The Short Answer
Most banks require a 20% deposit for a standard home loan. But first home buyers have a genuine alternative: the Kāinga Ora First Home Loan allows eligible buyers to purchase with as little as a 5% deposit, without the interest rate premium that normally applies to low-deposit lending.
So the real answer depends on which route you take — and how much of that deposit can come from your KiwiSaver balance.
$700,000 property, 20% deposit
$700,000 property, 5% deposit (First Home Loan)
Where Your Deposit Can Come From
Deposits typically come from a combination of sources: personal savings, a KiwiSaver first home withdrawal (available once you've been a member for 3+ years, keeping a minimum $1,000 balance), and occasionally a gift from family. Lenders will usually want to see your savings built up gradually over time — large, unexplained lump-sum deposits shortly before you apply can raise questions during the approval process.
Beyond the deposit, budget an extra $5,000–$8,000 for legal fees, building inspection, LIM report and moving costs — these are separate from your deposit and due earlier in the process.
Quick Summary
- Standard deposit: 20% of the purchase price for most lenders.
- Low-deposit option: 5% via the First Home Loan, subject to income and eligibility.
- Extra cash needed: Roughly $5,000–$8,000 on top of the deposit for legal and inspection costs.