How much deposit do I really need to buy a Home in NZ?

How Much Deposit Do I Really Need to Buy a Home in NZ?

For many Kiwis, buying a home feels like climbing a mountain — and one of the steepest parts? Saving for the deposit. You’ve probably heard the magic numbers: 10%, 20%, or even 5%. But what do those really mean?

Let’s break it down.

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What Is a House Deposit, Really?

Your deposit is the portion of the home’s purchase price that you pay upfront. This could be savings, KiwiSaver, gifts from family, etc. The rest is covered by your mortgage.

For example, if you're buying a $600,000 home:

• 20% deposit = $120,000
• 10% deposit = $60,000
• 5% deposit = $30,000

It’s often assumed you need 20% to buy a home — but that’s not always the case.

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Can I Buy With a 5% or 10% Deposit?

Yes — in many cases you can.

At EasyStreet, we regularly help first-home buyers purchase with deposits as low as 5%. Here’s how:

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First Home Loan (Kāinga Ora)

This government-backed scheme allows eligible buyers to get a mortgage with just a 5% deposit, even if the bank normally requires 20%.
It has income caps, house price caps, and other criteria — but it’s a great fit for many.

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Bank Options for Low Deposits

Most banks offer lending with less than 20% deposit — especially for first-home buyers. This is called low equity lending. You might face:

• Slightly higher interest rates
• A low equity premium or fee

…but it’s still a more than valid way to get into your first home sooner.

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Boosting Your Deposit

You might be able to strengthen your deposit through:

• KiwiSaver: Most balances can be withdrawn to buy your first home.
• Savings: Anything you can put away at the end of the month is a great help. It also shows the bank you are committed.
• Gift from Family: A letter from whānau may help bridge the gap.

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So... Do I Need a 20% Deposit?

Not necessarily.

While a 20% deposit can unlock better rates and help you avoid extra fees, it’s not the only path to homeownership. Many of our clients start with 5–10%, then restructure once they build equity.

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Why Talk to an Adviser?

Every bank has different criteria. Our job is to know them all — and match you with the right fit.

We’ll help you:

• Understand your deposit options
• Prepare your documents
• Maximise your chances of approval
• And keep the process stress-free

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Let’s Make It Easy

You might be closer than you think.

Let’s chat about where you’re at — no pressure, no judgement. Just honest advice and a smart plan.

👉 Book a free consultation
📧 hello@easystreet.nz | 📞 03 352 9533

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