Buying a Monolithic or Plaster Home in New Zealand: What First Home Buyers Should Know
For many first home buyers, plaster-clad homes offer a chance to enter desirable suburbs for a more affordable price. Their modern finishes and open-plan layouts remain attractive — but they also come from an era associated with the leaky homes crisis.
If you’re considering one, understanding the risks, inspection process, and financing implications is essential.
What Are Monolithic and Plaster-Clad Homes?
A monolithic home is one with smooth, seamless cladding — typically plaster applied over fibre-cement or polystyrene (EPS) panels. These were popular during the 1990s and early 2000s because they offered a contemporary look and were quick to build.
However, many lacked essential weather-proofing details such as eaves, flashings, and cavity systems. Combined with untreated timber framing, this design led to water being trapped inside wall cavities - a core cause of New Zealand’s leaky-home problems.
How the Leaky Homes Era Happened
During the 1990s, building regulations changed, allowing new construction systems and materials without sufficient testing. Builders began using untreated radiata pine framing alongside Mediterranean-style plaster finishes.
Minimal eaves and complex rooflines looked great, but allowed moisture to penetrate. Because untreated timber rots when wet, thousands of homes suffered structural damage within just a few years.
By the early 2000s, this became a nationwide issue. The government introduced the Weathertight Homes Resolution Service, but even decades later, many plaster-clad homes still carry a stigma - and buyers must proceed with care.
How to Identify a Monolithic Home
Typical features include:
Smooth plaster walls without visible joins or weatherboards
Rounded corners or parapet detailing
Little to no eaves
Flush-mounted aluminium windows
Architectural styles common between 1990 – 2005
If the home shows these traits and dates from that period, you should assume it’s monolithic until proven otherwise.
Key Risk Factors for Plaster Homes
1. Age of the Home
Homes built between 1990 and 2005 have the highest risk. Later regulations required treated framing and drained cavities, which allow moisture to escape.
2. Framing Treatment
Untreated or minimally treated timber is vulnerable to rot. Ask your building inspector to confirm whether the framing is H1.2 treated or higher, and if any repairs have replaced framing with treated timber.
3. Design Complexity
Complex rooflines, internal gutters, and flat roofs often increase the risk of leaks. Homes with simple rooflines and generous eaves tend to perform better.
4. Location and Orientation
Homes in coastal or high-rainfall areas — especially those exposed to wind-driven rain — are more at risk. North-facing homes with sunlight exposure dry faster and are safer bets.
5. Maintenance History
Even well-built plaster homes require careful maintenance. Cracked plaster, failed sealant, or flaking paint can let moisture in. Always request detailed maintenance and repainting records.
Why a Standard Building Report Is Not Enough
If you’re considering a plaster home, a weathertightness specialist inspection is essential — a standard building report isn’t enough.
A specialist will:
Conduct moisture testing (non-invasive and, if necessary, invasive)
Examine flashings, decks, roof-wall junctions, and window joinery
Review any previous repairs or re-cladding work
Check council files for past weathertightness claims
For more on ensuring you do the correct checks prior to buying, see our article on Why Building Reports Are Essential for First Home Buyers
Buying a Plaster Home Sold “As Is”
It’s not uncommon for plaster-clad homes to be sold in an “As Is, Where Is” condition. This means the vendor is selling the property without any warranties or guarantees about its structural soundness or weather-tightness. In many cases, the home may have known or suspected leaks, or earlier repair work that hasn’t been fully consented or certified.
An “As Is” plaster property will usually have a diminished market value, reflecting both the uncertainty of hidden damage and the likely cost of bringing it back to compliance. While this reduced price can look appealing to first home buyers hoping for a bargain, the reality is that these homes almost always require major remediation — most often a complete re-clad — to meet current New Zealand Building Code standards.
Re-cladding a home can cost anywhere from $150,000 to $300,000 plus, depending on the size of the property and how much of the internal framing is affected. Until this work is done and a new Code Compliance Certificate (CCC) is issued, most lenders will not provide standard finance. Banks and non-bank lenders alike require properties to be structurally sound, compliant, and insurable before they’ll advance mortgage funds.
Because of this, many “As Is” plaster homes are sold for cash buyers or developers who have the capital to complete repairs before refinancing. If you’re a first home buyer considering one, be aware that you’ll likely need to fund both the purchase and the re-clad yourself, and will only be able to obtain a mortgage after the property has been remediated and certified.
That said, a well-researched renovation can sometimes turn an “As Is” property into a strong long-term investment - particularly if you have renovation experience or access to a specialist construction loan. However, for most first home buyers, the risks and upfront costs outweigh the potential gains.
Before making any decisions, speak with a qualified building inspector to assess the full scope of work required, and consult your mortgage adviser about whether finance might be possible under a staged or renovation-loan structure.
Re-Cladding and Remediation
A re-clad replaces the original cladding and repairs any internal damage. The best-case scenario is a full, council-consented re-clad that results in a new Code Compliance Certificate (CCC).
This process typically involves:
Removing old plaster
Repairing or replacing any rotted framing
Installing new treated timber and cavity system
Applying new weatherboard, brick, or cavity plaster
Partial or unconsented repairs are more concerning. Moisture could remain in unrepaired areas.
For more about understanding consents and due diligence, visit our guide on Legal Steps When Buying Your First Home.
Insurance and Lending Challenges
Because of the historic weather-tightness issues associated with plaster homes, both banks and insurers take a more cautious approach to these properties. Even homes that appear well-maintained can face extra hurdles when it comes to securing finance and insurance approval.
Lending Challenges
Most banks now treat plaster or monolithic-clad homes as higher-risk security. The concern is that if moisture problems emerge later, the property could lose value quickly — leaving the bank exposed. As a result, buyers may find:
Limited lender options or stricter conditions, with some banks declining applications altogether for homes built between 1990 and 2005 unless they have been fully re-clad and carry a new Code Compliance Certificate (CCC).
Higher deposit requirements (LVR limits) - while most buyers can purchase with a 20% deposit, plaster-clad properties may require 30% or more.
Valuers applying a discount to the property’s market value because of its cladding type, which can reduce how much the bank is willing to lend.
Additional due diligence requests such as invasive moisture reports, council documentation, or confirmation of any previous remedial work.
A full, council-consented re-clad significantly improves a property’s standing with lenders, but you’ll still need to provide documentation proving the quality and scope of the work.
If you’re unsure how your preferred bank views these properties, speak with a mortgage adviser who can identify which lenders have more flexible policies and what level of documentation they require. You can Book a Chat with one of our advisers for tailored guidance.
Insurance Challenges
Obtaining insurance can also be difficult. Insurers assess risk based on the home’s design, age, and maintenance history — and many are wary of plaster cladding. Some will decline cover altogether, while others impose strict conditions. Common issues include:
Requests for recent moisture-testing reports from a qualified weathertightness specialist before approving cover.
Higher premiums or excesses to offset perceived risk.
Policy exclusions for weather-tightness or water-ingress-related claims.
Limited provider options, as not all insurers will underwrite older plaster homes.
If a property can’t be insured, most banks won’t lend against it — meaning your mortgage approval could fall through even after you’ve gone unconditional. That’s why confirming insurability early in the process is crucial.
Before making an offer, contact several insurers for quotes and check that you can obtain full replacement cover, not just limited indemnity insurance. Your adviser can also help you find lenders who accept properties with conditional cover.
Why Some Buyers Still Choose Plaster Homes
Despite their history, not all plaster homes are leaky. Many were well designed and maintained, and some have since been re-clad to modern standards.
Because of market perception, they often sell below comparable weatherboard or brick homes, creating opportunities for first home buyers who do their due diligence.
Steps to Take Before Making an Offer
Research the property’s history — check the LIM report and council files for any weathertightness claims.
Commission a specialist inspection — ensure invasive moisture testing is included if required.
Review repair records — confirm if any re-cladding or consented remedial work has been completed.
Consult your lawyer — have them review all reports before you go unconditional.
Obtain pre-approval — some lenders will want inspection reports before issuing final approval.
Download our Making an Offer Checklist from our Members Area to keep track of each step.
Long-Term Maintenance Tips
If you go ahead and purchase a plaster-clad home, maintenance becomes your best defence against weather damage.
Repaint the exterior every 7–10 years with high-quality, breathable paint
Inspect and reseal windows and flashings annually
Clear gutters and downpipes regularly
Trim trees and shrubs to maintain airflow
Schedule professional moisture checks every few years
Staying proactive protects both your investment and resale value.
Balancing Risk and Opportunity
For first home buyers, plaster homes can represent both risk and reward. If a property has been properly maintained, re-clad, or verified as dry, it could provide more space or a better location than other homes at the same price point.
However, never skip the investigation process. The cost of moisture damage can far exceed the savings on purchase price.
If you’d like a structured approach to planning your purchase, download our First Home Buyers eBook or take our Home Readiness Quiz to see how close you are to buying.
Building Confidence in Your Decision
At The First Home Buyers Club, we’re here to help you understand your options and buy with confidence. From checking your KiwiSaver and Home Readiness to arranging home loan pre-approvals, our advisers can guide you step-by-step.
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Buying your first home doesn’t have to be overwhelming — the right support can make all the difference.
Ready to Take the Next Step?
If you’re unsure whether a monolithic or plaster home is the right move, talk to a First Home Buyer Adviser today. We’ll review your situation, connect you with trusted inspectors, and help structure a mortgage that fits your goals.
👉 Book a Chat and get personalised guidance to move forward with confidence.
