Buying your first home is a major life milestone but deciding when to make the move can feel overwhelming. With headlines full of rising interest rates, shifting house prices and ongoing uncertainty, it is common to wonder if now is the best time or if waiting would be smarter.
At Luminate Financial Group we work with first-home buyers every day to help them cut through the noise and focus on what truly matters. This guide will take you through the factors you need to consider so that your decision is based on your own situation and goals rather than headlines.
Everyone wants to buy at the ideal time when prices are low interest rates are favourable and conditions feel perfect. In reality perfect conditions rarely line up. Markets go through cycles. Rates fluctuate. Prices rise and fall. There is almost always a reason to wait a little longer.
We have seen many people hesitate too long. Some paused during downturns expecting prices to drop further. Others held out in hope of lower rates only to find both the market and the lending environment had shifted. Meanwhile prices climbed back up competition returned and they missed out.
The key is not to wait for perfection but to be ready when the time is right for you.
By mid 2025 the New Zealand market has stabilised compared to pandemic peaks. In many areas prices have corrected and interest rates have settled at higher levels. While affordability remains a concern competition has eased and buyers now have more room to negotiate more choices and less time pressure than in recent years.
Higher rates mean higher repayments but with less competition and more realistic pricing you may be able to secure a great property with favourable terms. We are seeing first-home buyers re-enter the market not because everything is ideal but because they are prepared and have a long-term mindset.
The market matters but your personal finances matter more. Ask yourself:
If you can answer yes to most of these questions you may be in a strong position to buy. If not you may need to pause and improve your finances first.
At Luminate we help you understand what the bank will lend and what you can realistically manage day to day. We run the numbers scenarios and budget analysis to help you decide whether buying now is right or if waiting and preparing is smarter.
Waiting might feel safe yet it comes with its own costs. If prices rise again your required deposit will grow. You may become ineligible low-deposit options if your income or the property value exceeds thresholds.
You will also likely continue renting. Rent payments build someone else’s equity not your own. Over time that adds up. Rent could cost you $40,000 to $60,000 or more in just a couple of years.
Also lending rules can change. Criteria may tighten which could reduce your ability to borrow even if your personal finances improve.
Despite higher interest rates today many buyers see opportunity. With less competition negotiation is easier there is time to inspect and sellers are often willing to settle for a fair offer.
By locking in a mortgage now while budgeting conservatively you position yourself to benefit if rates fall later. Owning a home while others are still renting could give you a major head-start. Waiting could mean paying more for the same house and facing fiercer competition.
Our clients have achieved strong results by entering the market now not because everything was ideal but because they were prepared.
Waiting is not always the wrong choice. If your deposit is small your income is unstable or you feel stretched financially then building up savings and credit before buying is sensible.
But waiting doesn’t have to mean standing still. Use the time to grow your deposit pay down debt strengthen your credit file and learn about lenders and mortgage structures.
At Luminate we work with clients well before purchase to set saving plans build credit strength and ensure mortgage readiness so that when the time is right for them they can move confidently.
Renting offers flexibility but it builds no long-term value. Buying allows you to start paying off debt build equity and benefit from future price growth.
Many first-home buyers worry that buying is more expensive than renting. But when compared properly most rent is simply paying someone else’s mortgage.
If you can live within your rental budget you may be able to manage mortgage repayments especially with tailored loan structures and good advice.
There is no single answer to whether you should buy now or wait. The best decisions are based on a clear plan aligned to your finances goals and timing.
At Luminate Financial Group we are not here to rush you. We help you build a step-by-step strategy tailored to your situation whether you are ready now or need time to prepare. Our job is to make sure your decision is practical confident and stress free.
Book a free First-Home Strategy Session with one of our mortgage experts. We will help you understand your position compare scenarios and decide smartly about your timeline.
Visit www.luminate.co.nz | Email askus@luminate.co.nz | Call 0800 333 400