Menu
With a Loan Market adviser on side, you can:
One way to get a home loan as a first-home buyer is to save a 20% deposit and work with a mortgage adviser to apply to the lender. However, there are a number of ways first-home buyers can get into the market without saving a 20% deposit. These can include:
Limited guarantor loans
Limited guarantor loans, or equity guarantee loans, allow an immediate family member to assist a borrower with the purchase of their home by acting as a guarantor and providing additional security. Most banks allow for this in one variation or another. If your family owns a home (with or without a mortgage owing) and would like to help you then consult your Loan Market mortgage adviser on the solution that will work for your circumstances.
Family gifts
Some first-home buyers are supported by family with donated funds to go toward the deposit of a property. This has the benefit to your family of limiting the amount of their exposure and can still be a great start to getting you into your first home.
These loans are not the only types available for first-home buyers, as you will also be able to choose from a range of standard residential home loans. By taking the first step to meet with a local Loan Market adviser you will gain a good understanding of the types of loans available, the home loan process and what the banks require to approve your loan application. Loan Market advisers have access to a wide range of banks and secure lenders, so you can be sure the home loan you choose is competitive.
Generally, lenders look for about a 20% deposit, however, they do recognise this can be a challenging savings goal for many first-home buyers. It is possible to get a home loan with as little as a 5% deposit with some lenders, but that will be dependent on stringent criteria including your ability to repay the loan and savings history. If you have KiwiSaver you will be able to withdraw your funds to help with your deposit.
Your Loan Market mortgage adviser will help you tap into your KiwiSaver and maximise your deposit, making securing your first home loan at a competitive interest rate easier than you think.
The Government’s first home buyer grant was discontinued in July 2024, however, you still have the ability to withdraw all of your KiwiSaver funds, including the member tax credit which is the Government’s contribution to member’s KiwiSaver savings.
The amount you can borrow depends on your circumstances, the deposit saved and the lender’s risk appetite. Lenders will look at your income, liabilities, credit report, assets and savings history to calculate your borrowing power.
To get an idea of how much you might potentially be able to borrow try our borrowing power calculator.
For complete confidence to start buying, speak to your local Loan Market mortgage adviser to arrange a formal pre-approval.
Let us know what your goals are and we will connect you with a Loan Market adviser directly.
Find out how much you may be able to borrow to purchase property.
Understand how much money you have coming in compared to what you spend using this calculator to help you identify where you could save.
Understand the amount you will need to pay your lender before you apply for a home loan and ensure you can comfortably meet your repayments.
Send an email to [email protected] to get in touch.
Looking for a career change? We’re committed to working with you to achieve your goals.
Our Customer Care team is available weekdays, 8:30 AM to 5:00 PM.
With over 100 mortgage advisers throughout New Zealand, we’ve likely got someone just around the corner from you.
©2023 Loan Market
Company Number: 4313118 | NZ Financial Services Group Limited (FSP286965)
The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Rates subject to change. Approved applicants only.
*Your adviser may charge a fee to cover additional time required by their team. Any fees will be discussed with you in advance so you can make an informed decision before proceeding with your application.
