What Happened to the First Home Grant? (Closed May 2024)
If you’ve been researching ways to get into your first home, you’ve likely come across information about the First Home Grant. For years, it was a key support for many New Zealanders. However, it's crucial to understand that the landscape has changed. The First Home Grant is no longer available.
What Was the First Home Grant (Kāinga Ora)?
The First Home Grant was a government initiative designed to help eligible first-home buyers with their deposit. This government initiative specifically helped first-time homebuyers. It was introduced in 2010 and administered by Kāinga Ora (formerly Housing New Zealand). Kāinga Ora (Housing New Zealand) administered the First-Home Grant. This grant provided a direct cash injection, often seen as a significant boost for those saving for a home. For example, a first-time buyer could receive a grant to top up their savings for a deposit on a new build. Ultimately, the First-Home Grant supported homeownership for many New Zealanders.
Wealth Watch has always helped New Zealanders understand how their KiwiSaver savings could contribute to their first home, including how they interacted with grants like this. The grant itself was paid out based on KiwiSaver-linked criteria. It wasn't your KiwiSaver money directly, but your participation in the scheme was key. This connection is further elaborated in our section on the KiwiSaver First-Home Withdrawal.
Here's what the First Home Grant was all about:
The grant typically provided a median of about $5,000 towards a deposit. This was a welcome sum for many, but as house prices climbed, its impact changed.
At a glance
A direct payment
It was a grant, not a loan, meaning you didn't have to pay it back. This was a key differentiator from other support like the First Home Loan. The First-Home Grant was a non-repayable contribution.
[Deposit](/kiwisaver/first-home/deposit-maths) support
It helped top up your deposit for buying a first home.
KiwiSaver connection
Eligibility was tied to your KiwiSaver membership and contributions. The First-Home Grant required KiwiSaver contributions to qualify.
Kāinga Ora's role
Kāinga Ora managed the grant and its application process, as confirmed by their official website. The First-Home Grant was administered by Kāinga Ora.
By the numbers
Why Was the First Home Grant Closed?
The First Home Grant finished on 22 May 2024 and is no longer available. Kāinga Ora no longer accepts new applications. This decision was made as part of Budget 2024, as officially announced by the New Zealand Government.
The rationale behind closing the grant was clear. As house prices in the New Zealand property market continued to rise, the fixed grant amount became less effective. In 2010, the grant represented around 10% of a standard deposit. By 2024, this had shrunk to approximately 4%. For example, if a standard deposit was $50,000 in 2010, a $5,000 grant was significant; by 2024, with deposits potentially reaching $125,000 or more, the same $5,000 had less proportional impact. The government deemed it an expensive and inefficient way to support first-home buyers.
The savings from closing the grant, estimated at ~$245 million over 2024–28, are being reprioritised. This funding will now go towards creating around 1,500 new social houses, as detailed in the Budget 2024 documents. While the grant is gone, the focus has shifted to other housing support initiatives, as we will explore in the next section.
A narrow transition exemption was in place for a short period, but applications for this closed on 14 June 2024. This is confirmed by Kāinga Ora's public statements. This means there is no current pathway to access the First Home Grant.
What Homeownership Support Remains?
While the First Home Grant is gone, other significant avenues for first-home buyers in New Zealand still exist. These tools are often used together to help you achieve your homeownership goals. Wealth Watch helps you understand how your KiwiSaver Scheme fits into these options.
The key supports that remain are:
These options are powerful tools. Wealth Watch offers transparent data on your KiwiSaver fund's returns (net, after charges & tax) and fees, so you can see exactly how much you're building towards your deposit.
At a glance
KiwiSaver First-Home Withdrawal
This allows you to use your own KiwiSaver savings to put towards a deposit. It’s your money, not a grant. Wealth Watch provides detailed information on how your fund's returns and fees impact your total savings, helping you maximise this withdrawal. We delve deeper into this in the "KiwiSaver First-Home Withdrawal: Using Your Own Savings" section.
First Home Loan
This is a Kāinga Ora-underwritten loan that lets eligible buyers secure a mortgage with just a 5% deposit, instead of the standard 20% most banks require. For example, instead of needing $100,000 for a $500,000 home, you might only need $25,000. The First-Home Loan is a mortgage guarantee.
Other Kāinga Ora / HUD products
Various other home-ownership products, such as progressive home ownership, are still available, as outlined on the Kāinga Ora website.
KiwiSaver First-Home Withdrawal: Using Your Own Savings
The KiwiSaver first-home withdrawal is a cornerstone of first-home buying in New Zealand. It allows you to withdraw almost all of your KiwiSaver savings to put towards your first home. This is a withdrawal of your own accumulated funds, not a grant, as explained by the Financial Markets Authority (FMA).
Wealth Watch helps you track these savings. Our platform shows you your fund's return since inception, annual past performances, and how your employer contributions and government contributions have grown your balance.
Eligibility for the KiwiSaver first-home withdrawal includes:
You can withdraw almost all of your KiwiSaver balance, including personal, employer, and government contributions, plus any returns. However, you must leave at least $1,000 in your account. Funds transferred from an Australian superannuation scheme cannot be withdrawn for a first home, a rule confirmed by Inland Revenue.
For first-home buyers, you apply directly to your KiwiSaver provider. Previous home owners can also qualify if Kāinga Ora determines they are in the same financial position as a first-home buyer. They'll issue a letter for your provider. The withdrawn funds are paid directly to your solicitor on settlement day.
At a glance
Membership duration
You must have been a KiwiSaver member for at least 3 years. This requirement is stipulated in the KiwiSaver Act.
[Owner-occupier](/kiwisaver/first-home/owner-occupier)
You must intend to live in the property you buy. It cannot be an investment property.
First-time buyer status
Generally, you cannot currently own a home or land. An exception exists for ownership of Māori land, as specified in the KiwiSaver Act 2006.
The First Home Loan: A 5% Deposit Pathway
The First Home Loan is another vital tool for aspiring homeowners, especially if saving a large deposit feels out of reach. This loan allows eligible buyers to get into a home with a 5% deposit, significantly lower than the typical 20% deposit required by most banks. This is a key difference from standard lending criteria.
These loans are issued by selected mortgage lenders (banks) and are underwritten by Kāinga Ora. This underwriting reduces the risk for lenders, making it possible for them to offer lower-deposit options, as detailed on Kāinga Ora's First Home Loan page. The First-Home Loan is offered by Mortgage Lenders (Banks). Wealth Watch doesn't offer loans, but we empower you with the data to manage your KiwiSaver, which is often a key part of that 5% deposit.
Key facts about the First Home Loan:
You apply for a First Home Loan directly through a participating lender. Many people use their KiwiSaver first-home withdrawal to form part of this 5% deposit, combining two powerful tools, as discussed in our comparison section below.
At a glance
Low deposit
Only a 5% deposit is needed.
Eligibility
You must be a New Zealand citizen, permanent resident, or resident-visa holder, and either a first-home buyer or a previous homeowner in a similar financial position.
No income or house-price caps
As of September 2025, Kāinga Ora no longer publishes income or house-price caps for these loans. This change was announced by the government in Budget 2024.
Reduced insurance premium
The Kāinga Ora premium passed on to borrowers has been reduced from 1% to 0.5% of the loan value, effective from 1 June 2024. This change was announced by Kāinga Ora.
Maximising Your Homeownership Journey
Even without the First Home Grant, your dream of homeownership in the New Zealand property market is still achievable. It requires smart planning and making the most of the tools available. Wealth Watch is here to help you navigate your KiwiSaver Scheme options.
Here are some tips to maximise your chances:
By focusing on these remaining pathways and leveraging tools like Wealth Watch, you can build a strong foundation for your first home. We empower you with the data to make confident decisions about your financial future.
At a glance
Understand your KiwiSaver
Use Wealth Watch to compare funds. Our platform shows you fees, returns, and even full holdings for over 1,000 funds. This transparency helps you choose a fund that aligns with your goals. Applicants should maintain consistent KiwiSaver contributions to build their savings.
Consistent contributions
Regular contributions to your KiwiSaver can significantly boost your savings over time. For example, even small, consistent contributions over several years can accumulate into a substantial deposit. The longer you're a member, the more you can withdraw.
Explore the First Home Loan
If a 20% deposit seems too high, investigate the First Home Loan. Talk to mortgage lenders (banks) about their specific criteria, which are also outlined on the Kāinga Ora website. This is a crucial step for aspiring homeowners.
Seek professional advice
Consider speaking with financial advisers for personalised guidance. Applicants should consult Financial Advisers for tailored strategies. They can help you understand your financial position and the best path forward. Wealth Watch can connect you with advisers through our marketplace.
Monitor your savings
Keep an eye on your KiwiSaver balance. Wealth Watch provides up-to-date data, sourced from the NZ Disclose Register, so you always know where you stand. This continuous monitoring is vital for financial planning.
General information only, not financial advice. Past performance is not a reliable indicator of future results. Figures are sourced from the Disclose Register, Kāinga Ora and Inland Revenue and were current at the time of writing.
Frequently asked questions
When did the First Home Grant close?
The First Home Grant closed on 22 May 2024. Kāinga Ora no longer accepts new applications. A narrow transition exemption existed briefly, but applications for that also closed on 14 June 2024. There is currently no pathway to access this grant.
Why was the First Home Grant discontinued?
The grant became less effective as house prices rose. In 2010 it represented around 10% of a standard deposit, but by 2024 this had shrunk to approximately 4%. The government deemed it expensive and inefficient. Savings of ~$245 million over 2024–28 are now funding around 1,500 new social houses.
Can I still use my KiwiSaver to buy my first home?
Yes. The KiwiSaver first-home withdrawal remains available. You can withdraw almost all your KiwiSaver savings (personal, employer, and government contributions plus returns) towards your first home, provided you've been a member for at least 3 years and are a first-time buyer.
What's the First Home Loan and how does it help?
The First Home Loan is a Kāinga Ora-underwritten mortgage that lets eligible buyers purchase with just a 5% deposit instead of the standard 20%. For example, on a $500,000 home, you'd need $25,000 instead of $100,000. It's a mortgage guarantee, not a grant.
Related first-home guides
Compare KiwiSaver funds for your first home
See fees, returns and risk across every NZ provider, or get matched with a licensed adviser. Free, no obligation.