RealyConfused about buying your first home in NZ? Here's what to do this week
If you've just started looking and you feel like every article uses three letters you don't understand, that's normal. Buying a first home in NZ involves a genuinely confusing mix of bank rules, government schemes, council reports, and contract law. This guide cuts through it: what to do this week, this month, and what you can safely ignore for now.
This week — do these three things
- Check your KiwiSaver balance and how long you've been a member (you need 3+ years to withdraw for a first home).
- Pull a free credit report from Centrix or Equifax. Clear any defaults — banks see them.
- Call a mortgage adviser (free) and ask "what could I realistically borrow, given my income and current spending?" — this gives you a real budget, not a fantasy one.
This month — get pre-approval and a lawyer
With your adviser, apply for pre-approval from a bank. It's a conditional commitment to lend you a specific amount, usually valid for 3–6 months. Without it you can't make a confident unconditional offer (or bid at auction).
While that's processing, choose a property lawyer. Get 2–3 quotes ($1,500–$2,500 is normal). You want someone who replies the same day, not a big firm where you're handed to a junior.
Translating the jargon
| Term | Plain English |
|---|---|
| LVR | Loan-to-value ratio. 80% LVR = you need 20% deposit. |
| LIM | Land Information Memorandum. A council report on the property (consents, hazards, rates). |
| SPA / ADLS | Sale and Purchase Agreement. The standard NZ contract for buying a house. |
| Conditional offer | An offer subject to conditions (finance, LIM, builder's report). You can pull out if a condition fails. |
| Unconditional | All conditions waived. You're legally bound — pulling out costs the deposit minimum. |
| Builder's report | An independent inspection by a licensed builder (NZS 4306). Tells you what's wrong with the house. |
| Settlement | The day the money moves, ownership transfers, and you get the keys. |
| Body corporate | The legal entity that owns/manages shared parts of a unit-titled building (most apartments). |
| Cross-lease | An older form of ownership where you co-own the underlying land with neighbours. Adds restrictions. |
| Freehold / fee simple | The simplest ownership — you own the land outright. |
What you can safely ignore (for now)
- OneRoof market commentary — interesting but doesn't change what you can afford or what to buy this month.
- Auction strategy podcasts — useful later, not before you have pre-approval.
- Investment property advice — different rules, different deposit, different tax. You're buying a home first.
- Comparing every bank's rate — your mortgage adviser does this for you. You don't need to track it weekly.
When you find a property you like
The pace suddenly accelerates. In a single weekend you may need to: get the LIM ordered, book a building inspector, brief your lawyer, talk to your bank, and submit an offer. The single best way to survive this week is to have every contact, deadline, and document in one place — not scattered across email and WhatsApp.
Realy is built for exactly this: a free workspace where you, your partner, your lawyer, and your broker all see the same checklist, files, and deadlines for each property you're seriously considering. Start a free deal →
Frequently asked questions
I have no idea where to start. What's the very first thing to do?
Call a mortgage adviser — it's free, takes 30 minutes, and tells you what you can realistically borrow. Until you know that number, every other decision is a guess.
Do I need to use a real estate agent to buy?
No — the agent works for the seller. You don't need to engage anyone on the buying side except a mortgage adviser, a lawyer, and (for due diligence) a building inspector.
How much deposit do I really need?
Most banks will lend up to 80% LVR for an owner-occupier (so 20% deposit), but a portion of bank lending is allowed above 80% with a low-equity premium. Kāinga Ora's First Home Loan allows 5% deposit subject to caps.
What if I get to an open home and freeze?
Completely normal. Don't make decisions at open homes. Go home, write a short list (what you liked, what worried you), and decide the next day. Anything an agent says is 'urgent' is almost always negotiable.
Manage your whole purchase in one place
Realy gives buyers a private workspace to track LIM, builder's report, finance, KiwiSaver, and settlement — free to start.
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