Buying your first home is an exciting milestone, but before you dive into property listings and open homes, you need to understand one crucial question: Do you actually qualify as a first-home buyer?
A first-home buyer in New Zealand is someone who has never owned residential property anywhere in the world, including through trusts or companies. You must intend to live in the property for at least 6 months. Those who previously owned property may qualify as "second-chance buyers" if they're now in a similar financial position to first-home buyers.
Your first-home buyer status isn't just a label—it directly determines your eligibility for valuable government schemes and financial support, including:
Getting this wrong can derail your entire home buying journey, so understanding the definition and requirements is essential. This comprehensive guide explains exactly what it means to be a first-home buyer in New Zealand, who qualifies, special provisions for second-chance buyers, and how to confirm your eligibility.
The definition seems straightforward at first: someone buying their first home. However, the official criteria are more nuanced and stricter than many people expect.
A first-home buyer in New Zealand is someone who has:
And who:
This definition applies consistently across:
The government and lenders designed these criteria to ensure support reaches people who genuinely need help entering the property market for the first time. The strict definition prevents:
While this strictness can be frustrating if you're in an edge case, it ensures the limited resources available for first-home buyer support reach those who need them most.
To qualify under the standard first-home buyer definition, you must meet all of the following requirements:
You have never owned:
Even these situations disqualify you:
The key principle: If you've ever held legal title or beneficial ownership of residential property anywhere, at any time, you don't qualify under the standard first-home buyer definition.
You must:
You cannot:
This requirement ensures the schemes support people seeking housing security, not investment opportunities.
Beyond the general first-home buyer definition, specific schemes have additional criteria:
For KiwiSaver First-Home Withdrawal:
For Kāinga Ora First Home Loan:
For bank first-home buyer programs:
Follow this flowchart to determine your status:
→ No: Continue to Question 2
→ Yes: Go to Question 3
→ Yes, as my primary residence for 6+ months: ✅ You ARE a first-home buyer
→ No, as an investment or rental: ❌ You do NOT qualify
→ Yes: ❌ You do NOT qualify as a first-home buyer
→ No, I no longer own it: Continue to Question 4
→ Yes, due to relationship settlement/bankruptcy/major life change: Continue to Question 5
→ No, I have substantial assets: ❌ You likely do NOT qualify
→ Yes: 🔶 You MAY qualify as a second-chance buyer (requires Kāinga Ora assessment)
→ No: 🔶 You MAY still qualify as a second-chance buyer (case-by-case assessment)
If you previously owned property but no longer do, you're not automatically excluded from first-home buyer benefits. New Zealand's second-chance buyer provisions offer a potential pathway back to homeownership support.
A second-chance buyer is someone who:
This status recognizes that life circumstances can fundamentally change a person's financial situation, making government support appropriate even though they once owned property.
Relationship Property Settlements
When relationships end, one partner often retains the family home while the other leaves with minimal assets. The departing partner may have their name removed from the title and receive a settlement that, while legally fair, doesn't provide enough to purchase another property independently.
Example: Emma and James owned a $900,000 home together. After separation, James kept the house and Emma received $150,000 in settlement. After legal fees ($20,000), moving costs, setting up a new rental, and living expenses over two years, Emma has $35,000 in savings. She earns $75,000 annually but can't afford a house without support. She may qualify as a second-chance buyer.
Bankruptcy or Significant Financial Hardship
Business failures, major medical expenses, or other financial catastrophes can result in bankruptcy and property loss. After discharge from bankruptcy and financial rehabilitation, these individuals may qualify for second-chance buyer assessment.
Example: David owned a $650,000 home but his business collapsed during economic downturn. He declared bankruptcy, lost his home, and spent 4 years rebuilding. He now has stable employment earning $85,000, good credit, and $40,000 saved for deposit—but no other significant assets. He may qualify as a second-chance buyer.
Major Life Events
Serious illness, disability, caring for family members, or other major life disruptions that resulted in property loss and financial hardship may warrant second-chance buyer consideration.
Example: Sarah owned a $550,000 property but had to sell it to fund medical treatment for a serious illness. After recovery, she returned to work but her savings were depleted. Five years later, she's financially stable but without property assets. She may qualify as a second-chance buyer.
Kāinga Ora evaluates second-chance buyer applications based on:
Time elapsed since property ownership:
Current asset position:
Income and employment:
Circumstances of property loss:
Genuine need for support:
Step 1: Gather comprehensive documentation
Evidence of previous ownership:
Proof of circumstances:
Current financial position:
Step 2: Contact Kāinga Ora directly
Call or email Kāinga Ora to request a second-chance buyer assessment application form. Explain your situation briefly and ask what specific documentation they require.
Contact details:
Step 3: Complete the application thoroughly
Fill out all required forms completely and honestly. Provide:
Step 4: Submit with supporting documents
Send your completed application with all documentation. Ensure everything is clearly labeled and organized.
Step 5: Wait for assessment
Kāinga Ora reviews each case individually. Processing typically takes 2-4 weeks but can be longer during busy periods or if additional information is needed.
Step 6: Receive written determination
You'll receive a formal decision letter stating whether you qualify as a second-chance buyer. If approved, this determination allows you to access:
If denied: The letter should explain why you didn't qualify. You may be able to reapply after addressing the concerns or after more time has passed.
Understanding what counts (and doesn't count) as previous ownership helps clarify your status:
| Situation | Counts as Previous Ownership? | Explanation |
|---|---|---|
| Owned house in NZ, lived in it | ✅ Yes | Standard residential property ownership |
| Owned investment property in NZ | ✅ Yes | Any residential property ownership counts |
| Owned apartment overseas | ✅ Yes | Property anywhere in the world counts |
| Owned residential bare land | ✅ Yes | Land with residential potential counts |
| Owned commercial land only | ❌ Probably not | Pure commercial typically doesn't count |
| Inherited house, became legal owner | ✅ Yes | Legal ownership counts even if temporary |
| Inherited money (not property title) | ❌ No | If you received cash proceeds, not title |
| Partner owned before, buying together | ⚠️ Complicated | Partner doesn't qualify; you might for KiwiSaver only |
| Beneficiary of trust (no control) | ❌ Probably not | Passive benefit without ownership interest |
| Trustee with beneficial interest | ✅ Probably yes | If you controlled/benefited from property |
| Company director owning property | ⚠️ Maybe | Depends on shareholding and control level |
| Owned bach/holiday home | ✅ Yes | All residential property counts |
| Part-owner with parents | ✅ Yes | Any ownership share counts |
| Name on title as favor/nominee | ⚠️ Complex | Depends on beneficial ownership; need legal proof |
| Owned and sold 20 years ago | ✅ Yes | Time elapsed doesn't change ownership history |
| Lost property in foreclosure | ✅ Yes | But may qualify as second-chance buyer |
Reality: The term "first-home buyer" is somewhat misleading. It really means "first-property buyer"—any property ownership disqualifies you, regardless of whether you lived there.
Reality: Even owning property for a few weeks or months counts as ownership. The length of time you owned it is irrelevant to your first-home buyer status.
Reality: If you had beneficial interest, control, or received benefit from a trust-owned property, you likely don't qualify as a first-home buyer. Each trust situation is assessed individually, but passive beneficiary status is different from beneficial ownership.
Reality: If you became the legal owner through inheritance—even temporarily before selling—this counts as property ownership. The fact that you sold it quickly doesn't erase your ownership history.
Reality: You're not a standard first-home buyer, but you may qualify as a second-chance buyer. This requires a separate application and assessment by Kāinga Ora based on your current financial position.
Reality: Absolutely not. Once you own any property—investment or otherwise—you can never access first-home buyer benefits, even if you subsequently want to buy your first owner-occupied home.
Reality: Generally no. If one person has previously owned property:
Reality: There's no statute of limitations on property ownership. Whether you owned property 2 years ago or 20 years ago, your ownership history remains unless you qualify as a second-chance buyer.
This common scenario creates complexity:
For KiwiSaver withdrawal:
For Kāinga Ora First Home Loan:
For bank lending:
Strategy: Consider having the genuine first-home buyer purchase individually (if they can service the loan alone) or both parties applying as co-buyers without First Home Loan if one doesn't qualify.
The complexity: Property owned through trusts or companies creates ambiguity about beneficial ownership.
Trust scenarios:
Discretionary beneficiary with no control: If you were merely a potential beneficiary of a family trust that owned property, but you had no control, received no benefit, and had no ownership interest, you might still qualify as a first-home buyer. Legal advice and documentation required.
Trustee with beneficial interest: If you were a trustee and also benefited from the trust property (lived in it, received income from it, or had control over it), you likely don't qualify as a first-home buyer.
Settlor or appointor of trust: If you established or controlled a trust that owned property, you likely had sufficient beneficial ownership to disqualify you.
Company scenarios:
Minor shareholder in large company: Owning a small number of shares in a publicly listed company that owns property wouldn't typically count as property ownership.
Director/major shareholder of family company: If you were a director or significant shareholder (e.g., 25%+) in a company that owned residential property where you had control or benefit, you likely don't qualify.
Each case is unique. If you have trust or company ownership in your history, seek legal advice and disclose fully to Kāinga Ora or your KiwiSaver provider for a definitive ruling.
Scenario 1: Inherited property and became legal owner
Scenario 2: Inherited money (property was sold by estate)
Scenario 3: Property held in trust after death
The key distinction: Did you ever hold legal title to the property, or did you only receive financial benefit?
Common scenario: You co-owned the family home, separated, and your ex-partner retained the property while you received a cash settlement or other assets.
Your status:
Application process: You'll need to apply to Kāinga Ora with:
Most people in this situation who apply thoughtfully with good documentation receive second-chance buyer approval.
Understanding why this distinction is so important helps motivate you to get clarity on your status early:
First-home buyers can:
Non-first-home buyers:
The impact: For someone with $45,000 in KiwiSaver, being able to withdraw $44,000 can be the difference between buying now versus waiting another 3-5 years to save that amount independently.
First-home buyers (and second-chance buyers) can:
Non-first-home buyers:
The impact: Being able to buy a $650,000 home with $32,500 (5%) versus needing $130,000 (20%) is transformative for most people's timelines.
Many banks offer enhanced support for first-home buyers:
Possible benefits:
The value: Even a 0.25% lower interest rate on a $600,000 loan saves approximately $1,500 annually—$7,500 over a typical 5-year fixed term.
First-home buyer status often results in:
Don't assume—verify your status through these steps:
Ask yourself these questions and answer truthfully:
If you answered "yes" to any of these, you're not a first-home buyer under the standard definition (but may qualify as second-chance buyer).
If you're uncertain about past ownership, ask your lawyer or conveyancer to:
Cost: Usually $20-$50 per search, well worth the certainty.
If you plan to use KiwiSaver:
Different providers may have slightly different processes, so getting provider-specific information is valuable.
If you're considering the First Home Loan:
Kāinga Ora contact:
Engage a mortgage adviser who specializes in first-home buyers:
Get clarity before you start house hunting. There's nothing worse than finding your dream home, making an offer, and then discovering you don't qualify for the support you were counting on.
Not qualifying doesn't mean you can't buy a home—it just means you'll use different pathways:
Standard bank lending:
Build equity in other ways:
Second-chance buyer application:
Non-bank lenders:
If you previously owned property, even though you can't access first-home buyer schemes, you have:
These advantages can help you navigate the purchase process more confidently and secure favorable lending terms even without first-home buyer status.
A first-home buyer in New Zealand is someone who has never owned any residential property, land, or legal interest in property anywhere in the world. This includes freehold, leasehold, cross-lease properties, and ownership through trusts or companies. You must also intend to live in the property as your primary residence.
No. If you've owned residential property anywhere in the world—not just New Zealand—you don't qualify as a first-home buyer under standard definitions. This applies to KiwiSaver withdrawal, First Home Loan, and most bank first-home buyer programs.
Generally yes, if you inherited property and became the legal owner, even if you never lived in it or quickly sold it. However, if you only inherited money (not property itself) or the property was held in a trust where you weren't the legal owner, you may still qualify. Each situation is assessed individually.
You still don't qualify as a first-home buyer. The definition includes any property ownership—residential, investment, land, or commercial—regardless of whether you lived in it. The schemes are designed for people who have never owned any property at all.
Yes, if you previously owned property but are now in a similar financial position to a first-home buyer. Common scenarios include relationship property settlements, bankruptcy, or major life changes that left you without assets. Kāinga Ora assesses second-chance buyer applications case-by-case based on your current financial situation.
Yes. If you're buying jointly with someone who has owned property before, you're both assessed. For KiwiSaver withdrawal, the person who previously owned property won't qualify to withdraw, but the genuine first-home buyer might. For First Home Loan, joint applicants typically both need to be first-home buyers or second-chance buyers.
You must intend to live in the property as your primary residence for at least 6 months after settlement. This is a requirement for both KiwiSaver withdrawal and First Home Loan schemes. Renting it out immediately or using it as an investment would breach these conditions.
You'll typically need to provide a statutory declaration confirming you've never owned property, along with supporting documents. Your lawyer may conduct title searches to verify no previous ownership. For second-chance buyers, you'll need detailed financial documentation showing your current position.
Understanding whether you qualify as a first-home buyer in New Zealand is one of the most critical steps in your property journey. This status determines:
The definition is strict for good reason—to ensure limited government support reaches those who genuinely need it most. While this can be frustrating if you're in an edge case, it protects the integrity of these valuable schemes.
Key takeaways:
✓ Never owned property anywhere = first-home buyer (if you'll live in it)
✓ Previously owned but lost through life circumstances = potentially second-chance buyer
✓ Currently own or recently owned = not eligible for first-home buyer benefits
✓ Any property ownership ever = standard first-home buyer status doesn't apply
If you're unsure about your status:
Even if you don't qualify as a first-home buyer, homeownership is still achievable—you'll just follow a different pathway. And if you do qualify, understanding exactly what that means empowers you to maximize every available benefit and support.
At Luminate Financial Group, we work with both first-home buyers and second-chance buyers every day. We understand the definitions, eligibility criteria, and application processes intimately. More importantly, we help you navigate these complexities and develop a clear strategy tailored to your specific situation.
Book a free First-Home Buyer Assessment with Luminate.
In this consultation, we'll:
Don't let confusion about your eligibility slow your progress toward homeownership. Get clarity, get expert guidance, and get moving toward your first home.
Contact Luminate Financial Group:
📞 Call 0800 333 400Your path to homeownership starts with understanding where you stand. Let's figure it out together.