# HL-Q003: Choosing a loan We're a couple buying our first home. We both have salaried jobs, about a 10% deposit and little experience with mortgages. Which lenders would you suggest we talk to first, and why? Borrower: First-home couple with a 10% deposit [Study](https://nzbrands.ai/research/banking/home-lending/) · Collected 11 October 2026 ## chatgpt Answer ID: 354e6764-3991-46f8-89d1-e3f26c7258c8 For your situation as a first-home-buying couple in New Zealand, I’d start by talking to a mortgage adviser (mortgage broker) and two or three banks that actively lend to first-home buyers with around a 10% deposit. Because you both have salaried jobs, you may have a relatively straightforward income profile. The main question is likely to be whether a lender is comfortable with your deposit size, your combined income, your existing debts and expenses, and the property you want to buy. With a 10% deposit, you don't necessarily need to wait until you have 20%. Some lenders offer low-deposit lending, although approval can be harder, lending criteria can differ, and extra fees or interest-rate premiums may apply. ## Which lenders I’d talk to first ### 1. ANZ Why start here: ANZ advertises low-deposit home lending for first-home buyers with 10% deposits. It's a sensible option to ask for an initial borrowing assessment and compare its low-equity pricing. [Home loan deposit options](https://www.anz.co.nz/personal/home-loans-mortgages/buying/deposit-options/) [ANZ first-home deposit options](https://www.anz.co.nz/personal/home-loans-mortgages/buying/deposit-options/) ### 2. BNZ Why talk to them: BNZ has low-deposit lending options and explicitly discusses situations involving deposits from 5%. Ask about its low-equity premium, eligibility rules and any cash contribution available for your circumstances. [Low deposit home lending](https://www.bnz.co.nz/personal-banking/home-loans/first-home-buyers/low-deposit-home-lending) [BNZ low-deposit lending](https://www.bnz.co.nz/personal-banking/home-loans/first-home-buyers/low-deposit-home-lending) ### 3. Kiwibank Why talk to them: Kiwibank says it may lend with a 10% deposit in some circumstances. It is worth checking whether your application and the property you choose fit its criteria, especially if you are considering a recently built home. [Low deposit options | Home loans](https://www.kiwibank.co.nz/personal-banking/home-loans/getting-a-home-loan/first-home-buyer/deposit/low-deposit-options/) [Kiwibank low-deposit options](https://www.kiwibank.co.nz/personal-banking/home-loans/getting-a-home-loan/first-home-buyer/deposit/low-deposit-options/) ### 4. Westpac Why include them: Use Westpac as another quote to compare with the first three. Ask whether it can approve your deposit size and how any low-equity margin affects the overall cost. Eligibility and pricing depend on your application. [Westpac New Zealand home loans](https://www.westpac.co.nz/home-loans/) These are a shortlist to approach, not a ranking of who will approve you or offer the lowest rate. A lender's advertised low-deposit option does not guarantee that it will approve your particular application. ## One important option: Kāinga Ora First Home Loan Check this before settling on a standard bank mortgage. The government-backed First Home Loan can allow eligible buyers to purchase with a 5% deposit through participating lenders. [First Home Loan :: Kāinga Ora](https://www.kaingaora.govt.nz/en_NZ/home-ownership/first-home-loan/?_searchAnalytics=eyJpbmRleE5hbWUiOiJzZWFyY2gta2Fpbmdhb3ItcHJvZC1tYWluIiwicXVlcnlTdHJpbmciOiJjY2MuZ292dC5uelwvcGF5LXlvdXItcmF0ZXMiLCJkb2N1bWVudElkIjoic2lsdmVyc3RyaXBlX2Ntc19tb2RlbF9zaXRldHJlZV83OV9lbl9ueiIsInJlcXVlc3RJZCI6IjVhMzI4MWQ4LTY4NDgtNDNiYS04ZGE5LWRhZjMxYzU3NDFhNCJ9)[Financial help for first-home buyers](https://www.govt.nz/browse/housing-and-property/buying-or-selling-a-home/buying-your-first-home/) However, there is a key catch for couples: the current published combined gross-income cap is $150,000 a year for two or more buyers, regardless of dependants. Other conditions apply, including owner-occupancy, residency and lender affordability checks. The scheme also has a 1.2% lender's mortgage insurance premium. [First Home Loan :: Kāinga Ora](https://www.kaingaora.govt.nz/en_NZ/home-ownership/first-home-loan/?_searchAnalytics=eyJpbmRleE5hbWUiOiJzZWFyY2gta2Fpbmdhb3ItcHJvZC1tYWluIiwicXVlcnlTdHJpbmciOiJjY2MuZ292dC5uelwvcGF5LXlvdXItcmF0ZXMiLCJkb2N1bWVudElkIjoic2lsdmVyc3RyaXBlX2Ntc19tb2RlbF9zaXRldHJlZV83OV9lbl9ueiIsInJlcXVlc3RJZCI6IjVhMzI4MWQ4LTY4NDgtNDNiYS04ZGE5LWRhZjMxYzU3NDFhNCJ9) You can check the rules and participating lenders here: [Kāinga Ora First Home Loan](https://www.kaingaora.govt.nz/en_NZ/home-ownership/first-home-loan/). ## Why I'd use a mortgage adviser as well A good adviser can compare multiple lenders, explain the application process and help you understand what you can afford. This is particularly useful when your deposit is 10%, because different banks can assess the same application differently. [Mortgage advice](https://www.fma.govt.nz/consumer/getting-advice/mortgage-advice)[Understanding loan-to-value restrictions - Reserve Bank of New Zealand](https://www.rbnz.govt.nz/education/explainers/loan-to-value-restrictions-explained) Choose an adviser who: - Works with several lenders, not just one bank. - Has experience with first-home buyers and low-deposit applications. - Explains their commissions, any fees and potential early-exit costs. - Gives you a written comparison of interest rates, low-equity costs, cashback and loan features. You can read the Financial Markets Authority's [guide to mortgage advice](https://www.fma.govt.nz/consumer/getting-advice/mortgage-advice). ## What to ask each lender Take the same questions to each conversation so you can compare like with like. - Can you approve us with a 10% deposit? What deposit sources will you accept, including KiwiSaver withdrawals or gifted funds? - What is the total cost? Ask about the interest rate, low-equity premium or margin, application fees and any cashback conditions. - How much could we comfortably borrow? Ask what repayments would look like if interest rates were higher when you refix. - What loan structure would suit us? Ask about fixed versus floating rates, splitting the mortgage into fixed terms and making extra repayments. - What happens if we buy a new-build property? Some low-deposit lending rules differ for qualifying new builds. [Understanding loan-to-value restrictions - Reserve Bank of New Zealand](https://www.rbnz.govt.nz/education/explainers/loan-to-value-restrictions-explained)[Low deposit home lending](https://www.bnz.co.nz/personal-banking/home-loans/first-home-buyers/low-deposit-home-lending)[Low deposit options | Home loans](https://www.kiwibank.co.nz/personal-banking/home-loans/getting-a-home-loan/first-home-buyer/deposit/low-deposit-options/) One practical tip: keep some savings aside for your solicitor, building inspection, valuation if required, moving expenses and unexpected repairs. Don't assume every dollar you have should go into the deposit. ## Let’s narrow this down for you I can make the shortlist much more useful with three details. Rough estimates are absolutely fine. --- ## gemini Answer ID: f16490f1-b90c-4c37-ad86-91f51b623470 Buying your first home with a 10% deposit is a very common milestone in New Zealand, though it does mean navigating **Loan-to-Value Ratio (LVR) restrictions**. Because your deposit is under the standard 20%, banks will view your loan as higher risk and typically apply a low-equity margin (LEM)—a temporary interest rate surcharge—until you pay down the principal or the home value increases. As salaried first-home buyers with limited experience, here is a breakdown of which lenders to talk to first and how to approach them strategically. --- ### 1. Which Lenders to Talk to First * **Kiwibank:** Often considered a go-to starting point for first-home buyers. They are typically proactive with low-deposit lending (10% thresholds), have clear pathways for KiwiSaver first-home withdrawals, and participate heavily in government-backed schemes. * **The Major Australian-Owned Banks (ANZ, ASB, Westpac, BNZ):** While they all enforce the standard 20% rule for general property, they each allocate a specific portion of their lending books to low-deposit (10%) borrowers under Reserve Bank allowances. Westpac, and sometimes others via specific channels, also participate in the **Kāinga Ora First Home Loan** scheme (which only requires a 5% deposit, though it carries strict combined income caps of $150,000 for couples). * **TSB or SBS Bank:** These smaller, locally operated or customer-owned banks are often praised for more flexible, common-sense lending policies compared to the major four, and they frequently look closely at first-home buyer applications with smaller deposits. --- ### 2. Why Talk to Them (and the Strategy Behind It) * **Test Your Borrowing Power (Serviceability):** Salaried jobs provide great consistency, which lenders love. However, banks don’t just look at your deposit; they stress-test your income against high test interest rates to ensure you can afford repayments if rates fluctuate. Talking to a lender early clarifies your actual borrowing ceiling. * **Low-Equity Margins (LEMs):** Ask each bank how they handle 10% deposits. Some banks add a margin (e.g., an extra 0.25% to 0.75% on your interest rate) until your LVR drops below 80%. Comparing how different banks price this risk can save you thousands. * **Unlocking KiwiSaver & Start-Up Grants:** Ensure the bank is efficient at processing **KiwiSaver first-home withdrawals** and checking eligibility for any active government grants (like the First Home Grant, if applicable to your property type). --- ### 3. Alternative: Consider a Mortgage Broker First Instead of approaching individual banks one by one, many first-home buyers in New Zealand choose to sit down with a **mortgage broker** first. * **Cost:** Their service is generally **free** to you because the lender pays them a commission upon settlement. * **Value:** A good broker has relationships across multiple major banks and smaller institutions simultaneously. They can look at your combined salaries and 10% deposit, run numbers across several lenders at once, and tell you which bank is currently offering the best low-deposit cash contributions or lowest LEM rates. ### Recommended Action Plan 1. **Pull your credit reports:** Check centrix.co.nz or illion.co.nz to ensure your credit history is clean and free of unexpected defaults. 2. **Engage a local mortgage broker** or book an initial appointment directly with **Kiwibank** or your primary personal bank to get a formal pre-approval. 3. **Compile documents:** Gather 3 to 6 months of payslips, bank statements, and your KiwiSaver balances so the lender can instantly calculate your exact purchasing power. Are you looking to buy an established home, or are you exploring new builds/turnkey properties (which sometimes have more relaxed 10% deposit rules)? --- ## ai-mode Answer ID: 4d32e26c-fda9-40f8-9759-a9dfe7871870 Buying your first home with a 10% deposit and salaried income puts you in a very standard position for the _New Zealand_ market. Because you have less than a 20% deposit, lenders will look at you under **Low Equity Ratio (LVR)** rules, which banks cap at a certain percentage of their total lending. Here are the key lenders and mortgage professionals you should consider talking to first, along with why they fit your situation: * * **Major Trading Banks (ANZ, ASB, BNZ, Westpac):** These major institutions handle the vast majority of New Zealand mortgages. Because you have steady salaried jobs, they like the predictability of your income. They frequently have dedicated mobile mortgage managers who walk first-home buyers through the entire process step-by-step. They can also seamlessly process KiwiSaver first-home withdrawals. * **Kiwibank:** As a state-owned, New Zealand-owned bank, Kiwibank is often a popular first stop for local buyers. They are typically very active in the first-home buyer space and handle standard 10% deposit lending under current LVR allowances, as well as facilitating specific government-backed schemes like the Kāinga Ora First Home Loan (if your combined income qualifies). [Kiwibank] * **A Registered Mortgage Broker:** Instead of (or before) walking into individual banks yourself, approaching a free-to-use independent mortgage broker can save you significant time. Brokers have visibility across multiple lenders—including the major banks and second-tier lenders—and can shop around for the best cash contribution offers, interest rates, and low-deposit policies matching your exact income level. * To help narrow down whether a direct bank approach or a broker is best, let me know: * Are you planning to use **KiwiSaver withdrawals** or any **Kāinga Ora grants/loans** for part of that 10% deposit? * Are you looking at **existing properties** or **brand-new builds** (which sometimes have looser deposit rules)? --- ## ai-overviews Answer ID: 5af69396-aa4b-4514-b6a6-4b1fbe1803d3 Buying your first home in New Zealand with a **10% deposit** puts you in a specific lending category known as **High LVR (Loan-to-Value Ratio) lending**. Because the Reserve Bank of New Zealand regulates how many low-deposit loans mainstream banks can issue, lenders look closely at your salary stability and account conduct. As a salaried couple with limited mortgage experience, your best strategy is to target lenders that actively run specific first-home programs or have high allowances for low-deposit borrowers. * * * 1\. Westpac, Kiwibank, and ASB (The Kāinga Ora First Home Loan Providers) You should look first at banks that participate in the government-backed Kāinga Ora First Home Loan scheme. While you have a 10% deposit, this scheme only requires **5%**. * **Why them:** If your combined annual income is **$150,000 or less** (before tax), you may qualify for this scheme. The main advantage is that Kāinga Ora underwrites the mortgage, meaning these banks can bypass their usual strict low-deposit caps and frequently offer you their standard, lower interest rates instead of adding a "low-equity margin" premium. * **The Lenders:** **Westpac** , **Kiwibank** , and **ASB** are all active participants. Both ASB and Westpac frequently sweeten the deal by offering up to **$5,000 cash back** for first-home buyers to help cover legal and moving costs. 2\. ANZ (For Non-Scheme Low Deposit Lending) If your combined household income is over $150,000, you will not qualify for the Kāinga Ora scheme and must apply for a standard commercial 10% deposit loan. * **Why them:** **ANZ** is the largest home lender in New Zealand and consistently prioritizes first-home buyers within its allowed low-deposit lending quota. * **The Catch:** For a standard 10% deposit, ANZ and other main banks will likely charge a **Low Equity Premium (LEP)** or a low-equity margin (typically adding 0.25% to 1.00% on top of your interest rate). However, ANZ has a reputation for clear, structured frameworks that remove this extra cost automatically once your property value grows or your mortgage drops to equal 20% equity. 3\. A Registered Mortgage Broker (Your Best First Step) Because you have little experience with mortgages, talking directly to a single bank can be restrictive. A mortgage broker acts as a free intermediary who negotiates with multiple banks on your behalf. * **Why them:** They don't charge you a fee (the bank pays them a commission upon settlement). A broker will look at your salaries, expenses, and 10% deposit, and tell you exactly which bank’s internal calculator will grant you the highest borrowing capacity. * **Where to find one:** Look for brokers registered with bodies like the **Financial Services Federation** or reputable nationwide broker networks like _Squirrel_ , _Loan Market_ , or _Mike Pero_. * * * Low-Deposit Blind Spots to Watch Out For Consideration| What It Means For You ---|--- **Low-Equity Fees/Margins**| Expect to pay a slightly higher interest rate or a one-off upfront fee because your deposit is under 20%. **Account "Cleanliness"**| Banks will ask for 3 to 6 months of bank statements. They look poorly on Buy Now Pay Later (e.g., Afterpay) usage, unarranged overdrafts, or heavy gambling transactions. Clean up your accounts before applying. **Registered Valuations**| When buying with less than a 20% deposit, banks almost always require a formal **Registered Valuation** of the house before final finance approval, which costs roughly $800–$1,200 out of pocket. * * * To help point you in the right direction, could you share if your **combined pre-tax income** is above or below $150,000? Sharing whether you plan to use **KiwiSaver** withdrawals for that 10% deposit would also help narrow down your options.