“You only need $30,000 to buy this home”, “Got a 10% deposit, this home could be yours” – We’ve all heard real estate agents and mortgage advisers say things like this. But there’s a lot more behind the scenes than advertised and even more questions once we actually dig into it. So, how much deposit do you ACTUALLY need, for YOUR first home?
How Much Deposit do you need?
Technically, first home buyers can buy with as little as a 5% deposit. For example, a $500,000 home would require at least a $25,000 deposit, and the remaining $475,000 is borrowed from the bank through what we call a “mortgage”
In some instances, first home buyers may choose not too or may not qualify for a 5% deposit and may then require a 10% deposit instead. For the same $500,000 house, that equates to a $50,000 deposit and borrowing the remaining $450,000 from the bank.
The golden standard though is a 20% deposit. For the same $500,000 house, a 20% deposit equates to $100,000!
So, the same $500,000 house, could be bought with a deposit between $25,000 – $100,000 – a huge difference.
Generally, the higher the deposit amount, the better the deal offered by the bank when it comes to special rates, cashbacks and requirements – this isn’t always the case as there are almost always new deals and special offers available that mortgage advisers will be able to communicate to you.
A good rule of thumb to keep in mind when considering purchasing your home with a lower deposit is that lower deposits sometimes come with higher interest rates due to Low equity margins or Low equity premiums and lower cashback amounts. It also means more borrowing from the bank which means the overall repayments will be higher than if you were purchasing with a higher deposit and borrowing less.
A common misconception is that you must have enough for one of these benchmark deposit amounts. It is possible to purchase your first home within the range as well. for example, a 14% of a 17% deposit is also possible.
Can you buy with a 5% deposit?
For many first home buyers, buying with a 5% deposit is very possible and often more realistic than they think
Lets break it down using very basic averages to paint a clear picture:
- Average age for first home buyers according to Cotality, in Auckland is 37 years old.
- The average KiwiSaver balance in the 36 – 40 year old age range is $33,070 according to an article from Stuff
What does this look like in practice?
Accounting for the $1,000 remaining in your KiwiSaver after withdrawal and rounding down, a $32,000 deposit is 5% towards a $640,000 home!
If a couple were buying their first home together using the same averages, their combined deposit of $64,000 ($32,000 X 2) is a 5% deposit of a $1,280,000 home!
This is where we see many of our clients get very surprised that they already have the deposit needed to buy their first homes.
A 5% deposit is not for everyone as it means borrowing more from the bank for the same home, meaning higher repayments and more overall debt and less equity. Chatting to a mortgage adviser is a great place to start the process, if not, Kainga Ora has some useful information about their 5% scheme
Can you buy with a 10% deposit?
Maybe you don’t qualify to purchase your first home with a 5% deposit, or maybe you chose not to buy with a 5% deposit and save for 10% instead to avoid the extra borrowing and higher repayments that come with it.
Using the same averages as above, a solo buyers KiwiSaver of $32,000 would provide a 10% deposit of a $320,000 home and the joint buyers above combined balances of $64,000 would provide a 10% deposit of a $640,000 home.
As you can see, the deposit percentage has a huge impact on the overall purchasing ability of first home buyers.
In this case, finding a home in the range of $320,000 will drastically limit your options and you may not find something you’re happy buying – especially in Auckland where average house prices are much higher than that.
KiwiSaver is not your only deposit option by any means. Many clients have been diligently saving to build up the difference and often also receive gifts from family or transfer money from abroad.
What can be used as a deposit and what can’t is different between each bank, so having a chat with a mortgage adviser is a very useful step on how to prepare these different sources of deposits so it’s well presented before applying for any mortgages.
Do you have to have a 20% deposit to buy your first home?
Now we are at the golden standard! This is ideally what banks would like to see. Why though? Exposure. When banks lend money through mortgages to help you buy your first home, they are taking on risk! Even more than the actual buyers in terms of equity in the home. Many first home buyers contribute 5% – 20%, the bank is putting in the remaining 80% – 95%!
The 20% deposit provides a bigger buffer and more wiggle room when it comes to house values dropping.
For example, the same $500,000 home with a 20% deposit means the bank is contributing $400,000 out of the $500,000. There is a $100,000 buffer in the event the bank ever needs to reclaim the money in the future. This buffer is significantly greater than in the 5% deposit case where they have contributed $475,000 of the $500,000 and only have a $25,000 buffer.
This is why there are generally more ‘benefits’ offered by the banks for buyers with a 20% deposit – they are essentially less riskier.
In practice, we don’t see many first home buyers actually purchase with a 20% deposit as the saving requirements are difficult to meet and many see property value growth outpace their ability to save.
How much deposit do you need to buy in Auckland?
We’ll use the Price index from QV for these calculates based on averages. It is very important to remember that averages are generally not a good benchmark to use for your own situation and there are many outliers that skew this information.
Average house price in the Auckland region as of 1 July 2026 is $1,173,343
- 5% deposit = $58,667.15
- 10% deposit = $117,334.30
- 20% deposit = $234,668.60
- 5% deposit = $30,000
- 10% deposit = $60,000
- 20% deposit = $120,000
How much deposit do you need to buy in Hamilton?
According to the same house price index, the average house price in Hamilton City, as of 1 July 2026 is $778,656. quite a bit lower than the Auckland Region, but what does buying your first home look like from a deposit perspective?
- 5% deposit = $38,932.80
- 10% deposit = $77,865.60
- 20% deposit = $155,731.20
Whether you’re buying your first home in Auckland or Hamilton, the deposit criteria generally stay the same. With very notable differences between these average house prices, we are continuing to see first home buyers relocate from Auckland to satellite towns such as Pukekohe and Pokeno where Auckland is still a drivable distance, but average home prices are usually lower.
How much deposit do you need to buy in Tauranga?
Tauranga attracts many Aucklanders and other from around New Zealand as it offers a great lifestyle for many. With an average house price of $1,052,045 – it sits slightly below Auckland region but a bit above Hamilton City.
Again, it doesn’t matter which city or region you buy in, banks lending criteria remains the same and buying your first home in Tauranga follows the same deposit benchmarks
- 5% deposit = $52,602.25
- 10% deposit = $105,204.50
- 20% deposit = $210,409.00
How much deposit do you need to buy in Christchurch?
Christchurch has been an increasingly attractive city for first home buyers. As the driver of the “two speed economy” often references by economists, the average house price as of 1 July 2026 is $802,872 placing it slightly above Hamilton but below Tauranga and Auckland.
- 5% deposit = $40,143.60
- 10% deposit = $80,287.20
- 20% deposit = $160,574.40
So, how much deposit do you need to buy your first home?
The answer is: it depends. Many first home buyers can buy with as little as 5% deposit, which in these examples is anywhere from $30,000 – $58,000 depending on the region and overall price of the home you’re considering buying.
Keeping the 5% deposit in mind is a great first step and easy method to use when figuring out if you have the deposit you need for the home you’re looking at.
The other part to that equation is: Does your income support borrowing the rest?