Government Schemes for First Home Buyers in New Zealand

Buying your first home in New Zealand has never been easy, and with rising house prices, it can feel out of reach. The good news? There are still government-backed schemes and financial supports designed to help first-home buyers get started.

While the popular First Home Grant ended in May 2024, other pathways remain—like First Home Loans, KiwiSaver withdrawals, Kāinga Whenua Loans, and Progressive Home Ownership schemes. At Bennett Homes, we’ve worked with many first-home buyers to make the most of these opportunities, particularly through house and land packages tailored to fit within eligibility rules.

Government Schemes for First Home Buyers in New Zealand

Let’s break down what’s available in 2025.

KiwiSaver First-Home Withdrawal

Your KiwiSaver account is often the most powerful tool for getting into your first home.

• If you’ve been contributing for at least 3 years, you may be eligible.
  
• You can withdraw most of your savings—including your contributions, employer contributions, and returns—but must leave $1,000 in the account.
  
• Withdrawals can be used towards the deposit or settlement of a first home (new build or existing).
  
• The home must be your main residence (not an investment property).
  

At Bennett Homes, many of our clients pair a KiwiSaver withdrawal with a First Home Loan to meet their deposit.

First Home Loan

Saving a 20% deposit is often the biggest hurdle. The First Home Loan, underwritten by Kāinga Ora and offered by participating lenders, makes this easier.

• You may be able to buy with as little as a 5% deposit.
  
• Income limits: Up to $95,000 (before tax) for individuals without dependants, or $150,000 combined for a couple or individual with dependants.
  
• No house price caps: Since 2022, regional price limits were removed, giving buyers more freedom to choose homes across New Zealand.
  
• Low-deposit premium: A one-off insurance fee applies—0.5% until 30 June 2025, then rising to 1.2% from 1 July 2025.
  
• Must be an owner-occupied home (not for investment).
  

This scheme is especially valuable for buyers considering new builds or house-and-land packages, as the lower deposit requirement helps fast-track homeownership.

Kāinga Whenua Loan

For Māori wanting to build, buy, or relocate a home on Māori land, the Kāinga Whenua Loan provides dedicated support.

• Available to Māori individuals, whānau, or trusts with rights to multiply-owned Māori land.
  
• Loan amount: Up to $500,000.
  
• A 15% deposit is required on any borrowing above $200,000.
  
• The loan is secured against the house only (not the land).
  
• Offered in partnership with Kiwibank and Kāinga Ora.
  

This scheme supports Māori communities to create intergenerational housing solutions on whenua that might otherwise be hard to finance.

Progressive Home Ownership (PHO)

The Progressive Home Ownership Fund, launched in 2020, remains an option for households who can afford mortgage repayments but struggle to save a deposit.

• Works on models like shared ownership, rent-to-buy, or leasehold-to-buy.
  
• Kāinga Ora’s First Home Partner scheme (shared ownership) is currently closed to new applicants as of 2024, after reaching capacity.
  
• However, non-profit providers such as Habitat for Humanity and New Zealand Housing Foundation continue to deliver PHO options around the country.
  
• Typical eligibility: Household income under ~$130,000 and commitment to live in the home long term.
  

This scheme is ideal for families who need a stepping stone into ownership.

What Happened to the First Home Grant?

Until 2024, the First Home Grant was one of the most popular tools for first-home buyers, providing:

• Up to $5,000 for an existing home
  
• Up to $10,000 for a new build
  

However, the government closed the First Home Grant in May 2024. Only pre-approved applicants before June 2024 were able to complete their purchases.

While it’s no longer available, buyers can still leverage KiwiSaver, First Home Loans, and Progressive Home Ownership as practical alternatives.

How These Schemes Can Work Together

Most schemes can be combined to increase buying power. For example:

• Use KiwiSaver First-Home Withdrawal for your deposit.
  
• Apply for a First Home Loan to reduce deposit requirements to 5%.
  
• If eligible, explore Progressive Home Ownership with a provider in your area.
  

This combination has already helped many Kiwis step into their first home—even in a competitive housing market.

Why New Builds & House-and-Land Packages Are a Smart Choice

While grants like the First Home Grant are no longer available, building new is still one of the smartest moves for first-home buyers.

• Lower maintenance costs than older homes.
  
• Energy-efficient designs that save money long term.
  
• Tailored layouts to suit your lifestyle.
  
• Potential to fit within lending requirements more easily, especially with flexible house-and-land packages.
  

At Bennett Homes, we design affordable, high-quality new builds across New Zealand that pair perfectly with these financial schemes.

Tips for First-Home Buyers

1. Check eligibility early – Apply for pre-approval with lenders and KiwiSaver providers.
   
2. Budget wisely – Factor in moving costs, legal fees, and insurance premiums.
   
3. Explore all options – Don’t just rely on one scheme; combine them if possible.
   
4. Choose trusted builders – Partner with a builder like Bennett Homes who understands how to work within government schemes.
   
5. Think long-term – Choose a home design that suits your lifestyle for years to come.
   

Your First Home Is Still Within Reach

Even with the First Home Grant gone, first-home buyers in New Zealand still have solid pathways into the property market. By using your KiwiSaver savings, applying for a First Home Loan, or exploring Progressive Home Ownership, you can step into your dream home sooner than you think.

At Bennett Homes, we’re the most trusted new home builder in New Zealand to make that journey easier with affordable house and land packages designed for first-home buyers.