What a first home deposit is actually for

There is already a shorter page on this site, Your first home deposit. This note sits beside it and goes a little further. It still does not say how much you should save, and it does not estimate a purchase price. Those numbers depend on you, the home, and the lender.

Your money, and the money a seller asks to hold the house

When people say deposit, they often mean the financial deposit. That is the part of the price you contribute, so the loan is smaller than the price. Kāinga Ora's First Home Loan questions make a useful split, on the page updated 9 July 2026. A financial deposit is what you contribute towards the purchase. A vendor deposit is an amount the seller may ask for to secure the property before settlement. That amount normally sits with the real estate agent until settlement day.

They can both be called a deposit in the same week, which is how people get lost. The money paid to hold the property is not automatically the same figure a lender uses when it talks about how much you are putting in. Your lawyer can point at the agreement and show you which number is which. This website cannot see your agreement.

Why the size changes the conversation

Lenders look at how your contribution compares with the price of the home. A larger share can leave more ordinary lending options open. A smaller share can still be a real conversation, often through a low-deposit path, if a lender is willing to consider it and if you meet the rules that apply at the time.

Kāinga Ora's First Home Loan page says most lenders currently require a minimum 20% deposit, and that a First Home Loan can lower the required deposit to 5%. Those sentences were on the page updated 9 July 2026, and they were checked again on 5 October 2026 at kaingaora.govt.nz/en_NZ/home-ownership/first-home-loan. They are that agency's description, not a rule this website sets. Five percent is a scheme minimum in that wording, not a promise that five percent will be enough for you. Twenty percent is described as what most lenders currently ask for on an ordinary loan. Individual lenders can differ, and they can change their own settings.

The size of the deposit does not, on its own, approve anything. The lender still looks at income, existing debts, the property, and its own criteria. A deposit calculator on this site only tests numbers you type in. It does not say a bank will lend the result.

Where the money often comes from

Savings you have already built are the most straightforward part. A gift can be another part, if the person giving it, and your lender, are both clear about what the money is. A KiwiSaver first-home withdrawal, if your scheme provider approves it, can be another part. That withdrawal is savings already in KiwiSaver. It is not a separate grant, and it is not arranged on this website.

The First Home Grant is not a piece you can newly apply for. New applications closed on 22 May 2024. This guide does not explain how to apply, because there is no open application to describe.

Kāinga Ora's current First Home Loan page says the minimum deposit for that scheme can be inclusive of savings, first-home withdrawals, and gifts. The page also mentions grants in that same list. Because the First Home Grant is closed to new applications, do not read that word as a live grant you can still request. Read the current page for the scheme wording, and ask the lender what evidence they want for each part you are actually using.

There is a longer comparison of a First Home Loan and a more ordinary deposit on the First Home Loan page. KiwiSaver rules and timing are on the KiwiSaver withdrawal page.

What a deposit does not do

It does not lock an interest rate. It does not choose the house. It does not replace a lawyer, a sale and purchase agreement, or the final lending check once a property is in view. It does not mean the time is right to buy. Some people build a deposit and then wait. That is a normal outcome, not a failure of the deposit.

It also does not remove conditions. Even with money set aside, an agreement can still be conditional on finance, on reports, or on other checks your lawyer explains. Paying money early, or feeling under pressure at an open home, does not turn those checks into a formality.

A soft next step

When you want a home loan specialist to look at your own deposit, and at which path it might sit on, the get started page is a match with a broker. It is not a lending decision, and it is not this site telling you to buy.

Online Mortgages shares general information for first home buyers in New Zealand. It is not financial advice, and it is not a lender. Rules, eligibility, and products change. Check the current position with the relevant provider before you act.

FAQ

Is the deposit the same as the money I pay the agent when I sign?

Not always. One figure is your contribution to the price. Another can be an amount the seller asks for before settlement, which often sits with the agent. Ask your lawyer which is which on your agreement.

Does a bigger deposit mean I will be approved?

No. It can change which lending options a lender is willing to discuss. Approval still depends on you, the property, and the lender's checks. Nothing on this page is an approval, a rate, or a fee.

Can I count KiwiSaver before my provider has approved a withdrawal?

Treat it as possible, not as cash you already have. Your scheme provider decides the withdrawal. This website does not.