How much deposit do I actually need to buy a house in New Zealand?

Short answer: Standard: 20%. First Home Loan: 5%. More deposit = less interest.

What this actually means in plain English

For a standard mortgage, banks want 20% of the purchase price. But first home buyers can get in with 5% through the First Home Loan. The more deposit you have, the less you borrow and the lower your repayments. Even 1% more deposit can save thousands in interest.

Key Facts

Standard bank mortgage: 20% deposit required
First Home Loan: 5% deposit possible
Lenders mortgage insurance is not common in NZ
Every extra 1% deposit reduces total interest paid

Example

House Price: $600,000

Twenty Percent: $120,000

Five Percent: $30,000

Difference: $90,000 less to save with First Home Loan

Related

Back to Stackhold