How to Secure a New Build with a 5% Deposit
Disclaimer:
The information provided in this article is for general informational purposes only and does not constitute personalised financial advice. Every individual's financial situation is different, and buying a home is a significant decision. Before making any financial or property-related decisions, we strongly recommend speaking with a registered financial adviser or mortgage professional. The First Home Buyers Club does not accept liability for any loss or damage incurred by relying on the information provided in this article.
For many first home buyers, getting onto the property ladder in Auckland can feel like chasing a moving target. House prices, deposit requirements, and lending restrictions often seem stacked against you. But there’s one area where the odds are increasingly in your favour — New Builds.
Thanks to government-backed schemes and specific lending exemptions, it’s possible to buy a brand-new home in Auckland with just a 5% deposit.
This blog explains how that’s possible, what eligibility looks like, and why new builds offer unique advantages in a high-demand market. Whether you’re early in your savings journey or already exploring developments, this guide will help you move forward with confidence.
What Is Considered a “New Build” in NZ?
Before diving into finance options, it's important to understand what qualifies as a new build in the eyes of lenders and government schemes.
A new build generally refers to a home that:
Has received a code compliance certificate within the last six months
Has never been lived in before
Is either a turnkey property (completed and ready to move in) or a house and land package (built from a set plan, often off the plans)
Be purchased directly from the developer or building company.
New builds can include standalone houses, townhouses, and apartments. Many of them are part of larger developments and may even offer incentives like free appliances or other contributions.
You can browse a selection of options on our New Build Developments Auckland page.
Why New Builds Are More Accessible for Low Deposit Buyers
In New Zealand, the Reserve Bank regulates how much lending banks can do to borrowers with less than a 20% deposit. However, new builds are treated differently.
Most major lenders are allowed to approve low deposit loans (below 20%) for new builds without breaching their loan-to-value ratio (LVR) restrictions. This gives them more flexibility to approve your application, even with just a 5–10% deposit.
The government also actively supports new build purchases through the First Home Loan.
Using a First Home Loan to Buy with a 5% Deposit
The First Home Loan is a government-backed lending product that allows eligible buyers to secure a mortgage with as little as 5% deposit.
While offered by regular banks and lenders (like Westpac, SBS, Kiwibank, and others), the key difference is that your low deposit is underwritten by Kāinga Ora.
To qualify, you’ll need to meet certain criteria:
Income limits: Up to $95,000 for individuals, or $150,000 for joint applicants
Deposit: Minimum of 5% of the property’s purchase price
NZ residency or citizenship
Good credit history and ability to service the loan
You can learn more about the First Home Loan process and what's required by reading our blog on Getting Pre-Approved for a Home Loan.
Finding the Right New Build Development
Once your finance strategy is in place, the next step is finding the right new build development. When assessing your options, consider:
Location: Is it close to work, transport, and schools?
Type of build: Are you looking for a standalone home or a townhouse?
Turnkey vs House & Land: Turnkey builds may suit buyers with tight timeframes, while house & land packages offer more customisation.
Developer reputation: Choose a builder with a track record of quality builds and timely delivery.
You can browse developments here: New Build Housing Developments Auckland
Structuring Your Home Loan for Success
Securing your new build is just the start—the way you structure your home loan can significantly affect your long-term financial wellbeing.
In a softening interest rate market, many buyers are opting for 1- and 2-year fixed terms, which offer a good mix of stability and flexibility. Splitting your loan across multiple fixed terms can protect you from future rate rises, while still allowing part of your loan to refix sooner.
You can explore more strategies in our Loan Structure Guide, which covers:
Fixed vs floating
Revolving credit and offset options
How to tailor loan splits to your goals
Navigating the Paperwork
Key Tips for Success
While new builds can provide some benefits compared to buying existing homes, there are still some critical steps to tick off:
Get a building contract reviewed by your lawyer before signing anything
Understand any staged payments (if buying off the plans)
Check what’s included—some packages don’t include landscaping, fencing, or window treatments
Your mortgage adviser and solicitor will guide you through these steps, but it pays to stay informed.
Your Next Move Starts Here
Buying a new build in Auckland with a 5% deposit isn’t a pipe dream — it’s a very real possibility with the right guidance and preparation. By combining the First Home Loan and KiwiSaver Withdrawal, many first-time buyers are securing high-quality homes in up-and-coming suburbs, often with less stress and more confidence.
Not sure where to begin? We’re here to help.
📞 Book a free chat with a mortgage adviser who understands how to structure finance for new builds and guide you through the approval process from start to finish.
