One of the biggest questions for aspiring homeowners in New Zealand is simple: how much deposit do I actually need? The answer isn’t always straightforward, but understanding the basics can help you plan with confidence.
The Standard 20% Deposit
Traditionally, most banks prefer a 20% deposit. This means if you’re buying a $700,000 home, you’d need $140,000 upfront. Having a 20% deposit generally gives you access to better interest rates and more lending options.
Can You Buy With Less Than 20%?
Yes — and many Kiwis do. It’s possible to purchase a home with a 10% deposit, and in some cases even less. However, this depends on factors like:
- Your income and job stability
- Your credit history
- The type of property you’re buying
Loans with less than a 20% deposit are often called low-equity loans and may come with higher interest rates or additional restrictions.
Support for First Home Buyers
If you’re a first home buyer, there are schemes that can help:
- First Home Grant (if eligible)
- KiwiSaver withdrawals
- Special lending options through certain banks
These can significantly reduce the amount you need to save yourself.
What Counts as a Deposit?
Your deposit doesn’t have to be entirely cash savings. It can include:
- KiwiSaver funds
- Gifts from family
- Equity from another property (if applicable)
The Reality
While 20% is ideal, it’s not a strict requirement. The key is structuring your application well and understanding your options.
If you’re unsure where you stand, we’d love to help you assess your deposit position and map out your next steps.