First Home Buyer Guide for Pacific Families in New Zealand

Buying your first home is one of the biggest milestones in life. For Pacific families in New Zealand, it can feel even more overwhelming — between navigating the banks, understanding what deposit you need, and figuring out how much you can actually borrow.

The good news? There are more options available than you might think, and you do not need to figure it all out on your own. This guide walks you through the basics of buying your first home, written in plain English with Pacific families in mind.

Do I Need a 20% Deposit?

This is one of the most common questions we hear. The short answer is no — you do not always need 20%.

Most banks will lend up to 90% of a property's value for owner-occupied homes, meaning you may only need a 10% deposit. Some banks will go even higher for first home buyers through the Kainga Ora First Home Loan scheme, where you may only need 5%.

Your deposit can come from your own savings, a KiwiSaver first home withdrawal, or a non-repayable gift from a family member. All four major banks — ANZ, ASB, Westpac, and Kiwibank — accept KiwiSaver withdrawals as part of your deposit.

What Is the Kainga Ora First Home Loan?

Kainga Ora is a New Zealand government agency that helps first home buyers get onto the property ladder with as little as 5% deposit. The loan is offered through participating banks like Kiwibank and Westpac.

To qualify, your income needs to be under $95,000 if you are buying on your own without dependants, or under $150,000 if you have dependants or are buying with someone else. You need to be a New Zealand citizen or permanent resident, and the property must be for you to live in — not an investment.

A small insurance fee of 1.2% is added to the loan, but it means you can get into your own home sooner with a smaller deposit.

How Much Can I Borrow?

How much you can borrow depends on a few things — your income, your existing debts (like credit cards, personal loans, or car finance), your living expenses, and the interest rate the bank uses to test whether you can afford the repayments.

Each bank calculates this slightly differently. For example, ANZ converts your income to net (after tax) and requires at least $1 per month surplus. ASB uses gross income and requires at least $120 per month surplus. The key is that every bank wants to make sure you can comfortably afford your repayments, even if interest rates go up.

A mortgage adviser can run the numbers across all the banks and tell you exactly where you stand — for free.

What Costs Should I Budget For?

Beyond the deposit, there are a few other costs to plan for when buying a home. Solicitor or conveyancing fees usually run between $1,500 and $2,500. Some banks require a registered valuation, which typically costs $600 to $900. A building inspection is strongly recommended and costs around $500 to $800. And of course, there are moving costs depending on how far you are going.

What About Family Helping With the Deposit?

In Pacific families, it is common for parents or other family members to help with the deposit. Banks are generally happy with this, as long as the gift is non-repayable — meaning it does not need to be paid back.

Some banks have specific requirements. For example, ANZ requires that borrowers contribute at least 5% of the deposit from their own savings. The rest can come from a family gift. Your mortgage adviser will help you with the gifting documentation the bank needs.

How Does KiwiSaver Help?

If you have been contributing to KiwiSaver for at least three years, you can apply to withdraw most of your balance to use as a deposit on your first home. You need to keep at least $1,000 in the account.

This can make a massive difference. Many of our Pacific clients are surprised by how much they have built up in their KiwiSaver without realising it. You can apply for the withdrawal through your KiwiSaver provider once you have a signed sale and purchase agreement, or earlier if you are building.

What Steps Should I Take Right Now?

If you are thinking about buying your first home, here is what we recommend:

First, check your KiwiSaver balance. Log in to your provider's website or app and see how much you have. This forms a key part of your deposit.

Second, get a clear picture of your debts. Write down any credit cards, personal loans, car finance, buy-now-pay-later balances, or student loans. Banks look at all of these.

Third, start saving consistently. Even small regular deposits into a savings account show the bank you are financially disciplined.

Fourth, talk to a mortgage adviser. We can assess your situation across all the major banks, find the best fit for you, and guide you through the entire process — at no cost to you. The bank pays our fee, not you.

Ready to Take the First Step?

At NiuLIFE Home Loans, we specialise in helping Pacific and Maori families navigate the home loan process. We speak your language, we understand your situation, and we are here to make the journey as smooth as possible.

Book a free First Step Call with us today and let us help you work out what is possible.