First Home Buyer Guide: Mistakes to Avoid and How to Get It Right

Not having a clear budget is one of the biggest early mistakes — and it can cause real headaches later on. Here’s why it matters:

• It narrows your search. Jumping onto Trade Me Property and scrolling through every home on the market can feel exciting, but it’s also overwhelming. Having a defined price range helps you cut through the noise and focus on real options, not just pretty listings (although this can be fun too!)
• It saves time with the bank. A vague or overly ambitious budget can see you knocked back when applying for pre-approval. Banks want realistic figures based on your actual financial position — not wishful thinking.
• It gets you closer to your deposit goal. Without a target, it’s hard to build a plan. If buying a home is a top priority, knowing your numbers will help you save efficiently and set realistic expectations.

Not sure where to start? Try using tools like our Property Insights tool to track recent sales and get a feel for what properties in your preferred suburbs are actually going for.

To apply for a mortgage, you’ll need to provide a clear picture of your financial position. The documents most lenders will ask for include:

• Passport or driver’s licence
• Proof of address (e.g. a bank statement or utility bill)
• Three months of bank statements
• Payslips or a copy of your employment contract (or annual financial statements if self-employed)
• Proof of your deposit (e.g. a KiwiSaver withdrawal confirmation or savings statement)

For first-home buyers specifically, you may also be asked for:

• A letter from your employer confirming your role
• Three recent payslips
• Proof of New Zealand citizenship or residency
• Six months of bank statements and three months of credit card statements
• If self-employed, end-of-year accounts prepared by your accountant

Having these ready to go will speed things up significantly.

Not all home loans are created equal. There’s a wide range of products out there — and getting the right one can save you thousands in the long run.

Mortgage brokers are a fantastic resource. They’ll do the legwork for you by comparing loan options and recommending what best suits your needs — and their services are usually completely free. They’ll also help structure your loan in a way that could reduce the interest you’ll pay, helping you pay it off faster. Win-win.

That said, many first-home buyers also go directly to their bank, especially if they already have a good relationship there. If you’re banking with a major lender, they may offer tailored advice, loyalty benefits, or special rates for existing customers. This can be a great option if you value simplicity, prefer dealing with someone face-to-face, or want to keep all your finances under one roof. Just keep in mind that banks will only offer their own products — so it’s still worth comparing offers to make sure you're getting the best possible deal.

Yes, saving is key — but don’t overlook the help that’s available. A couple of great options include:

• KiwiSaver First Home Withdrawal: If you’ve been contributing to KiwiSaver for at least three years, you may be eligible to withdraw most of your balance to go towards a first home.
• Low Deposit Options: While a 20% deposit is the standard benchmark, you might be able to get started with as little as 5% through schemes such as the First Home Loan (offered by selected lenders and underwritten by Kāinga Ora).

Exploring these options can give you a leg-up without the wait.

There’s no getting around it — buying a home involves serious paperwork. From LIM reports to sale and purchase agreements, you need someone in your corner who knows the ins and outs.

A good property lawyer will guide you through the process, explain the fine print, and help avoid costly missteps. Yes, it’s an added cost, but one that could save you far more in the long run.

You might be tempted to skip this step to save money, especially if the home looks good at a glance (or if Dad reckons it’s solid as a rock). But trust us — appearances can be deceiving.

A builder’s report is your safeguard against major surprises. It’ll flag any structural issues, water damage, or dodgy renovations that could cost you big down the track.

Even if the seller provides a report, it’s worth commissioning your own — through an independent, experienced builder who’s working in your best interests.