In New Zealand you generally need a 20% deposit when buying a home, although banks do lend in some circumstances to those with less than that amount. With the year by year increase in property values 20% can seem a little out of reach. Read on as there are lots of things you can do, in this article we cover the following topics.

• Tips for Saving your deposit
• Using KiwiSaver for your deposit
• First Home Loan - 5% deposit

How Do I Save Up For a Mortgage Deposit

Of course you need to be disciplined and keep putting funds aside until you reach your deposit amount goal, we want to help get you there. There are plenty of tips and tools that can make that journey easier and hopefully faster.

Set yourself a savings goal

You need to work out what's possible so you can set yourself a realistic target and timeline to achieve it. The sorted website has some excellent budgeting tools, particularly this Budget Planner where you can enter everything in and save under your profile if you choose.

Look at your income

Can you do something short to medium term to increase your income?

• Do you have a spare room to take a boarder?
• Can you take on extra work to get over the line?
• Have a think about your skills, could you provide tutoring on a topic?
• Would you consider being an Uber driver?
• If you have a part of a deposit, make sure you're earning the best interest rate.

Be strict with your expenses

It's surprising when you do a review of your expenses how much you can lower your outgoing costs, for example.

• Shop at Pak'nSave instead of New World and start bulk buying.
• For regular expenses like petrol make sure you're on reward programs.
• Tell the kids to cut down shower times.
• Review your utility bills and switch if a company is offering you a saving.
• There's plenty of competition now in the mobile phone market, make certain you have the cheapest plan for your use.
• Plant your own vegetables - healthy and cheap!

Can I Use My KiwiSaver When I Buy a Home?

Sure can, if it's for your first home! This government website explains all the details, a summary below.

Eligibility to use KiwiSaver for your first home

• Must have been a member of KiwiSaver for at least 3 years.
• You intend to live in the property, KiwiSaver funds cannot be used for an investment property.
• Must not have owned a home or land before (there is a second chance opportunity for those in the same position as first home buyers, check with Kainga Ora - Homes and Communities).
• The home or land must be in New Zealand.

You can withdraw

1. Your contributions
2. Your employer's contributions
3. The government contribution
4. Interest you have earned
5. Fee subsidies (if you got these).

Note: you must leave $1,000 in your account and cannot withdraw funds transferred from Australian Superannuation Schemes.

What is a First Home Loan?

Some banks and other lenders have joined a scheme where they will issue a loan to borrowers with only 5% deposit. These loans are underwritten by the government via Kainga Ora - Homes and Communities. The end result - it's easier to get into your first home.

To be Eligible for a First Home Loan, you must.

• Have the 5% deposit and be purchasing a home as your primary place of residence.
• Be a New Zealand citizen or permanent resident.
• Be a first time buyer or be in a position of a first time buyer.
• Have a before tax income from the last 12 months of
• $95,000 or less for an individual buyer without dependants; or
• $150,000 or less for an individual buyer with one or more dependants; or
• $150,000 or less (combined) for two or more buyers, regardless of the number of dependants

You will still need to meet your banks lending criteria but the key is that you might be able to get into a home sooner than it takes to build up the full 20%.