Buying Property in NZ: A Step By Step Guide

Now that you’ve done your research, it’s time to crunch some numbers. You’ll want to figure out your budget and how much you need for a deposit.

• Deposit details: In NZ, lenders typically ask for a deposit of at least 20% of the house price. Sometimes, you can get away with as little as 10%, but that's less common right now. Sit down and create a budget to see how much you can save each month for your deposit.
• First home buyer help: If you’re a first-time buyer, you might be eligible for help. Check out options like using your KiwiSaver funds or applying for First Home Loans, which can lower your deposit to just 5%.

A pre-approval will tell you how much you can borrow, making your property search a lot easier. Here’s what you need to do:

Gather your documents

• Income proof: Recent payslips and any additional income statements.
• Monthly expenses: Details about your regular costs, like rent and utilities.
• Debt overview: Information on outstanding debts, such as credit cards and loans.
• Savings for a deposit: Evidence of your deposit savings, whether from KiwiSaver or personal savings.

Reach out to

• Banks: Start with your bank or local credit unions and get in touch with one of their home loan specialists.
• Mortgage brokers: They help find the best loan options from multiple lenders, saving you time and effort.

Read more about the pros and cons of working with a bank vs mortgage broker. Or, for a quick estimate of your potential mortgage payments, check out our mortgage calculator.

Having a property lawyer on your side means everything is done by the book. They’ll check all the legal documents, like the Sale and Purchase agreement and titles, to keep you safe and sound.

Finding your lawyer: You can ask friends for recommendations, check with your mortgage adviser, or go to the New Zealand Law Society to find a lawyer who fits your needs.

Learn more about why you need a property lawyer here.

Now for the fun part — house hunting. Viewing as many open homes as you can will help you figure out what features you love and what the local market is really like.

• Use Trade Me Property's Insights Tool: Before you step out the door, get a feel for your preferences by making a Trade Me watchlist. This will help you avoid getting overwhelmed by options.
• What to look for: When you view a house, don’t be shy. Check for signs of wear and tear, like cracks in the walls or sagging floors. And remember, it’s totally okay to ask questions.
• Get a builder's report: If you find a place you love, consider getting a builder's report. This will give you a clear picture of any hidden issues that might need fixing.

You’ve found “the one” — now what? Making an offer can be a bit nerve-wracking, but here’s how to go about it:

• Conditional offers: This means your offer depends on certain conditions, like getting a satisfactory builder’s report or arranging your financing.

• Unconditional offers: If you’re at an auction or ready to go for it, you might need to make an unconditional offer. This means you’re all in. Just be sure to check with your lawyer to understand the implications.