Buying your first home is a huge milestone – exciting, emotional, and just a little bit stressful. Most people spend months saving for their deposit and figuring out what they can afford in mortgage repayments.
But what catches many first-home buyers off guard are the extra costs that pop up along the way. These “hidden costs” can be the difference between a smooth ride and an unexpected financial crunch.
At Luminate, we work with first-home buyers across New Zealand every day. Our job is to help you avoid the common traps by knowing exactly what to budget for – right from day one.
Let’s break it down.
Before anything becomes official, a lawyer (or conveyancer) will need to review your sale and purchase agreement, run title and LIM checks, and manage the settlement process.
✨Luminate Tip: Ask for a full quote upfront, including any extra fees for disbursements, trust structures, or company purchases.
Even if a home looks good on the outside, it could be hiding leaks, structural damage, or maintenance issues. A builder’s report gives you a clear picture of what you’re buying.
If your deposit is under 20%, or you're buying privately or off the plans, your lender may require a registered valuation to confirm the property’s market value.
The Land Information Memorandum (LIM) outlines any building consents, zoning rules, or compliance issues. It’s a critical part of due diligence.
Caution - You may face extra costs if the LIM reveals unpermitted work or missing compliance documents.
You’ll need to show your bank that you’ve taken out full replacement insurance before your home loan can settle.
Typical Cost: $1000 to $2000 per year, depending on the size and location of your new home.
✨Luminate Tip: Add contents insurance if you’re leaving a rental and bringing valuables with you.
Some lenders charge application, documentation, or legal fees, especially for non-bank loans or if you break a fixed-rate early.
Typical Cost: $0 to $500 per year, depending on lender and loan structure.
From the moment you settle, you’re responsible for council rates, power, water, gas, and internet. These can hit fast, and some may need to be prepaid.
Council Rates: $2,000 to $4,000 per year.
Utilities: $150 to $300 per month.
You may need to reimburse the vendor for any prepaid charges at settlement.
Even a small move can quickly add up. You might need:
A moving truck or professional movers ($300 to $1,000)
Rental cleaning
Power and internet setup
New furniture or appliances
Lock changes or security upgrades
Budget: $1,500 to $2,500 to move comfortably without stress.
Most first homes aren’t perfect. Even if they’re well cared for, things can (and do) go wrong.
Common early repairs include:
• Hot water cylinder servicing
• Fixing heat pumps
• Plumbing issues
• Fence repairs
• Tree trimming
✨Luminate Tip: Keep a $2,000 to $5,000 contingency fund for the unexpected.
Some buyers are so eager to lock in the deal that they remove their finance or inspection conditions too soon.
This is risky. If your loan falls through or the property doesn’t meet lender requirements, you could lose your deposit or be forced to settle anyway.
Always talk to your lawyer and adviser first — and wait until your finance is fully approved before going unconditional.
Buying your first home is more than just paying a deposit and covering loan repayments. These extra costs are real, common, and often overlooked — but with the right advice from Luminate and a solid plan, they don’t have to be a problem.
👉 Visit www.luminate.co.nz
👉 Call 0800 333 400
👉 Email askus@luminate.co.nz