How much income do I need to buy a $700,000 house in NZ?

You need approximately $100,000-$115,000 household income to buy a $700,000 house, depending on deposit size and other debts.

Can I still get a First Home Loan with 5% deposit in 2025?

Yes, First Home Loans are still available with 5% deposit, but income limits apply: $95,000 for singles, $150,000 for couples.

How much KiwiSaver can I withdraw for first home?

You can withdraw all KiwiSaver funds except $1,000 minimum balance after contributing for 3+ years and buying your first home.

First Home Buyer Calculator NZ 2025: Complete Financial Planning Guide

Buying your first home in New Zealand requires careful financial planning, especially with the end of the First Home Grant and changing lending conditions. Understanding exactly how much you need to earn, save, and budget is crucial for successfully entering the property market. This comprehensive guide covers all the financial calculations first-home buyers need to know in 2025.

Current First Home Buyer Landscape 2025

What's Changed in 2025

✗First Home Grant ended: May 2024 - no more $5,000-$10,000 government grants

↓Interest rates: Declining from 2024 peaks, improving affordability

→House prices: Stabilizing after recent decreases

↑Lending: Banks slightly more willing to lend to well-qualified buyers

What Support Remains Available

✓First Home Loan: 5% deposit with Kāinga Ora backing

✓KiwiSaver withdrawal: Use savings for deposit (minimum $1,000 remains)

✓Family assistance: Gifted deposits, guarantor arrangements

~Shared ownership: Limited regional availability

Income Requirements for Home Buying

House Price	Required Income	Weekly Income	Hourly Rate
$600,000 (Lower-priced regions)	$85,000-$95,000	$1,635-$1,825	$41-$46
$800,000 (Most regions)	$115,000-$125,000	$2,210-$2,400	$55-$60
$1,000,000 (Auckland, Wellington)	$140,000-$155,000	$2,690-$2,980	$67-$75

Deposit Requirements and Sources

Standard Deposit (20%)

$600,000 house$120,000 deposit

$800,000 house$160,000 deposit

$1,000,000 house$200,000 deposit

First Home Loan (5% deposit)

$600,000 house$30,000 + insurance

$800,000 house$40,000 + insurance

$1,000,000 house$50,000 + insurance

KiwiSaver for First Home Buyers

Withdrawal Rules and Calculations

Eligibility Requirements

• Contributing for 3+ years
• First home purchase
• Intend to live in property
• Leave minimum $1,000 in account

Example Withdrawal

• Your contributions: $25,000
• Employer contributions: $25,000
• Government contributions: $8,000
• Investment growth: $12,000
• Available for withdrawal: $69,000

KiwiSaver Scenarios by Age and Income

25-year-old on $60,000 salary (3 years contributing)

Estimated KiwiSaver balance$15,000-$20,000

Deposit contributionSmall deposit top-up

Additional savings neededSignificant amount

30-year-old on $70,000 salary (8 years contributing)

Estimated KiwiSaver balance$45,000-$55,000

Deposit contributionGood foundation for 5% deposit

Additional savings neededModerate amount

35-year-old on $80,000 salary (12 years contributing)

Estimated KiwiSaver balance$80,000-$100,000

Deposit contributionSubstantial deposit component

Additional savings neededMinimal for some price ranges

Complete Cost Breakdown

Upfront Costs (Beyond Deposit)

Professional Services

Legal fees$1,500-$3,000

Building inspection$500-$1,200

Valuation$500-$800

Other Upfront Costs

Insurance setup$1,200-$2,500

Moving costs$500-$2,000

Total upfront costs$4,200-$9,500

Ongoing Monthly Costs

Example: $700,000 house, $560,000 mortgage (20% deposit)

Monthly Housing Costs

• Mortgage repayments: $3,540 (6.5%, 30 years)
• Rates: $200-$350
• Insurance: $150-$200
• Maintenance: $200-$400
• Utilities: $150-$250

Total Monthly: $4,240-$5,740

This represents 35-48% of gross income for a $120,000 household income.

Regional Comparison: What You Can Buy Where

Hamilton ($650,000 median)

Income needed$90,000-$100,000

Deposit (20%/5%)$130,000/$32,500

Monthly repayments$3,600-$4,000

Good size homes, reasonable commute to Auckland

Wellington ($750,000 median)

Income needed$105,000-$115,000

Deposit (20%/5%)$150,000/$37,500

Monthly repayments$4,200-$4,600

Apartments or smaller homes, good amenities

Christchurch ($580,000 median)

Income needed$80,000-$90,000

Deposit (20%/5%)$116,000/$29,000

Monthly repayments$3,200-$3,600

Large homes, lower living costs

Auckland ($950,000 median)

Income needed$135,000-$150,000

Deposit (20%/5%)$190,000/$47,500

Monthly repayments$5,300-$5,800

Smaller homes or apartments, higher costs

First Home Loan Scheme Details

Eligibility Criteria 2025

Income Limits

• Single, no dependents: $95,000
• Single, with dependents: $150,000
• Couple: $150,000 combined

Other Requirements

• NZ citizen/permanent resident
• First home buyer status
• 5% minimum deposit
• Property under 1 hectare
• Live in property as main residence

First Home Loan Benefits and Costs

Benefits

• Only 5% deposit required

• No mortgage insurance (bank covers this)

• Access to standard interest rates

Costs

• 1.2% insurance premium (up from 0.5% in July 2025)

• Standard application and legal fees

• Stricter serviceability requirements

Example First Home Loan Calculation

$700,000 house: $35,000 deposit + $8,400 insurance premium = $43,400 total upfront + legal/inspection costs

Savings Strategies and Timelines

Aggressive Saving Plan (2-3 years)

Target$50,000 deposit + costs

Required savings$1,000-$1,500/month

Strategies: Live with family/flatmates, side income, strict budgeting, high-interest savings

Moderate Saving Plan (4-5 years)

Target$100,000 deposit + costs

Required savings$600-$800/month

Strategies: Balanced lifestyle, automatic savings, managed funds, gradual expense reduction

Conservative Saving Plan (6-8 years)

Target$150,000+ deposit + costs

Required savings$400-$600/month

Strategies: Sustainable changes, long-term investment, career development, market patience

Action Plan for First Home Buyers

Phase 1: Foundation (Months 1-6)

1. Calculate your position using comprehensive calculators
2. Set realistic timeline based on income and goals
3. Optimize current budget to maximize savings rate
4. Build credit history and good banking relationship

Phase 2: Accumulation (Months 6-24)

1. Automate savings with dedicated home deposit account
2. Track progress monthly with regular calculator updates
3. Increase income where possible through career advancement
4. Research target markets and understand price ranges

Phase 3: Pre-Purchase (Months 24-30)

1. Get pre-approval to understand exact borrowing capacity
2. Engage professionals - lawyer, broker, insurance
3. Start house hunting within calculated price range
4. Prepare for purchase with all documentation ready

Conclusion

Buying your first home in New Zealand requires thorough financial planning and realistic expectations. While the removal of the First Home Grant makes the journey slightly harder, the combination of declining interest rates, stable house prices, and available support schemes still creates opportunities for well-prepared buyers.

The key is accurate calculation of your financial position and disciplined saving toward clear goals. Use comprehensive calculators regularly to track your progress and adjust your strategy as circumstances change.