First Home Grant NZ 2025: What First-Home Buyers Need

The First Home Grant ended on 22 May 2024, leaving many first-home buyers wondering what help is still available. This guide cuts through the confusion, showing you exactly what remains — from the government-backed First Home Loan to the KiwiSaver First Home Withdrawal — and how much deposit you really need in 2025.

First Home Grant ended: 22 May 2024 ·
Maximum grant (existing home): $5,000 ·
Maximum grant (new build): $10,000 ·
First Home Loan minimum deposit: 5% ·
KiwiSaver First Home Withdrawal eligibility: After 3 years membership

A snapshot of the key numbers for New Zealand first-home buyers planning in 2025.

Is there still a first home buyers grant in NZ?

The First Home Grant in New Zealand was discontinued for new applications after the Government announced closure on 22 May 2024, with narrow exemption pathways for some pre-approval and signed-agreement cases, according to the Beehive (the Government’s official release platform). The grant is described in 2025 editorial coverage as no longer available, with the coalition government having scrapped the initiative, according to Trade Me Property. If you had a pre-approval that expired before the closure announcement and had signed a Sale and Purchase Agreement on or before 22 May 2024, a narrow exemption was considered. That exemption applied only to the current property with the signed agreement and could not be transferred.

What happened to the First Home Grant?

The government scrapped the First Home Grant entirely. No new applications are accepted after 22 May 2024. Grants already approved before the closure are still paid out.

When did the First Home Grant end? 22 May 2024. The closure was announced on that date. For most buyers, it means planning without that $5,000 to $10,000 grant in their calculations.

What is the minimum deposit for a first home buyer in NZ?

The minimum deposit for a First Home Loan is 5% of the purchase price, counting savings, grants, first-home withdrawals, and gifts, as stated by Kāinga Ora (the New Zealand housing agency). For conventional loans, banks typically require 20% deposit if you don’t have the First Home Loan backing. Regional price caps affect deposit amounts. The pattern: the lower your deposit, the more you rely on the First Home Loan.

The implication: the First Home Loan is the most accessible route for buyers with less saved, but it comes with a 1.2% Lender’s Mortgage Insurance premium that can be paid upfront or added over the life of the loan.

How much deposit for a $400,000 house?

With the First Home Loan, your minimum deposit is 5% — $20,000. Without it, a conventional loan typically expects 20%, or $80,000.

How much deposit for an $800,000 house?

For a $800,000 home, the 5% minimum via the First Home Loan is $40,000. For a conventional loan at 20%, you’d need $160,000.

Is $100,000 enough for a deposit?

Yes, $100,000 is enough for a deposit on a $400,000 home with a 25% deposit ($100,000). With the First Home Loan, $100,000 would get you a $1,000,000 home (assuming a 10% deposit, which is higher than the minimum 5%). The trade-off: a larger deposit means lower monthly mortgage payments.

Who qualifies for the first home scheme?

To qualify for the First Home Loan, you must be over 18 years old, a New Zealand citizen, permanent resident, or a resident visa holder who is ordinarily resident in New Zealand, according to Kāinga Ora. Income and house price caps apply. You must also have contributed to KiwiSaver for at least 3 years for the withdrawal option. The catch: strict conditions mean the First Home Loan is not for investors or buyers looking to hold multiple properties.

First Home Loan eligibility criteria

• Minimum age: 18 (Kāinga Ora)
• Citizenship/residency: NZ citizen, permanent resident, or resident visa holder (Kāinga Ora)
• Income cap for individual without dependants: $95,000 or less (Kāinga Ora)
• Income cap for individual with dependants: $150,000 or less (Kāinga Ora)
• Income cap for two or more buyers (any dependants): $150,000 combined (Kāinga Ora)
• Property must be under 1 hectare and be your primary residence (Kāinga Ora)
• You cannot own any other property or land (excluding Māori land) (Kāinga Ora)

KiwiSaver First Home Withdrawal eligibility

• Must be a KiwiSaver member for at least 3 years (Kāinga Ora)
• Can use savings for buying a first home or land to build on (Kāinga Ora)
• You must intend to live in the property (not an investment) (Kāinga Ora)
• You can withdraw your savings including tax credits (Kāinga Ora)
• At least $1,000 must remain in your KiwiSaver account after withdrawal (Kāinga Ora)

Is 40 too old for a 30 year mortgage?

There is no legal age limit for mortgages in New Zealand, as confirmed by Kāinga Ora. Lenders consider repayment ability over time, not your age alone. The pattern: the older you are, the more likely lenders will shorten the loan term. That raises monthly payments, so shop around before committing.

Can a 46 year old get a 25 year mortgage?

Yes, a 46 year old can get a 25 year mortgage. While there’s no age cap, lenders will assess whether the repayments are affordable into retirement. A 46-year-old taking a 25-year term would be 71 when the mortgage ends.

What are the age limits for mortgages in NZ?

• No legal age limit exists
• Lenders assess repayment capacity, including projected retirement income
• Older borrowers may face shorter terms or higher interest
• Self-employed buyers may face additional scrutiny (Kāinga Ora)

What are the current alternatives to the First Home Grant?

With the First Home Grant gone, three main alternatives remain: the First Home Loan, KiwiSaver First Home Withdrawal, and the traditional savings route with a bank loan. The right alternative depends on your deposit size and income. Here’s how they stack up:

The implication: the alternative landscape is clear — the First Home Loan suits those with lower deposits, while KiwiSaver withdrawal helps anyone with three years of membership. The conventional route demands more cash but offers more freedom.

How does the First Home Loan work?

The First Home Loan is a government-backed scheme that lets you borrow with only 5% deposit. It carries a 1.2% Lender’s Mortgage Insurance premium that can be paid upfront or spread across the loan, according to Kāinga Ora. You must meet the eligibility criteria (income cap, property cap, citizenship) and live in the home as your primary residence.

How does the KiwiSaver First Home Withdrawal work?

You can withdraw your KiwiSaver savings (including government contributions and tax credits) after 3 years of membership. The money must be used for your first home or to buy land to build your first home, and you must intend to live there. At least $1,000 must stay in your account, per Kāinga Ora.

What other assistance is available?

• Shared Ownership schemes (available through some providers)
• HomeStart grants (still available in some regions — check local council)
• ANZ Mortgage Rates Calculator: 2025 Rates & Guide
• Houses for Sale Christchurch NZ: 2025 Buyer Guide & Suburbs

The First Home Grant finished in May 2024, and is no longer available.

New Zealand Government housing website

The First Home Loan is a government-backed low-deposit loan for first home buyers.

Kāinga Ora

For a first-home buyer in New Zealand, the choice is clear: use the First Home Loan if you have less than 20% deposit, or KiwiSaver to boost your deposit without additional savings. Without any of these, saving 20% on your own is the only path — which means waiting longer in a market that may rise faster than you can save.

First-home buyers seeking alternatives to the expired grant can consult First Home Grant NZ alternatives for a detailed guide.

Frequently asked questions