7 ways to help grow your first home deposit
Saving a deposit is the biggest hurdle for most first home buyers. These seven steps help you get there faster.
Increase your KiwiSaver contributions
Lifting your KiwiSaver contributions is one of the most effective ways to boost your savings. Consider moving from the default rate to 6%, 8% or 10%.
The extra money goes straight from your pay, so you won’t miss it, and compounding grows your balance faster.
Budget and track your spending
A budget shows you where your money is going. Most banks let you export your statements to a spreadsheet, which makes it easy to track and categorise spending.
Start with essentials such as food, transport and power, then add more categories as you go.
Save your pay rises and bonuses
When you get a pay rise or bonus, keep your lifestyle the same and save the extra. If your pay goes up 2%, lift your savings by the same amount, through KiwiSaver or a separate savings account. You save more as you earn more, rather than spending it.
Cut back on credit
Living within your means is key. Avoid relying on credit cards, and live as though you earn a more modest salary while you build your deposit.
What this means in practice: every $10,000 of credit card limit can reduce how much you can borrow by $45,000 to $50,000, even if you never use it. Reduce limits or close cards you don’t need.
Look at the Kāinga Ora First Home Loan
The First Home Grant closed in 2024, but the Kāinga Ora First Home Loan is still available. It lets eligible first home buyers buy with a 5% deposit through participating lenders. Income and eligibility criteria apply, so check whether you qualify before you start looking.
Make a plan
A clear plan helps you save and reduces stress when it is time to buy. Set short, medium and long term goals and break them into milestones. Lifting your KiwiSaver contribution could be your first short term goal.
Get help from family
If your parents are able to help with your deposit, it can make a big difference. Many first home buyers get family support. Get advice for both you and your parents so everyone understands how the help is structured and what it means for them.
How Finsol can help
We help you plan your deposit, check your KiwiSaver and work out what you can borrow, so you are ready when the right home comes up.
Call us on 0800 346 765 or book a free consultation.
Finsol is a financial advisory business founded in Hawke’s Bay in 2010, looking after more than 6,000 clients across New Zealand. This article is general information only and does not take your personal circumstances into account. Information checked against Ministry of Housing and Urban Development sources in October 2026.
