10% deposit for a new build in NZ: how it works
New builds can need a 10% deposit because they sit outside the RBNZ speed limit on low-deposit lending. On the $720,000 median first-home price, 10% is $72,000, against $144,000 at 20%.
Why does a new build need a smaller deposit?
The Reserve Bank (RBNZ) limits lending above 80% of a home's value to 25% of each bank's new owner-occupier lending, to cool risk in the existing-home market. New homes add supply, so MoneyBalance and Calculate.co.nz both report they sit outside that limit, which is why some lenders will look at a 10% deposit on a new build. Each lender sets its own rules.
What counts as a new build?
The Reserve Bank's exemption covers building a new home, or buying a newly built home from the developer within 6 months of completion. Some lenders use their own definition, such as a Code Compliance Certificate (the council's Building Code sign-off) from the last 12 months, so check with yours. A resale by an owner or a major renovation doesn't usually qualify.
How much is a 10% deposit on a new build?
| Price | 10% (new build) | 5% (First Home Loan) | 20% (usual) |
|---|---|---|---|
| $300,000 | $30,000 | $15,000 | $60,000 |
| $400,000 | $40,000 | $20,000 | $80,000 |
| $500,000 | $50,000 | $25,000 | $100,000 |
| $720,000 (median first home) | $72,000 | $36,000 | $144,000 |
What does the loan look like at 10% and 20%?
A bigger deposit means a smaller loan and lower repayments. Rates change often, so check lenders' current rates and try your own numbers in the repayment calculator.
What is the catch?
The loan is bigger, and with less than 20% equity a low equity premium can apply until your equity grows. Lenders also look closely at the builder, the contract and how payments are staged. Builds can take months, and pre-approval is usually valid for 90 days, but it pays to check with your lender, including what happens if the build runs late. Get your lawyer to check the contract too.
New builds and the First Home Loan
MoneyBalance says you can combine a new build with the First Home Loan to reach a 5% deposit, within the income caps on the Kāinga Ora First Home Loan page. The First Home Loan is reported to be exempt from the Reserve Bank's deposit and debt-to-income limits. Check the latest with Kāinga Ora or your lender.
Questions about new-build deposits
Can I buy a new build with a 5% deposit?
MoneyBalance says first-home buyers can combine a new build with the First Home Loan to reach 5%, with the scheme rules and the lender's rules both applying.
Does a house I buy from the first owner count as new?
Not if it is a resale. MoneyBalance says existing homes resold by an owner don't qualify, even if recently built, but buying from the developer as the first buyer can.
Is the new-build rule permanent?
No. The RBNZ reviews its settings and left them unchanged at its review on 13 August 2026, according to Newsquawk. Your lender can confirm what applies when you apply.
Do I still need KiwiSaver and savings?
Yes, the deposit still has to come from somewhere, usually savings, a KiwiSaver withdrawal or a gift.
Figures as at 5 October 2026. Sources: MoneyBalance, new build LVR, MoneyBalance, LVR rules 2026, calculate.co.nz, NZ mortgage lending rules, MPA, RBNZ speed limits from December 2025, Newsquawk, RBNZ keeps LVR settings, Kāinga Ora, First Home Loan, calculate.co.nz, first-home total cost.
Reviewed against MoneyBalance, calculate.co.nz, MPA, Newsquawk and Kāinga Ora. General information only, not financial advice.