The Kāinga Ora First Home Loan lets eligible first home buyers buy with a 5% deposit, through participating banks and lenders. Because Kāinga Ora underwrites it, it sits outside the Reserve Bank's deposit and debt-to-income limits.
Income caps apply: before-tax income in the last 12 months of up to $95,000 for a single buyer, or $150,000 for two or more buyers or a single buyer with dependants. You must live in the home, and the usual first home buyer rules apply.
There's a cost. For loans applied for since July 2025, borrowers pay a lenders mortgage insurance premium of 1.2% of the loan, up front or added to the loan: about $6,600 on a $550,000 loan. In return, borrowers can usually get a lender's standard rates without the low-equity margins of other low-deposit lending.
It isn't always the cheapest route. If you're close to a 10% deposit for a new build, or 20% for an existing home, another option may cost less. An adviser can compare them for you.