Search "First Home Grant NZ" today and a lot of what comes back is outdated. The scheme — which once paid eligible KiwiSaver members between $3,000 and $10,000 toward a first home — was discontinued on 22 May 2024. No new applications have been accepted since, and the government redirected the funding (roughly $245 million) into social housing supply instead. If you're planning a purchase around this grant, it's worth knowing clearly: it's gone, and it isn't coming back in its old form.
What Actually Remains Available
Two genuine tools remain, and used together they're arguably more powerful than the old grant for many buyers:
Kāinga Ora First Home Loan — not a grant, but a government-underwritten mortgage issued by participating lenders that allows eligible buyers to purchase with as little as a 5% deposit instead of the usual 20%. Qualifying First Home Loans are exempt from standard RBNZ LVR restrictions and DTI limits. Eligibility requires gross annual household income under $95,000 for an individual without dependents, or under $150,000 for an individual with one or more dependents or two or more buyers combined (note: statutory house price caps were removed by Kāinga Ora in May 2022).
KiwiSaver First Home Withdrawal — covered in detail in our KiwiSaver Calculator, this lets eligible members withdraw most of their KiwiSaver balance (minimum $1,000 must remain) toward a deposit, provided they've been a member for at least three years.
Side by Side Support Options
| Support | Status | What it does |
|---|---|---|
| First Home Grant | Closed since 22 May 2024 | N/A for new buyers |
| Kāinga Ora First Home Loan | Open | 5% deposit, exempt from DTI/LVR restrictions |
| KiwiSaver First Home Withdrawal | Open | Access most of your own KiwiSaver balance |
| Tenant Home Ownership Grant | Open, narrow criteria | For eligible Kāinga Ora tenants buying their current rental |
Worked Example: Combining the Two Live Tools
A couple with $61,000 available from a combined KiwiSaver withdrawal, buying a $650,000 first home using a Kāinga Ora First Home Loan:
| Item | Amount |
|---|---|
| Purchase price | $650,000 |
| Minimum deposit at 5% (First Home Loan) | $32,500 |
| KiwiSaver withdrawal available | $61,000 |
| Deposit Position | Comfortably covers the 5% minimum (with remaining funds for other purchase costs) |
Without the First Home Loan's reduced deposit requirement, this couple would need $130,000 (20%) — the combination of the two live tools is what makes a purchase like this realistic on a KiwiSaver-driven deposit.
Common Mistakes
Buyers frequently budget for a grant that no longer exists because they're reading outdated articles or hearing outdated advice from friends or family who bought before May 2024 — worth double-checking any first-home-buyer information against current dates, not assuming a scheme still runs just because it used to.
Buyers also confuse the First Home Loan's income caps with the KiwiSaver withdrawal's rules — the income caps apply specifically to the First Home Loan; the KiwiSaver withdrawal itself has no income restriction.
A third mistake: worrying about outdated regional house price caps for the First Home Loan — Kāinga Ora officially removed house price caps in May 2022, meaning eligible borrowers are not restricted by property price limits, though income caps and lender borrowing criteria continue to apply.
Where This Article Has Limits
Income caps, lender fees (such as the 1% Kāinga Ora lender fee), and eligibility criteria for the First Home Loan are reviewed periodically — confirm current figures directly with Kāinga Ora or your participating lender before committing to an unconditional sale and purchase agreement.
Frequently Asked Questions
Is there any chance the First Home Grant comes back?
As of now, there are no announced plans to reinstate it — the government has stated the funding was permanently redirected to social housing.
If I already applied before May 2024, is my grant still valid?
Applications submitted and approved before the closure date were still processed and paid out; only new applications since 22 May 2024 are affected.
Does the First Home Loan have the same income caps everywhere?
The income caps are set nationally, but house price caps that determine which properties qualify vary by region — check current figures for your specific area.
Can I use KiwiSaver and the First Home Loan together?
Yes — this combination is the most effective deposit strategy currently available to first-time buyers, and it's how most buyers using either tool actually structure their purchase.
Is the First Home Loan the same as a standard mortgage?
It's a standard mortgage from a participating bank — Kāinga Ora underwrites the risk of the low deposit, but you repay the bank directly with interest over the loan term, just like any other mortgage.
Related Tools
KiwiSaver Calculator · DTI Calculator · LVR Calculator · Mortgage Calculator
Educational content, not financial advice. Scheme availability, income caps, and eligibility criteria are set by government policy and Kāinga Ora, and can change — confirm current details directly with Kāinga Ora or a licensed New Zealand mortgage adviser. Written by the MortgagePro Global team.