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Subject: Do you really need 20% to buy a home?
Most people think you need a 20% deposit to buy a home. That’s not true.
When it comes to buying a home, the first thing we need to look at is the deposit. It’s what everyone talks about, and it makes a big difference. Your deposit can impact things like:
How much house you can afford
The interest rate the bank gives you
Whether you can get a cash back or pre-approval
The type of property you can buy
Which banks will actually work with you
What can make up a deposit?
Savings and cash
KiwiSaver (after 3+ years)
A family gift (Bank of Mum and Dad still comes through for a lot of people)
Guarantor support (less common now, due to risk for the guarantor, most gift funds)
That 20% myth
People always think you need 20%. Sure, it gives you the best deals, but it’s not the only option.
5% deposit: Very strict, not many banks will do it. (pre-apporval avaivle)
10% deposit: Much easier, but interest rates are a bit higher. (pre-apporval may not be avaivle)
20% deposit: The sweet spot. Best rates and easiest approvals. (pre-approval avaialbve)
One thing that trips people up is this: your deposit doesn’t change how much the bank will lend you. It just changes the price range you can shop in.
Tomorrow I’ll break down the 5%, 10%, and 20% deposits in more detail, and what you actually need for each one.
Subject: Understanding 5%, 10% and 20% deposits
When it comes to deposits, the key numbers are 5%, 10%, and 20%. You can have amounts in between, but these are the points where banks change the rules and how they look at your application.
5% deposit
This is common for first-home buyers. The main option here is Kāinga Ora’s First Home Loan. The big win? You get access to the same special low rates as someone with a 20% deposit and pre-approval is available.
There is a small fee (around 1% of the loan), strict criteria (I’ll cover that in a separate email) and only a few banks offer it. But it gets you in the door.
There is one other bank that currently offers 5% deposit outside of Kainga Ora, but it has much higher interest rates and its much hard to get it approved as they max out their available funding for this level of lending.
10% deposit
This is usually the minimum most buyers need to get into their first home, and it’s a solid goal to aim for.
With 10%, all banks and lenders become an option, but approvals can be tougher. When banks are busy, they sometimes restrict 10% lending to existing customers only, remove pre-approvals, or pause it altogether.
20% deposit
This is the ideal. With 20%, you’ll get the best rates and the smoothest approval process. Banks tend to move quickly on these applications, and they are usually less strict about bank statements and other details.
Say you have 600k home
5% would be $30k
10% would be $60k
20% would be $120k
Subject: KiwiSaver as your deposit
For most first-time buyers, KiwiSaver makes up a big part of the deposit. And yes, you can use your KiwiSaver to buy your first home or land, but you have to tick a few boxes first.
You must be a first-home buyer
This means you’re buying your first home or land to live in. You can’t use KiwiSaver for an investment property. The intention is that you plan to live there for at least six months.
Though there’s no strict minimum time frame, it's all about your intent when you buy the home.
You must have been in KiwiSaver for at least 3 years
You don't have to be contributing the whole time, but the account needs to have been open for 3 years.
Leave $1,000 behind
You can use everything in your KiwiSaver account except the last $1,000 towards your deposit.
It's a one-time deal
You can only use the withdrawal once and once only.
Yes they are strict about it and no you can't get around this sorry.
Already owned a home before?
If you’ve owned a home in the past but don’t anymore, you might qualify for a "Second Chance" withdrawal through Kainga Ora.
It basically lets you use KiwiSaver again as if you were a first-home buyer.
You will need to apply for this with Kainga Ora, best to get on to it early in the game as can take a while sometimes.
Just a extra note your Lawyer is the one that sort your KiwiSaver.
Subject: Using the "Bank of Mum & Dad”
Apart from KiwiSaver, there are two other ways to boost your deposit besides just saving harder.
1. Gifts from family
The most common way is getting a gift, usually from close family, think Mum and Dad. These funds must be a true gift with no strings attached. Typically, the money comes from their savings, or they can use part of their equity in their home.
The bank needs a signed form stating it is a gift, not a loan that needs to be paid back.
1.5 Deed of anckolgment.
This is very simailt to a gift from faily excet it has one string attached, the gift needs to be repaid. this is prefect if mun and dad want the funds back evenretly.
The funds are not repayemble untill the home is sold.
Appart from that its exctly yhr same as a gift, just anither option to consider,
2. Guarantors
Less common these days is having a parent act as a guarantor. This means the guarantor’s property equity is used as security for your deposit. It’s very important that the guarantor fully understands their responsibilities and gets legal advice because they would be liable for the loan if things went wrong. The bank will also need to confirm the guarantor can afford the potential liability.
Because of the risks, most people choose gifting funds over using a guarantor.
These options can make a big difference, especially if your savings alone are not quite enough to reach your target deposit.
Subject: Bonus - how to increase your deposit
It’s no good knowing about deposits if we don’t talk about how to increase it.
Here are a few realistic ways to speed up the process.
Discipline is key here, but it’s a lot easier when you’ve got a clear goal to work towards.
First up, one of the easiest wins is to increase your KiwiSaver contribution rate.
If you’re at 3%, consider bumping it up to 6% or even 8%. It might not feel like much at first, but it adds up fast. Plus you can’t touch that money until you buy your home, so it’s a good way to save without temptation.
Another option is to find ways to boost your savings or income.
Moving back home, while not super glamorous but will help you save thousands in rent.
Or renting out a spare room and putting that extra cash straight into your savings account.
You could also look at increasing your income, whether that’s taking on extra hours, asking for a pay rise (the smart way, with prep and data), or even changing roles if it means better pay.
Or do you have a skill that you could use to generate income outside of you 9-5.
And finally, a simple but effective one, sell unused stuff around the home.
You’d be surprised how much you can make just from clearing out things you no longer use on Marketplace or Trade Me.
Even small changes make a big difference when you stack them up.
The more you save now, the closer you’ll be to your first home.
Subject: 3 ways to borrow more
We’ve talked about income being the main driver of how much you can borrow. The big question I always get is “how do I actually increase that?” Here’s a few ways:
Pay rise or new job
Asking for a raise is one option, but honestly the fastest way is usually changing jobs. New employers tend to pay more, and you’ve got more room to negotiate when starting.
Boarder or flatmates
Getting a flatmate in can help too. Most banks will let you count up to two flatmates’ rent as income. This can add around $80k–$100k to your borrowing per flatmate. Just know they’ll cap how much they’ll count (usually about $250 per week), even if you charge more.
Buy with mates or family
Another option is buying with someone else. Buying with a friend or family boots your total income and deposit. Just make sure you have a solid legal agreement (Property Sharing Agreement) in case one of you wants to sell later.
Tomorrow l’ll show you how to work out what your repayments might look like and how to test having a mortgage.
Subject: But what would the repayments be?
So now that we’ve covered deposits and income, the next step is looking at what the repayments might be and how you actually work them out.
Because it’s all good working on your borrowing power, but at the end of the day you’ve got to be comfortable with the repayments. Just because the bank says yes doesn’t mean it’s the right fit.
The ANZ repayment calculator is a good place to start:
https://tools.anz.co.nz/home-loans/repayment-calculator
(I like this one for this as its nice and simple to use)
Here’s what you’ll need to put in:
Loan amount: purchase price minus deposit
Interest rate: use 5% for now (typically the 20 year average is 5%)
Loan term: set to 30 years so the repayments are as low as possible
Then hit calculate and it’ll show weekly, fortnightly, and monthly repayments.
Play around with the borrowing amount and see what you would feel comfortable borrowing.
Now the real test.
Testing affordability:
Take the repayment number, minus your rent, and try saving the difference each week. It's a good way to see if it feels realistic and it also shows the bank you’ve thought about affordability.
Example:
Mortgage repayment is: $800/week
Current rent is: $550/week
Goal: Try saving an extra $250/week
Do that for a while and you’ll know pretty quickly if it’s comfortable or a stretch.
Plus, you’re saving extra deposit money in the process.
Subject: The hidden costs of buying a home
One thing people often forget when buying a home is the purchase costs.
Basically, all the money you need to pay before you get the keys.
Here’s the main stuff you’ll need to pay for:
Registered Valuation: Around $1,000, more if you need it quickly (+$300). Required if your deposit is less than 20% or for new builds. Some banks may also ask for it depending on the type of property.
Builders Report: $500–$1,000. Banks don’t always require this, but it’s a cheap form of insurance to make sure the property is what it should be. It can also help you negotiate or avoid buying a lemon.
LIM Report: About $400. This is a council record of the property, which your lawyer will review.
Lawyer Fees: $1,500–$4,000. Usually around $2,500 for a simple home purchase. Always ask for a quote or check if they do fixed fees.
Its not all bad, the bank will actually help with a lot of these costs, in the form of "cash contribution" or more affectionately known as a cash back
Cash back: Most banks offer a "cash contribution" when you settle. For first-home buyers, this is often around $5,000, or up to 1% of the loan. Depends on the bank.
A good figure to have saved for these costs is $4,000–$5,000. You might not spend all of it, but it’s better to have enough, since you’ll need to pay these before you get your cashback.
Subject: Kainga Ora 5% First home loan scheme
Here’s the deal with buying a home with just a 5% deposit.
Kāinga Ora partners with a few banks of offer this. If you tick all the boxes, you can buy with only 5% deposit instead of the usual 10% or more.
Even better, the bank will treat you like you’ve got a 20% deposit, which means you get access to the lower “special” interest rates and pre-approval as well.
There’s even a “second chance” for people who have owned property in the past but don’t currently and are in a similar position to a first home buyer.
Now the catch, there is strict criteria:
Income Caps: Single = $95k | Couple = $150k (in the last 12 months).
Live in it: You must live there (no investments).
Assets: No excessive assets (like boats or expensive cars). They want to see you’ve put everything you can toward the house.
Employment: at least 12 months in the same job, or 24 months in the same field.
Fee: LMI (Lender’s Mortgage Insurance), 1.2% of the loan, usually most added this to their mortgage. There is one bank that offers 1% fee as they pay the 0.2% for you.
If you’ve got less than 10% saved and meet the rules, this can be a great way to get into your first home sooner.
Subject: What your bank statements say about you
Account conduct is just another way of saying how your bank statements show you handle your money.
The bank is about to lend you hundreds of thousands of dollars, so they want to know you’ll be responsible with it. The easiest way for them to check is by looking at your last three months of statements. If you’re on top of things now, chances are you’ll keep up with mortgage repayments too.
Here’s what they’re looking for:
Bills paid on time every time: No Missed payments, but if it does happen paying them straight away helps.
No unarranged overdrafts try not to slip into the negatives.
No dishonoured payments: No direct debits bouncing back because of insufficient funds.
Living within your means: Spending less than you earn.
If you’ve got a few issues on your statements, don’t stress. It just means tidying things up for a while before applying. Three months of clean statements is what we need to show the bank, and you’ll be good to go.
Just be honest with yourself, when looking at your statements. Would you lend this person multiple $100,000?
What about all the spending on uber eats, online shopping, eating out?
Thats fine, the bank does understand that once most people have a mortgage they become focused on that and all that other spending reduces.
Subject: Worried about your credit score? Read this first
Most people think their credit score is the most important thing when buying a home.
But in NZ, it’s not really about the number.
Banks don’t just look at the score, they want to know why it’s that number.
Usually, a low score comes from something simple, like an unpaid bill that’s been sitting there in the background for a while.
That’s what drags it down over time.
The good news?
It’s fixable. Pay the bill in full, and then make sure every payment goes out on time.
While the "default" might stay on your record for a few years, updating it to "Paid" makes a massive difference. That shows the bank you’ve taken responsibility and cleaned up your mess.
Now please don't try to do this...
Trying to “boost” your score with a new phone, car loan, or extra debt? Don’t. That usually makes things worse, not better, because it adds more inquiries to your file.
Not sure where you stand? You can check your credit for free with the three main agencies in NZ: Centrix, Equifax, or Illion.
Just Google “free credit check NZ.”
If you see a problem, fix it fast. Even if there’s an issue, it’s not the end of the world.
The key is being upfront with the bank. Explain what happened, why it happened, and how much it was. Being honest here makes a big difference.
The bank will run their own credit check anyway, so it’s a much better look if they are aware of the issue before they find it themselves.
Subject: Is your Credit Card killing your borrowing capacity?
This surprises almost everyone.
Most people think paying down their credit card is the key to borrowing more.
But Banks care less about the balance you owe on your credit card, and more about the limit on the card.
Even if you pay your card off in full every month and card is balance is $0.00. A $6,000 limit reduces your borrowing power significantly (sometimes by as much as $45,000).
It doesn’t matter if it’s just for emergencies. The bank has to assume you could max it out tomorrow.
A lot of people spend $1000–2,000 on a card, but the limit might be $6,000 or higher. That unused limit is quietly capping your borrowing.
One simple trick is to lower the limit to roughly what you actually use. That frees up your borrowing capacity without closing the card entirely.
Want to go all in? You can pay off and close the card completely. Then it won’t count as a liability at all, and your borrowing power jumps.
It’s one of those small tweaks that can make a big difference when you’re trying to buy your first home.
Reduction in borrowing power by credit card limit
Borrowing with a $2k limit: $15k
Borrowing with a $6k limit: $45k
Subject: That car loan could be costing you a home
That sleek car in the driveway might be the reason you can’t buy the house you want.
You can still get a mortgage with car loans or personal loans, but they make it much harder to afford the place you actually want to buy.
Why?
Because every dollar of that weekly car payment is a dollar the bank can't use to calculate your mortgage repayment. It reduces your borrowing power significantly more than the value of the loan itself.
The Strategy: Deposit vs. Debt If you have a decent deposit, sometimes it actually makes sense to use part of it to pay off a car or personal loan completely.
Yes, your deposit gets smaller, but your borrowing power often jumps up because the bank isn’t factoring in that extra loan repayment anymore.
If your deposit isn’t big enough to do that, you’ll need to pay down your loans the usual way. Bit by bit.
There are two main approaches:
Snowball: Focus on the smallest loan first, pay it off, then move to the next. Feels good as you tick things off quickly.
Avalanche: Focus on the loan with the highest interest rate first. More efficient mathematically, but can feel like a slog.
Both work. The key is picking a method you can stick to.
There’s no strict rule on how much debt you can carry when buying, it really depends on your specific situation.
Ideally, your personal debt should be less than your deposit. Around $10k or less per person is a good target (not including student loans).
No debt at all? That’s the dream for max borrowing capacity.
Subject: Afterpay - buy now, pay later
I always check this with clients because somehow Afterpay has convinced us it’s not really debt.
But it is debt and it needs to be included in your mortgage application. If you keep it…
And often, people have pretty big Afterpay limits that they are not whereof
You can still buy a home with Afterpay, but it has to be included in your application, which reduces your borrowing capacity.
Banks also look at it as part of your account conduct. If your application relies on Afterpay just to get by each week, it doesn’t give the best impression.
That’s why we usually advise paying down Afterpay and closing the account before the application.
Another option is to make it a condition of your mortgage approval that the account gets closed before going unconditional.
You don't need Afterpay or others. Its a false economy. You will be much better off once you pay it off and start building your emergency fund.
Subject: Student loans
Student loans are a bit different to other types of debt we’ve talked about.
So if you’ve got a student loan, don’t stress.
Because they are interest-free and repayments are capped at 12% of your income, banks don't panic about the total balance.
Unlike a personal loan, the total amount of your student loan doesn’t really affect your mortgage application. Repayments are small, capped, and predictable, so banks treat them differently.
Yes, it does slightly reduce your weekly take-home pay, which lowers your borrowing power a little bit, but it’s rarely a dealbreaker.
Don't prioritise paying off your student loan over saving for a deposit. Cash in the bank for a deposit is worth much more to your application. What I mean is if you have a $60k vs $40k student loan your borrowing capacity won’t increase.
But if you had that $20k cash for the deposit that would make a big impact on your options.
It would increase your purchase price and possibly even determine the interest rate.
Now an important point.
Of course, it's a personal preference.
Some people just want the debt gone ASAP, while others are happy to chip away at it over time.
At the end of the day its up to you.
Subject: Kids are expensive
We all know kids are expensive. The bank knows it too.
When you apply for a mortgage, they factor in the cost of having children into their calculations.
The more kids you have, the higher your "assumed expenses" are, which drops your borrowing power.
They also look at daycare costs, which can have a huge impact on borrowing capacity.
But once they are 18 years old they are not factored into the banks calculations and borrowing capacity increases.
If you’re applying while pregnant, it’s still possible to get approved, but the bank will want to understand all the details.
They’ll ask things like:
How long will you be on leave?
Are you getting full pay or just the government contribution?
What’s your plan for returning, full time or part time?
They’ll also want a return-to-work letter from your employer.
Ideally, it’s easier to get a mortgage before having kids, but life doesn’t always work that way.
Subject: Ubereats is fine… but these will kill your application
A couple of years ago, banks had to dig into every single expense you made.
Remember those questions about Uber Eats, Kmart trips, or random online orders?
Yeah, that was thanks to CCCFA rules.
Luckily, common sense has returned.
Banks don’t care about every coffee or takeaway anymore.
They just want to see that your current lifestyle is affordable and you’re living within your means.
They know that once you’ve got a mortgage, you’ll naturally tighten things up anyway.
But there are still a few things that will kill your application fast.
1. Gambling
Buying a Lotto ticket here and there is fine.
But regular online gambling or casino spending over a few months is a big red flag.
Banks see that as risky behaviour and it makes approval tough.
2. Cash advances on credit cards
This is when you take cash out of your credit card.
It’s expensive and often linked to gambling or covering other expenses.
Banks don’t love seeing that because it looks like you’re running short each month.
3. Unarranged overdrafts
If your account goes into the negative and you get charged a fee, that’s an unarranged overdraft.
Once or twice is okay if you sort it out right away.
But if it’s happening every pay cycle, that’s a problem.
It shows the bank that you’re struggling to manage your money, which makes them hesitant to lend more.
If any of these show up on your statements, don’t stress.
You just need three months of clean bank statements, no overdrafts, no gambling, no cash advances, and you’ll be in a much stronger position to apply again.
Subject: Why the news is obsessed with the OCR
You’ll see everyone in the property space getting excited about the OCR every now and then, usually right before the Reserve Bank’s announcement.
So what actually is the OCR?
The OCR (Official Cash Rate) is the interest rate set by the Reserve Bank of New Zealand. It controls how much it costs for banks to borrow money, and that affects how much they charge you when lending it out.
When the OCR drops, it becomes cheaper for banks to borrow, so interest rates usually come down.
When it goes up, borrowing costs rise, and so do mortgage rates.
It also influences the interest you earn on your savings accounts.
The Reserve Bank changes the OCR to manage inflation. It’s one of the main levers they use to keep the economy stable.
Now, here’s where it gets important for anyone looking to buy a home.
The OCR also impacts the test rates that banks use when working out how much you can afford to borrow.
Right now, for example, the one year fixed rate is around 4.49%, but banks are testing affordability at roughly 6.85 to 6.95%.
That’s a pretty big gap, and it’s there to make sure you can still afford your mortgage if rates go up.
This protects both you and the bank. You keep your home, and the bank avoids mortgagee sales.
So when test rates start dropping, buyers who couldn’t quite afford before might suddenly find they can.
That’s why people with mortgages, or anyone trying to get one, pay close attention when the OCR moves.
A lower OCR usually means cheaper borrowing, even though it often signals the economy isn’t doing too great.
When the OCR goes up, the economy’s generally improving, but mortgages get more expensive.
It’s all about balance, and the Reserve Bank is constantly trying to find it.
Subject: Pre-approvals
Getting a pre-approval from the bank is the ideal situation when you’re looking to buy a home.
It basically means you’ve got everything sorted. Deposit, income, bank statements. The bank’s happy with it all.
They’ve said, “Yes, we’ll lend you this amount based on your details.”
That’s a great place to be because you know exactly where you stand and what your maximum purchase price is.
It saves you wasting time looking at homes you can’t actually buy.
Pre-approvals usually last between 60 to 90 days, and they can often be extended if you need more time.
But here’s something people often get wrong. A pre-approval means you are approved, not the home.
The bank still needs to approve the property itself, which is why you still need a finance condition in your offer.
If you’re pre-approved, that finance condition is usually shorter, maybe 5 to 10 days, because most of the hard work is already done.
The main reasons banks decline properties are around things like water tightness issues or missing consents, and we’ll talk more about those later.
There are also times when it’s not possible to get a pre-approval, usually if you have less than a 20 percent deposit.
That’s because banks open and close pre-approvals for low-deposit lending depending on how busy they are or how much lending they’ve got available.
If that happens, it doesn’t mean you can’t buy.
It just means we do what’s called a live deal.
That’s when you find the home, make a conditional offer, and we take that signed offer to the bank to get both the lending and the property approved at the same time.
Before you make that offer, I’ll always run your numbers through the bank calculators so we know exactly what figure you can be approved for.
It’s a bit more stressful, but you still have the finance condition so you have your exit strategy in place just incase borrowing isn’t possible.
Subject: How to get pre-approved
So here’s exactly how I help people get pre-approved, and what the process looks like.
Usually it starts with a quick chat or a few messages back and forth. The idea is just to see if your income, deposit, and any current debts are in a good enough spot to make applying worthwhile.
Once it looks like it’s worth running the numbers, I’ll send you an online form. It’s simple to fill out and covers the key details like your income, expenses, goals, employment, and any loans or debts you have. That gives me enough info to check the bank calculators and see roughly what your borrowing capacity could look like.
After that we’ll have a proper meeting to go through everything. I’ll show you which banks might be the best fit and why, what the pros and cons are, and how your numbers compare. I’ll also walk you through what to expect next, what documents are needed, and some of the extra costs that come with buying.
Once we’ve had that chat and everything still looks on track, I’ll ask for the full set of documents like IDs, bank statements, proof of deposit, and income details. I use an online system to keep it easy for you to upload everything, and I check each document carefully before sending it to the bank.
When everything’s ready, I package it all up and submit it to the bank that best fits your situation. From there, it’s mostly waiting for their response. Depending on how busy they are, it can take anywhere from three days to about a week, though sometimes it can be much longer.
Once we hear back, I’ll let you know exactly where things stand and what your next steps are from there.
Subject: Buy now with smaller deposit or wait till 20%
A question I get a lot is: “I’ve got some deposit saved, but should I keep saving until I hit 20%?”
It’s a fair question because on the surface, it sounds like waiting makes sense. But not always.
Firstly A lot of people think a bigger deposit means you can borrow more. That’s not actually true. The deposit amount doesn’t increase your borrowing capacity, your income does.
Once we get that out of the way, it really comes down to how fast you can save.
If you’re going to wait until you have a full 20% deposit, you have to make sure you can save faster than house prices are rising. Because if prices go up while you’re saving, you’ll need to save even more just to keep up.
Say you’re aiming for a $700K home. You need $140K for a 20% deposit. But if the market moves and that home goes up to $750K while you’re still saving, now your target’s $150K. You’ve just added another $10K to your savings goal without even doing anything.
On the flip side, if you bought earlier with a smaller deposit and the property value goes up, your equity grows with it. You might start with 10% equity, but as the home value increases, that number can climb pretty fast.
Yes, with a smaller deposit you’ll likely pay a higher interest rate, but once you hit 20% equity, you’ll qualify for the special rates (cheaper rates)
The key is not to get too fixated on hitting 20% and risk missing the right home now. Think about how fast you can realistically save, how quickly prices might rise, and whether your savings can keep up with the market.
Subject: The buying process
In New Zealand, there are two main ways to buy a home. You can buy at auction, or you can buy through other methods like by negotiation, deadline sale, or offers over.
Let’s start with auctions, since they’re pretty common here.
Buying at auction is a bit different because you need to be fully unconditional before you can even bid. That means you’ve done all your due diligence upfront.
Your finance needs to be sorted and approved.
Your lawyer needs to review the LIM, title, and sale documents.
If you want a building report, that needs to be done before the auction too.
And if you’re buying with less than a 20% deposit, a registered valuation is usually required as well.
The auction process moves fast, so you’ll need to have everything ready before the day. The downside is that you’ll often pay for things like lawyer checks and building reports even if you don’t end up winning the auction. But that’s just part of the game with auctions.
Now for the other types of sales like by negotiation, deadline sale, and offers over.
These are all fairly similar. You make an offer to the agent, they present it to the vendor, and if the vendor accepts, you then work through your conditions.
This is where you can make conditional offers. You can include things like:
Finance approval
Builder’s report
LIM report
Sale of your current home
Any others you may want to add
Once your offer is accepted, you’ll usually have a set number of working days to confirm those conditions.
Once everything’s sorted and you’ve gone unconditional, the property is officially yours. You’ll pay the deposit (usually 10%) and then just wait until settlement day when you get the keys.
Subject: Finding a home
When it comes to finding your first home, your best tools are Trade Me, OneRoof, Realestate.co.nz, and Homes.co.nz.
The key is to do your research online before you start driving around to open homes.
It’s easy to lose a whole weekend visiting places that aren’t right for you or are well outside your budget. That’s why using those websites properly can save you a lot of time and energy.
Each of these sites has really useful filters. You can narrow down your search by price, bedrooms, location, land size, garages, and more.
Once you know your pre-approved amount or have a rough idea of your budget, make sure you stick to it. There’s no point falling in love with a house that’s out of reach right now.
It also helps to get clear on your must-haves, nice-to-haves, and wants.
Your must-haves might be things like three bedrooms, a garage, or being in a certain school zone. Your nice-to-haves might be a second bathroom or a bigger section.
Set your filters based on your must-haves first, and then look through the listings that fit that list.
Another tip — keep an eye on what properties are actually selling for in the areas you’re interested in.
Spend a bit of time checking recent sales on Homes.co.nz or talking to local agents.
You’ll start to get a feel for what homes in different suburbs are really worth, even if a listing doesn’t show a price.
Doing that homework early makes it much easier to recognise a good opportunity when it comes up.
Subject: Open homes, what to look and ask for
Going to open homes is one of the most exciting parts of the buying journey.
You finally get to step inside the places you’ve been scrolling through online.
But after a few weekends, it can start to feel repetitive and time-consuming.
That’s why it’s worth having a plan before you start visiting.
Start by short-listing homes online using sites like are Trade Me, OneRoof, and Realestate.co.nz
Once you’ve done that, pick a few that look right and plan your open home route.
Trade Me’s app makes this easy. It automatically sorts your saved properties by open home times, so you can see which ones are on Saturday or Sunday and in what order.
Now, when you arrive at the property, take a look at the street first.
What are the neighbours like? whats the street like? Is it quiet, tidy, and well-kept?
Or are there signs of noise or mess that might become an issue later?
It’s also a good idea to drive by the next morning or evening to see what the area’s really like when things are more relaxed.
When you walk through the property, start by asking the agent a few key questions.
They might not share the exact price, but you can still learn a lot by asking:
What kind of feedback have you had from buyers so far?
What comparable sales do you have nearby?
Are there any disclosures or known issues with the property?
Agents have to disclose things like unconcented work, leaks, or structural issues. So it’s always worth asking directly.
Once you’re inside, focus on the things that are expensive to fix.
Don’t worry about wall colours or old carpet, that’s all cosmetic and easy to change. Also an opportunity for you to add value to the property.
Instead, look for damp spots, cracks, warped flooring, or anything that might signal a bigger problem.
Here are a few simple tips to make the day smoother:
Wear shoes that are easy to slip on and off, as you’ll be doing that a lot.
Take notes or photos on your phone after each property. They’ll start to blur together after a few visits.
Bring someone with you if possible. A second pair of eyes always helps you spot things you might miss.
Inside the home, think about how you’d actually live there.
Does the layout make sense? Is there enough storage?
Would your bed fit comfortably in the bedroom?
Does the kitchen have good bench space and flow for cooking or entertaining?
Pay attention to how the home sits for the sun.
North-facing rooms usually get the most warmth and light, especially in the living areas.
You can often tell by checking where the satellite dishes on the street are pointing.
Then, test everything.
Open and close doors and windows, turn on the taps to check water pressure, flush the toilet, and look inside cupboards.
And always take note of how the property smells, if you pick up damp or musty odours, it’s usually not a great sign.
Before you leave, walk around the outside.
Look for cracks in the cladding, gaps around windows, or damaged guttering.
Pay special attention to the south side of the home, it’s usually the coldest and dampest part, so it’s where any hidden issues tend to show up first.
The more homes you see, the better you’ll get at spotting what’s good value and what’s not.
After a few weekends, you’ll start to notice patterns. What you like, what you don’t, and what feels worth the money.
Subject: Freehold < cross lease < leasehold
The title type of a property is something a lot of buyers overlook, but it’s actually really important.
It affects the price, what part of the property you actually own, and what you’re allowed to do with it.
Let’s start with the ideal title, Freehold.
This is the gold standard.
You own both the house and the land it sits on, and it’s yours outright.
No shared land, no shared driveways, no one else to get permission from.
Because of that, freehold properties are usually the most expensive and the most sought after.
Next up is Cross Lease.
This one can be a bit confusing at first.
Basically, the land was once freehold but has since been divided up into smaller sections.
You and the other owners all share ownership of the land, and each person owns a house on it.
You usually share things like driveways or accessways, and if you ever want to make external changes to your home, you’ll need approval from the other owners.
Even some major internal changes might need sign-off too, depending on the setup.
It’s still a good option, just a bit more involved when it comes to dealing with your neighbours.
Then there’s Leasehold, which is the one to be cautious about.
On paper, these homes look incredibly affordable, often a fraction of the price of similar properties.
But there’s a reason for that.
With leasehold, you own the house itself, but not the land.
You pay rent every year to whoever owns the land, and that rent gets reviewed and can increase over time.
These leases usually run for decades, but they can create a lot of uncertainty and extra cost down the line.
In short: Freehold gives you full control, Cross Lease means shared land and decisions, and Leasehold can be risky if you’re not across the fine print.”
Subject: making an offer
Making an offer is one of the most important parts of the buying process. It’s where everything starts to become real, so it’s important to understand how it works before signing anything.
Attached are two things that will help:
A blank Sale and Purchase Agreement
My guide on How to Make an Offer
Let’s go through the main parts of the agreement together.
First, the buyer and seller details.
This just sets out who’s buying and who’s selling the property. Make sure your names match exactly how they appear on your bank application and ID.
Next is the purchase price.
This is the amount you’re offering for the property. I’ll send another email soon about how to decide what to offer, but for now just remember not to go above your approval amount.
We always check the bank calculators for each live deal so we know what you can get approved for.
Then there’s the deposit.
This is different from the deposit you’ve saved for the bank.
The one in the Sale and Purchase Agreement is what you pay once the contract goes unconditional. Sometimes agents write it as payable “on acceptance,” but ideally avoid that.
It has to be available in your account at that time.
Agents often ask for 10%, but it can be 5%, $1, $10,000, or even zero.
If your deposit is coming from KiwiSaver, make sure your lawyer adds the right wording and checks that the funds will be available in time.
After that come the conditions.
These are the things you need to tick off before going unconditional.
Common ones are finance, LIM, and building report.
You’ll tick yes or no for each and add how many working days you want to get them sorted.
Here’s what that usually looks like:
Finance: The bank still needs to approve the property and might need a valuation. Usually allow 10 to 15 working days.
Building report: If you’re getting one done, check how long your inspector needs.
LIM: Your lawyer can confirm how long this takes.
You can also add extra conditions if needed. The seller can do the same, so make sure you read everything carefully before signing.
Most importantly, always get your lawyer to review the agreement before you sign.
Once it’s signed, it’s a legally binding contract.
Tomorrow I’ll send you a quick email on how to make your offer better with out paying more.
P.S. If you’d like a hand getting to the point where you can start putting offers on homes and walk through crafting the perfect offer, feel free to reach out for a chat.
Subject: Making better offers
(without paying more)
When you’re buying your first home, your budget usually decides how much you can offer.
And yeah, the easiest way to make your offer stronger is to pay more than everyone else.
But if you’re already maxed out, that’s not an option.
So here’s how to make your offer stand out without spending any extra.
First up, look at your conditions.
You’ll usually have things like finance, LIM, or a building report.
Those are important to include, but you can still make your offer stronger by reducing how many you have, or how long you need to get them done.
For example, instead of 15 working days for finance, could you do 10? Or even 5?
That shows you’re serious and ready to move quickly.
Just make sure you can actually meet those timeframes before you write them in.
Here’s what two offers might look like:
15 days
Finance
LIM report
Builders report
5 days
Finance
LIM report - check with your lawyer, or get them to check it first and possibly remove as a condition.
Same price, same deposit, just slightly different conditions.
If you were the seller, which one would look better to you?
Next, think about settlement.
If you can be flexible with the settlement date, that can make a big difference.
The seller might already have their next place lined up, so if you can match their timing, your offer becomes easier for them to say yes to.
Another thing that helps is the deposit.
A higher deposit in the Sale and Purchase Agreement (not your savings for the bank) can show you’re serious.
Just make sure you actually have those funds ready when needed.
Something else that can help is adding a short note with your offer.
Some clients I’ve worked with have written a quick message to the seller, just saying who they are, that they’re buying their first home, and why they liked the property.
It doesn’t always make the difference, but sometimes it really helps, especially if the seller has an emotional connection to the home.
You can also ask the agent what would make your offer stronger.
Just remember, they work for the seller. But they usually know what the seller’s looking for.
And always get your lawyer to check your offer before signing.
Once you sign, it’s a legal contract, so it’s worth the extra step.
Subject: How much to offer?
One of the questions I get asked the most is: “How much should I offer on a property?”
It’s a tricky one because there’s no single answer. But there is a way to become an expert at figuring out what a property is actually worth.
Most people start by looking online.
Sites like Trade Me, OneRoof, or RealEstate.co.nz will give you a computer-generated range for a property. This is based on recent sales in the area, land size, bedroom count, and other factors. It gives a rough idea, but it doesn’t account for the condition of the home or the little things that could make a big difference.
To really know what a property is worth, you need to dig a bit deeper.
Go to open homes, take notes, and track what similar homes actually sold for. Ask the agent for feedback and get a sense of the seller’s expectations. If the seller isn’t realistic, even the best offer might get rejected.
It also helps to know the history of the property.
If the seller bought it recently, they might be fixed on a higher price. If they’ve owned it a long time, they could be more flexible.
Also keep in mind that listings aren’t always exact.
Agents often list homes lower than the seller’s target to attract more buyers. A property listed at $600K could really be aiming for $700K.
Competition matters too.
Are you the only one making an offer, or are there multiple buyers? If there’s no competition, you can be more conservative. If there are multiple offers, you might need to stretch a bit to secure the home.
At the end of the day, it comes down to what you’re comfortable offering and what the seller will accept.
Sometimes that means offering a little more than you wanted. For first-home buyers, that often happens. The upside is you get a place to live, start paying down your own mortgage, and over time the property is likely to increase in value anyway.
Subject: You’ll need a lawyer
When buying a property, you need a lawyer.
You don’t need to get one straight away, but it pays to get a few recommendations and have a chat with a couple early on. That way, when you’re ready to put in an offer, you’re not rushing around trying to find someone.
You’ll definitely need a lawyer when you go to make an offer because you’ll be signing legal documents. You want to make sure you have all the right conditions in there to protect yourself and that you’re getting proper legal advice before you sign anything. The Sale and Purchase Agreement is a legal document, so your lawyer should review it and give you the all-clear before you sign.
Your lawyer is also important throughout the whole process. They’ll review the LIM report and title documents to make sure everything checks out and that all work on the property has the right consents.
They’re also the ones who handle your KiwiSaver withdrawal. Lawyers are the only ones who can do this. You’ll meet with them, fill out the request forms, and they’ll contact your provider to withdraw the funds into their trust account.
They’ll also communicate with the seller’s lawyer. There’s usually a bit of back and forth, especially after the pre-settlement inspection if anything needs to be sorted before settlement.
Settlement day is where your lawyer does most of the heavy lifting. By that stage, your part is mostly done. They’ll coordinate with the bank, transfer the funds to the seller’s lawyer, register the mortgage, and transfer the title into your name. That’s the moment you officially become the legal owner of the property.
You’ll need to pay your lawyer at the end, usually on or just after settlement day. The cost is typically around $2,000 to $3,000, depending on how complex the purchase is and how much time they spend on it. You can often use your cash back from the bank to cover this cost.
Before engaging a lawyer, make sure you understand their pricing. Many now offer fixed fees for first home buyers or detailed quotes listing all the costs involved. It’s a good idea to get that upfront so there are no surprises later.
A good lawyer is critical when buying a home, so take your time to find one you feel comfortable with and trust.
Subject: Valuations - will you need one?
Sometimes the bank will require a registered valuation.
This can make or break a deal, so it’s important to understand when you’ll need one and what can happen once it comes back.
You’ll usually need a valuation if:
You have less than a 20% deposit.
You’re buying a brand-new property or building a home.
There’s a big difference between the bank’s estimated value and the price you’re offering.
Typically, it takes six days. If you need it urgently, you can pay extra and get it in three days. Costs are usually around $1,000, plus about $300 for urgent service.
The tricky part is if the valuation comes back lower than your purchase price. The bank will only lend based on the lower of the two numbers (Purchase Price vs. Valuation).
For example:
Say you offer $1 million on a property with a 10% deposit of $100,000.
The bank will only lend 90% of the valuation.
If the valuer says the property is worth $900,000, the bank will lend $810,000.
That now leaves you with a $90,000 gap to cover plus the original $100,000 if you still want the property.
So now the deposit in total is $190,000
And now it easy to see why you don't want it to come back lower...
This is why it’s important to sort valuations before auctions or going unconditional.
Most of the time, valuations come back very close to the purchase price. Sometimes they even come back higher, which is a bonus.
But if it comes back lower, you have three options:
Walk away from the property.
Negotiate with the seller to reduce the price.
Find the extra funds from somewhere else, outside the bank.
Valuations are a key part of making sure your deal is safe and realistic.
They give the bank confidence and protect you from overpaying.
Subject: The cheapest insurance you can buy - Building reports
A building report is always a good idea if you’re serious about buying a property.
Even if the bank doesn’t require one, it’s smart to include a building report condition when you make an offer.
Sometimes banks will ask for one, especially if the property raises any red flags, but even if they don’t, it’s worth doing for your own peace of mind.
You’re about to spend a lot of money, probably one of the biggest purchases of your life. You want to make sure what you’re buying is exactly what you think it is, structurally sound, no hidden issues, and in the condition you expect.
Even with a new build, it’s still worth getting one. Sometimes things get rushed on site or small details get missed, and a building report helps pick these up early. If something does come up, you can go back to the seller to get it sorted before you go unconditional.
The bank might also ask for a report if the property is flagged as higher risk, for example plaster homes or anything that could be considered a “leaky home.” In those cases, they’ll usually want a structural or watertightness report to confirm everything checks out.
You can definitely take your builder mate along to an open home for a quick look, but if you’re putting in an offer, you’ll want a proper, registered building inspection. That way, it’s fully insured, certified, and recognised by the bank.
Think of it as cheap insurance for peace of mind. You’re spending hundreds of thousands (or millions), so spending a bit extra to make sure the place is solid is well worth it.
Subject: Property red flags to avoid
There are a couple of big red flags you really want to watch out for when buying a home. The main two are unconsented works and plaster homes (better known as leaky homes).
These cause problems because they’re red flags for the bank too. When they plug the address into their system, it can trigger extra checks or sometimes even rule the property out completely. It can also be a headache later if you go to sell, since a buyer might pick up on the same issues.
The first one, unconsented works, is pretty common in NZ thanks to our DIY culture and “she’ll be right” attitude. A lot of stuff gets done over weekends that really should have gone through the proper council process. Bathrooms are a big one, especially tiled ones where the waterproofing hasn’t been signed off. Fireplaces or pellet fires are another classic example where the paperwork isn’t sorted.
The issue is that you usually can’t get insurance if the work isn’t consented. And if you can’t get insurance, you won’t be able to get a mortgage either. Banks don’t want to lend on something that isn’t covered if something goes wrong.
The second one, plaster homes, are the infamous leaky homes from the 90s and early 2000s. These were timber-framed homes with plaster applied straight onto the framing, which made them prone to cracking and water damage. Some of the later ones were built with a cavity to improve airflow, which helps, but they still carry the same stigma and require a lot of maintenance.
If you’re looking at buying one, you’ll likely need a builders report, watertightness test, and structural report before the bank will even look at approving finance. These can be expensive and time-consuming, and if the results aren’t great, the bank won’t lend on it.
So before you get too attached to a property, make sure it’s not one of these two. It’ll save you a lot of time and stress down the line.
Subject: Unconditional deposit
This is the part of the process where things start to get pretty serious. You’re only a fews step away from getting the keys to your home.
It’s also one of the parts you really don’t want to get wrong, because it can cause some awkward situations if you do.
When you buy at auction, you pay your deposit straight after winning. This is usually 10%, unless you’ve negotiated a different amount.
If you’ve made an unconditional offer, you’ll pay your deposit as soon as the offer is accepted.
If you’ve made a conditional offer, then once all your conditions are ticked off and you go unconditional, that’s when you’ll need to pay the deposit.
The key thing here is that the deposit needs to be ready and available when you go unconditional.
It doesn’t matter if you’re buying at auction or through a private sale, the money has to be there at that time.
If your deposit is tied up in KiwiSaver, that’s fine. You can still make it work.
Your lawyer just needs to include the right wording in the Sale and Purchase Agreement so the funds can be used for the deposit.
The amount you use for the unconditional deposit is flexible.
It could be as low as $1 or zero, or as high as 10% or more of the purchase price.
The larger the deposit, the more serious it looks to the seller.
But the main thing is it has to be an amount you’re comfortable with and can actually access when needed.
Don’t put down 10% if most of your funds are still in KiwiSaver, that’ll create a headache for everyone. (unless you include the correct wording via your lawyer)
It’s also something the vendor has to agree to, so it’s worth discussing with your lawyer or mortgage adviser to get it right.
The most important thing to remember:
This deposit needs to be available the moment you go unconditional.
Subject: No Insurance = No Mortgage
Before you go unconditional, it’s really important to make sure you can actually get house insurance on the property.
If you can’t insure the home, the bank won’t lend on it.
You’ll want to check that the insurance has no exclusions or caps, and that the rebuild amount is high enough to fully cover the property.
There are a few reasons you might struggle to get insurance:
Unconsented works (as mentioned in the last email)
Criminal history
Environmental risks, like being in a flood-prone area
Flood risk is becoming a big issue with insurers, so it’s always worth checking this before going unconditional.
This is the only insurance that’s required by the bank, that the home can be fully insured for the rebuild cost, with no exclusions.
While life and health insurance isn't required anymore, it’s still worth considering.
Life and health cover aren’t for you as much as they’re for the people around you.
If something happened to you, the right cover could pay off all or part of your mortgage, making things easier for your family.
It’s not the most exciting topic, but it’s an important one.
There are plenty of stories of people who were grateful they had it, and others who wish they did.
It doesn’t have to be expensive, and it’s something you can revisit once you’re in your home if you’d prefer.
As advisers, we work with insurance partners who provide both home insurance and life and health cover.
So if you’d like to explore your options, feel free to reach out and I can connect you with one of the advisers I recommend.
Subject: Interest rates / special rates / cashabacks
One of the natural questions once we’ve got your approval off to the bank is what your interest rate will be and how much cash back you’ll get.
It’s a tricky one to answer until you’ve had an offer accepted and we’ve gone through your loan structure meeting.
When you get your home loan approval, you’ll see an interest rate and a repayment amount on the letter from the bank.
That rate will usually look high and the repayment will probably look a bit scary.
Don’t stress.
That number is based on the floating rate at the time and is just the default setting the bank uses for approvals. It’s not the rate you’ll actually have once you buy your home.
Once your offer is accepted, we’ll have a loan structure meeting to decide what’s best for you — things like fixed terms, splitting your loan, and which interest rates to go with. That’s when we’ll lock in the real rate, which is almost always lower.
There are two types of interest rates:
Special rates – available if you have a 20% deposit or if you’re using Kāinga Ora (they treat you as if you have 20%)
Standard rates – for loans with less than a 20% deposit. These can sometimes include a low equity margin (LEM) on top.
Before that, I can give you a rough idea of what your repayments might look like when we first talk about borrowing amounts.
It won’t be exact, but it’ll give you a good sense of what to expect.
Once you’ve made an offer and it’s accepted, we’ll know the final loan amount and that’s when your rates, repayments, and cash back can all be confirmed.
Some banks offer a set cash back for first home buyers, while others give a percentage of the loan (usually around 0.85% to 1%).
Since this is based on your final loan amount, we’ll get that confirmed after the bank has signed off on everything.
Tomorrow’s email is about what to expect in your loan structure meeting and how we’ll tailor your setup to fit your goals.
P.S. If you’d like to get a sense of what your repayments might look like at today’s rates, feel free to reach out and I can run the numbers for you.
Subject: Loan structure and settlement day
This is the last little bit before you get the keys on settlement day.
About two weeks before settlement, you’ll usually have your loan structure meeting with your adviser.
This is where we’ll go over:
How long to fix your mortgage for
How to split your loan into different parts
Whether to use revolving credit or an offset facility
What setup works best for your goals and comfort level
How to pay your mortgage off faster
Everyone’s structure looks a bit different because it’s based on what you want to achieve and how you like to manage money.
We’ll also confirm your exact repayments, cash back amount, payment frequency (weekly, fortnightly, or monthly), and your first repayment date.
Once we’ve confirmed everything, we send it to the bank as part of what’s called the handover documents. The bank then prepares your official loan documents and sends them to your lawyer.
From there, you’ll meet with your lawyer before settlement to:
Check over your loan documents
Make sure your insurance is in place
Sign everything off
On settlement day, your lawyer and the seller’s lawyer handle the funds and title transfer behind the scenes. Once the money has cleared and the title is in your name, your lawyer will let the agent know, and you can go pick up your keys.
The home is officially yours and you’ve just offical brought your first home.
Subject: Ready to buy your first home?
This is the final email in the series.
Hopefully, you’ve found the info useful and it’s helped make the process feel a lot more achievable.
You should now have a solid understanding of the key steps, what’s needed at each stage, and why and hopefully, you’ve already started putting a few things in place to get yourself closer to owning your own home.
If you’ve been following along and you’re now ready to take the next step, I’d be happy to help you buy your own home.
You could take everything you’ve learned and go straight to a bank yourself, but the benefit of working with me is that I do this every day, with a team that helps first home buyers just like you get approved and into their own homes.
We’re available after hours and weekends, not just during bank hours. Our service is free (the bank pays us), and you can see from our Google reviews that we’ve helped plenty of other Kiwis buy their first homes too.
There are two types of people in this club:
Those who just read about buying a home.
Those who actually become homeowners.
The difference isn't money; it's momentum.
If you are ready to stop 'researching' and start 'owning', click here.