What is the Kainga Ora First Home Loan and does it cover new builds?
Short answer
The Kainga Ora First Home Loan lets eligible first-home buyers borrow with a 5% deposit (instead of the usual 20%) for either an existing home or a new build. It's available through participating lenders who underwrite the loan; Kainga Ora guarantees the bit above 80% loan-to-value. Income caps and house price caps apply, both updated regularly. New builds get higher price caps than existing homes.
Source: Kainga Ora — kaingaora.govt.nz/home-ownership. Updated May 2026.
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Check a builderKey facts
- 5% deposit minimum (vs 20% standard)
- Income cap: ~$95k single / ~$150k joint (check current rules)
- House price cap: higher for new builds than existing
- Participating lenders only — most major banks plus several second-tier
- Kainga Ora doesn't lend directly — they guarantee participating lender
Eligibility basics
First-home buyer (or previous homeowner who's been out of the market and meets the income test). NZ citizen, permanent resident, or eligible resident-visa holder. Buying to live in (not investment).
Income caps and price caps refresh each year. The exact thresholds are on the Kainga Ora website. Don't anchor on a number you saw 12 months ago.
Why new builds get a higher cap
Government policy wants to stimulate housing supply, so new builds get more generous price caps. This means in expensive markets like Auckland, the difference between buying an old apartment vs a brand-new townhouse with the First Home Loan can be significant.
Combined with the KiwiSaver First Home Withdrawal and the now-discontinued First Home Grant (closed May 2024), the FHL is the main remaining government tool for first-home buyers.
Knowing the rules is half the job. The other half is knowing who you're hiring. Check any NZ builder against the public record: company status, licensing and insolvency notices, from the official NZ sources.
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Related questions
Sources: Kainga Ora — kaingaora.govt.nz/home-ownership; Participating lender product disclosures. General information for NZ homeowners, not legal advice. Building rules change and vary by council, so confirm critical details on the official source before acting. Last updated 2026-05.