First home loan NZ: the 5% deposit
See what a first home costs each week with a 5% deposit through Kāinga Ora, and which lenders offer it.
$832 a week
$1,298,197 paid back in total
Estimate for a $700,000 home at ASB's 4.99% 1-year fixed rate, checked 21 Oct 2026. Fees and conditions are below.
Which lenders offer the First Home Loan?
Eight lenders offer it. ANZ and BNZ don't. On a $700,000 home with a 5% deposit, the weekly cost runs from $754 at Unity to $910 at NBS, so the lender you pick can change your repayment by more than $150 a week.
Westpac and NBS show 5.79% because their lower rate needs a 20% deposit. Tap any rate to try it in the calculator.
| Lender | Rate (p.a.) | Fee | Each week | Paid back in total |
|---|---|---|---|---|
| Unity$1,176,909 in total | $0 | $754 | $1,176,909 | |
| ASB$1,298,197 in total | None listed | $832 | $1,298,197 | |
| The Co-operative Bank$1,313,024 in total | $0 | $842 | $1,313,024 | |
| Kiwibank$1,319,347 in total | None listed | $846 | $1,319,347 | |
| SBS Bank$1,327,932 in total | $0 | $851 | $1,327,932 | |
| Westpac$1,419,024 in total | $0 | $910 | $1,419,024 | |
| NBS$1,419,024 in total | From $450 | $910 | $1,419,024 | |
| NZHLRate not published | Not published | $400 | Ask NZHL | Not published |
1-year fixed rates on $672,980 ($665,000 plus the 1.2% insurance; Kiwibank charges 1.00%) over 30 years, paid weekly; the fee is the lender's application fee. Rates and fees from Kāinga Ora's lender list and the lenders' websites, checked 21 Oct 2026.
Get my first home loan checkedWhat would a first home loan cost each week?
With a 5% deposit on a $700,000 home, you'd pay $832 a week at ASB's 4.99% rate, with Kāinga Ora's insurance added to the loan. Put in your own price, deposit and rate, and the numbers change as you type.
Nothing you enter leaves your browser unless you send the enquiry form.
A licensed broker can check which lenders would consider your deposit and income. When you send the form, Compare Loans passes on your price and deposit, so you don't have to explain them twice.
Get my first home loan checkedWhat does a 5%, 10% or 20% deposit cost?
A bigger deposit means a smaller loan, so you usually pay less each week and less overall, though saving 20% takes much longer. On a $700,000 home, a 10% deposit costs more each week than 5%, because ASB adds a margin to bank loans under 20% and adds none to a First Home Loan.
| Deposit | Borrowed | Rate (p.a.) | Each week | Paid back in total |
|---|---|---|---|---|
| 5% deposit, First Home Loan$672,980 at 4.99% | $672,980 | 4.99% | $832 | $1,298,197 |
| 10% deposit, bank loan$630,000 at 5.74% | $630,000 | 5.74% | $847 | $1,321,193 |
| 20% deposit, bank loan$560,000 at 4.99% | $560,000 | 4.99% | $692 | $1,080,255 |
Estimate only, not a quote or an approval. Your rate depends on your credit and the lender. Rates checked 21 Oct 2026.
- With 5% down you need $35,000 less cash than with 10%, and you pay $15 a week less while ASB's margin applies.
- With 10% down you could pay less overall, $1,254,675, if ASB drops the margin once you own 20% of the home.
- With 20% down you pay $140 a week less than with 5%, but you need $140,000 in cash.
- If the rate rose to 5.99% at a refix, the 5% loan would cost $929 a week.
Who is eligible for a First Home Loan?
You can usually get one if you're buying your first home, earn under the income cap and have saved at least 5%. You also have to meet the rest of Kāinga Ora's rules and pass the lender's own checks on your income, debts and credit history.
The income check in the calculator compares your income with the caps, and can't tell you whether you qualify. The lender makes the final call.
- You're over 18.
- You're a New Zealand citizen, permanent resident or resident visa holder living in New Zealand.
- Buying alone with no dependants: you earned $95,000 or less before tax in the last 12 months.
- Buying alone with dependants, or with someone else: $150,000 or less, combined.
- You're a first home buyer, or you've owned before but are in a similar position to one.
- You don't own any other property or land (Māori land doesn't count).
- You have at least 5% of the price, from savings, KiwiSaver and gifts.
- You'll live in the home yourself, and the land is under 1 hectare.
Criteria from Kāinga Ora, checked 21 Oct 2026.
What does a First Home Loan cost?
You pay your lender's normal interest rate, plus a one-off insurance fee of 1.2% of the loan. On a $665,000 loan that's $7,980. You can add it to the loan or pay it upfront.
The insurance covers the lender, not you, if the loan isn't repaid. Most lenders charge little or nothing to set the loan up.
| Insurance | Each week | Total cost |
|---|---|---|
| Added to the loan | $832 | $1,298,197 |
| Paid upfront | $822 | $1,290,783 |
Estimate only, not a quote or an approval. Your rate depends on your credit and the lender. Rates checked 21 Oct 2026.
How do I apply for a First Home Loan?
There are eight steps between saving your deposit and getting the keys. Kāinga Ora sets the rules, but you deal with the lender, who checks your application and lends you the money.
Start with the criteria and a pre-approval, so you know your budget before you go to open homes. If it feels like a lot, a broker can walk you through each step.
- Check you meet the criteria. Kāinga Ora's First Home Decision Tool helps.
- Gather your 5% deposit: savings, KiwiSaver and any family gift.
- Choose a participating lender, or a broker who works with them.
- Get pre-approval, so you know how much you can spend.
- Find a home and make an offer, usually conditional on finance.
- Get final approval once the lender has checked the property.
- Ask your KiwiSaver provider to pay your withdrawal to your lawyer.
- Settle and get the keys.
Can KiwiSaver pay my first home deposit?
Most likely, yes. Once you've been in KiwiSaver for at least 3 years, you can take out most of your balance for your first home, as long as you leave $1,000 in.
So with $36,000 saved, you can take out $35,000, the full 5% deposit on a $700,000 home. Talk to your provider early, because the money has to reach your lawyer by settlement day.
- You can take out your own savings, your employer's, the government's and the interest.
- You apply through your KiwiSaver provider, not Kāinga Ora.
- You must plan to live in the home. KiwiSaver can't pay for an investment property.
What if I earn over the income cap?
You can still buy with less than 20%, just not through the First Home Loan. Above the cap, some banks lend on a 10% deposit, but they charge a higher rate or add a margin.
On a $700,000 home, 10% down at ASB means borrowing $630,000 at 5.74%. That's $847 a week while the margin applies. A broker knows which banks are lending on small deposits this month.
- ASB, Westpac and BNZ lend on a 10% deposit and add a margin of up to 1.75% to the rate.
- Kiwibank and ANZ lend on 10% at their standard rates, 6.05% and 5.59% for a 1-year fix.
- NBS lends up to 90% of the value at 5.79%, with no margin on top.
- Building a new home? Many banks need only 10% for a new build.
- Family can help: Westpac's Family Springboard lets them secure part of your loan on their home.
What has changed for first home buyers?
The First Home Loan is still open. The First Home Grant finished in May 2024, and First Home Partner is full, so it's only for existing customers.
The National Party has promised a higher income cap if it's re-elected on 7 November 2026. That's a campaign promise and not law, so the $95,000 and $150,000 caps still apply. Compare Loans will check again after the election.
| Scheme or rule | Now |
|---|---|
| Kāinga Ora First Home Loan | Open: 5% deposit, 1.2% insurance |
| Income caps | $95,000 single, $150,000 otherwise |
| First Home Grant | Closed since May 2024 |
| First Home Partner | Full; existing customers only |
| Insurance premium | 1.2%, up from 0.5% in 2025 |
| $300,000 income cap | Election promise for 7 Nov 2026, not law |
From Kāinga Ora, the government, the Reserve Bank and RNZ, checked 21 Oct 2026.
What else do first home buyers ask?
Is the First Home Loan income cap based on last year's income?
Yes. Kāinga Ora looks at what you earned before tax over the last 12 months: $95,000 if you're buying alone with no dependants, or $150,000 if you have dependants or are buying with someone. A pay rise since then doesn't change the test, but your lender will still check you can afford the repayments today.
Can I get a First Home Loan if I've owned a home before?
You might. Kāinga Ora can treat you like a first home buyer if you don't own property now and you're in a similar financial position, for example after a separation. To use KiwiSaver again, you can't have withdrawn it for a home before.
Can I build a new home with a First Home Loan?
It depends on the lender, so ask before you start. Some participating lenders allow it, and ASB's First Home Loan doesn't cover building. If you earn over the cap, many banks lend on a 10% deposit for a new build.
Can family gift my first home deposit?
Yes. A gift from family counts toward your 5% deposit, and Kiwibank accepts a deposit that's partly or wholly gifted. Your family member signs a letter saying you don't have to pay it back. Not every lender accepts a deposit that's all gift, so check first.
If one lender declines me, will another say yes?
Sometimes, yes. Each lender adds its own credit rules on top of Kāinga Ora's, so one no doesn't decide it. A broker can tell you which lenders fit before you make a second full application.
Can I use a mortgage broker for a First Home Loan?
Yes. Brokers arrange First Home Loans with several of the lenders, and NZHL is itself a network of advisers. Before you sign, the broker must tell you how they're paid and about any fee. Compare Loans is not a broker, a lender or a financial adviser, and passes your enquiry to a licensed broker only when you send the form.
How much deposit do I need for an $800,000 house?
$40,000 (5%) with a Kāinga Ora First Home Loan, if you meet the criteria. A bank loan with 10% needs $80,000, and a standard 20% deposit is $160,000. The First Home Loan adds 1.2% insurance on the $760,000 loan, which is $9,120.
Can I get a first home loan with bad credit?
Only if a lender's credit rules accept your history. The First Home Loan doesn't override those checks, and approval is never guaranteed. A broker can tell you which lenders will look at a default; there's free help in loans with defaults on file.
Should I add the insurance to the loan or pay it upfront?
Paying upfront costs less over time. On a $665,000 loan, adding the $7,980 to the loan costs about $7,414 more over 30 years. But paying upfront means finding $42,980 in cash on settlement day instead of $35,000.
Why do Westpac and NBS show 5.79%?
Their lower 5.19% rate needs a 20% deposit. With a 5% First Home Loan deposit, you're likely to be offered 5.79%, so that's the rate in the table. Ask the lender which rate you'd get.
Want a broker to check your first home loan?
Answer three short questions and a licensed broker checks which participating First Home Loan lenders fit your deposit, then calls you back.
Compare Loans refers you to a licensed broker and is paid a referral fee by the broker. This is not a loan application. How Compare Loans makes money
Your income never goes with the enquiry form. The income check in the calculator stays on your screen.