In May 2024, the New Zealand Government scrapped the First Home Grant, a decision that means many first-home buyers must now explore alternative routes to homeownership. However other options such as KiwiSaver and the First Home Loan scheme still offer strong pathways to secure your first home.
1. KiwiSaver First-Home Withdrawal: Your Starting Point
If you’ve contributed to KiwiSaver for at least three years, you can apply to withdraw most of your KiwiSaver balance — while keeping a minimum $1,000 — to use toward a first-home deposit. This is a powerful resource to boost your deposit.
2. First Home Loan: Government‑backed Lending for Low Deposits
The Kāinga Ora First Home Loan offers the ability to buy a home with as little as a 5% deposit if you meet the criteria:
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Income limits (e.g. under ~$95,000 if you are single or $150,000 as a household).
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Regional price caps still apply.
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Loans issued through partnering banks, building societies, or credit unions are underwritten by Kāinga Ora.
3. Other Support Options to Consider
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Developer Cashbacks: For new builds, some developers offer up to $15,000 cashback—bolstering your deposit.
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Bank Cash Contributions: These come after settlement (usually $2,000 to $5,000) and can help with moving costs or furnishing.
4. Putting It All Together: A Sample Home‑Buying Strategy
Example scenario:
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KiwiSaver balance: $31,000.
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KiwiSaver withdrawal: allows $30,000 after leaving $1,000.
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Combined personal savings: $10,000.
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Bank Cash Contribution: $2,000.
Total deposit = $40,000 → For a $800,000 home, that's 5%. + $2,000 post-settlement cash.
With the First Home Loan scheme, you may only need as little as a 5% genuine deposit — and the rest financed through a bank loan. Even if one of these tools isn't available to you, smart combination of the rest can still bring you across the line - with a couple thousand dollars to help you furnish your new home!
🛠 Why This Combo Works
| Tool | Benefit |
|---|---|
| KiwiSaver Withdrawal | Built-up savings, strong deposit base |
| First Home Loan | Allows home purchase with as little as 5% deposit |
| Cashbacks | Reduces upfront or post-settlement costs |
6. Key Considerations & Tips
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Apply early for KiwiSaver withdrawal through your solicitor a couple of weeks before your settlement date.
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Check eligibility for First Home Loan: income caps and investing/properties owned historically matter.
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Watch for cashbacks and contributions —these incentives can make a big difference.
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Consult a mortgage adviser: we can structure your financing, guide applications, and optimise the mix to suit your situation.
👉 Visit www.luminate.co.nz
👉 Call 0800 333 400
👉 Email askus@luminate.co.nz
