Take a target purchase price of $800,000 and the standard 20 percent deposit that most owner-occupier lending wants. Twenty percent of $800,000 is $160,000, the deposit you are aiming for. Say you already have $50,000 saved, counting any KiwiSaver you could withdraw for a first home. That leaves a gap of $110,000 still to find.
If you save $2,000 a month towards it, the $110,000 gap takes 55 months, which is about 4 years and 7 months. Lowering the deposit to, say, 10 percent would halve the target to $80,000 and you would already be most of the way there, but borrowing above 80 percent of the value usually adds a low-equity margin to your interest rate. A first-home KiwiSaver withdrawal and the rising balance you keep contributing can both shrink the timeframe. This example ignores interest on your savings, so a real account earning a return would get you there a little sooner.
How it is calculated
The deposit needed is the target purchase price multiplied by your chosen deposit percentage, with 20 percent the usual benchmark for avoiding a low-equity premium. The tool subtracts what you have saved so far, including any KiwiSaver you could draw for a first home, to find the gap that still needs funding. It then divides that gap by your monthly saving and rounds up to whole months to estimate the time to reach the deposit. The calculation deliberately uses simple saving without investment growth, so it is a conservative timeframe; a savings or KiwiSaver balance earning a return would reach the goal a little faster. Remember the deposit is only part of the cash you need, since legal fees, a building report, and moving costs sit on top, and a smaller deposit means a larger loan and usually a higher interest rate.
Frequently asked questions
How big a deposit do I need in NZ?
Most owner-occupier lending wants a 20% deposit to avoid low-equity premiums, though banks can lend above 80% LVR within limits, and first-home buyers can use a KiwiSaver first-home withdrawal. On a $800,000 home, 20% is $160,000. A smaller deposit is possible but usually means a low-equity margin on your rate.
Can I use my KiwiSaver for a house deposit?
Yes. If you have been a KiwiSaver member for at least three years and the property will be your principal place of residence, you can withdraw most of your KiwiSaver balance for a first-home purchase. You must leave a minimum of $1,000 in your account. IRD administers the withdrawal and your scheme provider processes it, typically within 10 to 15 business days. Count any eligible KiwiSaver balance in the "saved so far" field above.
What is a low-equity margin and when does it apply?
When you borrow more than 80% of the property value (that is, your deposit is less than 20%), most banks add a low-equity margin, usually 0.25% to 1.00% per year on top of the standard rate. Reserve Bank high-LVR speed limits also restrict how much lending banks can do above 80% LVR for owner-occupiers, so approvals can be harder to obtain. Reaching the 20% threshold removes the margin for the life of the loan once your equity crosses that level on refinance.
Does the First Home Grant still exist in 2026?
The First Home Grant was closed by the government in May 2024 and is no longer available to new applicants. The KiwiSaver first-home withdrawal remains open. The other main support available is Kainga Ora shared-equity and affordable-housing schemes in certain regions. Check the Kainga Ora website for current availability because eligibility criteria and property price caps are updated regularly.