Buying your first home is a big milestone, but understanding whether you qualify as a first-home buyer is an essential first step. Your eligibility affects whether you can access key support options like low-deposit loans, and the ability to withdraw from KiwiSaver.
In this guide, we break down what it means to be a first-home buyer in New Zealand, what financial benefits may be available to you, and how to check if you meet the criteria.
What Does “First-Home Buyer” Really Mean?
In New Zealand, a first-home buyer is generally someone who has never owned a home or any legal interest in a residential property either in New Zealand or overseas. This includes freehold, leasehold, cross-lease, or even a share in a property trust or company where you effectively owned a home.
If you have never held legal ownership of a home and intend to buy one to live in, you are likely to meet the standard first-home buyer definition. However, there are a few exceptions and special cases, which we’ll explore further below.
Who Qualifies as a First-Home Buyer?
You are considered a first-home buyer in New Zealand if all of the following are true:
- You have never owned property before, including investment property, land, or shares in a trust or company that owns property
- You are purchasing the property to live in yourself, not as an investment or rental
- You plan to live in the home for at least six months following settlement
These criteria apply across all major support schemes, including the KiwiSaver First Home Withdrawal and Kāinga Ora First Home Loan. Most banks also use this definition when assessing eligibility for certain low-deposit lending options or discounted interest rates for first-home buyers.
What About Second-Chance Buyers?
If you have previously owned a home, you may still be able to access first-home buyer benefits under the “second-chance buyer” provisions. This applies to people who:
- Owned a home in the past but no longer do
- Are in a similar financial position to a first-home buyer today
In these situations, Kāinga Ora can assess your assets, income, and liabilities to decide whether you are eligible for support. You’ll need to complete a special application to determine if you qualify under these rules. If approved, you may be able to access the First Home Loan and KiwiSaver withdrawal as if you were a first-home buyer.
This process is often used by people who have gone through relationship property settlements, bankruptcy, or other major life changes that left them without assets.
Why First-Home Buyer Status Matters
Qualifying as a first-home buyer opens the door to several financial tools and government-backed schemes that can help you buy a home sooner.
- KiwiSaver First Home Withdrawal allows you to use most of your KiwiSaver savings toward a deposit
- Kāinga Ora First Home Loan makes it possible to buy with as little as 5 percent deposit, depending on income and house price caps
- Many banks offer additional discounts, incentives, or special rates for first-home buyers
If you don’t qualify, you may still be able to buy, but your borrowing capacity could be reduced, and you’ll need to rely entirely on your own savings or equity for your house deposit.
How to Confirm Your Eligibility
To be sure about your first-home buyer status, you can take the following steps:
- Review your personal property history. Have you ever been listed on the title of a property in New Zealand or overseas?
- If unsure, request a title search through your lawyer or adviser to confirm past ownership records.
- Contact your KiwiSaver provider and Kāinga Ora if you are applying for a withdrawal or loan.
- If you think you might qualify as a second-chance buyer, apply to Kāinga Ora with supporting evidence. They will assess your situation and provide a determination.
Getting pre-approval or confirmation of eligibility early in the process will save you time and avoid surprises later, especially when it comes to applying for KiwiSaver withdrawal or First Home Loan or confirming your deposit amount with the bank.
Special Considerations
- Trusts and companies: If you previously owned property through a trust or company structure where you had control or significant interest, you may not qualify as a first-home buyer. It depends on your level of ownership and benefit from the property.
- Inheritances: If you inherited property but never lived in it or treated it as your primary home, it may still count as previous ownership. Each case is assessed based on legal title and beneficial interest.
- Relationship property settlements: If you lost your interest in a shared home through separation or divorce, you may qualify as a second-chance buyer.
Final Thoughts
Understanding whether you qualify as a first-home buyer is one of the most important steps in your property journey. It determines what financial help you can access and whether you’re eligible for key support like the First Home Loan or a KiwiSaver withdrawal.
If you’re unsure about your status, or if you owned property in the past and want to explore second-chance options, talk to an experienced adviser. At Luminate, we help first-home buyers and second-chance buyers understand their eligibility and structure their home purchase strategy with confidence.
Want to check if you’re eligible?
Book a free First-Home Buyer Assessment with Luminate.
We’ll help you clarify your status, check your borrowing power, and identify any schemes you may be able to access.
Visit www.luminate.co.nz
Email askus@luminate.co.nz
Call 0800 333 400
