What It Really Costs to Buy a $700,000 Home in New Zealand

Buying a home is one of the biggest financial decisions most people will ever make. But while the advertised price might say $700,000, the real cost of purchasing goes well beyond the sticker.

Here’s a clear breakdown of what to expect if you’re looking to purchase a $700,000 home in New Zealand.

The Deposit

For a new build, most lenders require a 10% deposit. On a $700,000 home, that’s $70,000 upfront.

If you’re purchasing an existing property, the required deposit can often be higher –typically around 20%. In that case, you’d need $140,000.

The size of your deposit affects not only your loan approval but also the amount of interest you’ll pay over time.

Building Inspection

While not mandatory, a building inspection is strongly recommended. Hidden issues can cost far more to repair than the inspection itself.

• Typical cost: $800 – $1,500
• Example: If your inspector uncovers moisture issues early, it could save you tens of thousands in future remedial work.

Think of this as insurance for peace of mind.

Legal Fees

The legal side of buying a home is mandatory. This includes conveyancing, title checks, drafting the Sale & Purchase agreement, and ordering reports such as the LIM (Land Information Memorandum).

• Typical cost: $1,500 – $3,000
• Larger or more complex transactions (like cross-leased or unit-titled properties) may be at the higher end of this range.

Having an experienced property lawyer ensures there are no surprises down the track.

Mortgage Repayments

This is where most buyers focus – the weekly or monthly cost of the loan.

On a $700,000 property with a 10% deposit ($70,000), you’d need a mortgage of $630,000.

At a 4.75% one-year fixed rate over 30 years, repayments would be approximately:

• $776 per week
• That’s around $3,360 per month

Keep in mind that interest rates fluctuate, and the term you fix your mortgage for can make a big difference in what you pay over time.

Ongoing Ownership Costs

Owning a home doesn’t stop at mortgage repayments. You’ll also need to budget for:

• Rates: Paid to the council to cover local services, usually $2,500 – $4,000 per year depending on the property.
• Insurance: Both house and contents insurance, often $1,500 – $3,000 per year.
• Maintenance: General upkeep like painting, roofing, or plumbing repairs. As a rule of thumb, many financial advisers recommend budgeting 1% of the property’s value per year – about $7,000 annually for a $700,000 home.

These aren’t just costs – they’re part of protecting your investment so it grows in value and can one day become a legacy for your children.

Putting It All Together

Here’s a simplified example of upfront and ongoing costs:

• Deposit: $70,000 (10% new build)
• Inspection: $1,000 (average)
• Legal Fees: $2,000 (average)
• First Year’s Mortgage: $40,300 (approx. $776 × 52 weeks)
• Rates, Insurance & Maintenance: $11,000+ annually

First-year cost of ownership: approximately $124,300 (including deposit, setup, and one year of ownership).

The Bottom Line

Buying a home is more than just affording the purchase price. It’s about planning for the full picture – the deposit, the hidden costs, and the ongoing responsibilities of ownership.

With the right preparation, these costs become an investment in security, stability, and a future you and your family can build on.

Watch the video to see this breakdown explained step by step. If you’d like a personalised calculation for your situation, send us a DM – our advice is free, and it could make your journey smoother.