1. Work out your budget

Start with your income, regular spending and any debts. Lenders look at the same things. Paying off or closing credit cards, buy now pay later accounts and car loans can make a real difference to how much you can borrow, because lenders count the full limit, not just what you owe.

Lenders also check that you can still afford repayments if interest rates rise, so a budget that feels comfortable today gives you room later. Our repayment calculator is a good place to start.

2. Build your deposit

Most first home buyers combine savings with their KiwiSaver. After three years as a member you can usually withdraw everything except $1,000 to buy your first home. See our guide to the KiwiSaver first home withdrawal for the details.

• 20% deposit: gives you access to the widest range of lenders and the best rates.
• 10 to 19% deposit: possible with many banks, sometimes with a low equity margin or fee.
• 5% deposit: the Kāinga Ora First Home Loan lets eligible buyers borrow with a 5% deposit. Income limits apply, so check the current criteria or ask us.
• New builds: lenders are often more flexible with deposits on new builds, which are common in Drury, Takanini and Papakura.

Family help, such as a gift or a family guarantee, can also count. The old First Home Grant closed in May 2024, so it’s no longer part of the picture.

3. Get pre-approval

Pre-approval tells you how much a lender is willing to lend, in principle, before you find a home. It means you can make offers with confidence and move quickly. Pre-approvals usually last a few months, and a broker can apply to the lender that best suits your situation rather than just your own bank.

4. Find the right home in South Auckland

South Auckland has a wide mix of options for first home buyers, from established homes in Papakura and Manurewa to new subdivisions in Takanini, Drury and Karaka. Think about commute times, schools, the motorway and train line, and how the area might suit you in five to ten years.

Buying a new build or house and land package works differently from buying an existing home. Read construction loans explained before you sign anything.

5. Make an offer

Most first home buyers make offers conditional on finance, a building report and a LIM report. Allow time for your KiwiSaver withdrawal too, as providers need your lawyer’s paperwork before they release funds. Auctions and some tenders need to be unconditional, so have your finance and checks sorted before bidding.

6. Go unconditional and settle

Once your conditions are met, the offer goes unconditional. Your lawyer or conveyancer handles the legal side, your KiwiSaver withdrawal is paid to them, and on settlement day the keys are yours.

7. Protect what you’ve built

Your lender will need house insurance in place before settlement. It’s also worth thinking about mortgage protection, life insurance and income protection, so a health problem doesn’t put your home at risk. Our guide to protecting your mortgage explains the options.

This article is general information only, not personalised financial advice. Talk to us about your situation.