First Home Grant vs First Home Loan in NZ (2026)

Two government schemes for NZ first-home buyers are routinely confused. They're different, the rules changed in 2024, and one is being wound down.

First Home Grant (being phased out)

Status June 2026: Closed to new applications since May 22, 2024. If you already had an active KiwiSaver-First-Home-Grant application at that date, you can still claim. New first-home buyers cannot.

The grant was $3,000-10,000 depending on how long you'd been in KiwiSaver. Most never got the full amount because of regional house price caps that lagged the market.

If you're reading this in 2026, you almost certainly cannot get this grant. Move on.

First Home Loan (still active)

The First Home Loan scheme is a partnership between Kāinga Ora and approved lenders (Westpac, Co-operative Bank, SBS, NZHL, Unity, plus 5 others as of June 2026).

It lets you buy with as little as 5% deposit — below the standard 20% the RBNZ requires for most owner-occupied lending.

Eligibility

• First-home buyer (or in similar circumstances).
• Household income cap: $95,000 if buying alone, $150,000 for couples / families.
• House price cap: regional — Auckland $875k, Wellington / Christchurch $750k, most of NZ $600k (figures as of 2026, recheck on the Kāinga Ora site).
• Must occupy the property as your main home.

How it works

You apply through one of the approved lenders, not the government. Kāinga Ora effectively underwrites the lender against your low deposit, which lets them ignore the RBNZ's 80% LVR limit for you.

You pay a 0.5%-1.0% Lenders Mortgage Insurance premium as a one-off cost (depending on your deposit %).

Worked example: First Home Loan at 5%

• House price: $600k.
• 5% deposit: $30k.
• Mortgage: $570k.
• LMI premium (~1%): $5,700 added to the loan.

Vs the standard route:

• 20% deposit: $120k.
• Mortgage: $480k.

The First Home Loan lets you buy 3-5 years earlier but with a bigger mortgage, more interest paid over time, and a one-off insurance cost.

When the First Home Loan makes sense

• Rent is eating you alive — paying off your own mortgage is meaningfully cheaper than current rent.
• Income is stable and likely to grow (servicing capacity will improve).
• House price growth is expected in your area (you build equity faster than you pay LMI).

When to wait

• Rates are still falling — waiting 12 months may mean a 0.50% lower mortgage rate forever.
• You can save $20k+/year — closing the gap to a 20% deposit in 2-3 years avoids LMI entirely.
• Your income or job is uncertain.

KiwiSaver first-home withdrawal

Separate from both schemes. If you've been in KiwiSaver for 3+ years, you can withdraw your balance (minus a $1,000 minimum) and use it toward your deposit. This works alongside the First Home Loan.

Where Steady fits

Use Steady to set up a "First Home" goal with a target amount and date. The forecast tells you the realistic month you'll hit the threshold — and Auto-track your KiwiSaver value so you know your full deposit picture.

Disclaimer: General education. Talk to a mortgage adviser or Kāinga Ora directly for your specific eligibility.