Buying guide

First home buyers grant is no more: 7 other ways to get help

The NZ government grant for first home buyers is no longer available, but there are other options out there

Last updated: 13 June 2024


As of 29 May 2024 the First Home Buyers Grant is no longer available. The Home Start Grant used to give eligible buyers up to $5,000 toward an existing home and $10,000 toward a new build, but Housing Minister Chris Bishop declared the policy  expensive and inefficient:

While this grant is gone there are still other ways to get help. 

1. The Kāinga Ora First Home Loan

The  Kāinga Ora First Home Loan makes buying a home easier by lowering the size of the deposit required to buying a home from 20% to 5%. This is a loan offered by normal banks and lenders, but underwritten by Kāinga Ora. To be eligible you’ll need to be a NZ citizen or permanent resident, and earn under certain income caps. 

Read more about the Kāinga Ora First Home Loan

2. Rent to own schemes

Rent to own schemes give the tenant the right to purchase the home they’re living in after an agreed upon period. Sometimes they offer cheap rent to make saving easier, or they may even put aside a portion of your rent to use as a deposit later. These schemes can be a great way to lock in stable, affordable housing to make saving a deposit easier. 


Read more about rent to own.

3. Shared equity home ownership

With this form of ownership a shared equity provider will help you buy a home and they’ll own a share of the property with you. This enables you to buy with as little as a 5% deposit without being charged a low equity margin by your lender. You’ll have a shared ownership agreement with the provider and you’ll be able to slowly purchase their share from them until you own your home outright. 

Read more about shared ownership

There's still help available for getting into your first home.

4. Kiwisaver First Home Withdrawal

If you’ve been contributing to Kiwisaver for a minimum of three years you should be able to withdraw your entire balance, minus the $1,000 government contribution. You’ll need to be buying a home to live in for at least six months and this must be the first time you’ve withdrawn funds from your Kiwisaver to buy property. 

Read more about Kiwisaver First Home Withdrawals

5. The LVR new build exemption

Thanks to loan to value restrictions (LVR)  the hardest part of buying a home in New Zealand is often getting the 20% deposit together. Luckily, if you’re a first home buyer, you’re buying a new build, and you’ve got a good stable income, many lenders will approve lending with a 10% deposit. 

Read more about LVRs.

6. Guarantor loans

If you don’t have a deposit together, or a high enough income to secure a mortgage, a guarantor loan is one option to consider. With this type of loan, a guarantor (usually a parent or close relative) will need to to guarantee to repay the loan if you can’t. If you default that person will be on the hook to make your repayments and if they can’t, the bank could repossess their home 

Read about other ways family can help

Getting the right help can make all the difference when you're buying your first home.

7. First home buyer loan offers

Most banks provide incentives to make life a little easier for first home buyers. For example:

  • SBS Bank offers 1% off their usual interest rate for the first year after you buy your first home, plus a bunch of other benefits like $1,000 towards home insurance and $2,000 cash. 

  • ANZ and ASB give first home buyers $5,000 cash if they take out a loan of $200,000 or more. 

  • The Co-operative Bank offers a discounted interest rate for the first year after you buy your first home. 

Read more about choosing a suitable first home loan here

Get help from an expert early

Buying your first home is a big challenge, but thankfully you don’t need to do it alone. It’s a great idea to speak to a mortgage broker or financial adviser as soon as you start considering buying a home. They’ll be able to help you figure out how much you can afford to borrow, to choose a suitable mortgage for you and improve your chances of having your application approved. 

DISCLAIMER: The information contained in this article is general in nature. While facts have been checked, the article does not constitute a financial advice service. The article is only intended to provide general information about buying a first home in New Zealand. Nothing in this article constitutes a recommendation that any type of property or home loan is suitable for any specific person. We cannot assess anything about your personal circumstances, your finances, or your goals and objectives, all of which are unique to you. Before making decisions about buying a home, we highly recommend you seek professional advice.

Author

Ben Tutty
Ben Tutty

Ben Tutty is a regular contributor for Trade Me and he's also contributed to Stuff and the Informed Investor. He's got 10+ years experience as both a journalist and website copywriter, specialising in real estate, finance and tourism. Ben lives in Wānaka with his partner and his best mate (Finnegan the whippet).