Frequently Asked Questions

You're considered a first home buyer if you: • Have never owned a home before in New Zealand or overseas • Plan to live in the home as your primary residence • Are a New Zealand citizen or permanent resident If you've previously owned a home but your financial situation has changed significantly, you may still qualify for some programs. Contact us to discuss your specific situation.

The deposit you need depends on several factors: **Deposit scenarios to compare:** • Low-deposit pathways may be available, subject to current Kāinga Ora and lender criteria • Deposits below 20% can attract lender-specific low-equity restrictions, margins or fees • A larger deposit reduces the amount borrowed and may widen your lender options **For a $600,000 home:** • 5% deposit = $30,000 • 10% deposit = $60,000 • 20% deposit = $120,000 The old First Home Grant is closed to new applications. Check whether a KiwiSaver first-home withdrawal or Kāinga Ora First Home Loan may apply to your situation.

DTI (Debt-to-Income) compares total debt with gross annual income. Reserve Bank rules limit the share of new owner-occupier lending banks can make above a DTI of 6, but this is not a guaranteed personal borrowing cap. **Example:** If your household earns $100,000/year: • A 6× planning screen would be $600,000 total debt • A lender may approve less or, within its policy and regulatory allowance, more **What counts as debt:** • Proposed and existing mortgage balances • Car and personal-loan balances • Lender-assessed credit-card and revolving-credit exposure • Other debt included under the lender's current DTI policy Banks also apply their own expenses, servicing-rate and credit rules. Use 6× only as an illustrative screen, then confirm borrowing capacity with a lender or licensed adviser.

It's never too early to start preparing! Here's a general timeline: **12+ months before:** • Start saving aggressively • Check your credit score • Pay down existing debt • Research suburbs and prices **6-12 months before:** • Get pre-approval • Engage a mortgage advisor • Attend open homes • Understand the buying process **3-6 months before:** • Serious house hunting • Building inspection knowledge • Lawyer engagement • Finalize finance **Remember:** The market changes, so staying informed is key. Use our tools to track your progress!

Your borrowing power depends on: **Income Factors:** • Gross annual income (salary, bonuses, commissions) • Partner's income • Rental income (if applicable) • Investment income **Illustrative DTI screen:** A 6× income screen can help with early planning, but it is not a promise or universal bank limit. **Example Calculation:** • Income: $80,000/year • Maximum debt: $80,000 × 6 = $480,000 • With $50,000 deposit • Maximum purchase price: ~$530,000 Use our Borrowing Power Calculator for a personalized estimate based on your specific situation.

Both options have pros and cons: **Fixed Rate (1-5 years):** ✅ Predictable payments ✅ Protection from rate rises ✅ Often lower initial rates ❌ Break fees if you sell/refinance early ❌ Miss out if rates drop **Floating Rate:** ✅ Flexibility to make extra payments ✅ No break fees ✅ Benefit if rates drop ❌ Payments can increase ❌ Usually higher than fixed **Popular Strategy:** Many first home buyers split their loan: • 70-80% fixed (certainty) • 20-30% floating (flexibility) Rates change frequently. Compare current advertised rates, fees and lending criteria, then use the rate quoted for your application in repayment calculations.

Yes! KiwiSaver is a great way to boost your deposit: **Eligibility:** • Been in KiwiSaver for at least 3 years • First home buyer (or in same financial position) • Buying in New Zealand • Plan to live in the home **What you can withdraw:** Eligible members can generally withdraw their current balance less the required amount that must remain in the account. Do not reconstruct the total from contribution categories because eligibility and account history vary. Contact your KiwiSaver provider for the exact eligible amount, evidence requirements and application timeline before signing an offer.

No. Kāinga Ora closed the First Home Grant to new applications in May 2024. Do not include the old grant in your deposit plan. Current options may include a KiwiSaver first-home withdrawal, the Kāinga Ora First Home Loan through participating lenders, and lender-specific support. Eligibility and settings can change, so verify them directly with Kāinga Ora, your KiwiSaver provider and your lender before making an offer.

A low-equity loan is generally a loan above 80% of the property value. Availability, maximum LVR, genuine-savings rules, pricing and fees vary by lender and can change. Do not assume a universal insurance premium or cost. Ask each lender or licensed adviser for the current low-equity margin, fee, valuation requirements and repayment test that apply to your case. If considering the Kāinga Ora First Home Loan, verify the current eligibility and participating-lender settings directly with Kāinga Ora.

Pre-approval (conditional approval) is an initial, conditional lender assessment made before you commit to a specific property. It is not an unconditional promise to lend. **Benefits:** • Provides an indicative lending range subject to conditions • Identifies documents or issues that may need follow-up • Can help you set a provisional search range • Must be checked for expiry, property conditions and other limitations **What you need:** • Proof of income (payslips, contract) • Bank statements (3-6 months) • ID • Evidence of deposit • Details of existing debts **How long it lasts:** • Usually 3-6 months • Can be extended if needed • May need updating if circumstances change Whether and when to apply depends on your circumstances. Ask the proposed lender or licensed adviser what the assessment covers, what can change, and what remains conditional.

Understanding the different sale methods: **Auction:** • Public bidding process • Property sells to highest bidder • Usually unconditional (no cooling off) • 10% deposit on the day • Set date creates urgency **Private Treaty:** • Make an offer through agent • Can include conditions (finance, inspection) • Negotiation possible • Cooling-off period may apply • More time to consider **Tender:** • Submit sealed bid by deadline • No negotiation • Vendor chooses best offer **As a first home buyer:** • Private treaty is often less stressful • Auctions require pre-approval and confidence • Get advice from your lawyer before bidding

Building inspections are crucial - don't skip them! **Building Inspection:** • Cost: $500-$800 • Identifies structural issues • Checks for leaks, moisture • Assesses overall condition • Essential for peace of mind **LIM Report (Land Information Memorandum):** • Cost: $300-$400 • Council records for the property • Building consents, permits • Zoning information • Natural hazard info **Additional Reports:** • Meth testing (if concerned) • Electrical inspection (older homes) • Plumbing inspection • Cross-lease check (if applicable) **When to get them:** • Before auction (unconditional) • As a condition of sale (private treaty) • Always budget for these costs

Budget for these additional costs: **Upfront Costs:** • Legal fees: $1,500-$2,500 • Building inspection: $500-$800 • LIM report: $300-$400 • Valuation: $600-$800 (if required) • Moving costs: $500-$2,000 **Ongoing Costs:** • Rates: $2,000-$5,000/year • Insurance: $1,000-$2,000/year • Maintenance: 1-2% of home value/year • Body corporate (apartments): $3,000-$8,000/year **At Settlement:** • Registration fees • Adjustments for rates • Insurance setup **Total to Budget:** Allow $5,000-$10,000 on top of your deposit for these costs.

Timeline from start to finish: **Preparation Phase:** • Saving deposit: 2-5 years typically • Research: 3-6 months • Getting pre-approved: 1-2 weeks **Active Buying:** • House hunting: 1-6 months • Making an offer: Immediate to weeks • Conditional period: 2-4 weeks • Settlement: 4-6 weeks after going unconditional **Typical Total:** • Cash buyer: 4-8 weeks from offer • With mortgage: 6-10 weeks from offer • From starting to look: 3-9 months **Auction Timeline:** • Bid and win: Day 1 • 10% deposit: Day 1 • Settlement: 30-60 days later **Tips:** • Get pre-approved early • Have your lawyer ready • Be prepared to move quickly in hot markets

Great suburbs for first home buyers vary by region and budget: **Auckland (under $800k):** • Manurewa - Good transport, affordable • Papakura - Growing area, new developments • Henderson - West Auckland hub • New Lynn - Transport links improving **Wellington (under $700k):** • Johnsonville - Good schools, transport • Karori - Family-friendly • Newtown - Vibrant community **Christchurch (under $550k):** • Many options across the city • Riccarton - Central, good amenities • Wigram - New developments **What to look for:** • Transport links • School zones • Growth potential • Amenities and shops • Community feel Use our Suburb Guides to compare median prices, growth rates, and lifestyle factors.

Both have advantages depending on your situation: **Apartments:** ✅ More affordable entry point ✅ Lower maintenance ✅ Often central locations ✅ Good lock-and-leave option ❌ Body corporate fees ❌ Less space ❌ Potential leasehold issues ❌ Harder to add value **Houses:** ✅ More space and privacy ✅ Land appreciates ✅ Can renovate/extend ✅ No body corporate ❌ Higher purchase price ❌ More maintenance ❌ Further from CBD (usually) **Consider:** • Your lifestyle needs • Future plans (family?) • Budget constraints • Investment potential **First Home Buyer Tip:** Apartments can be a great way to get on the ladder, then upgrade later.

Understanding property growth: **Historical Averages:** • Long-term NZ average: 5-7% per year • Recent years: More volatile • Some areas: 10%+ growth • Others: Flat or declining **What drives growth:** • Infrastructure projects • New developments • School zones • Transport improvements • Employment opportunities **2026 Market:** • Auckland: 2-4% growth • Wellington: 1-3% growth • Christchurch: 3-5% growth • Regional areas: Varies **Warning Signs:** • Declining population • High crime rates • Poor transport • Few amenities **Remember:** Past performance doesn't guarantee future results. Buy for lifestyle first, investment second.

Yes, you absolutely need a property lawyer or conveyancer! **What they do:** • Review sale and purchase agreements • Check title and property records • Handle settlement • Register the mortgage • Ensure compliance • Protect your interests **Cost:** • $1,500-$2,500 for standard purchase • More for complex transactions • Worth every penny for peace of mind **When to engage:** • Before making an offer • Definitely before auction • Early in the process **Finding one:** • Ask for recommendations • Check reviews • Ensure they specialize in property • Get a quote upfront **DIY is not recommended** - property law is complex and mistakes are costly.

FMA (Financial Markets Authority) regulations protect consumers: **Our Current Status:** First Home Buyers Guide provides general information and first-party contact capture. We are not registered financial advisers and do not claim a completed referral service. **What this means:** • We provide information, not advice • A contact request remains with FHBG unless a later handoff is separately authorised • A future commercial relationship would need disclosure before any handoff • You should seek independent advice **Our Disclosures:** • No active commission relationship should be inferred • No commission amount is currently represented • A provider must accept a future handoff before it can be treated as a referral **Your Protection:** • Check any future adviser on the relevant public registers • You can choose any adviser • No obligation to proceed • Independent advice always recommended **Questions?** Contact us or read our full disclosure statement.

Insurance needs and prices depend on the property, policy terms and your circumstances. **For the property:** • Ask the proposed lender what evidence of house insurance it needs and when • Check rebuild basis, exclusions, natural-hazard terms and excesses for the specific address • Obtain current written quotes rather than relying on a generic annual allowance **For your household:** • Contents, life and income-protection cover are separate decisions • Compare scope, exclusions, waiting periods and costs with appropriately qualified providers • Do not treat this FAQ as an insurance recommendation **Shop Around:** • Compare multiple providers • Check excess amounts • Understand what's excluded • Review annually