What’s the Minimum Deposit to Buy a House in NZ?
Buying your first home is one of life’s big financial milestones—but for many Kiwis, the hardest part isn’t paying the mortgage, it’s saving the deposit. In this blog, we answer the most frequently asked questions about deposits, KiwiSaver, gifting, and more.
What is the Minimum Deposit for a House?
In New Zealand, the minimum deposit required to buy a home typically ranges from 5% to 20%, depending on the type of home you’re buying and the bank’s criteria. A 20% deposit is considered the gold standard. It gives you access to more lenders, lower interest rates, and fewer conditions.
But a 10% deposit is more common among first-home buyers—and yes, it is possible to get a home loan with just 5% under certain schemes, such as the First Home Loan backed by Kāinga Ora.
Can You Buy a House With a 10% Deposit?
Absolutely. Many first-home buyers purchase with a 10% deposit, especially when buying existing properties. While not all banks will accept a low-deposit application, several do—especially for customers with good income, low personal debt, and a strong savings record.
The key thing to know is that banks limit the number of low-deposit loans they can approve, so competition is tight. If your deposit is under 20%, your application may be subject to stricter lending criteria and won’t usually be pre-approved without a conditional offer on a property.
What is the Lowest Deposit You Can Put on a House?
The lowest deposit typically accepted in New Zealand is 5%, and this is only under specific conditions:
You're applying for a Kāinga Ora First Home Loan through a participating bank.
You're purchasing a new build, which is exempt from standard Loan-to-Value Ratio (LVR) restrictions.
You meet income and house price caps set out in the First Home Loan scheme.
Not all lenders will offer this, so working with a mortgage adviser is the best way to find out what’s available at the time you’re applying.
Can I Use KiwiSaver to Buy a House?
Yes, KiwiSaver can be used to help buy your first home, and it often forms the bulk of a first-home deposit. If you’ve contributed to your KiwiSaver account for at least three years, you may be eligible to withdraw nearly all of your funds—leaving a minimum balance of $1,000.
How Much KiwiSaver Do I Need for a House?
There’s no fixed amount of KiwiSaver you need, but lenders typically want to see that you’ve contributed regularly and can use this as part of your genuine savings. For example, if you’re buying a $600,000 home with a 10% deposit, you’ll need $60,000. At least $30,000 of that (or 5% of the purchase price) should come from genuine savings—KiwiSaver being the most common source.
The remainder of your deposit can come from other sources, such as gifts or family loans.
What Counts as Genuine Savings When Applying for a Mortgage?
Genuine savings refers to money that you’ve built up yourself over time. Banks look for this because it demonstrates financial discipline and the ability to manage a mortgage. Examples of genuine savings include:
KiwiSaver contributions
Regular savings account deposits (with a clear track record)
Term deposits or shares held for more than three months
Bonuses or commissions saved rather than spent
Banks usually require that at least 5% of the purchase price comes from genuine savings, especially for low-deposit applications.
Can I Gift My KiwiSaver to a Family Member?
No, KiwiSaver is for your personal use and cannot be gifted to someone else—even a family member—for their home purchase. Each KiwiSaver account is tied to the individual. However, if multiple family members are buying together (e.g., siblings or partners), each person can use their own KiwiSaver toward the same home purchase.
If you’re looking to help someone else with their deposit, the best approach is to provide a gift or loan from personal savings—not KiwiSaver.
What Size Deposit Is Best?
The ideal deposit size is 20% of the property’s purchase price. This allows for:
A wider choice of lenders
Better interest rates
Fewer conditions or paperwork
No need to pay a low-equity margin (often added to interest rates for low-deposit borrowers)
That said, many buyers successfully purchase with 10%, and a growing number manage with 5%, particularly under schemes like First Home Loan.
The best deposit size for you will depend on your income, debts, savings habits, and whether you’re eligible for government assistance or family support. A mortgage adviser can help you figure out what’s realistic and which banks are likely to say yes.
Focus on What You Can Do Now
Home ownership might feel out of reach—but it’s often closer than you think. Whether you’re saving your first few thousand, making regular KiwiSaver contributions, or discussing a gift with family, every step brings you closer to your goal.
And remember, banks don’t just look at your deposit—they consider your whole financial picture. If your deposit is small, but your income is solid and your spending is responsible, there are options available.