10% deposit home loans in NZ: which lenders say yes

16 Oct 2026

10% deposit home loans are available in NZ from ANZ, Westpac, ASB, BNZ, Kiwibank, SBS, Co-op Bank and Unity, plus the non-banks Avanti Finance and Pepper Money. Banks can only lend 25% of their new owner-occupier lending above 80% LVR, so they ration it and pick the strongest applications. A 10% deposit on $755,000 is $75,500.

Written and reviewed by Yatin Kainth

Financial Adviser, FSP1007497 · Mortgage Sense

Last reviewed 15 October 2026

Example is illustrative: $755,000 purchase (REINZ national median, September 2026), 5.50% p.a., 30-year term, principal and interest. Lender policies and Reserve Bank settings change, so check the current position.

Most buyers I meet have saved somewhere between 5% and 20%. The 10% group is the biggest, and it’s where lender choice matters most. This guide covers one part of low deposit home loans; the hub explains the other routes, including new builds, Kāinga Ora and shared ownership.

The rule

Why 10% deposit home loans are rationed

The Reserve Bank lets banks put up to 25% of their new owner-occupier lending above 80% LVR. That limit has been in place since 1 December 2025, up from 20%. It’s a share of each bank’s total new lending, not a rule for each borrower. So the bank picks which applications use it, and the strongest ones get through first.

New builds are one way around it. Buying a new build from the developer within six months of completion is exempt, as are construction loans and Kāinga Ora loans.

Who lends

Which lenders offer 10% deposit home loans

These lenders will lend at 90% of the value:

Banks: ANZ, Westpac, ASB, BNZ, Kiwibank, SBS, Co-op Bank and Unity
Non-banks: Avanti Finance and Pepper Money

Each has its own policy, and they change. A non-bank isn’t subject to the bank DTI limit, but pricing and conditions differ, so I compare before I recommend one. Our low deposit home loans hub has the full picture.

What they look for

What a lender wants to see at 90%

Stable income. Employment history or, for self-employed people, solid trading figures.
Clean conduct. No missed payments, and no dishonours on your bank statements.
Genuine savings. A deposit built up over time, or a gift with a clear paper trail.
DTI under 6x. Total debt divided by gross income. Banks can lend a limited share above 6, so most keep applications under it.

I’ll check your deposit, income and conduct against each lender’s appetite and tell you who to approach first.

Book a free 10% deposit check →

Worked example

A 10% deposit on a $755,000 purchase

$755,000 is the REINZ national median sale price for September 2026. Repayments below are illustrative at 5.50% over 30 years, principal and interest.

	10% deposit	20% deposit
Deposit	$75,500	$151,000
Loan	$679,500	$604,000
Monthly repayment	$3,858	$3,429
Gross income for 6x DTI (no other debt)	$113,250	$100,667

The 10% loan costs about $429 a month more. On top of that, a lender may add a low equity margin or fee. As a pure illustration, a 0.5% margin on $679,500 would be about $3,398 a year. It varies by bank, so ask for the current figure.

Credit history

10% deposit home loans with bad credit

A couple of lenders will do 10% with a credit blemish, but 20% is the ideal. If your credit file has defaults or missed payments, look at the bad credit options first. Lenders check your file with Centrix, Equifax or Experian, so get your own report before you apply.

Next steps

Before you go house hunting

Work out the price you’re targeting with the how much deposit to buy a house guide, then get a mortgage pre-approval so you know your limit before you bid. If you’re a first home buyer, a 5% option may fit better than a 10% loan. See 5% deposit home loans in NZ.

Questions

Common questions

Can I buy a house with a 10% deposit in NZ?

Yes. ANZ, Westpac, ASB, BNZ, Kiwibank, SBS, Co-op Bank and Unity lend at 90%, as do the non-banks Avanti Finance and Pepper Money. Banks ration it, so strong applications get through first.

Why do banks limit lending above 80% LVR?

The Reserve Bank lets banks put up to 25% of new owner-occupier lending above 80% LVR (since 1 December 2025). Each bank decides which applications use its share.

Is a 10% deposit cheaper if I buy a new build?

The LVR limits don’t apply to new builds bought from the developer within six months of completion, or to construction loans. Lenders still check your income and credit.

Can I get a 10% deposit home loan with bad credit?

A couple of lenders will do 10% with credit issues, but 20% is ideal. Check your credit file first and talk to an adviser.

How much do I need to earn for a 10% deposit home loan in NZ?

It depends on the lender, but banks usually keep applications under 6x gross income. On a $755,000 purchase with a 10% deposit and no other debt, that is about $113,250 a year. Non-banks aren’t bound by the bank DTI limit.

Low deposit home loans

The full guide to borrowing with less than 20%.

5% deposit home loans

Kāinga Ora, BNZ and YouOwn explained.

Is there a first home grant?

What first home buyers can use in 2026.

Talk it through with Yatin. Free, no obligation, and usually one phone call.

Book a free chat →

Or call 022 064 7770

This article is general information only and isn’t personalised financial advice. Figures are illustrative and based on the assumptions shown. Mortgage Sense is a trading name of Yatin Kainth, a Financial Adviser (FSP1007497) providing advice under the Mortgage Managers licence (North West Group Holdings Ltd, FSP682791). See the Disclosure Statement.

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