First Home Buyers Hit a Record 29.5%: Is Now a Good Time to Buy in NZ?

First home buyers made up a record 29.5% of property purchases in the September quarter, according to Cotality. At the same time, national values have now fallen for seven months in a row. If you've been saving for a deposit, that's a combination you don't see very often.

So is now actually a good time to buy? Here's what the numbers say, what could still trip you up, and how to get yourself ready to make an offer.

Is it a good time to buy a house in NZ right now?

For a lot of first home buyers, the conditions are the best they've been in years. Prices are lower, there's more choice, and sellers have less power than they did a few years ago.

Cotality's Home Value Index put the national median value at $790,987 in October. That's down 0.4% on September, down 2.3% on a year ago and 19.1% below the January 2022 peak. Chief property economist Kelvin Davidson said that "all in all, it remains a favourable time to be a first home buyer."

There's a catch, though. He also said buyers are in a strong position "provided that would-be buyers are confident about their own job security and can satisfy the bank too." Those two conditions are where most of the real work sits.

Why are first home buyers doing so well right now?

Mostly because the competition has thinned out. Investors and people moving house are still finding it harder, so first home buyers are getting more of a look in.

The spring lift in listings has kept plenty of homes on the market, and sales volumes have drifted lower through 2026. That gives buyers time to do their homework, negotiate on price and ask for conditions in their offer. Cotality also points to low-deposit lending and KiwiSaver withdrawals helping people get into the market.

Will house prices keep falling?

Nobody knows for sure, but Cotality expects sales and prices to stay sluggish for at least the next 12 to 18 months. It also sees further mortgage rate rises as more likely than rates staying put or falling.

Waiting for the absolute bottom is a gamble. If you find the right home at a price your budget can handle, trying to time the market perfectly can cost you more than it saves. Values are also moving differently around the country. Auckland fell 0.7% in October and Wellington dropped 0.9%, while Hamilton, Tauranga and Christchurch held steady.

How much deposit do I need for a first home in NZ?

Many banks want 20%, but you can buy with less. Reserve Bank rules let banks do up to 25% of their new owner-occupier lending at more than 80% of the property's value, which means some buyers get in with 10% or even less.

Low-deposit lending usually comes with tighter conditions, and sometimes a higher rate or a low equity fee. Kāinga Ora First Home Loans can also work with a 5% deposit if you meet the criteria. We explained the current rules and the election debate in our post on the First Home Loan income cap.

How much will the bank actually lend me?

It depends on your income, your debts and the bank's own affordability test. Debt-to-income rules also put a soft ceiling on borrowing.

Under the Reserve Bank's rules, borrowing more than six times your gross household income, minus any existing debt, counts as high-DTI for an owner-occupied home. Banks can only do a limited share of that lending. The Reserve Bank's own example: a household on $120,000 with $20,000 of other debt would be high-DTI if it borrowed more than $700,000. Credit card limits count as debt even if the balance is zero, so it's worth trimming limits you don't use.

The bank will also test whether you could afford your repayments at a higher rate than you'll actually pay. As at 4 November, the main banks' lowest advertised one-year fixed rate for borrowers with a 20% deposit was 4.99% and the lowest two-year rate was 5.35%, according to interest.co.nz. Rates change often, so treat those as a snapshot.

Want to know your real number before you start going to open homes? Book a free 15-minute consultation and our mortgage team will run it for you.

What should I check before I make an offer?

Get your finance sorted first, then look hard at your job security and your buffer. In a buyer's market you can afford to be thorough.

• Pre-approval. It tells you what you can spend and makes your offer stronger. Lending approvals are tighter than enquiries right now. Centrix found approved new mortgages were 16% lower in the September quarter, even as home loan enquiries rose 14.4%.
• Your income. Unemployment rose to 5.7% in the September quarter according to Stats NZ. If your role feels shaky, factor that in before you stretch your budget.
• A cash buffer. Don't put every last dollar into the deposit. Moving costs, legal fees and the first few repairs add up quickly.
• Building report and LIM. With less competition, you've usually got room to make your offer conditional on these.
• Protection. Your mortgage will likely be your biggest debt. Think about how the repayments would get paid if you couldn't work for a while.

Common questions about buying your first home in NZ

What share of buyers are first home buyers right now?

Cotality says first home buyers made up a record 29.5% of property purchases in the September 2026 quarter.

Can I use my KiwiSaver for a house deposit?

Yes, if you meet the criteria. Most first home buyers can withdraw their KiwiSaver savings, apart from $1,000 which has to stay in the account, to put towards their first home. Your provider and the government website have the full rules.

Do debt-to-income rules apply to First Home Loans?

No. The Reserve Bank says Kāinga Ora loans, including First Home Loans, are exempt from the DTI rules. Banks still apply their own affordability checks.

Does a mortgage adviser cost me anything?

Not at Invicta. Our mortgage advice is fee-free, and we can compare lenders for you, including whether a low-deposit option fits.

How we can help

Invicta's mortgage advisers give fee-free advice. We'll work out what you can borrow, which lenders suit your deposit and income, and how to structure your loan so the repayments fit your life. We can help you get pre-approval sorted before you start bidding, and talk through how to protect the repayments once you're in. Find out more about our mortgage advice.

Ready to make your move?

A buyer's market only helps if you're ready to act when the right place comes up. Knowing your numbers is the first step.

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Sources

• NZ Adviser, NZ property values fall for seventh month as election looms (6 November 2026)
• interest.co.nz, Cotality's latest Home Value Index shows ongoing declines (5 November 2026)
• Trade Me Property, First home buyers hit a record 29.5% market share (5 November 2026)
• Reserve Bank of New Zealand, Reserve Bank maintains LVR settings (14 August 2026)
• Reserve Bank of New Zealand, Understanding debt-to-income (DTI) restrictions
• interest.co.nz, Mortgage rates update (4 November 2026)
• RNZ, Unemployment rate rises to 5.7% (4 November 2026)

General Information Disclaimer

The information in this article is general in nature and is not intended to be personalised financial advice. It does not take into account your individual goals, financial situation, needs, or circumstances.

Any examples, figures, rates, or scenarios are for illustrative purposes only and may change over time.

Before making any financial decision, you should consider whether the information is appropriate for your circumstances and, where appropriate, seek personalised advice from a licensed financial adviser.

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