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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.

Kāinga Ora First Home Loan: 5% deposit, income cap $95K (single) / $150K (couple or with dependants). No house price cap. First Home Grant discontinued May 2024.
$
Total household income (combined if couple)
Single or couple/joint buyers
Children or other dependants in your household
Estimates only. Lending subject to individual lender assessment. Consult a mortgage adviser.

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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 fee (Lenders Mortgage Insurance):
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.

Combined income$130,000
Income cap (couple)$150,000 — eligible
Property price$650,000
5% minimum deposit$32,500
Their deposit (savings + KiwiSaver)$53,000 (8.2%) — exceeds 5%
Loan amount (5% path)$617,500
LMI fee (1.2% of loan)$7,410 added to loan
Total loan$624,910
Monthly repayment (6.5%, 30yr)$3,950/month
If they saved to 20% deposit ($130K)$3,330/month — saves $620/month
Additional saving needed for 20%$77,000 extra vs their $53K

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

ItemDetail
Minimum deposit5% of property price
Kāinga Ora underwritingUp 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 capNone (removed)
LMI fee1.2% of loan (can be added to loan)
Owner-occupier requiredYes — must be primary residence
First home buyer requiredYes — no prior NZ residential property ownership
KiwiSaver withdrawalEligible after 3 years of contributions
First Home GrantDiscontinued May 2024 — not available
Participating lendersWestpac, Kiwibank, ASB, Co-op Bank, SBS, Unity, NBS
Residency requirementNZ citizen, permanent resident, or eligible visa

Frequently Asked Questions

The Kāinga Ora First Home Loan is a government-backed scheme allowing eligible first home buyers to purchase a property with only a 5% deposit. Kāinga Ora underwrites the loan via lenders mortgage insurance (LMI), which enables participating banks and credit unions to lend to buyers with small deposits. There is no house price cap. The scheme is available through Westpac, Kiwibank, ASB, Co-operative Bank, SBS Bank, Unity, and Nelson Building Society.
The income caps are: $95,000 per year for a single buyer with no dependants, and $150,000 combined per year for couples or a single buyer who has dependants. These are gross (before tax) income limits. If your income exceeds these caps, you will not qualify for the Kāinga Ora First Home Loan, although you may still qualify for a standard mortgage or other first home products offered by lenders.
No. The First Home Grant was permanently closed in May 2024 and is no longer available. This grant previously provided eligible buyers with up to $10,000 for existing homes or $20,000 for new builds. It has been discontinued and no new applications are accepted. Do not include the First Home Grant in your financial planning — only the Kāinga Ora First Home Loan (5% deposit) scheme remains operational.
Yes. After contributing to KiwiSaver for at least 3 years, you can withdraw most of your KiwiSaver balance to use as part of your deposit, leaving a minimum of $1,000 in the account. The KiwiSaver first home withdrawal can be combined with other savings to reach the 5% minimum. This applies to both standard first home purchases and Kāinga Ora First Home Loan purchases. Contact your KiwiSaver provider to confirm the withdrawal amount available to you.
The Lenders Mortgage Insurance (LMI) fee for Kāinga Ora First Home Loans is 1.2% of the loan amount. For example, on a $600,000 loan that is $7,200. The LMI can be added to your loan balance rather than paid upfront, which means you will pay interest on it over the loan term. The LMI protects the lender — not the borrower — in the event of default. It is the premium for borrowing with a deposit below 20%. Once your loan-to-value ratio drops below 80%, you will have effectively "paid off" the LMI cost through principal repayment.

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