The Kainga Ora First Home Loan - What Canterbury Buyers Need to Know

The Kainga Ora First Home Loan is one of the most useful tools available to Canterbury first home buyers who have saved a deposit but cannot yet reach the 20% threshold. It allows eligible buyers to purchase a home with just a 5% deposit, with Kainga Ora underwriting the additional risk for the participating bank.

What the First Home Loan Is

The First Home Loan is not a grant - it is a mortgage underwritten by Kainga Ora that allows participating banks to lend to eligible buyers with only a 5% deposit. Without the scheme, banks require 20% (or as low as 10-15% within their speed limits). Kainga Ora's underwriting of the additional risk enables banks to extend lending to buyers with smaller deposits. There is no separate cash payment to the buyer - the benefit is access to a home loan you may not otherwise qualify for.

Who Is Eligible

To qualify for the First Home Loan, you must: be a New Zealand citizen, permanent resident, or resident visa holder ordinarily resident in New Zealand; be a first home buyer (or qualify under the second-chance provision if you have owned property before but are in a similar financial position to a first-time buyer); have a household income in the last 12 months below the income caps (approximately $95,000 for a single buyer, $150,000 for buyers with dependants or multiple buyers); have a minimum 5% deposit available; and intend to live in the property as your primary residence for at least 6-12 months. There is no house price cap under the First Home Loan scheme - it was removed to give buyers more flexibility.

Which Banks Offer the First Home Loan

Not all banks participate in the First Home Loan scheme. Kainga Ora's website at kaingaora.govt.nz lists the current participating lenders. ANZ, ASB, BNZ, Westpac, Kiwibank, and others participate, but each lender applies their own additional credit criteria on top of the Kainga Ora minimum requirements. Getting advice from a mortgage broker who regularly places First Home Loan applications is the most efficient path to identifying which lender is best suited to your specific situation.

The First Home Grant Was Discontinued

Note that the Kainga Ora First Home Grant - a cash grant of up to $10,000 for new builds - was withdrawn by the New Zealand Government in 2024 and is no longer available. The First Home Loan remains available. Always check kaingaora.govt.nz for current scheme information as government housing assistance programmes can change.

Information from Kainga Ora (kaingaora.govt.nz), Lifetimes NZ, and One Stop Financial. For general information only - always confirm current eligibility criteria directly with Kainga Ora or a qualified mortgage adviser.