What Ended, and When
The Kāinga Ora First Home Grant — previously known as HomeStart — was discontinued on 22 May 2024. No new applications are accepted. Applications that were complete before that date were still processed, and the funding was reprioritised into other housing programmes.
For anyone who planned around it, the practical loss was a one-off payment of $10,000 for a solo buyer or up to $20,000 for a couple buying a new build. In 2026 prices, against a national median home around $770,000, that was roughly 1.3% to 2.6% of the purchase price — real money, but rarely the thing standing between a buyer and a deposit.
What Actually Replaced It
Nothing replaced the grant one-for-one. Support now comes from three separate places, with very different statuses:
| Support | Status in 2026 | Value to a first home buyer |
|---|---|---|
| First Home Loan (Kāinga Ora) | Open | 5% deposit instead of 20%. On a $770,000 home that is $38,500 instead of $154,000 — a $115,500 saving in required cash. |
| KiwiSaver first-home withdrawal | Open | Withdraw your own and employer contributions after three years of membership. No upper cap; typically $30,000–$60,000 for six to eight years of membership. |
| First Home Partner (shared equity) | Fully subscribed | No new applications — existing customers only. Kāinga Ora's own page states the scheme is fully subscribed. |
The First Home Loan's income caps are $95,000 for a single buyer with no dependants and $150,000 combined for two or more buyers, with regional house price caps. That is a tighter net than the old grant's, so not every former grant applicant will qualify — but for those who do, the value is several times larger.
Why 5% Beats $20,000
It is worth doing the comparison explicitly, because the intuition that "I lost a $20,000 grant" understates what replaced it:
- Old grant on a $770,000 new build: up to $20,000, once.
- First Home Loan on the same home: your required deposit falls from $154,000 to $38,500.
- Difference in cash required at the outset: about $115,500 — nearly six times the grant.
The catch is that the loan is restricted to the regional price caps, so in Auckland a First Home Loan may only cover a home priced below the median. Check the current Kāinga Ora schedule against the exact property before you build a plan around it.
What Changed Around It: LVR Rules Eased
The grant's closure has been partly offset by looser lending rules. From 1 December 2025, banks may write 25% of new owner-occupier lending to borrowers with an LVR above 80% — up from 20% — and the Reserve Bank maintained that setting at its August 2026 review. Investor lending above 70% LVR rose to 10%.
New builds remain exempt from LVR restrictions entirely, which is why a 10% deposit on a new build is often easier to obtain than the equivalent deposit on an existing home. Together, the First Home Loan at 5% and the LVR headroom at 10–15% mean a low-deposit path exists in 2026 that did not exist in 2022.
If You Had a Grant Application In
Contact Kāinga Ora on 0508 935 266 with your reference number and ask for a written decision. Applications lodged complete before 22 May 2024 should have been processed; anything that stalled deserves a paper trail, because a written decision also starts the clock on any review or complaint.
Be careful with websites still offering to help you "apply for the First Home Grant" in 2026. The scheme is closed, and such pages are usually describing the old rules for search traffic or selling a different service. Verify anything you are told against the Kāinga Ora and IRD websites directly.
Building a Deposit Plan Without the Grant
- Maximise KiwiSaver. Contribute at least $1,042.86 a year to earn the full $260.72 government contribution, and consider 4% or more if you can sustain it — the default rate is now 3.5%.
- Open a dedicated deposit account and automate a transfer each payday. Lenders want to see a consistent saving pattern, not a lump sum of unclear origin.
- Check First Home Loan eligibility first, so your target deposit number is realistic rather than aspirational.
- Budget the transaction costs separately: solicitor $1,000–$2,500, builder's report $500–$900, LIM $250–$400, valuation $600–$1,000.
Most 2026 first-home buyers are combining KiwiSaver, the First Home Loan and a few years of deliberate saving. None of those is as simple as a grant, but together they require less upfront cash than the grant era did.
Frequently Asked Questions
Is the First Home Grant still available in 2026?
No. The Kāinga Ora First Home Grant was discontinued on 22 May 2024 and no new applications are accepted. Applications that were complete before that date were still processed. The First Home Loan, KiwiSaver first-home withdrawal and low-deposit bank lending are the options available now.
What replaced the First Home Grant?
Nothing replaced it one-for-one, but the First Home Loan is far more valuable for eligible buyers. It reduces the required deposit from 20% to 5% — on a $770,000 home that is $38,500 instead of $154,000, a $115,500 difference compared with a grant that paid at most $20,000.
Can I still get First Home Partner shared equity?
No. Kāinga Ora states that First Home Partner is fully subscribed and that the scheme's remaining resource is committed to existing customers. The scheme page now exists to assist people already in it rather than to take new applications.
How much deposit do I need without the grant?
Standard lending on an existing home requires 20%. However, banks may now write 25% of new owner-occupier lending above 80% LVR, so 10–15% is realistic for strong applications, new builds are exempt from LVR restrictions, and the First Home Loan allows a 5% deposit for buyers within its income and price caps.