First Home Buyer Guide
Buying your first home is exciting, but it can also feel overwhelming. This first home buyer guide takes you through each step of the process, so you know what to expect and how to prepare.
At Taranaki Home Loans, we help first-home buyers across the region navigate this process with clarity and support.
Step 1: Get Your Finances in Order
Before starting the home loan process in NZ, it’s important to know where you stand financially.
- Check your savings
Work out how much you have available for a deposit. If you’ve been contributing to KiwiSaver for at least three years, you may be able to use part of it for your first home. - Explore grants
Kāinga Ora offers First Home Grants for eligible buyers. This can give you up to $10,000 towards a deposit if you meet income and property value limits. - Look at your spending
Banks will review your income, debt, and expenses. Cutting unnecessary spending a few months before applying helps strengthen your application.
Taking these steps early ensures you’re well prepared before meeting with your local Taranaki Home Loans adviser. But if you feel a bit lost, we can help with this step too.
Step 2: Get Pre-Approval
A pre-approval confirms how much you can borrow and gives you a clear budget. To get pre-approval you will need to:
- Meet with a mortgage broker
At Taranaki Home Loans, we compare lenders, explain your options in plain English, and help you find the most suitable first home mortgage for your situation. - Provide documents
You’ll need proof of income, bank statements, ID, and details of any debt. - Understand conditions
Pre-approvals often come with conditions, such as a maximum property value or minimum deposit.
Pre-approval usually lasts 60–90 days. Having it in place makes house hunting easier, as sellers know you are a serious buyer.
Step 3: Start House Hunting
Once you know your budget, you can focus on finding a property.
- Set realistic expectations
Look at recent sales in the area to understand what your budget will buy. - Get a building inspection
- Always check the condition of a property before making an offer. This can save you from costly repairs later.
- Review the LIM report
This council report shows zoning, flood risks, and building consents. - Consider future needs
Think about whether the property will suit you long-term. Your Taranaki Home Loans broker can guide you through this stage, making sure the property fits lending rules and your goals.
Step 4: Make an Offer
When you find the right property, the next step is to make an offer.
- Conditional offers
Most first home buyers make an offer subject to finance, LIM, or building inspection. - Negotiation
The seller may accept, reject, or counter your offer. - Deposit
If your offer is accepted, you’ll usually pay a deposit (commonly 10%).
Your lawyer will handle the legal side, checking contracts and completing due diligence. This ensures you’re fully protected before going unconditional. We are locals so can help with recommendations.
FAQ's
Most banks require at least 20%, but some lenders accept 10% deposits with restrictions.
Yes, if you’ve been contributing for three years. You must leave at least $1,000 in your KiwiSaver account.
A Kāinga Ora grant of up to $10,000 for eligible buyers. It’s available for new builds or existing homes under set price caps.
Pre-approvals usually last 60–90 days, depending on the bank.
Yes. A lawyer checks contracts, completes due diligence, and manages the transfer of property.