Helping you succeed in life's financial journey

Think you can't buy your first home? Think again!

18 October 2018

Written by:

Steve Davies - Mortgage Adviser


Buy your First Home

For those of you who thought you’d never be able to buy your own home, here’s some good news: KiwiSaver and First home buyers grants are getting more and more people into homes.

In fact, a quarter of all house sales in New Zealand are now to first home buyers.

The door was opened wider to First Home Buyers and Second Chance home buyers with the changes to the LVR restrictions and the freeing up of KiwiSaver funds to use as a home loan deposit.

Using your KiwiSaver savings towards purchasing a home is now the most common form of deposit for first home buyers, as Cole Murray’s mortgage adviser Steve Davies explains.

“For first time and some second chance buyers, owning your own home is not a dream, it now can be a reality. The banks have balanced out their lending ratio criteria around the LVR (Loan to Value Ratio) restrictions, meaning if you have a deposit of less than 20% it doesn’t necessarily rule you out of buying a home. Banks have the capacity to lend to those who have smaller deposits”, he says.

And the great news is that people who have been regularly putting money into their KiwiSaver account are now in a better position when buying a house. 

“Basically if you’re in the market for your first home and have been in a KiwiSaver scheme for a minimum of three years making regular contributions, you may be able to use your savings as a deposit. Of course there are bank criteria to satisfy, but we are seeing a huge number of people taking advantage of this opportunity. It’s fantastic and great for the housing market.”

There’s also good news for those in a ‘second chance’ situation; coming out of a divorce or separation. “KiwiSaver funds are also able to be used by people who are effectively starting again on the property ladder,” says Steve.

And it’s not just young people who are benefiting from these new opportunities. Steve is seeing a lot of the older generation using their KiwiSaver funds to buy their home.

“There are now people in their 30s, 40s and 50s who are taking advantage of this.  An example is a parent who has been in KiwiSaver whose children have now left home; they can now use their funds to take them from living in a rental property to owning their own home.

“It may not be too late to achieve your home-owning dream.”

With vast experience and expertise in the property market, Steve is here to assist with options you may not have even known were available. 

Like to find out if you can use KiwiSaver to buy your home?

Contact Steve Davies at Cole Murray for the best advice and information surrounding your home purchase.

Email Steve

It's a service that comes at no cost to you*, and puts your interests first - learn more here.


 You might also be interested in these articles: 


An Adviser Disclosure Statement is available free of charge, and on request.

* Our standard Mortgage Advisory service is provided free of charge as we are remunerated (paid) by the banks, but we also provide specialised services and advice for non-conforming, credit-impaired, business and complex cases. After our free initial no-obligation consultation, we will advise you if a fee may need to be charged before we undertake any work. In many cases we may find a simple solution for you. 


Subscribe to our newsletter and stay informed


Phone us today