You’re approved under Kainga Ora First Home Loan. Congratulations! What do we need to know?

A quick heads-up: The information in this article is designed as a general educational guide only and does not constitute personalised financial, tax, or legal advice. Because everyone's situation is unique (and bank policies change frequently), we recommend speaking with a licensed Financial Adviser to see how this applies to your specific circumstances. For full transparency on our terms of service, how we are remunerated by lenders, and any specific situations where a fee may apply, please read How We Get Paid.

Getting pre-approved for a Kāinga Ora First Home Loan is an exciting milestone. This guide is for buyers who are already approved under the scheme (if you are just starting out, (click here to find out more about how Kāinga Ora First Home Loans work).

Because you are purchasing with a 5% deposit, the banks and Kāinga Ora have quite specific requirements for the type of property you can buy and how the contract is structured. This guide is your handy reference manual for the next steps.

Step 1: Meet your initial approval conditions

Your pre-approval will come with a few administrative conditions that we can clear out of the way before you even find a home. These typically include:

• Income checks: Supplying any extra payslips or proof of income required.
• Debt closure: Providing proof that specific credit cards or other personal loans have been closed.
• Boarder declarations: Confirming who your boarder (flatmate) will be and how much they will be paying (if applicable).
• The LMI Premium: Remember that Kāinga Ora loans include a 1.2% Lender's Mortgage Insurance (LMI) fee. Depending on the lender, this is often added to your total loan balance rather than paid in cash. Check out our LMI Fee Calculator and Explainer to see exactly how this works.

Your Home Loan Factory adviser will confirm via email exactly which, if any, of these conditions apply to you. Once these are sorted, the only conditions left will be tied to the specific house you want to buy!

Step 2: Structuring your Sale and Purchase Agreement

Almost all residential property in New Zealand is sold using a standard Sale and Purchase Agreement. It is important you feel confident before signing one, so you must always discuss the contract with your solicitor first.

• The 10 to 15-day Finance Condition: Unless your adviser has explicitly said otherwise, you must include a finance condition allowing at least 10 working days to get unconditional approval from the bank.
• The KiwiSaver Deposit Timing: Standard property contracts often require a 10% cash deposit to be paid the moment the agreement goes unconditional. If you are using KiwiSaver for your deposit, it can take 10 to 15 working days for the funds to actually release. Ask your solicitor to amend the contract so your deposit is legally payable "upon KiwiSaver release or settlement."
• The Registered Valuation: A Registered Valuation will be required as a condition of your finance. Do not order this yourself. We must order this centrally through the bank's approved systems. You can read our brief guide on How Registered Valuations Work for more details.

(Note: A builder’s report is not an automatic requirement of the Kāinga Ora First Home Loan, unless the lender specifically requests one or it is a condition on your Sale & Purchase Agreement. However, we highly recommend getting one).

Step 3: Go shopping (The Property Checklist)

Before you put an offer in, make sure the house meets these baseline conditions.

• Within your budget: As outlined by your adviser.
• Reasonable condition: The property must be immediately liveable. There can be no ongoing roof leaks, structural problems, serious damp issues, bad cladding, or broken windows. If it is a bit tired but liveable, it might be fine.
• Cladding and Style: The home cannot have monolithic (plaster) cladding. However, both new builds and existing homes are perfectly fine.
• Not a 'Home and Income': This is a specific legal definition (often dual dwellings on one title). Your adviser can look up the property to confirm if it falls into this category.
• Auctions: Buying at auction or by tender can be incredibly challenging under a First Home Loan because it requires an unconditional cash offer. Do not attempt this without direct input from your adviser and your solicitor.

‍Read here about why Auctions can be a challenge when you have less than 20% deposit.

Step 4: Before you offer, ask us first!

Once your offer is accepted, send the signed Sale & Purchase Agreement to both your solicitor and your adviser as soon as possible so we can get the final bank sign-off underway!

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