How much deposit do you need to buy a house in NZ?

Prices are REINZ median sale prices for September 2026 (NZ $755,000, Auckland $950,000). Lender rules and Reserve Bank limits change, so check the current position.

“How much deposit to buy a house?” is the first question almost every buyer asks me. The honest answer is “it depends on the lender”. Here’s how it breaks down.

How much deposit to buy a house: 5%, 10% or 20%

The deposit is the part of the price you pay yourself. The rest is the loan. The more you put in, the more lenders you can use and the less you pay overall.

Prices are the REINZ median sale prices for September 2026. Your own target price is what counts, so run it through the home loan deposit calculator to see your numbers.

The 20% deposit is the standard

With 20% down you’re borrowing 80% or less of the value, so you’re outside the Reserve Bank’s loan-to-value limits. Every bank will talk to you, and you avoid the extra charges that come with a smaller deposit. If you have a bad credit history, 20% is also what I’d aim for.

10% works with most banks, but it’s rationed

Banks can only lend a set share of their new owner-occupier lending above 80% LVR. That’s why a 10% deposit gets approved at one time and not another. I’ve listed who says yes in 10% deposit home loans.

Lenders also commonly add a low equity margin or fee when you borrow above 80% of the value. It differs by bank and changes, so I check the current rate sheets rather than quote you a number here.

5% is possible, with conditions

The Kāinga Ora First Home Loan, BNZ and YouOwn all work with a 5% deposit. The First Home Loan has income caps and a 1.2% insurance premium. YouOwn puts in up to 15% alongside your 5%, and the bank lends 80%. There’s more in 5% deposit home loans and on the low deposit home loans page.

Where the deposit can be smaller, and where it has to be bigger

• New builds. Buying a new build from the developer within six months of completion is exempt from the bank LVR limits, as are construction loans.
• Investors. Banks can only lend 10% of new investor lending above 70% LVR, so plan on about 30%. I cover that in buying an investment property.

How much deposit to buy a house is only part of it

You’ll also need money for legal fees, a LIM, a building report and a valuation if the lender wants one, plus moving and insurance. Some of these are paid before you’re unconditional, so they come out of your savings early. Whatever your answer to how much deposit to buy a house is, set a cash buffer beyond it. The deposit calculator is a good place to start. Lenders like to see genuine savings, and you’ll want something left once you move in.

Part of the deposit can come from KiwiSaver if you’re eligible. See KiwiSaver first-home withdrawal. Once you’ve got a number, a pre-approval tells you what you can actually spend.

Common questions

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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.