Step 2 · 3–24 months
Build your deposit
Save towards a deposit, aiming for 20% of the purchase price. Below 20% you can still buy with a low-deposit loan, but you'll usually pay Lender's Mortgage Insurance (LMI) and face stricter rules.
How to approach it
Set a monthly savings target and move it to a dedicated high-interest account the day you're paid. Check KiwiSaver first-home withdrawal and the First Home Grant — both can top up your cash. Consistency beats big one-offs.
Watch out for
The deposit isn't the only cash you'll need up front — legal fees ($1,500–$4,000), a valuation and moving costs all sit on top. Some KiwiSaver schemes also require 3+ years of contributions before you can withdraw.
Cost & timeframe
Typical cost
20% ideal
Typical time
3–24 months
Common questions
Can I use my KiwiSaver?
Yes — after 3 years of contributions you can withdraw most of your member balance towards a first home, and you may qualify for the First Home Grant of up to $5,000 for existing or $10,000 for a new build.
What does 20% actually mean?
For a $750,000 home, 20% is $150,000 in cash deposit. Below that, LMI and low-equity rules usually apply.