The Kāinga Ora First Home Loan: buy with a 5% deposit

Saving a 20% deposit while paying rent is the central challenge of buying your first home in New Zealand. The Kāinga Ora First Home Loan exists specifically to break that barrier — letting eligible buyers purchase with as little as a 5% deposit.

Kāinga Ora doesn't lend you the money directly. Instead, it underwrites (guarantees) your mortgage to a participating bank or lender. That guarantee reduces the lender's risk, so they can approve a low-deposit application that would normally sit outside their lending standards.

Your 5% deposit can come from a mix of personal savings, a gift from family, and a KiwiSaver first-home withdrawal. There are eligibility criteria — income caps, you must intend to live in the home, and you'll need to meet the lender's usual requirements.

Because only selected lenders offer First Home Loans, this is exactly where an adviser earns their keep: we know who's lending, who has availability, and how to package your application. Book a free chat and we'll tell you whether it's a realistic option for you.