Buying your

first home

Taking your first step on the property ladder is an exciting time. There are many steps involved in the home-buying process, which is why having an adviser by your side can help make it easier.
Buying your first home

Why work with a Loan Market adviser to buy your first home?

With a Loan Market adviser on side, you can:

  1. Understand the amount you are likely to be able to borrow to help you refine your search and buy with confidence.

  2. Get a shortlist of loans that are right for your circumstances and goals.

  3. Ensure your application has its best chance of being approved.

How do I get a loan as a first-home buyer?

One way to get a home loan as a first-home buyer is to save a 20% deposit and work with a mortgage adviser to apply to the lender. However, there are a number of ways first-home buyers can get into the market without saving a 20% deposit. These can include:

Limited guarantor loans

Limited guarantor loans, or equity guarantee loans, allow an immediate family member to assist a borrower with the purchase of their home by acting as a guarantor and providing additional security. Most banks allow for this in one variation or another. If your family owns a home (with or without a mortgage owing) and would like to help you then consult your Loan Market mortgage adviser on the solution that will work for your circumstances.

Family gifts

Some first-home buyers are supported by family with donated funds to go toward the deposit of a property. This has the benefit to your family of limiting the amount of their exposure and can still be a great start to getting you into your first home.

These loans are not the only types available for first-home buyers, as you will also be able to choose from a range of standard residential home loans. By taking the first step to meet with a local Loan Market adviser you will gain a good understanding of the types of loans available, the home loan process and what the banks require to approve your loan application. Loan Market advisers have access to a wide range of banks and secure lenders, so you can be sure the home loan you choose is competitive.

How much do I need for a first home deposit?

Generally, lenders look for about a 20% deposit, however, they do recognise this can be a challenging savings goal for many first-home buyers. It is possible to get a home loan with as little as a 5% deposit with some lenders, but that will be dependent on stringent criteria including your ability to repay the loan and savings history. If you have KiwiSaver you will be able to withdraw your funds to help with your deposit.

Your Loan Market mortgage adviser will help you tap into your KiwiSaver and maximise your deposit, making securing your first home loan at a competitive interest rate easier than you think.

What first-home buyers grants are available?

The Government’s first home buyer grant was discontinued in July 2024, however, you still have the ability to withdraw all of your KiwiSaver funds, including the member tax credit which is the Government’s contribution to member’s KiwiSaver savings.

How much can I borrow?

The amount you can borrow depends on your circumstances, the deposit saved and the lender’s risk appetite. Lenders will look at your income, liabilities, credit report, assets and savings history to calculate your borrowing power.

To get an idea of how much you might potentially be able to borrow try our borrowing power calculator.

For complete confidence to start buying, speak to your local Loan Market mortgage adviser to arrange a formal pre-approval.

Your next step

starts here.

Make it happen

Let us know what your goals are and we will connect you with a Loan Market adviser directly.

You might find this

interesting

Find out how much you may be able to borrow to purchase property.

Understand how much money you have coming in compared to what you spend using this calculator to help you identify where you could save.

Understand the amount you will need to pay your lender before you apply for a home loan and ensure you can comfortably meet your repayments.

We come highly recommended.