Home Loan Deposits

Sorting your deposit for a mortgage or home loan is the first step to starting your application and getting approval.

Typically you are required to have a 20% deposit in order for banks to lend you money but there are a variety of other rules that apply depending on whether you are a first home buyer or a property investor that can change the required deposit.

That is why it is a great to chat to a mortgage broker today about your situation so that they can advise you on the best course of action. You never know, you might be closer than you think to buying the property you want!

How To Build Your Home Loan Deposit

  • Savings
  • Kiwisaver
  • First Home Loan Grant
  • Inheritance/ Family Gifting
  • Sales of Assets

How much can you borrow based on your deposit?

  • Minimum 5% (limited lenders who work with Kainga Ora)
  • 10% (generally opens up all main banks)
  • 20% (best deal, easier affordability criteria applied)

Why a 20% home loan deposit saves you money

  • Best Deal (rates, and low fees)
  • Smaller repayments, less interest payable over the life of the loan?

Low deposit home loan options

Location Avg House Price Deposit Required
Auckland $948,800 $189,760
Waikato $635,450 $127,090
Bay Of Plenty $700,150 $140,030
Napier $597,500 $119,500
New Plymouth $470,000 $94,000
Wellington $689,500 $137,900
Nelson $677,250 $135,450
Christchurch $508,150 $101,630
Otago $645,700 $129,140
Invercargill $370,600 $74,120

Source (Trade Me Property Price Index – August 2020)

How to withdraw your Kiwisaver for a home loan deposit

  • Provider will provide you with Withdrawal Estimate
  • Complete the withdrawal paperwork, different for providers – your mortgage adviser or solicitor can assist you

How to apply for Kiwisaver first home withdrawal

  • Eligibility Criteria
  • IRD proof of income and Kiwisaver contributions
  • Online Form with ID and above document 
  • Pre-Approval, valid for 6 months


Kiwisaver Providers Kiwisaver First Home Withdrawal Link
ANZ https://www.anz.co.nz/content/dam/anzconz/documents/personal/investments-kiwisaver/First-Home-Withdrawal-Form.pdf
ASB https://www.asb.co.nz/documents/kiwisaver/forms/first-home-withdrawal-application-form.html
BNZ https://www.bnz.co.nz/assets/Uploads/KiwiSaver-First-Home-Purchase-Withdrawal.pdf
Westpac https://www.westpac.co.nz/assets/Personal/KiwiSaver/forms/kiwisaver-first-home-withdrawal-form.pdf
KiwiBank https://cdn2.hubspot.net/hubfs/703880/resources/KWKS%20First%20Home%20Withdrawal%20Form.pdf?hsCtaTracking=f3b24779-4b48-41d9-93bf-ed596d31adde%7C5a365bac-a9f6-41f5-8442-42f90c39aee1
Superlife https://www.superlife.co.nz/files/Forms/KiwiSaver%20first%20home%20withdrawal%20form.pdf
Milford https://milfordasset.com/wp-content/uploads/2019/09/Milford-KiwiSaver-First-or-Second-Chance-Home-Withdrawal-Form-1.pdf
AMP https://www.amp.co.nz/content/dam/ampnz/documents/kiwsaver/AMP-KiwiSaver-FirstHomeWithdrawal.pdf
AON https://www.aonkiwisaver.co.nz/Document-files/Aon-KiwiSaver-Scheme/Aon-KiwiSaver-Scheme-forms/AS8-Application-Form-for-First-Home-Withdrawal.pdf
Fisher Funds https://fisherfunds.co.nz/assets/Forms/FF507-KiwiSaver-First-Home-or-SCH-Buyer-Withdrawal-Form.pdf
Mercer https://secure.superfacts.com/web/IWfiles/attachments/Form/KIWI4_FirstHomeSecondChanceWithdrawal.pdf
Generate https://www.generatewealth.co.nz/forms-and-downloads?download=15
Quay Street https://quaystreet.com/-/media/quaystreet/files/forms/kiwisaver/withdrawal-forms/quaystreet-kiwisaver-scheme-withdrawal-request-first-home-purchase-settlement.pdf?la=en&hash=083DC47B00E73DCFB1AB4730C23478D1A981CD09

Why a low deposit may not be an option for you

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Why it’s important to consult a mortgage broker as soon as possible

  • They will provide you guidance specific your situation 
    • Income your income
    • Reduce your expenses
    • Reduce your debts
    • Change banks
    • Apply for First Home Grant whilst you still meet the eligibility criteria