Renting does not mean home ownership is out of reach. For some tenants, 2026 may be a good time to start asking the right questions, checking what support is available, and understanding what it could take to move from renting to owning.
For the first time in a while, first home buyers have a real opportunity to get onto the property ladder, as New Zealand’s property market moves into a more balanced phase. While there may be less pressure to make rushed decisions, being financially prepared still gives you an advantage.
Before you start house hunting, use this checklist to work through a few essential steps, so you are ready to move quickly when the right home comes along.
1. Understand your budget and deposit
Many first home buyers focus solely on saving a deposit and are often surprised by the additional costs of buying and owning a home. Setting a realistic budget from the start helps you avoid any nasty surprises and ensures you’re ready to pay these costs when you need to.
• Go over your finances with your mortgage adviser to determine what you can realistically afford
• Plan how you’ll pay for upfront costs like legal fees, building reports, moving costs and insurance
• Aim to save an emergency fund to cover any unexpected expenses.
2. Determine how much you can borrow
While some lending restrictions may have eased, lenders still look closely at your income, expenses, existing debts and ability to manage repayments, often using higher interest rate buffers to test affordability. Higher interest rates and ongoing cost of living pressures can also reduce how much you’re able to borrow.
• Understand your borrowing capacity - use online calculators as a guide, but don’t rely on them alone
• Your borrowing capacity will help narrow down your property search and ensure you’re only looking at properties you can actually afford
• Speak with a mortgage adviser early to get a realistic estimate of how much you could borrow
• Know what lenders focus on in a mortgage application, including income vs. expenses, a stable income and employment history, existing debt vs. savings
• Make sure your finances are in good shape before applying.
3. Review your spending and tidy up your accounts
The high cost of living has many New Zealand households looking for smarter ways to cut costs and save money. From groceries and petrol to housing and utilities, making small changes to everyday spending can help to free up cash in your budget.
• Go through your recent bank statements and review your spending habits
• Cut back on unnecessary expenses in the months leading up to your mortgage application
• Reduce or pay off short-term debts like credit cards, buy now pay later, and personal loans
• Avoid taking on new debt or making large credit purchases before you apply
• Check that your credit report shows consistent good financial management with bills paid on time and in full.
4. Get the most out of KiwiSaver and other support
KiwiSaver is one of the most effective ways for first home buyers to build a deposit. Regular contributions from your salary each month, combined with employer and government contributions, can steadily grow into a significant savings fund. It’s also worth exploring other ways to boost your deposit, such as personal savings or support from your family.
• Check your KiwiSaver balance and eligibility to withdraw your savings for your first home deposit
• Find out whether you qualify for a First Home Loan, which can help you buy a home with just 5% deposit
• Explore other options for increasing your deposit including family support or co-ownership.
5. Get pre-approved before you start looking
Having mortgage pre-approval provides a real headstart when you’re getting ready to buy. It helps you stay focused on properties within your budget, shows sellers and agents you’re a serious buyer, and ensures you can move quickly when the right home comes along.
• Pre-approval gives you a clear budget and shows sellers you’re serious
• It helps speed up the buying process when you’re ready to make an offer
• It can streamline the mortgage approval process because much of the work is done ahead of time.
Build your support team early
One of the most important steps in your checklist is lining up your support team. Having experienced people to guide you can make the home buying process far less stressful. A mortgage adviser in particular plays a key role. They understand how the process works, deal with lenders on your behalf, and help you find and structure a home loan that suits your situation.
If you’re getting ready to buy, get in touch today and start building the right support around you.Back