IMPORTANT NOTE:
- The First Home Grant was abolished in May 2024, and no direct replacement cash grant exists in 2026.
- First-time buyers can leverage their KiwiSaver withdrawal and the Kāinga Ora First Home Loan to maximize their purchasing power.
If you’ve been searching for a first home grants list in New Zealand, you’ve probably noticed the information online is confusing and, in many cases, outdated. Here’s the truth: the official First Home Grant was abolished in May 2024, and no direct replacement cash grant has been introduced since. That doesn’t mean you’re without support. Two powerful schemes remain available to first-time buyers in 2026, and understanding how to use them together could meaningfully change what you can afford.
Table of Contents
- Key takeaways
- 1. What counts as first time homebuyer assistance in NZ today
- 2. KiwiSaver First Home Withdrawal explained
- 3. Kāinga Ora First Home Loan: the low-deposit path
- 4. Comparing what’s still available: a clear-eyed look
- 5. Practical next steps to maximise your position in 2026
- My honest take on the shift away from first home grants
- How Mortgagemanagers can help you find the best path forward
- FAQ
Key takeaways
| Point | Details |
|---|---|
| No cash grants in 2026 | The First Home Grant was scrapped in May 2024 and has not been replaced with any new cash grant scheme. |
| KiwiSaver withdrawal is your biggest lever | Eligible members can withdraw contributions after three years, but leaving $1,000 invested (if you received the Kickstart). |
| First Home Loan (via Kainga Ora) reduces deposit to 5% | Kāinga Ora’s government-backed loan lets qualifying buyers purchase with just 5% deposit instead of the standard 20%. |
| Combining both schemes is the smart move | Using your KiwiSaver withdrawal alongside the First Home Loan creates the most effective low deposit strategy available. |
| Start the process early | Reach out to a mortgage adviser that can help you get pre-approved for your home loan using the best home loan options. |
1. What counts as first time homebuyer assistance in NZ today
Before you can benefit from any scheme, you need to understand the eligibility rules. The term “first home buyer” sounds self-explanatory, but the criteria go deeper than simply never having owned a home before.
In New Zealand, you generally qualify as a first-time buyer if you have never previously owned residential property anywhere in the world. However, there is a notable exception. Buyers who previously owned property may still qualify for KiwiSaver withdrawal under “second-chance” criteria if their financial position closely resembles that of a first-time buyer due to a hardship event such as relationship breakdown or bankruptcy.
Both remaining schemes share a few core eligibility themes:
- You must be a New Zealand citizen, permanent resident, or eligible visa holder
- You must intend to live in the property (owner-occupancy is required, not investment)
- You must have been a KiwiSaver member for at least three years for the withdrawal scheme
- Income caps apply specifically to the First Home Loan but not to the KiwiSaver withdrawal
Pro Tip: Check your KiwiSaver membership start date before you begin property hunting. That three-year clock started from your first contribution, not from when you opened the account consciously.
One point worth stating plainly: no cash grant scheme exists in 2026 for first-time buyers in New Zealand. The government redirected approximately $245 million toward social housing supply instead. Any website suggesting otherwise is sharing old information.
2. KiwiSaver First Home Withdrawal explained
The KiwiSaver First Home Withdrawal is, for most buyers, the most financially significant piece of first time homebuyer assistance still available. Understanding exactly how it works will help you plan your purchase with confidence.
Here’s what you can withdraw:
- Your own member contributions
- Your employer’s contributions made on your behalf
- Any investment returns earned on those contributions
You cannot withdraw the $1,000 government kick-start contribution (for those who received it), and you must leave a minimum balance of $1,000 in your account after the withdrawal. There is no upper limit on what you can withdraw beyond that floor.
Typical withdrawal amounts range from $10,000 to $80,000, though long-term, high-contributing members can access significantly more. That makes this scheme considerably more powerful than the old First Home Grant, which was capped at a few thousand dollars.
How the funds actually move
One detail that catches many buyers off guard: the money does not go into your personal bank account. The withdrawal is paid directly to your conveyancing solicitor as part of the settlement process. This means you cannot access it early to use as a holding deposit or to pay for other pre-purchase costs.
There is also an important note for anyone who has transferred funds from an Australian complying superannuation fund into their KiwiSaver. Those transferred funds are locked out of the first home withdrawal eligibility, even if the rest of your balance qualifies.
Pro Tip: Apply for your KiwiSaver withdrawal at least four to six weeks before your settlement date. Processing takes 10 to 15 working days, and any delay can trigger penalty interest or, in the worst case, give your vendor grounds to cancel the sale.
For a full breakdown of the application steps, Mortgagemanagers has a dedicated resource on KiwiSaver withdrawal for first home buyers that walks through each stage in practical detail.
3. Kāinga Ora First Home Loan: the low-deposit path
The Kāinga Ora First Home Loan is the other major pillar of first home buyer incentives in New Zealand. While the KiwiSaver withdrawal helps you build your deposit, the First Home Loan helps you stretch a smaller deposit further.
The core benefit is simple. Rather than needing the standard 20% deposit that most lenders require, this government-backed loan allows you to purchase with just 5%. Kāinga Ora underwrites the difference, which removes the need for Lenders Mortgage Insurance. That matters because LMI can add thousands to the cost of a low-deposit mortgage under normal circumstances.
Eligibility criteria and house price caps
The 2026 income caps are as follows:
| Buyer type | Income cap |
|---|---|
| Single buyer | $95,000 gross per year |
| Two or more buyers | $150,000 combined gross per year |
Unlike earlier versions of home buying grants and loan schemes, there are no national house price caps for the First Home Loan since the 2023 update. However, regional caps do apply for certain qualifying purposes. For reference, Auckland’s cap for an existing home sits at $875,000, and a new build at $925,000. Wellington’s equivalent figures are $750,000 for existing homes and $800,000 for new builds.
The loan is available through a panel of participating lenders including Kiwibank, Westpac, ANZ, and ASB. You apply through those participating banks directly, with Kāinga Ora’s guarantee sitting behind the loan structure rather than being something you apply to separately.
4. Comparing what’s still available: a clear-eyed look
There’s a lot of noise online about home buying grants in New Zealand. Let’s cut through it with a direct comparison.
| Feature | KiwiSaver First Home Withdrawal | Kāinga Ora First Home Loan |
|---|---|---|
| Type of assistance | Deposit contribution | Low-deposit loan underwrite |
| Income cap | None | $95,000 single / $150,000 joint |
| Minimum membership | 3 years KiwiSaver | Not applicable |
| House price cap | None | None (unless a second chance) |
| Funds go to | Conveyancing solicitor at settlement | Lender as part of mortgage |
| LMI required | Not applicable | LMI required (added to loan) |
| Available in 2026 | Yes | Yes |
| First Home Grant | Abolished May 2024 | Abolished May 2024 |
“Many buyers arrive at conversations with us believing they can access a cash grant. The First Home Grant was removed in 2024 with no replacement. The real opportunity now lies in using KiwiSaver and the First Home Loan together.” — Mortgage Managers adviser team
The persistence of grant misinformation online is a genuine problem. Buyers who plan their finances around a cash grant that no longer exists can find themselves with a deposit shortfall at precisely the wrong moment. The good news is that for many buyers, particularly those who have been contributing to KiwiSaver consistently, the withdrawal can provide greater purchasing power than the old grant ever did.
For more context on how the removal of the HomeStart Grant affected buyers, Mortgage Managers has covered the 2024 HomeStart Grant changes in detail.
5. Practical next steps to maximise your position in 2026
Knowing what assistance exists is only useful if you act on it in the right order. Here’s how to approach it:
Check your KiwiSaver balance and membership date. Log into your provider’s portal and confirm exactly how long you’ve been a contributing member and what your current balance is. This tells you immediately whether you qualify for a withdrawal and roughly how much you can access.
Confirm your income against the First Home Loan thresholds. If your gross income sits under $95,000 as a single buyer or $150,000 combined, you’re likely eligible for the First Home Loan. This opens the door to a 5% deposit purchase rather than needing 20%.
Work with a mortgage adviser before you make an offer. A mortgage adviser can pre-assess your full financial position, identify which lenders on the First Home Loan panel will offer you the best terms, and coordinate the KiwiSaver withdrawal timeline with your solicitor.
Apply for KiwiSaver withdrawal as soon as you have a signed sale and purchase agreement. Don’t wait. Applying 4 to 6 weeks early is the single most important administrative step you can take to protect your settlement date.
Monitor regional price caps if you’re using the First Home Loan. These figures are reviewed periodically by Kāinga Ora, and they affect whether a given property qualifies under the scheme. Your adviser should flag this during the pre-approval stage.
Pro Tip: Ask your KiwiSaver provider for a written confirmation of your eligible withdrawal amount before you start seriously bidding. This gives you a concrete number to work with during negotiations rather than an estimate.
For further guidance on using your KiwiSaver effectively as part of your purchase strategy, the Mortgagemanagers team has prepared practical resources to help you make sense of each step.
“my honest take on the shift away from first home grants”
I’ve spoken with a lot of first-time buyers recently who are frustrated by the lack of Government support and specifically the removal of the First Home Grant. They’ve done their research, found references to the First Home Grant on various websites, budgeted for it, and then discovered it was cancelled over a year ago. That frustration is completely understandable.
What I would say though, is that “free money” was always going to end at some stage and when the country is grappling with high levels of debt it makes sense for the Government to put a stop to grants like this. The old cash grants were capped at relatively modest amounts and didn’t scale with your circumstances so in many cases were not available and caused frustration when available too.
A KiwiSaver withdrawal, on the other hand, grows with how consistently you contribute and the Government has been focused on making sure that contributions increase. I’ve seen plenty of first home buyers access $60,000 or more in recent years, which is a lot more than most Kiwis had previously and is a genuinely meaningful contribution to a deposit in any New Zealand market today.
The landscape has changed, and your strategy needs to reflect that.
— Stuart
How Mortgage Managers Can Help
At Mortgage Managers we work with first-home buyers across Auckland (West Auckland, the North Shore etc) and throughout New Zealand every day.
Our advisers know the current first home grants list inside out, including what’s gone and what options remain including how to use the various bank and non-bank options and active schemes like the Kāinga Ora First Home Loans to your greatest advantage.
We help you structure your KiwiSaver withdrawal timing correctly, assess your eligibility for the Kāinga Ora First Home Loan across all participating lenders, and coordinate with your solicitor so settlement runs smoothly. If the First Home Loan is not the right option for you, then we will assess other options too.
As personal shoppers for your home loan, we compare options across the lending market to find terms that suit your specific situation, not just the first rate that appears.
The earlier you speak with an adviser, the more options you’ll have. If you’re considering buying in the next six to twelve months, now is exactly the right time to get clarity on your position.
Reach out to the team at Mortgage Managers to get started.
FAQ
Is there still a first home grant available in New Zealand?
No. The First Home Grant was abolished in May 2024 and no replacement cash grant has been introduced. First-time buyers should focus on the KiwiSaver First Home Withdrawal and the Kāinga Ora First Home Loan instead.
How much can I withdraw from KiwiSaver for my first home?
You can withdraw all eligible contributions and returns, leaving a minimum balance of $1,000 in your account. Typical withdrawal amounts range from $10,000 to $80,000, with no upper cap in 2026.
What is the income limit for the Kāinga Ora First Home Loan?
The 2026 income caps are $95,000 gross per year for a single buyer and $150,000 combined for two or more buyers. There are no national house price caps, though regional caps apply in some areas.
Can I use KiwiSaver withdrawal and the First Home Loan together?
Yes, and this combination is the most effective deposit strategy available to first-time buyers in 2026. The withdrawal contributes to your deposit amount while the First Home Loan reduces the total deposit you need to just 5%.