Where to Start When Buying Your First Home in NZ

Every week in first-home buyer Facebook groups, someone posts a version of the same question: "I want to buy my first home — where do I even start?" It's a completely reasonable question, and the fact that so many people are asking it tells you something about how poorly this process is explained.

Here's a straightforward answer — including what to do if your situation looks like a $50k income, $30k in KiwiSaver, no other savings, and you're thinking about buying in Katikati.

Who should you talk to first?

The order matters more than most people realise. Here's the right sequence:

1. A mortgage broker (start here)

Before you speak to a bank, before you book open homes, talk to a mortgage broker. A good broker will give you a clear picture of what you can actually borrow — not a rough guess, but a real number based on your income, expenses, deposit, and debt situation. They work with multiple lenders, so they shop the market on your behalf.

The most important thing to know: mortgage brokers are typically paid by the lender, not by you. The initial advice is free. Always confirm this upfront, but for the vast majority of NZ brokers, there's no cost to you.

One thing that makes the broker conversation significantly more productive: arriving with your numbers already worked out. Brokers spend a lot of time gathering basic financial information from clients who haven't thought it through yet — net income, deposit breakdown, DTI position. If you've already done that groundwork, the conversation moves straight to strategy rather than data collection.

2. A bank (optional, not urgent)

You can go direct to your own bank, but they can only offer their own products. A broker will almost always find you a better rate or structure. That said, if you have a strong existing relationship with a bank, getting a comparison quote doesn't hurt.

3. A real estate agent (later)

Agents represent the seller, not you. They're great at finding properties, but they're not financial advisers. Only start seriously viewing homes once you have a pre-approval — or at minimum a clear, realistic budget — in hand. Going to open homes before you know your number is how people fall in love with houses they can't afford.

4. A property solicitor (when you're ready to make an offer)

You'll need a lawyer before you sign anything. Line one up early — they're easy to find and not expensive to engage — so you're not scrambling when you find a property you want.

What does a financial adviser cost?

It depends on who you're seeing:

• Mortgage brokers — almost always free to you. Commission is paid by the lender at settlement. Ask to confirm before your first meeting.
• Financial advisers (investment/holistic advice) — these often charge a fee, either hourly or flat rate. Initial consultations are frequently free; ongoing advice is usually paid.
• KiwiSaver advisers — similar. Many offer a free first session. Always ask upfront.

The rule is simple: always ask "is there a cost for this?" before you sit down. Any reputable adviser will tell you clearly.

The main steps of buying your first home

1. Get your finances sorted. Understand your real take-home pay, your borrowing power at the bank's stress-test rate, your deposit breakdown, and your DTI ratio. This is what a broker helps you establish.
2. Check your First Home eligibility. Two key schemes exist for first-home buyers in NZ: the First Home Grant (up to $10,000 for an existing home, $20,000 for a new build) and the First Home Loan (lets you buy with as little as 5% deposit if you qualify). Many buyers don't realise they're eligible.
3. Get a pre-approval. A mortgage pre-approval tells you exactly how much a lender will lend you. It's not a guarantee, but it makes you a credible buyer and keeps you focused on realistic properties.
4. Search for a property. Trade Me Property and realestate.co.nz are your main tools. With your budget clear, you're looking at properties you can actually afford — not dreaming.
5. Do your due diligence. Before making an offer: arrange a building inspection, check the LIM report (Land Information Memorandum from the council), and have your lawyer review the sale and purchase agreement. Don't skip this step.
6. Make an offer and go unconditional. Negotiate the price, set your conditions (finance, building inspection), then confirm once conditions are met.
7. Settlement. Your lawyer handles the transfer of funds and title. Then you get the keys.

A real example: $50k income, $30k KiwiSaver, single parent, Katikati

Let's put some numbers to a situation that comes up regularly. This one is tight — but it's worth being honest about, because knowing your real position is always better than guessing.

Your income picture

On a $50,000 gross salary, your take-home after PAYE, ACC, and 3% KiwiSaver is roughly $40,000–$41,000 per year, or about $3,350/month. As a single parent, you may also receive Working for Families tax credits — these can meaningfully boost the income a lender considers, so make sure your broker factors them in. Don't leave that on the table.

Your deposit

KiwiSaver is your biggest asset. Here's how it stacks up:

• You can withdraw most of your KiwiSaver for a first home — but $1,000 must stay in the account. So from a $30,000 balance, you can withdraw up to $29,000.
• If you meet the eligibility criteria (income under $95k, property under the regional cap, first-home buyer), you may qualify for the First Home Grant — up to $10,000 for an existing home.
• That gives you approximately $39,000 toward a deposit.

The DTI constraint — the number that matters most here

With a $50,000 gross income, the RBNZ's debt-to-income cap (6× gross for owner-occupiers) sets your maximum total lending at $300,000. That's the ceiling — serviceability is a secondary test once you've hit it.

Combined with your $39,000 deposit, that means you're targeting properties in the $330,000–$340,000 range. In Katikati's current market — where median prices sit around $600,000–$650,000 — that's a real constraint. Entry-level units, older homes, and smaller sections do come up below $400,000, but options are limited and competition for them is real.

Rough indicative repayments on a $295,000 loan at 6.5% over 30 years: approximately $1,865/month. That's more manageable on your take-home pay, but finding a suitable property at that price point in Katikati will take patience and flexibility.

What actually moves the dial here

There are a few levers worth thinking about:

• Working for Families income. If WFF tax credits increase your recognised income, your DTI cap rises with it. Even a modest uplift to $55,000–$60,000 recognised income opens up $30,000–$60,000 more in borrowing capacity.
• Saving cash alongside KiwiSaver. Building $5,000–$15,000 in savings over the next 12 months increases your deposit, reduces your loan size, and signals to lenders that you have a buffer — all of which improve your application.
• A new build. If you qualify for the First Home Grant on a new build, the grant doubles to $20,000, lifting your deposit to $49,000. New builds in the Bay of Plenty sometimes fall within a more accessible price range, and they attract better lending terms in some cases.

No savings beyond KiwiSaver — is that a problem?

It's not a dealbreaker, but lenders want to see that your deposit isn't your last dollar. A small cash buffer alongside your KiwiSaver withdrawal makes a meaningful difference to how your application is assessed. Even $100–$150/week saved over six months adds up.

No debt — this is a genuine positive

Zero debt means your full DTI capacity goes toward the mortgage. Don't take on any new debt — car finance, buy-now-pay-later, personal loans — between now and your application. Each dollar of existing debt reduces your mortgage ceiling by a dollar.

Your action plan — start this week

1. Run your numbers first. Before you speak to anyone, use MortgageReady to calculate your real take-home pay, borrowing power at the stress-test rate, and deposit breakdown. It takes under five minutes and means your broker meeting starts at strategy — not "so what do you earn?"
2. Contact a mortgage broker. With your numbers in hand, ask them to assess your borrowing power and First Home Grant eligibility. Free, no obligation, and a much more focused conversation when you're already prepared.
3. Confirm your KiwiSaver withdrawal eligibility. Log in to your provider and check your balance, membership start date (you need 3 years), and whether you've previously owned property.
4. Start a savings habit now. Building even a small cash buffer alongside your KiwiSaver improves both your deposit and how lenders assess your application.
5. Research Katikati's entry-level market. Use Trade Me Property and realestate.co.nz to understand what's available at the lower end of the market — units, older homes, and smaller sections. Get a realistic feel for prices before your broker conversation.

The situation is tight, but it's not hopeless — and knowing that clearly is more valuable than false optimism. A $30k KiwiSaver balance, no debt, and Working for Families income are all genuine assets. The priority right now is getting accurate numbers and building a 12-month plan. The first step is just getting accurate information — and that starts with a conversation.

See your numbers on MortgageReady — free, takes under five minutes, and gives you the clarity to take the next step with confidence.