Most people who tell me they can’t buy a home yet are being held back by beliefs that simply aren’t the case anymore.

They’re wrong, but in all the best ways!

Last week, I had a great chat with Frances Cook, the well-known financial journalist, about all the commonly accepted “myths” in the mortgage and lending world.

Here are six myths we hear every week, and what’s actually true in 2026.

1. You need 20% deposit to get into your first home.

This one is a big one, and it’s common for us to chat to a first home buyer and for them to be surprised that they are already in a position to buy.

The Kāinga Ora First Home Loan starts from a 5% deposit, with the income caps of $95K for an individual and $150K for a couple. Westpac, Kiwibank, SBS, Cooperative Bank and ASB are the major lenders who offer the First Home Loan.

There is also a 10% deposit pathway through a bank’s own speed limit allocation, and we commonly find that one bank may have room this month when another doesn’t.

This is where an adviser becomes a secret weapon as we are constantly updated as to what banks are open for business and when.

One caveat here - while there are plenty of upsides to getting into a home earlier, there are also some costs, too.

A smaller deposit costs you usually in a few ways; one is the Lender’s Mortgage Insurance fee of 1.2% which is attached to the first home loan. It can be capitalised to the loan but does mean you pay more in interest across the long term.

Standard bank 10% deposit offerings will also charge a low equity premium of anywhere between 0.35% and 0.75% on your interest rate, and in almost all cases you’ll need to get a registered valuation too.

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2. Buying on one income isn’t possible

But we do it every week!

In 2026 I have helped more solo buyers than ever before, and I think it’s a change in how they look at their goals overall.

A single borrower does logically have less income overall than a couple or two borrowers, but that doesn’t mean they can’t buy a home. Often they are able to have flatmates or boarders, and for many that helps pay the majority of the home loan.

Serviceability is a little bit more important, so some levers we pull are in the existing debt space, closing an unused credit card or reducing the repayment on another commitment if possible.

In many situations, buying solo can also open up more options. You can live wherever you like, paint your walls pink, or have your own dog!

3. Banks will decline you on a coffee or Netflix subscription

Expenses are no longer assessed with a fine tooth comb, but some things do matter.

For a while, banks were our “judgy parents”, looking at our spending and shaking their heads.

That’s changed up quite a bit in the past 18 months, and now banks take a more practical approach, look at discretionary (nice to have’s) and non-discretionary (must have’s) expenses alongside any existing financial commitments.

A lot of people are often surprised to hear that closing an unused $10K credit card might increase their borrowing power by $50K, because it feels like something they weren’t using anyway.

Banks do have a bit more of a responsibility to verify expenses, so these days you might be asked for confirmation of your insurances or statements for credit facilities you have in place.

4. Self-employed buyers can’t get approved for a home loan

This is a myth that makes me quite sad, especially as a self confessed small business champion!

There is a belief out there that it’s hard for self-employed people, and that banks won’t approve them for lending.

And in some cases this does affect borrowing, but it’s absolutely not true for the majority.

It’s about preparation, planning and proof.

Most banks as a standard will want to see 2 years of financial statements, and they’ll look at the net profit figure (income less expenses). But there are always exceptions and as advisers we do chat to people in this space a lot.

A common change for people is to “go out on their own” and contract back to an employer. This is common in the trades, and generally our advice is to show income over a period of waged employment, plus the more recent contracting income.

All lending in this space generally needs a bit more information, so expect to be asked for financial statements or an IR3, a recent profit & loss, and in some cases, our accountant friends preparing cashflow projections has also been really helpful.

5. Co-ownership is a bad idea

I’m asked about this a lot, and while it’s not for everyone, I think more people should consider it.

Siblings, friends, parents and their adult children. Even colleagues sometimes buy together.

The caveats are that you do need to be on the same page as the other person, and it’s also super important to have a plan around how you’ll manage things now, and in the future.

That’s generally in the form of a Property Sharing Agreement and forms a really important piece of the puzzle. Everything from who is responsible for what, to what happens if someone wants to sell their share.

From a bank perspective, income is higher, therefore risk to them is lower. Each lender treats these situations slightly differently, and it’s important to understand what each party want to achieve, as it can affect borrowing down the track too.

But it’s a great option to combine forces and get people into homes sooner if that’s what their goal is.

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6. I should wait till the “market is right”

But you might be waiting forever?

I think one of the biggest mindset shifts people need to make with property is the distinction about where they live verses an investment.

With capital gain on property relatively elevated over the past 5-10 years, people have started treating homes like they might an investment, and they are very different things.

When considering buying a place to live, the conversation should be about what the alternatives are (renting, living with family, etc) rather than whether the market is up or down.

So what’s actually true in 2026?

The differentiator between people who get further ahead in the long term is generally just taking action.

There are options for so many different types of buyers in 2026, and we help a lot of them. In fact I think I have the best job in the world as I get to bust these myths on the daily!

Buying a home to live in is not for everyone, but for those that do have it on their goals list, we want to be there to help.

You actually don’t need to have it all sorted to have the conversation.

Most people we talk to are closer than they think, and the ones who aren’t ready right now will get a good understanding of exactly what the the gap is and what actions they need to take to close it.

So, which of these myths has been holding you (or someone you love) back?