First Home Loan: Who Qualifies and What You Get
Learn how this government-backed mortgage insurance helps first-home buyers enter the property market with a smaller deposit.
This scheme provides government-backed mortgage insurance to help people buy their first home with a smaller down payment.
Who it's for
This scheme is specifically designed for first-home buyers who are looking to enter the property market in New Zealand. To qualify, you must be a first-time buyer and have a 5% deposit saved for your purchase. This is intended to assist those who may not yet have the larger deposit typically required for a standard mortgage.
What you get
The primary benefit of this scheme is government-backed mortgage insurance. This insurance acts as a safety net that helps make homeownership more accessible by allowing you to secure a loan with a lower upfront deposit than usual. By providing this backing, the government helps make it easier for you to bridge the gap between your current savings and the total cost of the property you wish to buy.
What it costs you
While the scheme provides essential support for your deposit requirements, it is not entirely free. You will need to account for lender fees that apply to your mortgage process. You should check with your financial institution to understand any specific costs or service fees associated with setting up your loan and the insurance component.
The catch to know
The most important thing to keep in mind is that this scheme is not universally available at every financial institution. It is only available through specific participating banks. Even if you meet all the deposit requirements, you must ensure that your chosen lender is a participant in the scheme before you proceed with your home-buying plans.
How to apply
- Confirm that you meet the criteria for a first-home buyer and have your 5% deposit ready.
- Research and identify which specific banks in New Zealand participate in this scheme.
- Contact your chosen participating lender to discuss your eligibility and the mortgage insurance details.
- Work with your lender to complete the necessary application steps for your specific property purchase.