Buying your first home is an exciting milestone, but one of the biggest hurdles can be saving for the deposit. If you’re looking at purchasing a new build or off-plan property in New Zealand, understanding the deposit requirements and government assistance schemes available can help make your dream home a reality.
Here’s a breakdown of how much deposit you’ll need, along with tips to help you get there faster:
Standard Deposit Percentages for First Homes
The typical deposit required for a first home in New Zealand is around 10-20% of the purchase price, depending on your lender and financial situation. However, when purchasing a new build or off-plan property, the deposit may be lower. Some developers offer flexibility with a 10% deposit, particularly for off-plan developments where construction is still underway. This makes new builds an attractive option for first-home buyers, as the initial cash requirement can be lower than with existing homes.
KiwiSaver First Home Grant and Loan
First-time buyers can take advantage of the KiwiSaver First Home Grant and First Home Loan schemes, both of which are designed to make buying more accessible:
- KiwiSaver First Home Grant:
If you’ve been contributing to KiwiSaver for at least three years, you could be eligible for a grant of up to $5,000 for an existing home or up to $10,000 for a new build. This grant is per individual, meaning a couple could receive up to $20,000 toward their new home. - First Home Loan:
This government-backed loan allows buyers to purchase a home with as little as 5% deposit. It’s available to those with a combined household income below a certain threshold and can be a game-changer for those struggling to save for a full 20% deposit.
Budgeting Tips to Save for Your Deposit
If you're still working on building your deposit, here are some practical tips to help you reach your goal:
- Automate Your Savings: Set up an automatic transfer to a separate savings account every payday. Treat it like a non-negotiable bill to stay on track.
- Contribute to KiwiSaver: Increase your contributions to KiwiSaver if possible, as this can speed up your savings process. Remember, your employer contributes too!
- Cut Back on Non-Essentials: Review your spending habits and identify areas where you can make cuts. Even small sacrifices, like skipping takeout or a daily coffee, can add up over time.
- Government Schemes: Keep an eye on government assistance programs and low-deposit offers specifically tailored for first-time buyers. These can significantly reduce the amount you need upfront.
Is a New Build Right for You?
New builds and off-plan developments offer the benefit of lower deposit requirements and government grants, making them an excellent option for first-home buyers. Plus, with new builds, you’ll enjoy modern features, energy efficiency, and peace of mind knowing your home complies with the latest building standards.
Ready to take the first step? Explore your first-home buying options today and check out our latest new builds and off-plan developments. Contact us to learn more about how you can finance your first home.
.png)
