top of page

Your Guide to Getting on the Property Ladder in New Zealand: The Path to Homeownership

The idea of owning your own home might feel out of reach in today’s market, but there are plenty of options to explore to get your very own slice of paradise in New Zealand!

Whether you're considering utilising your KiwiSaver, exploring Kainga Ora Grant, seeking support from your parents aka bank of mum and dad, saving diligently, teaming up with a sibling, or relying on a guarantor, let’s get started on the exciting journey towards making your homeownership dreams a reality!

1. Harness the Power of KiwiSaver
If you're a first-time homebuyer, KiwiSaver can be your best friend. KiwiSaver is a voluntary retirement savings scheme, but did you know that you can use your savings to purchase your first home? By meeting certain criteria, you can withdraw your contributions, your employer's contributions, and any government contributions made to your account. This can significantly boost your home buying budget.

2. Explore Kainga Ora Grant
The New Zealand government offers support through the Kainga Ora Grant, which aims to assist first-home buyers. If you meet certain income and house price criteria, you may be eligible for this grant. The grant can provide a substantial financial boost, helping you achieve your homeownership dreams.

3. Seek Support from Parents
Sometimes, parents can be your saving grace when it comes to entering the property market. If your parents are in a position to assist you financially, they may gift or loan you money for your deposit. This additional support can make a huge difference in your ability to secure a mortgage. However, it's important to discuss and clarify expectations with your parents to avoid any potential misunderstandings.

4. Utilise Your Savings
Good old-fashioned saving is a tried-and-true method of getting onto the property ladder. By diligently setting aside a portion of your income, cutting back on unnecessary expenses, and adopting a frugal lifestyle, you can accumulate a substantial deposit over time. It requires discipline and patience, but the satisfaction of achieving your homeownership goals through your own efforts is incredibly rewarding.

5. Team Up with a Sibling
Consider pooling your resources with a sibling or close relative who shares your dream of homeownership. Purchasing a property together can provide you with the necessary financial leverage to enter the market. By sharing the deposit, mortgage payments, and other costs, you can ease the burden and increase your chances of success. Just make sure to establish clear expectations and have a solid legal agreement in place.

6. Leverage a Guarantor
If you're struggling to secure a mortgage due to a low deposit or limited income, having a guarantor can be a game-changer. A guarantor is someone, often a family member, who offers their property or assets as additional security for your loan. This reduces the risk for the lender and increases your chances of approval. It's important to remember that a guarantor takes on a significant responsibility, so open communication and trust are essential.

Becoming a homeowner in New Zealand may seem like a distant dream, but with the right strategies and support, you can make it a reality. Whether you tap into your KiwiSaver, explore Kainga Ora Grant options, receive help from your parents, save diligently, purchase with a sibling, or secure a guarantor, there are various paths to getting onto the property ladder.

Remember, each person's journey is unique, and it's crucial to assess your financial situation, goals, and preferences when choosing the best route for you. Drop me a line if you’d like to talk more about the different options you might be able to explore and let’s get you on that property ladder!


bottom of page