New Zealand Property Guides
Your comprehensive resources for navigating New Zealand's property market. Get professional guidance on preparation, finding a home, purchasing processes, and tenancy laws.
Preparation
Budgeting, mortgage pre-approval, and government home ownership schemes.
When buying your first home in New Zealand, the starting point is determining your total budget, which consists of your deposit and how much you can borrow as a home loan (mortgage).
- The 20% Deposit Benchmark: Most Kiwi banks require a 20% deposit to qualify for their standard owner-occupier interest rates. Having a 20% deposit also helps you avoid low equity margins (LEMs) or low equity fees.
- Low-Deposit Lending: Bypassing the 20% deposit mark is possible if you have at least 10% or 5% deposit, though you may face a higher interest rate (low equity premium) or additional lending conditions.
- Borrowing Capacity: Banks calculate how much you can borrow based on your household income, monthly living expenses, credit history, and outstanding debts (e.g., student loans, credit cards, car loans).