Saving a deposit is a big achievement. But the deposit is only one part of the money you'll need to buy your first home. Legal fees, reports, insurance and moving costs all come along too, and they can catch new buyers by surprise. This guide covers the extra costs to plan for, so you can budget with confidence.
Why Your Deposit Is Only Part of the Picture
Good tips for first home buyers NZ wide all start with the same idea: work out the full cost of buying, not just the deposit. When you add up everything from the offer to moving day, the total can be thousands of dollars more than you expect. Knowing this early helps you avoid last-minute stress, and it lets your adviser plan your loan properly.
Costs Before Settlement
Legal Fees
You'll need a lawyer to check the sale and purchase agreement, review the title and handle settlement. Fees vary, so ask for a quote up front. If you're using KiwiSaver, the withdrawal paperwork adds another step.
Reports and Checks
A LIM report from the council shows information about the property, such as consents and natural hazards. A pre-purchase building inspection can reveal problems before you commit. These costs are paid before you settle, so keep some cash aside.
Valuation and Lender Costs
Your lender may order a valuation. Some lenders cover this cost and others pass it on, so ask early.
Insurance
Most lenders require house insurance to be in place by settlement. Get quotes early, because cost and availability can vary by area and by property. Check the natural hazard information in the LIM, and ask insurers about cover before you commit.
Costs on and After Moving Day
- Moving truck or helpers
- Connecting power and internet
- Changing locks
- Your first rates instalment
- Furniture and appliances
- Early repairs or small fix-ups
- Body corporate levies, if you buy a unit or townhouse
Setting aside a small amount each month for maintenance is a good habit from day one.
Where KiwiSaver Fits In
Many buyers put their KiwiSaver first home withdrawal towards the deposit. You generally need to have been a member for at least three years, and a small balance must stay in your account. Withdrawals take time to process, so ask your provider early.
The First Home Grant closed to new applications in May 2024, so don't count on it in your budget.
Extra Tips for a First Home Buyer in Auckland
As a first home buyer, Auckland costs can add up quickly, so it helps to ask your adviser for a full budget. A few local points to think about:
- Check Auckland Council rates for the property you're considering
- Look at body corporate records if you're buying a unit or townhouse
- Add up commuting and transport costs when you compare suburbs
- Get your finance organised early, because good properties can move quickly
How a First Home Mortgage Broker Helps
A first home mortgage broker can estimate how much you could borrow, compare lenders from their panel, explain loan features such as fixed terms, and point out costs you may not have thought of. They also guide you through to settlement. No adviser can guarantee a lender's decision, but good preparation helps.
A Simple Budget Checklist
Add these up to find your real number:
- Your deposit
- Legal fees
- LIM report and building inspection
- Valuation, if the lender passes it on
- Insurance
- Moving and connection costs
- Furniture, repairs and a cash buffer
These tips for first home buyers NZ-wide can help you set a clear savings target, not just a deposit target.
Let's Map Out Your Full Budget
Before you start house hunting, it helps to know your numbers. The licensed mortgage advisers at Capital Finance can walk you through your borrowing and costs, compare options from our panel of 20+ lenders and guide you through to settlement. Capital Finance is paid commission by lenders. Get in touch whenever you're ready.
FAQ
How much should I set aside beyond my deposit?
It depends on the property and your situation, but many buyers need several thousand dollars. Ask your lawyer and adviser for estimates.
Can I put these costs on my mortgage?
Usually you pay them from your own savings, so they need to be in your budget. Your adviser can explain what's possible.
Is a building report really needed?
It isn't compulsory, but it can reveal costly problems. Many buyers make it a condition of their offer.
Should my lawyer see the agreement before I sign?
Yes. It's wise to have your lawyer review the agreement before you sign.
Do I pay a mortgage adviser?
In many cases the lender pays the adviser a commission. Some situations may involve a fee, and a licensed adviser should explain any cost up front.
