Welcome Home Loan / Kāinga Ora First Home Loan Calculator
Check your eligibility for New Zealand's Kāinga Ora First Home Loan (formerly Welcome Home Loan). Buy with just 5% deposit at 95% LVR. Income caps: $95,000 single, $150,000 joint. Price caps vary by region from $500,000 to $950,000. No Kāinga Ora guarantee fee. All figures in NZD.
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First Home Loan Eligibility
Eligible
Kāinga Ora guarantee allows 5% deposit on NZ$720,000 with Auckland lender
Minimum 5% Deposit
NZ$36,000
Loan Amount (95% LVR)
NZ$684,000
Monthly Payment
NZ$4,323/mo
LVR
95.0%
Income Cap
NZ$150,000
Price Cap (existing)
NZ$750,000
Advanced
Advanced Analysis
Eligibility checks, price caps by region, and participating lenders
To qualify for the Kāinga Ora First Home Loan, you must pass all eligibility criteria. Kāinga Ora provides the guarantee; the participating bank still assesses your credit and serviceability.
| Eligibility Criterion | Requirement | Your Status |
|---|---|---|
| Income cap | Single $95K | Joint $150K combined gross | Pass — NZ$130,000 ≤ NZ$150,000 |
| Property price cap | Auckland: existing $750,000 | new $950,000 | Pass — NZ$720,000 ≤ NZ$750,000 |
| First home buyer | Must not currently or previously own residential property in NZ | Confirm — must self-certify |
| Citizenship / residency | NZ citizen, permanent resident, or certain visa holders | Confirm with lender |
| Minimum deposit | 5% of purchase price | NZ$36,000 required |
| Property type | Residential — must intend to live in it | Not for investment property |
| Bank affordability test | Must pass lender serviceability at contract rate + buffer | Servicing at 9.0%: NZ$5,504/mo (50.8% of income) |
Important: The Kāinga Ora First Home Loan guarantee does not replace the bank's own credit and affordability assessment. You must pass both the Kāinga Ora eligibility criteria AND the participating lender's standard credit policy, DTI limits, and serviceability test.
Pro
Pro Analysis
First Home Loan vs KiwiBuild comparison, bank serviceability test, total fees and costs
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The First Home Loan (Welcome Home Loan) and KiwiBuild are different but complementary programs. Understanding the key differences helps you choose the right path.
| Feature | First Home Loan (Kāinga Ora) | KiwiBuild |
|---|---|---|
| Property type | Any residential — existing or new | New builds only (specific KiwiBuild developments) |
| Income cap (single) | $95,000 | $120,000 |
| Income cap (couple) | $150,000 combined | $180,000 combined |
| Price cap — Auckland | $750K existing / $950K new | $700,000 |
| Minimum deposit | 5% (Kāinga Ora guarantee for 95% LVR) | Typically 10% |
| Stand-down / resale restriction | None — free to sell any time | 5 years (must offer back to Kāinga Ora first) |
| Choice of property | Any eligible property on market | Only available KiwiBuild developments |
| Government guarantee | Kāinga Ora guarantees mortgage to lender | Not a guarantee scheme — direct purchase program |
| Lender choice | 10+ participating banks | Any lender willing to lend on KiwiBuild property |
| Capital gain restriction | None | Only CPI-adjusted gain in stand-down period |
FHL Income Eligible?
Yes
Cap: $150K | Income: NZ$130,000
KiwiBuild Income Eligible?
Yes
Cap: $180K | Income: NZ$130,000
How to Use This Welcome Home Loan Calculator
Select your region, whether the property is new or existing, your applicant type (single or joint), enter your gross household income, and the property price. The calculator checks your Kāinga Ora First Home Loan eligibility, calculates your minimum 5% deposit, monthly mortgage payment, and shows how the scheme compares to KiwiBuild.
What Is the Kāinga Ora First Home Loan?
- Formerly called the "Welcome Home Loan" — now officially the First Home Loan operated by Kāinga Ora
- Kāinga Ora guarantees your mortgage to the participating lender — you borrow at 95% LVR with only 5% deposit
- Without the guarantee, banks require at least 20% deposit for most borrowers (RBNZ LVR rules)
- The scheme allows income-qualified first home buyers to buy any eligible property — existing or new — within the price caps
- No Kāinga Ora fee to the borrower — standard bank fees apply
- You must still pass the participating bank's own credit assessment and serviceability test
The Formula
Eligibility: Income ≤ $95,000 (single) or $150,000 (joint combined gross)
AND Property Price ≤ Regional Price Cap (existing or new build)
Minimum Deposit = Purchase Price × 5%
Loan Amount = Purchase Price × 95% (LVR)
Monthly Payment = Loan × (r(1+r)⊃n) / ((1+r)⊃n − 1)
where r = monthly rate, n = months
Serviceability Assessment Rate = Contract Rate + 2.5% (approx.)
Example: $720,000 Auckland property (existing), joint buyers earning $130,000.
Deposit = $720,000 × 5% = $36,000.
Loan = $684,000 at 6.5% for 30 years = $4,323/mo NZD.
AND Property Price ≤ Regional Price Cap (existing or new build)
Minimum Deposit = Purchase Price × 5%
Loan Amount = Purchase Price × 95% (LVR)
Monthly Payment = Loan × (r(1+r)⊃n) / ((1+r)⊃n − 1)
where r = monthly rate, n = months
Serviceability Assessment Rate = Contract Rate + 2.5% (approx.)
Example: $720,000 Auckland property (existing), joint buyers earning $130,000.
Deposit = $720,000 × 5% = $36,000.
Loan = $684,000 at 6.5% for 30 years = $4,323/mo NZD.
Example
Emma and James — First Home Loan in Wellington
Emma earns $80,000 and James earns $65,000 ($145,000 combined — under the $150,000 joint cap). They are buying an existing townhouse in Wellington for $680,000. They have $34,000 saved plus $28,000 in KiwiSaver they can withdraw.
| Combined Income | $145,000 NZD (eligible — under $150K cap) |
| Property Price | $680,000 |
| Wellington Cap (existing) | $700,000 (eligible) |
| Minimum 5% Deposit | $34,000 |
| KiwiSaver Withdrawal (combined) | $28,000 |
| Effective Deposit | $62,000 (9.1%) |
| Loan Amount (after KiwiSaver) | $618,000 |
| Monthly Payment (6.5%, 30yr) | $3,907/mo NZD |
| Kāinga Ora Guarantee Fee | None |
| Lender Fees | ~$400 |
| No resale restriction | Can sell any time (unlike KiwiBuild) |
Frequently Asked Questions
They are the same scheme under different names. The Welcome Home Loan was rebranded as the Kāinga Ora First Home Loan when Kāinga Ora (formerly Housing New Zealand) took over administration of the program. The product works identically — Kāinga Ora guarantees the mortgage to a participating lender, allowing first home buyers to borrow at 95% LVR with only a 5% deposit.
No. There is no separate fee charged by Kāinga Ora to the borrower for the First Home Loan guarantee. You pay your participating lender's standard mortgage application fees, legal fees, valuation costs, and any other standard closing costs. The guarantee is a free benefit of the scheme for eligible first home buyers. The lender's interest rate is also standard — it is not a subsidised rate.
No. The Kāinga Ora First Home Loan is strictly for owner-occupiers — you must intend to live in the property as your primary residence. You cannot use the scheme to purchase a rental or investment property. This is a condition of the guarantee agreement. If you later rent out the property, you would need to notify Kāinga Ora and the guarantee terms may be affected.
Yes. The First Home Loan is fully compatible with a KiwiSaver first home withdrawal and the First Home Grant. You can use your KiwiSaver balance to supplement your 5% minimum deposit, which reduces the loan amount and your monthly repayments. The First Home Grant (up to $10,000 per person for new builds) can also be stacked with the First Home Loan, making it one of the most powerful combinations for first home buyers.
No. Unlike KiwiBuild which has a 5-year stand-down period, there is no resale restriction on properties purchased through the Kāinga Ora First Home Loan. You can sell your home at any time after purchase and retain all capital gains. This is a key advantage of the First Home Loan over KiwiBuild for buyers who may need to relocate or who want to access equity growth in the medium term.
Related New Zealand Calculators
Sources & References
- Kāinga Ora — First Home Loan (Welcome Home Loan) official page
- Reserve Bank of New Zealand — LVR restrictions and exemptions
- MBIE — Housing programmes including First Home Products
- Kāinga Ora — First Home Grant eligibility and amounts
- Sorted.org.nz — Getting ready to buy your first home in New Zealand