How much deposit do I need to buy a first home in NZ?
Most banks want a 20% deposit for their best rates. You can often buy with 10% (sometimes less), but under 20% usually adds a low-equity margin — extra interest that's the price of a smaller deposit. Eligible first-home buyers can go as low as 5% through the Kāinga Ora First Home Loan. Your KiwiSaver first-home withdrawal counts toward the deposit.
Can I use my KiwiSaver for my first home?
Yes. If you've been contributing for at least three years, you can withdraw most of your KiwiSaver balance for a first-home purchase — you must leave $1,000 in the account. It goes toward your deposit. The withdrawal takes a few weeks to process, so line it up before you go unconditional.
How much can I borrow?
Two things cap it. First, the servicing test: banks check you could still afford repayments at a higher 'test' rate (often around 6.5–7%), not just today's rate. Second, DTI (debt-to-income): the Reserve Bank limits most lending to about 6× your household income. Whichever is lower sets your ceiling. Our first-home calculator shows both and which one binds.
What is pre-approval and how long does it last?
Pre-approval is a bank's conditional 'yes' to lend you up to a set amount, so you can bid or make offers with confidence. It usually takes a few weeks to arrange and lasts around three months. It's worth timing it for when you're genuinely ready to buy, since it can lapse before you find a place.
My fixed rate is ending — should I just accept the bank's offer?
Usually not the first one. When a fixed term rolls off, banks quote a 'carded' rate, but a lower rate is often available if you ask — and other banks may pay cashback (typically a few thousand dollars) to win your loan. Run your numbers first, then negotiate or shop around. Our refix calculator shows what different rates do to your repayments.
What is a break fee and is it ever worth paying?
A break fee is what a bank charges to end a fixed rate early. If wholesale interest rates have fallen since you fixed, the bank recovers its lost interest — that's the fee. It can be small or large. Sometimes breaking to a much lower rate, or to take a competitor's cashback, still comes out ahead — but only the bank can give you the exact figure, so get it before deciding.
Should I fix or float my mortgage?
Fixing locks your rate for a set term — certainty, but a break fee if you change early. Floating moves with the market and is fully flexible (extra repayments, offset), but usually costs more. Many people split their loan across both. There's no universally right answer; it depends on whether you value certainty or flexibility, and on where rates look headed.
What does a mortgage adviser cost me?
For most residential home loans, nothing — the lender pays the adviser a commission when your loan settles, not you. A good adviser shops multiple banks, handles the paperwork, and often secures a sharper rate or more cashback than you'd get alone. Always check they're on the FSP (Financial Service Provider) register.
Is there still a First Home Grant?
Government first-home support changes over time, and eligibility (income and price caps, contribution history) applies. The Kāinga Ora First Home Loan — which allows a 5% deposit through selected lenders — is a key one to check. Because these schemes and their caps change, confirm what's currently available with Kāinga Ora or a licensed adviser before counting on it.
Why do you show repayments fortnightly?
Because that's how most NZ mortgages are paid, and it's genuinely better for you: fortnightly means 26 payments a year — the same as 13 monthly payments, not 12 — so you quietly pay your loan off faster and save interest. To convert a fortnightly figure to monthly, multiply by about 2.17.
These answers are general information, not financial advice, and don't take your personal circumstances into account. Schemes, caps and rates change — confirm current details with a licensed adviser or the relevant provider.