The Kāinga Ora First Home Loan lets eligible buyers purchase with a 5% deposit. Income caps, participating lenders, and how it works.
⚠️ This entry contains figures or rules that change with government policy or RBNZ settings. Check the current position at the source link below before relying on it.
The First Home Loan is a scheme underwritten by Kāinga Ora that allows eligible first home buyers to purchase with a deposit as low as 5%, rather than the 20% most lenders require under LVR restrictions.
Kāinga Ora provides an underwrite to the lender, which lets the bank lend outside its usual high-LVR constraints. You still borrow from a bank on normal commercial terms — this is not a government loan.
Offered through selected participating lenders. The list changes; check current participants before planning around it.
Income caps apply — broadly around $95,000 for a single buyer with no dependants, and $150,000 for a single buyer with dependants or for two or more buyers combined. Verify current figures at kaingaora.govt.nz or with a participating lender, as these are adjusted periodically.
You must intend to live in the property, and other criteria apply including property value caps in some circumstances.
Your KiwiSaver withdrawal counts toward the 5% deposit. For many buyers, the KiwiSaver balance alone covers it.
Kāinga Ora's underwrite doesn't override the bank's own lending criteria. You still need to pass the lender's serviceability assessment and DTI limits. Eligibility for the scheme is not approval for a loan.
A 5% deposit means high debt relative to the property. A modest fall in value puts you in negative equity. That is a real risk, not a theoretical one, and worth thinking about honestly before proceeding.
Last reviewed: 1 August 2026 · General information only, not financial advice.
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