First-home activity looks flat — until you see how many FHBs are borrowing with under 20% deposit
RBNZ August data: FHB approvals almost flat YoY, but low-equity mortgages (<20% deposit) hit 50.5% of FHB lending. What that means for deposit, First Home Loan, and Ready Pack conversations this spring.
On the surface, first-home buyer activity looks stuck. Dig into the Reserve Bank's August numbers and the story shifts: a much bigger share of FHB mortgages are now low-equity — deposits under 20%.
That's the useful spring conversation for brokers and FHBs: not "are volumes booming?" (they're not), but how buyers are getting over the line while fixed rates are still rising unevenly.
The numbers (RBNZ via interest.co.nz, Aug 2026)
Greg Ninness on interest.co.nz (25 Sep, based on latest RBNZ data) compared August 2026 with August 2025:
| Aug 2026 | Aug 2025 | |
|---|---|---|
| FHB mortgage approvals | 2,538 | 2,549 |
| Total FHB mortgage value | $1.475b | $1.470b |
| Average FHB mortgage | ~$581k | ~$577k |
| Est. average FHB purchase price | ~$681k | ~$681k (unchanged YoY) |
Approvals almost unchanged. Average loan and estimated purchase price barely moved.
The mix changed:
- Low-equity share of FHB mortgages (<20% deposit): 50.5% in Aug 2026, up from 44.7% in Aug 2025 — and under a third in early 2024
- Average low-equity FHB loan: ~$636k vs ~$525k for FHBs with ≥20% deposit
- FHBs were about 36% of purchase-purpose residential mortgages in August (excludes top-ups and bank switches)
Flat headline activity, propped up in part by buyers borrowing with less equity — and larger average loans when they do.
What that means for brokers this spring
- Deposit is the conversation — half of FHB mortgages in August were under 20% deposit. Rate-shopping a Westpac 2yr 5.29% or BNZ 18m 5.29% / 2yr 5.35% special without settling deposit path, LVR band, and First Home Loan eligibility is half a meeting.
- Low-equity ≠ same package — low-equity borrowers typically pay more and face different conditions. Don't quote a ≥20% special as if it applies.
- Readiness before the rate shop — income, expenses, KiwiSaver, gift letters, and opt-in docs need to be file-ready so you're comparing LVR paths and buffers, not chasing payslips while a special moves.
- Spring context (one line) — Big-5 cards are still uneven (Westpac/BNZ sharpened short-medium tenors; Kiwibank/Co-op lifted 24 Sep). No new Big-5 overnight 25–26 Sep. Next OCR 28 Oct. This post is about who is borrowing how, not another full rate-card remake.
What FHBs should pressure-test
- Deposit path — cash, KiwiSaver first-home withdrawal, family gift, or a low-deposit / First Home Loan route — and what each does to price and LVR
- Buffers — stress-test repayments above today's advertised special; weekly capacity still bites even when entry prices look softer
- Not just the poster rate — a 5.29% or 5.35% special is usually for higher equity; low-deposit pricing is a different conversation with your broker
Don't treat August RBNZ data as September's market, and don't read flat approvals as a boom.
Action this week
- Pull FHB clients still in deposit limbo and map ≥20% vs low-equity / FHL paths before the next spring reprice
- Rebuild rate-shop tables with equity bands visible
- Get Ready Pack numbers current so the first meeting is strategy, not archaeology
Disclaimer: Not financial advice. RBNZ figures are for August 2026 as reported by interest.co.nz. Specials, LVR rules, and First Home Loan criteria change — check live offers with your broker or lender.
Ready to prepare?
For brokers: When half of FHB mortgages are under 20% deposit, the meeting that wins is deposit path + LVR + docs — not another carded-rate screenshot. Send clients your branded link so affordability, DTI, deposit and opt-in docs arrive before you rate-shop. Learn more about MortgageReady for brokers.
For buyers: Flat activity doesn't mean an easy path. Pressure-test your deposit and buffers with a broker before you chase a spring special that may assume 20% equity. Ask for a Ready Pack walkthrough. Start at MortgageReady.