If You Have $40,000 in KiwiSaver, You’re Closer to Home Ownership Than You Think

For many Kiwis, the dream of owning a first home feels just out of reach, especially in Auckland. Rising house prices, changing loan rules, and confusing deposit requirements can make the goal seem further away than it really is. 

But here’s the truth: you might already be much closer than you think.

How a 5% Deposit Changes the Game

Let’s say you’ve been eyeing a new-build townhouse in Auckland for around $800,000. Under the First Home Loan scheme, eligible buyers can secure lending with as little as 5% deposit. That’s just $40,000 – not the daunting $160,000 you’d need for a standard 20% deposit.

If you and your partner have $40,000 each in KiwiSaver, or even a combined $40,000–$50,000, you could already have enough to take the next step. Many first-home buyers are surprised to learn that KiwiSaver withdrawals and the First Home Grant can form the bulk of their deposit, meaning the savings you’ve been building for years could now open the door to your first home.

Why New Builds Are the Smart Play

In the current market, new-build homes are one of the most accessible pathways for first-home buyers. They’re not only eligible for the 5% deposit option but often come with extra advantages:

• Lower maintenance and running costs. Everything’s new – from insulation to appliances – which keeps long-term costs down.
• Modern design and efficiency. Smart layouts, energy-efficient lighting, and heat pumps are standard in most developments.
• Turnkey convenience. Many developers offer fixed-price, move-in-ready homes, eliminating construction risk for buyers.

Developments like Karaka, Drury, Henderson, and Papakura are now seeing a wave of quality new-build options in the $750,000–$850,000 range – perfect territory for first-home buyers using KiwiSaver and the First Home Loan.

The Market Is Finally Turning in Your Favour

After several years of tightening conditions, the environment for first-home buyers is improving:

• Interest rates are easing. With the OCR forecast to drop into 2026, mortgage rates are softening, improving affordability.
• More choice, less competition. Developers are offering incentives, and there’s a healthy supply of new homes – giving buyers more negotiating power.
• Stabilising prices. While values aren’t falling sharply, they’re far more stable, creating a window of opportunity before demand picks up again.

For many young professionals and families, this combination means now is one of the best times in recent years to enter the market.

What to Do Next

If you have $40,000 or more in KiwiSaver, you could be closer to buying your first home than you realise. The next step is simply understanding your options – how much you can borrow, what’s realistic for your budget, and what government support you qualify for.

At The Mortgage Hub, our advisers work with first-home buyers every day to structure smart lending solutions that fit your goals – not the bank’s. We’ll help you:

• Calculate your KiwiSaver eligibility and withdrawal amount.
• Understand how the First Home Loan works (and which lenders participate).
• Explore properties and developments that qualify for low-deposit lending.
• Plan for future rate changes and repayments with confidence.

And the best part? Our advice is completely free.

Take the First Step

You don’t have to have all the answers – you just need to start the conversation. Watch the video by our director Mils Muliaina, where he explains how first-home buyers can take advantage of today’s market, and why the next few months could be a turning point for many aspiring homeowners.

If you’re ready to explore what’s possible, send us a message. You might be in your new home by Christmas.