Kāinga Ora First-Home Loan

Make your first home more attainable with just a 5% deposit—not the usual 20%—because Kāinga Ora underwrites the lender’s mortgage insurance to cover that gap for you.

How It Works

Low Deposit: You only need 5% of the purchase price (can be made up from savings, KiwiSaver withdrawal, grants or gifts).

Mortgage Insurance: Normally, banks use Lender’s Mortgage Insurance (LMI) to protect themselves if a borrower defaults. For this loan, Kāinga Ora covers the insurer’s risk, so your lender is happy to accept a smaller deposit.

Eligibility Checks:

You still need to:

  • Be a NZ citizen, permanent resident or resident visa holder

  • Be a true first-home buyer (or previous owner in similar circumstances) planning to live in the home

  • Have a before-tax income within the caps ($95k individual; $150k couple/dependants)

  • Satisfy your lender’s credit criteria (they’ll review your bank statements, existing debts, credit history and repayment ability)

  • Premium Cost: There’s a 0.5 % LMI premium on the loan (rising to 1.2 % for applications from 1 July 2025). You can choose to pay it upfront or roll it into your mortgage.

Why It Matters

  • Bridge the Deposit Gap: Without LMI, banks usually require 20%. With this loan, you can step onto the property ladder with just a 5% deposit.

  • Build Equity Sooner: Less time saving means you start growing your home’s equity right away.

  • Tailored to You: Different lenders and insurers set LMI rates based on deposit size, loan amount and borrower profile. I’ll compare the best options on your behalf.

My Role in Your Journey

  • Free chat: We’ll review your situation and confirm you meet the criteria.

  • Lender match: I’ll recommend the bank or credit union most likely to approve your application.

  • Full support: From pre-approval to settlement, I handle the paperwork, liaise with the lender and keep your family informed—so you can focus on finding your perfect first home.

Ready to get started?

Contact me today for a clear breakdown of how the Kāinga Ora First-Home Loan and LMI work together to make your first home more attainable.