Search "First Home Grant NZ" today and a lot of what comes back is outdated.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 standard mortgage from a participating lender that Kāinga Ora underwrites, letting eligible buyers purchase with as little as a 5% deposit instead of the usual 20%. It's also exempt from both the DTI and LVR restrictions that constrain standard lending (see our DTI Calculator and LVR Calculator). Eligibility currently requires gross annual income under roughly $95,000 for a single buyer or $150,000 combined for two or more buyers, alongside regional house price caps in some areas.
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: not checking regional price caps for the First Home Loan early — these vary by area and matter for whether a specific property qualifies, separate from the buyer's own eligibility.
Where This Article Has Limits
Income caps, price caps, and eligibility criteria for the First Home Loan are reviewed periodically and can change — confirm current figures directly with Kāinga Ora or a participating lender before relying on them for a live purchase decision.
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.