First Home Loans from just 5% deposit

We help people across New Zealand get on the property ladder. Your journey to homeownership starts here with Unity.

First Home Loans from just 5% deposit

We help people across New Zealand get on the property ladder. Your journey to homeownership starts here with Unity.

Step closer to your first home.

Buying your first home can be a daunting task, but it doesn't have to be. With a First Home Loan from as little as 5% deposit, you could be one step closer to owning your own home.

Learn more below about First Home Loans, supported by Kāinga Ora - Homes & Communities, and start your homeownership journey today.  

First home buyer special*

3.99% p.a.

12 months fixed

$5,000

Cash Contribution

See all home loan rates.

*Available for new lending to First Home Buyers from $250,000. Minimum 20% equity required. Offer also available for Kāinga Ora First Home Loan. This offer is subject to change and could be withdrawn at any time and without notice. Cash contribution terms and conditions apply.

First Home Loan eligibility

To be eligible for a Kāinga Ora First Home Loan with Unity, you need to meet the following criteria:

  • Be at least 18 years of age
  • Be a New Zealand Citizen, Permanent Resident Visa holder, or Resident Visa holder who is ‘ordinarily a resident in New Zealand’.
  • Have a before-tax income from the last 12 months of:
    • $95,000 or less for an individual buyer without dependants; or
    • $150,000 or less for an individual buyer with one or more dependants; or
    • $150,000 or less (combined) for two or more buyers, regardless of the number of dependants
  • Have a minimum deposit that is at least 5% of the purchase price of the home you are interested in buying (inclusive of all savings, grants, first-home withdrawals, and gifts)
  • Be a first-home buyer, or a previous homeowner in a similar financial position to a first-home buyer
  • Be purchasing a home for you to live in as your primary place of residence
  • Not own any other property or land, this does not include ownership of Māori land
  • Be purchasing a property of less than 1 hectare
  • Pay a 1.2% Lender’s Mortgage Insurance premium

For more information on Kāinga Ora’s First Home loan, visit the Kāinga Ora website. 

If you don’t think you are eligible for a First Home Loan, you may still qualify for a Home Loan with Unity.

First home buying, made easy

Buying a new property is one of the biggest decisions you’ll make in your lifetime. It can be challenging for even the savviest investor – even more so if you’re a first home buyer.

Which is why we’ve developed a first-home buyers guide, to help you navigate the process. From the ups and downs to the ins and the outs of buying your first home, we’ve got you covered. So, let’s get started!

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Planning to buy

Budgeting, planning and things to consider before looking to buy.

Couple house hunting with a real estate agent2

Property hunting

Tools and information to help you enhance your property search.

Two women discussing a sale and purchase agreement2

Making an offer

Understanding how the offer process and sale methods work.

Couple celebrate moving into their new home together

Finalising the sale

From finalising your loan to settlement and moving in.

Help with your deposit

If you’re struggling to save enough for a First Home Loan deposit, there are options available to help you get there faster.

Gifting - Many Kiwis turn to their family members (or the ‘bank of Mum and Dad’ as it's sometimes referred to!) to build a deposit for their first home. Not all lenders will accept a fully gifted deposit, as they generally prefer that you are contributing at least 5% yourself through saving or the sale of an asset in addition to the gifted sum.

With that said, gifting is a great way to help build your deposit faster. After all, every bit helps. You’ll need your gifter to sign a declaration as evidence that these funds do not need to be paid back. 

KiwiSaver - If you’ve been contributing to KiwiSaver for more than three years, you may be eligible to withdraw your KiwiSaver savings to purchase your first home. You must intend to live in the property, be a first home buyer, and purchase a property within New Zealand.

Provided you meet the eligibility criteria, you can withdraw all but $1,000 of your total KiwiSaver balance to put towards buying your first home in NZ.

Why choose Unity?

At Unity, we make home ownership simple with competitive rates, flexible terms, and an easy application process.

As a member-owned not for profit, we put people first - offering expert support for first home buyers, and straightforward lending that works for you.

Find out more

Ready to make the move?

If you're ready to complete a home loan application, let's get started.

  1. Simply download our full pdf application form below.
  2. Complete with your details. 
  3. Email to homeloans@unitymoney.co.nz to apply. Easy.

Apply now

Helpful guides for first home buyers

An open laptop displays graphs and tables to represent finances.

How much deposit do I need to buy a house?

Saving a deposit can be the biggest hurdle when buying your first home. Find out how much deposit you need to buy your first home in NZ - and what help is available.

A man sitting on his deck smiles as he works on a laptop.

As a first home buyer, where do I start?

Applying for your first home may seem complicated, but it doesn't have to be. From deposits to financial assistance, we're here to help you understand the ins and outs. Check out our guide to buying your first home in NZ.

A woman standing in front of colleagues smiles as she holds a coffee cup and notepad.

What happens if I can't make my repayments?

We understand that sometimes your situation can change, but it's important to keep up with your loan repayments. Discover what happens when payments are missed and steps to prevent it.

First home buyer FAQ's

To be eligible for a First Home Loan in NZ, you must:

  • Be a New Zealand citizen or a resident visa holder who is "ordinarily resident in New Zealand"
  • Be a first home buyer, or a previous homeowner in a similar financial position to a first home buyer
  • Have a before tax income from the last 12 months of:
    • $95,000 or less for an individual buyer without dependants; or
    • $150,000 or less for an individual buyer with one or more dependants; or
    • $150,000 or less (combined) for two or more buyers, regardless of the number of dependants

In addition, you must:

  • Have a minimum deposit that is at least 5% of the purchase price of the home you are interested in buying (inclusive of all savings, grants, first-home withdrawals, and gifts)
  • Be purchasing a home for you to live in as your primary place of residence
  • Not own any other property or land, this does not include ownership of Māori land
  • Be purchasing a property of less than 1 hectare
  • Pay a 1.2% Lender’s Mortgage Insurance premium and loan application fee (if applied by the lender)

If you don’t think you are eligible for a First Home Loan, you may still qualify for a Home Loan with Unity.  

For more information on First Home Loans visit kaingaora.govt.nz.

To buy a home in New Zealand with a First Home Loan, you must have a deposit of at least 5% of the purchase price and meet the following criteria:

  • Deposit must be in the form of cash (this includes any KiwiSaver withdrawal).
  • The deposit cannot be borrowed.
  • A builder’s gift or vendor finance is not an acceptable form of deposit.
  • Deposit may be from a non-repayable gift, as detailed below.

Gift

Many Kiwis’ turn to the bank of Mum and Dad to build a deposit for their first home. However, your lender may not accept a fully gifted deposit. Most lenders will want to see that you have at least 5% of the total property price in savings. Gifting is a great way to build your deposit. After all, every bit helps. You'll need your gifter to sign a declaration as evidence that these funds do not need to be paid back.

You may be eligible to use your KiwiSaver towards the purchase your first home if you:

  • Have invested in KiwiSaver for at least three years
  • Are a first-home buyer or landowner
  • Are purchasing within New Zealand
  • Will be living at the property (as opposed to renting it out)
  • Not have withdrawn from your KiwiSaver before

Find out more about KiwiSaver for First Home Buyers.

A home loan pre-approval lets you know much you could borrow before you start looking at properties to buy. It can also speed up the process for getting a fully approved loan, once you’ve found a home you want to buy.

A pre-approval is usually conditional, which means your lender may set certain requirements that need to be met before the loan can be fully approved. These conditions will be outlined in your pre-approval or letter of offer. Pre-approvals are valid for a limited time (for example, 60 days), and if your financial situation changes during that period, you’ll need to let your lender know straight away.

Why should I apply for a home loan pre-approval?

✔ Know your budget
A pre-approval gives you a realistic price range to work within, so you can avoid falling in love with homes that are out of reach.

✔ Show you’re serious
Agents and sellers will take your offer more seriously if you’ve already got pre-approval — it shows you’re ready to go.

✔ Speed things up later
You’ve already done a lot of the paperwork upfront, which makes the final approval process quicker once you find the right home.

✔ Get expert support early
When you apply for pre-approval, you’ll be working with a home lender who can answer your questions and guide you through the next steps.

What do I need to apply?

To assess your pre-approval application, you'll need to provide documentation that enables the lender to understand your current financial picture:

  • Proof of income – recent payslips or income statements
  • Bank statements – to show your everyday spending and savings
  • Details of your debts – including credit cards, personal loans, or buy-now-pay-later
  • Identification – such as your driver licence or passport
  • Details of your deposit – where it’s coming from (savings, KiwiSaver, or a gift from a family member). If you are a first-home buyer, you may qualify for a First Home Loan, with as little as 5% deposit. Alternatively, a minimum of 20% deposit is required.

Your lender might also ask for other documents depending on your situation.

Ready to take the first step?

Whether you're just starting to think about buying or you're already on the hunt, getting pre-approved is a great way to be prepared and confident.

Applying for a home loan pre-approval with Unity is easy. Just download our full application form, fill it out with your details, and email it to homeloans@unitymoney.co.nz to get started.

Cash contributions are available for new lending above $250,0000. Please refer to our cash contribution terms and conditions for more information.

The cost of the LMI is charged as either extra interest or an additional one-off charge, on top of your mortgage. 

For example:

  • A $500,000 mortgage plus a 0.50% LMI
  • 1.2% LMI of $500,000 equals $6,000
  • The total loan would be a $500,000 mortgage plus $2,500 LMI, which equals $502,500

LMI may be required if your home loan deposit is less than 20% of your property’s 'lender-assessed value'. This is a value based on your lender’s valuation of the property you want to purchase. Your Lender is required to disclose the amount and % of your LMI in your loan approval before you accept the loan and proceed with the loan. 

The purpose of LMI is to protect your mortgage lender against potential financial loss. If you cannot meet your loan repayments and are unable to come to an agreement with your lender, your property may need to be sold to cover the amount outstanding on your home loan. In some instances, the property is sold for less than the amount you still owe on your home loan, in which case your lender can make a claim with the LMI provider for the money it lost.  

For example: 

  • You default on your home loan and still owe $400,000 on the home. 
  • Your lender then sells the property to recover the amount you owe – but they only manage to sell the property for $350,000. 
  • That means there is a shortfall of $50,000 

In this case, your lender may claim the shortfall from the LMI provider. This doesn’t mean that your debt is absolved. It’s important to note that you’ll still owe the shortfall amount, but you may have to repay that money to the insurer, rather than your original lender. 

What are the different payment options, and can I make extra payments? Find out here.