The First Home Grant Is Gone. What Can First Home Buyers Get Now?

Guides

If you have been reading about the First Home Grant, here is the short version: it has gone. Kāinga Ora stopped taking applications at 1pm on 22 May 2024, as part of Budget 2024, and nothing has replaced it. Any website still telling you that you can get up to $10,000 towards a new build is out of date.

The good news is that the things that actually move the needle for most Wellington first home buyers are still here: your KiwiSaver, the Kāinga Ora First Home Loan, and lenders who will go below a 20% deposit for the right application. This guide explains each one and how they fit together.

What the First Home Grant used to be

The grant paid eligible first home buyers up to $5,000 each towards an existing home, or up to $10,000 each towards a new build, depending on how many years they had been contributing to KiwiSaver. It came with income caps and regional house price caps. It closed with no notice in May 2024, which caught out a number of buyers who were part-way through the process.

If your plan relied on the grant, the gap is real but it is usually smaller than people fear. For most buyers the grant was a top-up, not the deposit itself.

What first home buyers can still use

1. Your KiwiSaver first home withdrawal

This is the big one. If you have been a KiwiSaver member for at least three years, you can usually withdraw everything in your account except $1,000 to buy a first home you will live in. That includes your own contributions, your employer’s contributions, government contributions and investment returns. For a couple who have both been contributing for several years, this often covers most of a deposit on its own.

There are rules about timing and paperwork that catch people out, particularly the fact that the money is paid to your lawyer on or before settlement rather than when you sign. We cover all of that in our guide to using KiwiSaver for your first home.

2. The Kāinga Ora First Home Loan

The First Home Loan lets eligible buyers purchase with a 5% deposit. Kāinga Ora backs part of the loan, which is why participating lenders can go to 95% when they otherwise would not. The main criteria are:

• Income before tax of no more than $95,000 for a single buyer with no dependants
• No more than $150,000 combined for a single buyer with dependants, or for two or more people buying together
• You are a first home buyer, or a previous owner in a similar financial position to a first home buyer
• You are a New Zealand citizen, permanent resident or resident visa holder ordinarily living here
• You will live in the home. It cannot be an investment or a holiday home
• The 5% deposit is your own money, a KiwiSaver withdrawal or a genuine gift. It cannot be borrowed

There is no longer a house price cap. You still have to pass the lender’s normal affordability checks, and the loan is only available through participating lenders, so it is not something every bank offers. Part of our job is knowing which lenders do it well and what they will want to see.

3. Bank lending with less than 20% deposit

You do not have to use the First Home Loan to buy with less than 20%. Banks can lend to owner-occupiers with smaller deposits, but the Reserve Bank limits how much of that lending each bank can do, and separate debt-to-income limits apply too. In practice that means low-deposit lending is rationed, and banks choose the applications they like best.

What makes an application stand out is usually not the deposit alone. Steady income, a clean conduct history on your accounts, modest other debts and a realistic purchase price all count. Small things matter as well: an unused credit card limit or a Buy Now Pay Later account can reduce how much a bank will lend you, even if you never use them.

4. Help from family

Many first home buyers get help from parents or relatives. The two common ways are a gift towards the deposit, which lenders will want confirmed in writing as non-repayable, and a guarantee, where a family member offers security over part of the loan. A guarantee is a serious commitment for the person giving it and they should get independent legal advice first.

Putting numbers on it

Deposits are easiest to think about as percentages of the price. On a $650,000 home:

• 5% is $32,500, the minimum for the First Home Loan
• 10% is $65,000
• 20% is $130,000, the point where most lenders stop treating it as low-deposit lending

A deposit is not the only cash you need. Budget for your lawyer, a builder’s report, a LIM, possibly a valuation, insurance and moving. We go through those with every first home buyer so nothing turns up as a surprise in the week before settlement.

Where to start

Start with a real number rather than an online estimate. We look at your income, your KiwiSaver balance, any other savings and your existing commitments, then tell you which route fits and roughly what you could borrow. If you are not ready yet, we will tell you what to change and how long it is likely to take.

You can read more about how we help first home buyers in Wellington, or book a free call and we will work through it with you.

Frequently asked questions

Is the First Home Grant coming back?

At the time of writing (October 2026) no replacement grant has been announced. If that changes we will update this page.

Can I use my KiwiSaver and the First Home Loan together?

Yes. Your KiwiSaver first home withdrawal can make up some or all of the 5% deposit the First Home Loan needs. The deposit cannot be borrowed.

Does the First Home Loan have a house price cap?

No. House price caps were removed in 2022. The income caps still apply, and the lender still has to be comfortable you can afford the repayments.

Can I buy with less than 20% deposit without the First Home Loan?

Sometimes. Banks do lend to some first home buyers with less than 20%, but Reserve Bank rules limit how much of that lending they can do, so it is rationed. Who gets it depends on the whole application, not just the deposit.

This is general information, not personal financial advice. Lending criteria and government settings change, so talk to us about your own situation before you make a decision.