Kāinga Ora First Home Loan: the 5% deposit and how to apply
The First Home Loan lets eligible first-home buyers borrow with a 5% deposit instead of the usual 20%. Participating lenders provide the loan and Kāinga Ora backs it, so you start with a lender, not with this site.
What is the Kāinga Ora First Home Loan?
It is a government-backed home loan for buyers with a small deposit. Selected lenders issue it and Kāinga Ora underwrites it. Borrowers are reported to usually get the same rate as a customer with a 20% deposit (RNZ, 18 February 2026), but the lender sets the rate. The First Home Loan is reported to be exempt from the Reserve Bank's deposit and debt-to-income limits.
What is the minimum deposit for a First Home Loan?
5% of the price, so $36,000 on the $720,000 median first home or $25,000 on a $500,000 home. It can come from savings, KiwiSaver or a gift from a relative, but not borrowed money.
Are there income caps on the First Home Loan?
Yes, on before-tax income over the last 12 months, as set out on the Kāinga Ora First Home Loan page (updated 9 July 2026).
| Who is buying | Income cap |
|---|---|
| One buyer, no dependants | $95,000 or less |
| One buyer with one or more dependants | $150,000 or less |
| Two or more buyers, combined, any number of dependants | $150,000 or less |
Other rules apply too, and they change from time to time. Check the latest with Kāinga Ora or your lender.
First Home Loan against 10% and 20% deposits
| Path | Deposit | Loan | Extra cost to ask about |
|---|---|---|---|
| First Home Loan (5%) | $36,000 | $684,000 | 1.2% insurance premium, plus any lender fees |
| New build (10%) | $72,000 | $648,000 | Low equity premium can apply |
| Usual deposit (20%) | $144,000 | $576,000 | None for low equity |
You need less up front, but the loan is bigger. If you go through the government-backed First Home Loan, Kāinga Ora's page says you pay a 1.2% Lender's Mortgage Insurance premium, which can be paid up front or added to the loan, and lenders may charge their own fees too, so ask for every cost in writing.
Which lenders offer the First Home Loan?
Not every lender does, and Kāinga Ora publishes the current list. This site does not rank or recommend lenders.
How do you apply?
Through a participating lender, or a home loan specialist who can approach one, usually starting with pre-approval. Once you find a home, the lender sends it to Kāinga Ora to underwrite. For KiwiSaver, see the withdrawal page.
First Home Loan questions
Is the First Home Loan a grant?
No. It is a loan you repay, just with a smaller deposit. The cash First Home Grant has closed, see what happened to the First Home Grant.
Can the deposit be a gift or come from KiwiSaver?
Kāinga Ora says a relative can gift it, and one participating lender counts KiwiSaver as cash. See gifted deposit for a first home.
What if I earn over the cap?
A new build can need 10%, and other buyers use a bigger deposit or a low equity loan with a premium.
Do I apply to Kāinga Ora?
No. You talk to a participating lender, and Kāinga Ora underwrites the loan. This site does not approve loans or offer the First Home Loan.
Figures as at 5 October 2026. Sources: Kāinga Ora, First Home Loan, Kāinga Ora, First Home Loan income caps, interest.co.nz, First Home Loan insurance, RNZ, First Home Loan lenders, calculate.co.nz, NZ mortgage lending rules, Unity, First Home Loan deposit.
Reviewed against Kāinga Ora, interest.co.nz, RNZ, calculate.co.nz and Unity. General information only, not financial advice.