Getting into your first home with less than a 20% deposit can feel tricky—but with the right lender and product, it can also be totally achievable.
Our client came to us looking to purchase their first home and was keen on using the Kainga Ora First Home Loan —a great option available through a select number of banks when you’ve got under a 20% deposit. With a bit of research and the right approach, we were able to get them not just an approval, but a lending structure that was affordable long-term.
Here’s how we helped:
Step 1: Understanding the full picture
With less than 20% deposit, we explored lending options that would work under the Kainga Ora First Home Loan scheme. This government-backed product opens doors for first home buyers who might not qualify under traditional low deposit lending criteria.
Step 2: Exploring lender options
We went to both Westpac and Kiwibank, two of the main banks offering the FHL. Westpac provided an approval under standard policy with a 10% deposit, which was a strong start, but we wanted to see whether the Kainga Ora-backed option through Kiwibank could offer even more value.
Step 3: Making the right choice
Kiwibank came through with an approval under the FHL product—with a one-off low equity fee, but access to special interest rates that made the overall cost of borrowing significantly lower. With long-term affordability front of mind, this was the better option for our client.
The result?
A solid approval under the Kainga Ora First Home Loan through Kiwibank, and a more affordable home loan overall. With special interest rates and reduced long-term costs, our client is now ready to take the next step with confidence.