Buying your first home is one of the biggest financial decisions you'll make. It's exciting, but it can also feel overwhelming — especially when you're navigating bank requirements, KiwiSaver rules, and legal processes for the first time.
This guide breaks it all down into clear, manageable steps.
Step 1: Work Out What You Can Afford
Before you start browsing TradeMe listings, you need a realistic picture of your borrowing power. Lenders assess:
- Your income — base salary, overtime, bonuses, and rental income if applicable
- Your expenses — living costs, credit cards, car loans, student loans
- Your deposit — most lenders require at least 20% of the property value, though some first home products allow 10%
Use our Borrowing Power Calculator to get a ballpark figure before approaching any banks.
Step 2: Build Your Deposit
The more deposit you have, the better your interest rate and lending options. Here are the main sources first home buyers use:
KiwiSaver First Home Withdrawal
If you've been in KiwiSaver for at least 3 years, you can withdraw most of your balance to put towards your first home. You must leave a minimum of $1,000 in the account.
First Home Grant
The government's First Home Grant provides up to $10,000 for an existing home or $20,000 for a new build — for eligible buyers. Income and house price caps apply. Check the Kāinga Ora website for current thresholds.
Savings
Good old-fashioned savings in a high-interest account or term deposit still counts. Lenders want to see "genuine savings" — typically held for at least 3 months.
Step 3: Get Pre-Approval
Once you have a deposit lined up, get pre-approved before you start making offers. Pre-approval:
- Confirms how much you can borrow
- Shows vendors you're a serious buyer
- Speeds up the formal approval process once you find a property
A mortgage adviser can submit your application to multiple lenders simultaneously, saving you time and protecting your credit score (multiple bank applications can each trigger a credit check).
Step 4: Find a Property and Make an Offer
Work with a licensed real estate agent to find properties that fit your budget. When you find the right one, you'll either:
- Make an offer at auction — unconditional, so have your finance confirmed first
- Submit a conditional offer — includes conditions like finance approval and building report
Always get a building inspection and LIM report (Land Information Memorandum) before going unconditional.
Step 5: Formal Loan Approval and Settlement
Once your offer is accepted:
- Your lender will issue a formal loan offer
- You'll sign the mortgage documents with your solicitor
- On settlement day, the funds are transferred and you get the keys
Settlement typically takes 3–6 weeks after going unconditional.
Ready to Take the First Step?
Nexa Mortgages & Finance helps first home buyers navigate the entire process — from understanding your options to managing your application across multiple lenders.
Get in touch today and we'll help you figure out where you stand.