First Home Loan Calculator New Zealand
Kāinga Ora 5% deposit scheme — check your eligibility, compare deposit options, and estimate your maximum affordable property price. Income cap $95K (single) / $150K (couple). No house price cap.
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How to Use This Calculator
Tab "Eligibility Check"
Enter your annual gross income, select whether you are a single buyer or a couple, and enter the number of dependants. The calculator checks your income against the Kāinga Ora income caps — $95,000 for a single buyer with no dependants, or $150,000 combined for couples or a single buyer with dependants. It also displays the list of participating lenders and key eligibility conditions.
Tab "5% vs 20% Deposit"
Enter your property purchase price. The calculator compares the two main paths: buying now with a 5% deposit (plus 1.2% LMI fee underwritten by Kāinga Ora) versus saving to reach a 20% deposit (no LMI). See the monthly repayment difference, total interest difference over 30 years, and the LMI cost. This helps you decide whether buying sooner with a low deposit or saving longer is the better financial outcome for your situation.
Tab "Affordability"
Enter your annual income, monthly living expenses, and available deposit (including any KiwiSaver first home withdrawal). The calculator estimates your maximum affordable property price at a 5% deposit, using 30% of gross income as the repayment limit — consistent with NZ bank serviceability standards. It also checks whether your deposit is sufficient for the estimated price.
The Formulas
LMI = Loan amount × 1.2%
Total loan = Loan amount + LMI fee
Monthly mortgage repayment (standard NZ compounding):
r = annual rate ÷ 12 (monthly rate)
n = loan term in months
Monthly payment = P × r(1+r)^n ÷ ((1+r)^n − 1)
where P = total loan principal (including LMI if applicable)
Total interest over loan term:
Total interest = (Monthly payment × n) − Principal
Maximum affordable property (Affordability tab):
Max repayment = Annual income × 30% ÷ 12
Max loan = Max repayment ÷ monthly payment factor
Max property = Max loan ÷ 95% (i.e., loan covers 95% of price at 5% deposit)
Income cap eligibility:
Single, no dependants: income ≤ $95,000
Couple or single + dependants: combined income ≤ $150,000
Rate assumed: 6.5% p.a. (NZ indicative variable rate — adjust mentally for the current market rate). Loan term: 30 years. LMI rate: 1.2% of loan amount as set by Kāinga Ora. All figures are estimates for planning purposes.
Example
Priya & Ben — Couple earning $130,000 combined, buying a $650,000 home
First home buyers, combined income $130,000 (under the $150,000 cap). They have $35,000 saved plus $18,000 KiwiSaver first home withdrawal = $53,000 total deposit. Property price: $650,000.
For Priya and Ben, the 5% path means they can buy now and pay $620/month more in repayments (and $7,410 in LMI) compared to saving for another few years to hit 20%. Whether that trade-off makes sense depends on how fast they can save and how property prices move. Note: the First Home Grant no longer exists (discontinued May 2024) and cannot supplement their deposit.
Kāinga Ora First Home Loan — Key Facts
| Item | Detail |
|---|---|
| Minimum deposit | 5% of property price |
| Kāinga Ora underwriting | Up to 15% of property value |
| Income cap — single, no dependants | $95,000 per year |
| Income cap — couple or single + dependants | $150,000 combined |
| House price cap | None (removed) |
| LMI fee | 1.2% of loan (can be added to loan) |
| Owner-occupier required | Yes — must be primary residence |
| First home buyer required | Yes — no prior NZ residential property ownership |
| KiwiSaver withdrawal | Eligible after 3 years of contributions |
| First Home Grant | Discontinued May 2024 — not available |
| Participating lenders | Westpac, Kiwibank, ASB, Co-op Bank, SBS, Unity, NBS |
| Residency requirement | NZ citizen, permanent resident, or eligible visa |