I want to buy my first home, but I don’t know where to start.

First of all—you're not alone. It's completely normal to feel a bit overwhelmed when you're starting out. There’s a lot to think about, but the good news is, with the right guidance, it becomes much more manageable.

The best place to start is by getting a clear picture of your financial situation. Look at how much you (and your partner or family) have saved in KiwiSaver and any cash savings. These will form the basis of your deposit.

Generally, you’ll need at least a 10% deposit to get into your first home. If you’ve got $60,000 or more saved between you, that’s a solid starting point—enough to start looking at homes around the $600,000 mark in today’s market (as of June 2025).

From there, I can help guide you through the next steps—like checking if you qualify for any government support, finding the right lender, and making sure you’re set up for long-term success.

How much deposit do I need?

Most first-home buyers don’t have a 20% deposit—and that’s totally normal. You can usually buy a home with:

• 10% deposit – Many banks will consider you with a 10% deposit if you have good income, good credit, and low debt.

• 5% deposit – With Kāinga Ora’s First Home Loan, you may be able to buy with just 5%, if you meet the income and property price limits.

For example, if you're buying a $600,000 home:

• 10% deposit = $60,000

• 5% deposit = $30,000

Your deposit can come from:

• KiwiSaver (after 3+ years of contributions)

• Cash savings

• Help from family (gifted money or equity)

Heads up:
If you have less than 20% deposit, the banks may charge a low equity fee or give you a slightly higher interest rate. Some non-bank lenders may also offer flexible options. Not sure how much you need? I can help you figure that out and explore all your options.

What additional costs should I be aware of when buying a home?

Buying a home isn’t just about the deposit—there are other upfront costs you need to plan for. Here are the most common ones, with simple explanations:

• Legal fees ($1,000–$2,500)
  You’ll need a lawyer or conveyancer to help with the legal side of buying your home. They’ll check the contract, complete the title transfer, handle your KiwiSaver withdrawal, and make sure everything is done properly on settlement day.

• Building inspection ($400–$800)
  This is a full check of the property’s condition—like the roof, plumbing, wiring, structure, and more. It can help spot hidden problems before you commit to buying. This is especially important for older homes.

• LIM report ($300–$400)
  A LIM (Land Information Memorandum) is a council report that shows important details about the land and property—like drainage, zoning, consents, or any future developments nearby. It helps you avoid surprises after you move in.

• Registered valuation ($800 - $1200)
  Lenders require a registered valuation to confirm the property’s market value. It’s done by an independent professional and is different from a real estate agent’s appraisal. This is compulsory when your deposit is less than 20%.

• Tip: These costs can add up quickly, so it’s a good idea to budget around $3,000–$4,000 extra on top of your deposit.

Why do I need a lawyer when buying a home?

A property lawyer is essential when buying a home—they make sure everything is done legally and protect you throughout the process.

Here’s what they do for you:

• Review the Sale & Purchase Agreement to make sure it’s fair and protects your interests

• Check the property title to confirm the seller owns the home and there are no legal issues attached

• Handle your KiwiSaver and First Home Loan paperwork if you’re using these to help with your deposit

• Manage the settlement by transferring the funds, registering the property in your name, and completing the legal paperwork

Why it matters:
Buying a home is a legal process. Your lawyer makes sure there are no nasty surprises, and that everything runs smoothly from start to finish. You can’t complete a home purchase without one.

What is a pre-approval, and why is it important?

A pre-approval is when a lender reviews your financial situation—like your income, expenses, debts, and credit history—and gives you an indication of how much they’re willing to lend you for a mortgage.

It’s not a final approval, but it’s a strong early step that helps you:

• Know your price range – You’ll have a clear idea of what you can afford before you start house hunting

• Make confident offers – Sellers and real estate agents will take your offer more seriously when they see you’re pre-approved

• Act fast – In a competitive market, having pre-approval puts you in a stronger position to move quickly when the right home comes up

• Avoid surprises – It helps you find and fix any issues (like bad credit or high spending) before applying for the actual home loan

Pre-approvals usually last 60 to 90 days and can be renewed if needed. They’re generally free, and you’re not locked into that lender—you can still shop around later for the best deal.

What is a Sale and Purchase Agreement?

A Sale and Purchase Agreement (often called an S&P Agreement) is a legally binding contract between you (the buyer) and the seller of a property.

• It sets out all the important details of the sale, including:

• The agreed price

• Settlement date (the day you pay for the property and take ownership)

• Deposit amount

• Any conditions (such as finance, building inspection, LIM report, or solicitor’s approval)

• Chattels included in the sale (like the dishwasher or curtains)

• Deadlines for meeting conditions

Once both parties have signed the agreement, you are committed to buying the property—unless a condition gives you the right to cancel (like a failed finance clause).

Why it matters:

This contract protects both the buyer and the seller, and it’s legally enforceable. That’s why it’s crucial to have your lawyer review the agreement before you sign. They’ll check that the conditions work in your favour and that everything is clear and fair.