Low-Deposit Lending Is Opening the Door for First Home Buyers

Getting into your first home has always come down to one big question: how much deposit do I need? For a lot of Kiwis, that question is starting to get a more encouraging answer.

Low-equity lending is on the rise across major banks, creating more opportunities for buyers with smaller deposits. And it's showing up in the numbers: first-home withdrawals from KiwiSaver hit a record $2.2 billion this year, across more than 50,000 members, up 25% on the previous year. That's a clear sign more Kiwis are taking the leap into home ownership, using the savings they've built up to help bridge the deposit gap.

Some banks are becoming increasingly flexible with lending criteria as they compete for new business. Lenders are turning applications around quickly, and in several cases loosening their criteria to attract first home buyers specifically. For eligible buyers, that can mean needing a deposit well below the traditional 20%.

The challenge is often not the deposit, but knowing what to buy and where to buy it. Choosing the right property can make all the difference to your long-term success in the market, especially with the market currently favouring buyers, and more spring listings expected to come through.

If you're thinking about buying your first home and would like some guidance on your options, feel free to get in touch. We're always happy to help point you in the right direction.