Low deposit means that your savings don’t meet the 20% deposit requirement. Ideally, your savings would be at least 20% of the property value. For example, for a one million dollar house, you’d need $200,000 deposit. And for some, this may take a long time to save, or might be unachievable altogether. The good news is, there are still ways to qualify for a home loan if you have a deposit of less than 20%.
Over recent years, banking regulations for low deposit lending have changed, meaning more customers need to meet certain deposit requirements. We, as well as other banks, need to check that your deposit meets the Loan-to-Value Ratio (LVR), which is a measure of your loan size compared to the property value.
Low deposit home loans
We work with Kāinga Ora to support initiatives that provide pathways for first home buyers with a smaller deposit into their first home. Kāinga Ora is a government agency that was formed in 2019 from a Housing New Zealand and Ministry of Housing merger.
First Home Loan
First Home Loan could get you into your first home with just a 5% deposit. Some or all of your deposit can be gifted by a family member. You must plan to live in the house you buy - and meet other eligibility criteria such as income limits.
First Home Partner
First Home Partner is a shared ownership scheme for first home buyers, where you can buy a brand-new home with Kāinga Ora. While you’re the majority homeowner and occupier, Kāinga Ora will own a share in the home, that you’ll buy out over time.
Kāinga Whenua
The Kāinga Whenua Loan Scheme aims to help Māori achieve home ownership. A Kāinga Whenua loan is secured against the house only rather than the house and land like other home loans.
Other ways to get you into your first home
Co-own, a different way to own
In some cases it might make sense to get on the property ladder with family or friends. You may have a brother, sister, cousin, uncle or aunty that shares the same dream as you.
KiwiSaver and First Home Grant
KiwiSaver isn’t just a retirement savings scheme, it could also help you into your first home – either through the ability to withdraw some of your savings or through a First Home Grant.
Family assistance
You might be lucky enough to have family who are willing (and able) to pitch in some money to help you onto the property ladder. It’s important to us that you and your families receive independent advice before making a big decision like this.
Let's get you into your first home
Our home loan specialists will work with you to see if any of the low deposit options might work for you. Our calculators may also help you understand your deposit requirements.
Talk to a specialist
Our home loan specialists can walk you through the process of buying a home and discuss what your options are.
Find a specialistUse our calculator
Our first home buyer calculator allows you to work out how much you may be able to borrow and compare different repayment scenarios.
Calculate nowHome loan standard terms and conditions
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