Low deposit home lending

You may be able to get into your first home sooner with our low deposit options. If you have at least a 5% deposit, there are a few considerations we can talk you through.

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Get at least $5,000 cash back on your first home

Apply for a new BNZ home loan of $250,000 or more when buying your first home and you could get a minimum of $5,000 cash back,^ even with a deposit of 5%.

Help with your deposit

There are various ways to get help with purchasing a home if you have a low deposit.

Help from family

Your family might be able to help with lending, gifting or loaning money towards a deposit, or acting as guarantors.

Options for family help

New builds

If you’re buying a completed new build, deposit requirements can be more flexible.

Buying a brand new house

Shared ownership programmes

We’ve teamed up with organisations that provide shared ownership programmes to help first home buyers with a low deposit.

Shared ownership programmes

Calculate your low equity premium

A low equity interest rate premium will apply to all home loans with less than 20% deposit (more than 80% Loan to Value Ratio – LVR).

If you have:

  • between 80.01% – 85% LVR you’ll pay a premium of 0.35% p.a.
  • between 85.01% – 90% you’ll pay 0.75% p.a.
  • between 90.01% – 95% you’ll pay 1.20% p.a.
  • over 95.01% you’ll pay 1.50% p.a.

Get a registered valuation

A valuation will be a condition of your home loan if your deposit is less than 20%. You’ll need to organise this with your banker. The price of a valuation will depend on the valuer, urgency, and property. You’ll need to pay for the cost of the valuation. Your banker can give you guidance on how much you may need to budget for this expense. Once the valuation is complete you and your banker will receive a copy.

Due diligence

Due diligence means investigating the property to check that everything is in order, and it should be completed regardless of the size of your deposit.

You should do your due diligence before purchasing the property. This may include ordering a builder’s report, record of title and a LIM report. It’s important to include these costs in your budget when shopping for a home.

How much could you borrow?

Use our calculator to get an idea of what you could borrow. You can work out how much you might be able to borrow based on your income and expenses.

Talk to a Home Loan Partner

Our Home Loan Partners can provide expert advice on choosing your first home loan, and helping you through the buying process. They’re mobile, and available at a time and place that suits you.