Deposit Calculator

In New Zealand, the standard deposit required to buy a home is 20% of the purchase price under the Reserve Bank of New Zealand's (RBNZ) loan-to-value ratio (LVR) restrictions. For a $700,000 home, that means a $140,000 deposit. Owner-occupiers can borrow with as little as 10% deposit, but only a limited proportion of new lending (currently 15% of new owner-occupier loans) can have LVRs above 80%. This means competition for low-deposit loans is high. First home buyers using the First Home Loan (supported by Kāinga Ora) can purchase with as little as 5% deposit, subject to income and house price caps. KiwiSaver savings can be withdrawn for a first home deposit (after three years of membership). For investment properties, a minimum 35% deposit is required under RBNZ LVR rules. Source: RBNZ — LVR Restrictions (rbnz.govt.nz); Kāinga Ora — First Home Loan.

The Reserve Bank of New Zealand's (RBNZ) loan-to-value ratio (LVR) restrictions limit the proportion of high-LVR lending banks can make. For owner-occupiers (including first home buyers), banks can lend up to 90% LVR (i.e., 10% deposit) on up to 15% of their new residential mortgage lending. In practice, this means most first home buyers are expected to have at least a 20% deposit, though some low-deposit loans are available. First home buyers using the government-backed First Home Loan (administered by Kāinga Ora) are exempt from the RBNZ LVR restrictions and can borrow with just a 5% deposit, subject to household income caps ($95,000 for one buyer, $150,000 for two or more buyers) and regional house price caps. The Welcome Home Loan has been replaced by the First Home Loan scheme. LVR rules are reviewed periodically and can change. Source: RBNZ — LVR Restrictions (rbnz.govt.nz); Kāinga Ora — First Home Loan (kaingaora.govt.nz).

Saving a home deposit in New Zealand is one of the biggest financial challenges for first home buyers. At a national median house price of around $750,000 (2025), a 20% deposit requires $150,000. Saving at $1,000 per month (a common savings rate for a working individual after rent and living costs in Auckland or Wellington) would take 12.5 years without investment growth. With KiwiSaver contributions of 3% on a $70,000 salary ($2,100/year employee + $2,100/year employer + government top-up of $260.72), the combined savings rate improves significantly. Using Sorted's deposit calculator and contributing to a conservative KiwiSaver fund earning 4–5% p.a., first home buyers can often realistically target a 10% deposit in 5–8 years for properties in more affordable regions. Using the KiwiSaver HomeStart grant (up to $10,000 for an existing home) can further reduce the saving time. Source: Kāinga Ora — KiwiSaver HomeStart Grant; CoreLogic NZ House Price Index.

The First Home Loan (previously called the Welcome Home Loan) is a government-backed mortgage scheme administered by Kāinga Ora and available through select lenders including most major banks and credit unions. It allows eligible first home buyers to purchase with just a 5% deposit instead of the usual 20%, making homeownership accessible sooner. To qualify, you must be a first home buyer (or be in a similar position to one), meet household income caps ($95,000 for a single buyer, $150,000 for two or more), meet regional house price caps (which vary from $500,000 in some regions to $875,000 in Auckland), and intend to live in the home. The government provides a guarantee to the lender covering 15% of the purchase price, reducing the lender's risk and enabling the lower deposit. Lenders mortgage insurance (LMI) is not required as with standard low-deposit loans. Source: Kāinga Ora — First Home Loan (kaingaora.govt.nz).