The Short Answer
On a national median home of about $770,000, the deposit you need depends entirely on which lending route you take: $154,000 at the standard 20%, roughly $77,000 to $115,500 on low-deposit lending, and as little as $38,500 if you qualify for the Kāinga Ora First Home Loan at 5%. New builds are exempt from LVR restrictions, which is why 10% is often achievable on them.
What changed recently and matters most: from 1 December 2025 the Reserve Bank raised the limit on owner-occupier lending above 80% LVR from 20% to 25%. Low-deposit lending is now the most available it has been since 2021.
Deposit by Scenario
| Scenario | Deposit | On $770,000 | Notes |
|---|---|---|---|
| Existing home, standard | 20% | $154,000 | Easiest approval, best rates, no low-equity pricing |
| Existing home, low-deposit lending | 10–15% | $77,000–$115,500 | Banks allocate 25% of new owner-occupier lending above 80% LVR |
| New build | 10% or less | from $77,000 | New builds are exempt from LVR restrictions entirely |
| First Home Loan (Kāinga Ora) | 5% | $38,500 | Income caps $95,000 (single, no dependants) / $150,000 combined; regional price caps apply |
Note that a 5% deposit on a $770,000 home requires $38,500 — a number many renters can reach in two to three years of deliberate saving, which is a very different proposition from $154,000.
Deposit by City at 2026 Median Prices
Using indicative 2026 regional medians, the 20% deposit line looks like this:
| Centre | Indicative median | 20% deposit | 10% deposit | 5% deposit |
|---|---|---|---|---|
| Auckland | ≈ $1,015,000 | $203,000 | $101,500 | $50,750 |
| Tauranga | ≈ $840,000 | $168,000 | $84,000 | $42,000 |
| Hamilton | ≈ $755,000 | $151,000 | $75,500 | $37,750 |
| Wellington | ≈ $750,000 | $150,000 | $75,000 | $37,500 |
| Christchurch | ≈ $710,000 | $142,000 | $71,000 | $35,500 |
| Dunedin | ≈ $580,000 | $116,000 | $58,000 | $29,000 |
These are indicative medians across all dwelling types and will differ from your target suburb. Use them to shortlist, then check the specific property against the Kāinga Ora price caps if you are relying on the First Home Loan.
Where the Deposit Comes From
- KiwiSaver first-home withdrawal: after three years of membership you can withdraw your own and your employer's contributions, but not the government contribution and not the former $1,000 kick-start. You must leave at least $1,000 in the account. Typically $30,000–$60,000 for six to eight years of membership, and roughly double for a couple.
- Genuine savings: lenders want to see a consistent pattern, not a lump sum of unclear origin. Automate a transfer on payday.
- A gifted deposit: allowed, but the lender will require a gift letter confirming the money is a gift and not a loan.
- Government contribution: contribute at least $1,042.86 a year to earn the full $260.72 — a small but reliable top-up.
The Second Gate: Income, Not Deposit
Since 1 July 2024, debt-to-income (DTI) limits have applied alongside LVR rules. Banks may only write 20% of owner-occupier lending to borrowers with debt above six times gross income (seven times for investors). That caps borrowing regardless of how large your deposit is:
- A single buyer on $100,000 gross: roughly $600,000 of debt at six times income.
- A couple on $150,000 combined: roughly $900,000.
- A couple on $200,000 combined: roughly $1.2 million, subject to the bank using part of its DTI headroom.
Above those levels a bigger deposit does not help — it simply leaves you buying a cheaper house. Work out your DTI ceiling before you decide what to save for, because the two constraints can point at different cities.
Costs That Are Not the Deposit
Budget separately for the transaction costs, which are payable whether or not you win the house: solicitor $1,000–$2,500, builder's report $500–$900, LIM $250–$400, registered valuation $600–$1,000, bank and registration fees $400–$800, and moving $500–$2,000. That is $3,000–$7,000 on a typical purchase, and it should sit in a different account from your deposit.
Frequently Asked Questions
How much deposit do I need to buy a house in NZ in 2026?
A 20% deposit is the standard for an existing home — about $154,000 on a $770,000 national median. Low-deposit lending at 10–15% is realistic since the Reserve Bank raised the above-80% LVR allowance to 25% from 1 December 2025, new builds are LVR-exempt, and the First Home Loan allows 5% for buyers within its income and price caps.
Can I buy a house in New Zealand with a 5% deposit?
Yes, through the Kāinga Ora First Home Loan, if you meet the income caps ($95,000 for a single buyer with no dependants, or $150,000 combined for two or more buyers) and the property falls under the regional price cap. On a $770,000 home, 5% is $38,500.
Do new builds need a smaller deposit?
Yes. New builds are exempt from the Reserve Bank's LVR restrictions entirely, so a 10% deposit — and sometimes less — is often achievable where an existing home would need 20%.
What is the maximum I can borrow regardless of my deposit?
Debt-to-income limits cap borrowing at roughly six times gross income for owner-occupiers. A single buyer on $100,000 gross tops out near $600,000 of debt, and a couple on $150,000 combined near $900,000 — no matter how large the deposit.