First Home Loans in New Zealand — Complete Guide for Tauranga Buyers
First Home Loans in New Zealand — Complete Guide for Tauranga Buyers
Buying your first home is one of life’s biggest milestones — and it can feel both exciting and overwhelming. Between deposits, KiwiSaver rules, and constantly changing lending criteria, it’s easy to get lost in the process. At Best Mortgages, we help first-home buyers across Tauranga and the Bay of Plenty move from confusion to confidence — with expert help and personalised support from a mortgage broker Tauranga clients trust.
What Is a First Home Loan?
A First Home Loan is a government-backed initiative run through Kāinga Ora – Homes and Communities. It helps eligible New Zealanders get onto the property ladder with as little as a 5 percent deposit. The loan is issued by selected banks and participating lenders but underwritten by Kāinga Ora, which allows more flexible approval criteria compared to standard bank rules.
The result? A more achievable pathway into your first home — often with competitive rates and standard terms that fit most budgets.
Eligibility Criteria (as of November 2025)
- Be a NZ citizen, permanent resident, or visa holder living in NZ
- Be a first-home buyer or in a similar financial position to one
- Income under $95,000 (single) or $150,000 (couple or single with dependants)
- Minimum 5% deposit (via KiwiSaver, savings, or gift)
- Buying a home under 1 hectare to live in
- Pay a 1.2% Lenders Mortgage Insurance premium (added or upfront)
Note: Each lender runs its own credit assessment — having a broker helps smooth the process.
Why Use a Mortgage Broker?
Banks vary widely in how they interpret Kāinga Ora’s rules. Some non-bank lenders also offer more flexibility if you have limited deposit, short job history, or extra debt. As your local mortgage adviser, I compare all participating lenders daily to find the best match for your situation — and make sure your application lands right the first time.
Key Benefits of a First Home Loan
- Buy with just 5% deposit
- Competitive interest rates
- Multiple lenders to choose from
- Local support across Tauranga and the Bay
Real-World Example
A young couple from Papamoa thought they needed 20% saved before buying. They had strong income and rental history but just 15% deposit. We restructured their application with a participating bank and secured full approval within five days. They’ve now settled on a first home in Bethlehem — proving that strategy matters more than guesswork.
Preparing to Apply
- Set your budget and know what repayments you can afford
- Check your credit file and resolve any issues
- Gather documents: payslips, bank statements, ID, KiwiSaver summary
- Stay within price caps — we’ll confirm Tauranga’s latest figures for you
- Get pre-approval — it gives confidence at auctions and in negotiations
KiwiSaver and Deposit Help (as of November 2025)
Although the First Home Grant has now ended, you can still use your KiwiSaver to fund your deposit (after at least 3 years of contributions). A minimum balance of $1,000 must remain in the account.
Family gifts are also allowed — and count toward the 5% deposit threshold.
What It Really Costs
Besides your deposit, you’ll need to budget for:
- Legal fees and conveyancing
- Valuation reports (if required)
- 1.2% LMI fee charged on every First Home Loan
We’ll outline these costs clearly before you commit — so there are no surprises later.
Why Work with Best Mortgages
- Independent advice: we compare banks and non-banks objectively
- Local expertise: we know Tauranga’s caps, lenders, and market nuances
- Personal service: you’ll deal directly with a senior broker — not a helpdesk
- Long-term support: we’ll review your loan after settlement to keep it competitive
Talk to Best Mortgages
Whether you’re buying your first home, refinancing for a better deal, or planning your next investment move, now’s the perfect time to get expert advice.
Our team is based here in Tauranga and helps Kiwis across the Bay of Plenty make smart, stress-free mortgage decisions. We speak plain English (and a bit of Kiwi slang), and work for you — not the banks.
Contact us today for a free, no-obligation chat and we’ll walk you through the latest lending rules, deposit tips, and pre-approval steps tailored to your goals.
See what clients say or explore the latest mortgage updates.
Best Mortgages — Operated by Ewald Biesenbach (FSP 320426) under The Best Limited (FSP 724451 – NZBN 9429043352067). Licensed under the Financial Services Legislation Act 2019.
How does Kāinga Ora’s First Home Loan work?
The Kāinga Ora First Home Loan lets eligible buyers purchase a home with just a 5 percent deposit. Kāinga Ora underwrites the loan through selected banks and lenders, reducing their risk so they can approve applications that might not meet normal bank rules. You still deal directly with the lender, but the government guarantee makes approval easier for first-home buyers in Tauranga and across New Zealand.
Which banks currently offer the First Home Loan scheme?
Participating lenders include Kiwibank, Westpac, SBS Bank, The Co-operative Bank, Unity Money, NBS and NZHL. Each has slightly different lending criteria, so it’s smart to compare options through a mortgage broker who can check which one best suits your income, deposit, and location around Tauranga or the Bay of Plenty. (Information current as of November 2025 — always verify on the Kāinga Ora website for updates.)
What documents do I need to apply for a First Home Loan?
You’ll normally need proof of income (payslips or tax summaries), three months of bank statements, photo ID, KiwiSaver statements if using a withdrawal, and a summary of your monthly expenses and debts. Your broker will package these for the lender and confirm you meet both Kāinga Ora and bank criteria before submitting the application.
What are the main risks or downsides of a 5 percent deposit loan?
A small deposit means higher loan-to-value (LVR) risk and a 1.2 percent Lenders Mortgage Insurance premium applies. Monthly repayments can also be higher if interest rates rise. The key is to borrow within your comfort zone and have a clear budget plan. At Best Mortgages, we model different rate scenarios so you know exactly what you can afford before you buy.
