Saving a home deposit in NZ: how long it takes

How long a deposit takes depends on three numbers: the price, the deposit share you aim for (5% with a First Home Loan, 20% for standard lending) and how much you save each month, including KiwiSaver. In our worked example, two buyers on $65,000 each, saving $1,500 a month with $15,000 each in KiwiSaver, would reach 5% of a $750,000 home ($37,500) in about 5 months, 10% in about 22 months and 20% ($150,000) in about 56 months, assuming no investment returns. The First Home Grant closed on 22 May 2024, so there is no grant to add. Banks decide; this is general information, not financial advice.

First, how much deposit do you need?

Your target depends on the route you take:

The 20% figure comes from the Reserve Bank's LVR rules: since 1 December 2025, banks may make only 25% of new owner-occupier lending with a smaller deposit. Below 20% you will usually pay a low equity premium or a higher rate, unless you use a First Home Loan, which has its own premium of 1.2% of the loan. Our guides to LVR rules and low deposit loans explain the trade-offs.

Also budget for upfront costs on top of the deposit: a lawyer (often $1,400 to $2,500 plus GST and disbursements, a single-source estimate), a LIM, a building inspection and sometimes a valuation. See buying costs.

The simple maths: savings alone

Before KiwiSaver, here is how many months it takes to save each target from nothing, with no interest:

Saving for 20% on cash alone can take many years. KiwiSaver changes the picture for most first home buyers.

Adding KiwiSaver

After at least 3 years of membership, a first home buyer can usually withdraw their KiwiSaver balance less $1,000 (and less any money transferred from Australia). Our KiwiSaver withdrawal guide has the full rules.

KiwiSaver also keeps growing while you save. Under current settings, someone on $65,000 contributing 3.5%, with the employer's 3.5% (after ESCT) and the government contribution of up to $260.72 a year, adds about $4,130 a year to their account, or about $344 a month, before investment returns or fees. We assume no returns in the timelines below, because we do not forecast them and they can be negative.

Joint buyers each withdraw from their own account, and each must meet the rules separately: 3 years of membership, a first home, and a home they will live in. Each must also leave $1,000 behind, which is why our couple timelines below take $2,000 off their combined balance. Money transferred from an Australian super scheme stays in the account too.

Worked example: a couple

Two buyers each earn $65,000 and have been in KiwiSaver for more than 3 years, with $15,000 each. Their KiwiSaver grows by about $688 a month between them. They save cash each month on top. Time until cash plus their KiwiSaver withdrawal (leaving $1,000 each) reaches the target:

At the $750,000 price with $1,500 a month, the 20% deposit after 56 months is made up of $84,000 of cash and about $66,500 of KiwiSaver. KiwiSaver does close to half the work.

Their income of $130,000 is within the First Home Loan cap of $150,000 for two buyers, so the 5% route may already be open to them. Whether they can borrow the rest is a separate question: our how much can I borrow guide shows a couple on $130,000 limited to about $770,000 by the DTI rule in one example, and less when living costs are higher.

Worked example: a single buyer

One buyer earns $65,000, has $12,000 in KiwiSaver after more than 3 years, and saves $1,000 a month. KiwiSaver adds about $344 a month.

For a single buyer the deposit is often not the hardest part. On $65,000 with living costs of $2,000 a month and no debts, our engine puts serviceability at about $325,979 at the average test rate of 6.94% (test rates confirmed July 2026). With a First Home Loan and a $30,000 deposit, that points to a price of about $356,000, not $600,000. Check what you can borrow before you set a price target, using our borrowing calculator.

Mind the 3-year KiwiSaver clock

The timelines above assume both buyers have already been in KiwiSaver for 3 years. If you joined more recently, your KiwiSaver still grows, but you cannot withdraw it for a first home until 3 years after your first contribution (or 3 years combined with complying superannuation funds). If you are not a member yet, joining now starts the clock.

Plan with dates, not just amounts:

1. Find your KiwiSaver start date (your provider can tell you) and add 3 years.
2. Estimate the deposit you will have by then, from cash and KiwiSaver.
3. Check the price that deposit supports at 5%, 10% and 20% in our deposit calculator.
4. Check what you can borrow in our borrowing calculator; the lower of the two is your realistic price.
5. Re-check each year. Prices, rates and the rules all move, and we do not forecast any of them.

Ways to get there sooner

• Raise your KiwiSaver rate. You can choose 4%, 6%, 8% or 10%. More goes in, though it is locked away until you buy, and your take-home pay falls (which the bank sees in serviceability).
• Get the full government contribution. It is 25 cents per dollar of member contributions, up to $260.72 a year for $1,042.86 of your own contributions, if you are 16 to 65 and earn $180,000 or less (IRD).
• Cut debts as well as spending. Paying off a car loan raises what you can borrow as well as what you can save. Lowering card limits helps your DTI ratio.
• Aim for 5% or 10% if it suits. Reaching a smaller deposit sooner has costs: premiums, a bigger loan, less equity. Our low deposit guide sets them out.
• Family help. A gift, a guarantee or buying together can close a gap; each has rules. See buying with family.
• Show a savings record. Regular saving can show a bank you are able to manage repayments, which can help when you apply.

What is gone: the First Home Grant closed to new applications on 22 May 2024 and we found no replacement for 2026. Kiwibank also says the First Home Partner shared ownership scheme is fully subscribed. Banks decide; this is general information, not financial advice.

Questions people ask

Can we both use our KiwiSaver?

Yes, if each of you qualifies: at least 3 years of membership, a first home, and a home you will live in. Each of you withdraws from your own account and leaves $1,000 in it.

How long does it take to save a house deposit in NZ?

It depends on the price, the deposit share and how much you save. In our example a couple saving $1,500 a month, with $30,000 between them in KiwiSaver, reach 20% of a $750,000 home in about 56 months, assuming no investment returns.

Can I use KiwiSaver for my deposit?

Yes, after at least 3 years of membership, for a first home you will live in. You must leave $1,000 in your account. It is paid to your lawyer or conveyancer.

Is there a first home grant?

Not any more. The First Home Grant closed to new applications on 22 May 2024. Kāinga Ora said it would still process applications already received. We found no replacement grant for 2026.

Should I save 20% or buy sooner with 5%?

There is no single answer and we do not forecast prices. A 5% First Home Loan has a 1.2% premium; a bank low-deposit loan usually has a low equity premium or higher rate. A 20% deposit avoids those and leaves more equity.