First Home Loan

A first home loan ( New Zealand) can reduce the down payment requirement by up to 5% and make your first home even easier.

Getting a down payment on your first home can be difficult, as most lenders now require at least a 20% down payment. But you only need a 5% deposit on a first home loan, which means it’s easier to buy your first home.

First Home Loans offered by selected banks and other lenders and collected by Kainga Ora. This causes borrowers to borrow more than the standard loan amount.

If you are interested in a first home loan, please discuss your needs and personal situation with a participating lender.


In addition to paying a 5% deposit, you will also need to meet our initial loan requirements. You will also need to meet the credit criteria of the participating firm or loan you choose.

To qualify for a first home loan you must:

  • New Zealand citizen, permanent resident or “New Zealand Ordinary Resident” resident visa holder.
  • First home buyer or previous home owner in similar financial situation to the first home buyer.
  • Home has pre-tax income. during the last 12 months:
  1. $95,000 or less for a non-resident buyer.
  2. $150,000 or less for one or more dependents.
  3. $150,000 or less (in total) for two or more recipients regardless of the number of family members or family members.

Other requirements:

You must also:

  • Make a minimum deposit of at least 5% of the purchase price of the home you wish to buy (including all savings, subsidies, first-buyer deductions and gifts).
  • Buy a house your residence.
  • Other property or land you do not own, this does not include title to Maori land.
  • Buy less than 1 hectare.
  • Pay 0.5% mortgage and loan fees (if requested by the borrower).

Bank loan:

In order to get a housing loan, you must also meet the loan conditions of the participating bank or lender.

Banks and lenders will own their loans and will evaluate you as part of the loan process, including your financial strength to repay the loan, current debt and credit history.

Some participating banks and lenders may allow you to use your first home loan to build a new home. Ask your lender if they do this and what their process is.

Applying for a first home loan:

To apply for a first home loan, you must select a participating lender and complete the loan application. You can find a list of participating lenders in the section below.
Each lender has its own credit criteria that you must meet in order to qualify for a first home loan. Follow the steps below; will guide you through the process.

  • Meet the Requirements – Make sure you meet all of the eligibility criteria above.
  • Select Lender – Choose from the list of participating lenders in the section below.
  • Take 5% Deposit – If you need help depositing, there are many ways.
  • Complete Loan Application – Although the government has set eligibility criteria for the initial loan, each lender has their own loan criteria that must be met.


You can apply for the first loan before approval or final approval:

  • Pre-approval – Applying for pre-approval allows you to verify that you meet the borrower’s and lender’s eligibility requirements. Lenders will be able to tell you how they plan to lend you money. Then you can find the right product in that price range. Once you find a property, you can go back to your lender for final loan approval.
  • Final approval – If you have found the property you want to buy with the initial mortgage, you can request final approval. In this case, the lender will examine whether your situation and property are eligible for the loan.


If I am rejected by one lender, will I still be accepted by another lender?

Each lender will use a slightly different loan structure. You should discuss your personal situation with the relevant lender.

What is the difference between a “provider” deposit and a “financial” deposit?

A deposit is the price you pay to purchase a product. Most lenders require a minimum deposit of 20%. For the first mortgage you have to pay a 5% deposit. A seller’s deposit is when a seller of a property must pay a security deposit for the property before paying. This is usually the landlord’s responsibility until doomsday. You cannot use the First Host Grant to pay a seller’s deposit.

Is First Home Loan Mortgage Insurance Insured?

No. A prime mortgage is a type of “mortgage insurance” that insures the borrower against loss in case of default. “Credit credit insurance” is a different type of insurance that protects borrowers in case their conditions change and they cannot repay the loan.

How much is a First Home Loan?

Each lender has its own fees and expenses. One such fee is the repayment paid by Kainga Ora to the borrower’s mortgage lender to insure each home loan. The amount of this fee is 1% of the loan amount. This money can be added to the loan.

Do all first time lenders have the same requirements for a first home loan?

Not always. Kainga Ora sets minimum standards that participating lenders must meet, but lenders may use slightly different credit standards if they fully meet our minimum standards.

What if my status changes after receiving the loan?

If your conditions change after applying for a loan, you should discuss your changed conditions with the lender. They will work with you to help you repay your loan.

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