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

Posted on March 18, 2026 | Category: Mortgage Tips

For many Kiwis, buying a home can feel like climbing a mountain — and one of the toughest parts is saving the deposit. You’ve probably heard the common numbers thrown around: 20%, 10%, even 5%. But what do they actually mean for you?

Let’s break it down in simple terms.

What Is a House Deposit?

Your deposit is the portion of the purchase price you pay upfront, while the rest is covered by your mortgage.

Example (Based on $600,000 home):

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

Many people assume 20% is required — but that’s not always the case.

Can You Buy With Just 5% or 10%?

Yes — in many situations, you can. More and more first-home buyers in New Zealand are entering the market with smaller deposits.

Options for Low-Deposit Buyers

First Home Loan (Kāinga Ora)

This government-backed scheme allows eligible buyers to purchase with as little as a 5% deposit.

Income caps
Property price limits
Eligibility criteria

Low-Deposit Lending Through Banks

Slightly higher interest rates
Low equity fees
Flexible lending options

Ways to Boost Your Deposit

KiwiSaver: Withdraw funds for your first home
Regular savings: Build discipline and lender confidence
Family support: Gifts from whānau can help bridge the gap

Do You Really Need 20%?

Not necessarily. While a 20% deposit can help you secure better rates and avoid extra fees, many buyers successfully enter the market with 5–10% and build equity over time.