Can I buy a house in New Zealand with no deposit?

Short answer: No. You need at least 5% deposit, plus money for fees and inspections.

What this actually means in plain English

No. Every bank in New Zealand requires some deposit. The smallest deposit you can get is 5% through the First Home Loan scheme, and even then you still need money for legal fees and inspections. There is no way to buy a house with zero deposit.

Key Facts

No New Zealand bank lends 100% of the house price to first-home buyers
The minimum deposit is 5% through the First Home Loan scheme (subject to income and price caps)
Most first-home buyers need 10% deposit
Even with a small deposit, you need $5,000–$10,000 for legal fees, inspection, and moving
Using equity from family (e.g., parents' house) as security is not the same as no deposit — the bank still requires security

Example

Setup: John has no savings but his parents own their house outright.

Option: Some banks accept a family member's house as additional security.

Reality: This is called a guarantor loan. John still needs to prove he can afford repayments.

Risk: If John cannot pay, the bank can force sale of his parents' house.

Conclusion: It is possible with family help, but it is not "no deposit" — it is using someone else's equity.

Related