to ensure our clients are getting the best possible, and most competitive interest rates available in the market for their current situation.

There are often conditions that lenders place on any cashbacks received. These are often lender specific but could include time frame commitments where if you were to move to another provider or repay your loan for any reason you would be required to return the cashback amount in full or in part. A good mortgage adviser will outline any conditions placed by lenders on cashback options.

Yes it is possible for your entire deposit to come from KiwiSaver savings, depending on your individual circumstances and eligibility. 

It’s important to note that there may be other costs associated with buying a home, such as legal fees, property valuation fees, and potential building inspections. Additionally, different lenders and banks might have their own specific requirements and criteria for using KiwiSaver funds for your home purchase.

One final factor to consider is, should you use all of your KiwiSaver (retirement) savings to purchase your first home? Whilst it may be enticing now, how will this impact your retirement savings in the future?

Here’s an overview of the steps involved in buying your first home:

 

  1. Assess Your Financial Situation:

    • Determine your budget: Evaluate your financial situation, including your income, expenses, and savings, to determine how much you can afford to spend on a home.
    • Check your credit: Review your credit report to ensure your credit history is in good shape.
  2. Save for a Deposit:

    • Start saving for your deposit, which is typically a percentage of the property’s purchase price. Consider using your KiwiSaver savings and other sources to contribute to your deposit.
  3. Pre-Approval:

    • Get pre-approved for a home loan by a lender. Pre-approval provides an estimate of the loan amount you might be eligible for, which can guide your property search.
  4. Property Search:

    • Start looking for properties that match your budget and preferences. Consider factors like location, size, features, and amenities.
  5. Due Diligence:

    • Conduct thorough research on properties you’re interested in. Attend open homes, request property information, and consider getting a building inspection to assess the property’s condition.
  6. Make an Offer:

    • Once you find a property you like, work with your real estate agent to make an offer. Negotiate terms like the purchase price, settlement date, and any conditions.
  7. Offer Acceptance:

    • If the seller accepts your offer, you’ll move forward with the purchase process.
  8. Contract and Legal Advice:

    • Engage a lawyer or conveyancer to review the sale and purchase agreement. They will provide legal advice and ensure the contract terms are fair and accurate.
  9. Conditional Period:

    • The sale and purchase agreement may include conditional clauses, such as obtaining finance approval, conducting a building inspection, and confirming the property’s title.
  10. Finance Approval:

    • Work with your lender to finalize your mortgage application. Provide the necessary documentation and information for the lender to assess your loan.
  11. Building Inspection:

    • If you included a building inspection condition, arrange for a qualified inspector to assess the property’s condition and identify any potential issues.
  12. Confirmation and Waiver:

    • Once all conditions are met and you’re satisfied with the property and the terms, you can confirm and waive the conditions in the sale and purchase agreement.
  13. Settlement:

    • Arrange for the transfer of funds to complete the purchase. Your lawyer or conveyancer will guide you through the settlement process.
  14. Ownership Transfer:

    • After settlement, the property ownership is transferred to your name, and you can collect the keys to your new home.
  15. Move In:

    • Congratulations, you’re a homeowner! Plan your move and enjoy your new home.

No, you do not necessarily need a mortgage broker to buy a home in New Zealand, but working with a mortgage broker can offer several benefits that can simplify and enhance your home buying experience. A mortgage broker is a professional who acts as an intermediary between you and various lenders, helping you find the most suitable mortgage product for your needs.

Here are some reasons why you’d want to use a mortgage broker:

 

  1. Access to Multiple Lenders: A mortgage broker has access to a wide range of lenders, including banks, credit unions, and non-bank lenders. This gives you access to a broader selection of mortgage options than you might find by approaching a single lender directly.

  2. Expertise and Advice: Mortgage brokers are knowledgeable about the mortgage market, lending policies, and interest rates. They can provide you with expert advice tailored to your financial situation and goals.

  3. Customized Solutions: A mortgage broker can assess your financial profile and help you find a mortgage that best fits your needs and budget. They can tailor solutions to match your specific circumstances.

  4. Time Savings: Searching for the right mortgage can be time-consuming. A broker can save you time by doing the research, comparing options, and handling paperwork on your behalf.

  5. Negotiation: Mortgage brokers often have established relationships with lenders, which can enable them to negotiate on your behalf for better terms, including interest rates and fees.

  6. Guidance Through the Process: Buying a home involves a complex process, including pre-approval, documentation, and settlement. A broker can guide you through each step, ensuring you meet deadlines and fulfill requirements.

  7. Cost: In many cases, using a mortgage broker’s services is free for the borrower. Brokers are compensated by the lenders, and you won’t typically incur additional costs for their assistance.

  8. Unbiased Recommendations: A reputable mortgage broker should provide unbiased recommendations that prioritize your best interests. They’re not tied to any particular lender and can focus on finding the right solution for you.

First home buyer’s grants are available through the governments Kainga Ora Scheme’s.  You will need to meet eligibility criteria including having contributed to KiwiSaver for at least three years, being a first home buyer & meeting property price caps for the specific region you are purchasing a property. There are also options of co-ownership with Kainga Ora through their First Home Partner Scheme.

The best mortgage payment schedule—whether it’s weekly, fortnightly (every two weeks), or monthly—can depend on your personal financial situation and preferences. Each payment schedule has its advantages, and the choice often comes down to what aligns best with your budget and lifestyle. It’s best to speak with a qualified professional who can review your financial situation and provide specific feedback as to which payment schedule suits your situation.

Wondering what are latest rates?

Click through below to compare the rates across New Zealand’s major lenders

vertical yellow stripes
yellow edge

Get expert mortgage advice

MortgageMatcher is the faster and smarter way to get into your first home.

first home buyer success