How much do you need for a house deposit in New Zealand?

The amount you'll need for a house deposit depends on the property price and the type of mortgage you want.

1. Ideal deposit — 20%: In most cases, banks require a 20% deposit of the property’s purchase price. For example, if you're looking at a house worth $870,550 (the national average), you'd need $174, 110 for the deposit.

2. Low deposit options — 5-10%: You don’t always have to wait until you have a full 20%. In some cases, you can buy a home with as little as a 5% deposit for a new-build property or 10% for an existing one. However, you'll be considered a "Low Equity Borrower" (LEB), which may mean higher interest rates.

Read more about low deposit mortgages here.

If you're buying an investment property, the deposit and loan conditions are a bit different from buying a home to live in. You’ll usually need a bigger deposit — around 20% or more — because banks see investment properties as higher risk. Plus, the interest rates tend to be higher too. You’ll also want to have a clear plan for renting the property out, since that rental income is what will help pay off the loan.

If you're ready to take the next step, learn more about deposits for investment properties here.

Understanding where your deposit funds come from is just as important as knowing how much you'll need.

1. Genuine savings: Lenders typically want at least 5% of your deposit to come from “genuine savings” — meaning money you've saved yourself over time. This could include your KiwiSaver balance, which is a great way to build up your deposit.

Learn more about where your deposit can come from.

2. Gifts or loans from family: You can also receive money from family (like a gift or a loan), but you’ll still need to show that part of your deposit is from your own savings.

Find out more on how family can help with your deposit.

If you're a first-time buyer, the First Home Loan could be a game changer. Under this scheme, you only need a 5% deposit. To qualify, you must meet a few requirements, such as being a New Zealand citizen or permanent resident and meeting income caps.

Learn more about the First Home Loan scheme and its benefits here.

Ready to get your foot on the property ladder? Our quick video breaks down everything you need to know about getting a mortgage — whether you're a first-time buyer or just looking to understand your options.

Saving for a house deposit can feel like a long road — on average, it can take up to 10 years, according to CoreLogic. Here are a few tips to speed up that journey with smart tips and tricks to grow your savings faster and make the process a bit easier.

Tracking your spending is key. Create a realistic budget, considering both your essentials and your savings goals.

For more budgeting advice, check out these money-saving tips.

If you've been contributing to your KiwiSaver for at least three years, you can withdraw the funds (except for $1,000). Plus, you can increase your contributions to boost your savings.

You might decide to put the bulk of your savings into a special bank account where you earn bonus interest for not withdrawing. This way, the very act of saving is actually making your money.

Decisions like this should be factored into your budget, and you should think carefully about how much money you’re leaving easily available to yourself for when life happens.

Paying off any existing debts will improve your financial situation and make it easier to apply for home loans. Consider consolidating debts for better interest rates.