How to Get a First Home Loan

The First Home Loans product has been put in place to help first home buyers purchase a property for themselves.

For many home buyers, the problem with getting a normal home loan is finding the deposit. Most lenders currently require a minimum 20 percent deposit. 

With a First Home Loan you only need a 5% percent deposit.

Help with your deposit is available.

There are several deposit assistance options available:

• Your deposit can be gifted by a relative (Please contact us for clarification around gifting rules).
• You can apply for a KiwiSaver Deposit Subsidy or KiwiSaver Savings Withdrawal.
• Team up and you can with other borrowers put together your deposit and purchase a home.

Maximum amount you can borrow:

The maximum amount you can borrow with a First Home Loan depends on how much you earn (see below a table on limits). The minimum deposit for all property purchases is a 5 percent deposit.

There are two income caps that apply for a First Home Loan.

• For one borrower you must have earned no more than $95,000.00 (before tax) in the last 12 months.
• If you are borrowing with one or more other people you must have a combined household income of $150,000 or less (before tax) in the last 12 months.

Are you eligible for a First Home Loan?

You will need to meet the specific lending criteria below.

• You must be a New Zealand citizen, have a Permanent New Zealand Residence Visa or have a Residence Visa.
• Have worked with the same employer for 12 months (there are some cases where this can be 6 months)
• Cannot earn over the limits put in place
• Cannot purchase property over capped limits
• Cannot currently own property anywhere in the world (If you have owned property in the past there a couple of circumstances where the First Home Loans product can be used).

Other things you need to know:

• The First Home Loan is for owner occupied properties only and cannot be used for rental or investment properties.
• You must not own any other property.
• You may need to pay fees such as application fees or Lenders Mortgage Insurance fees.