The short answer is often yes. A 20% deposit opens the most doors, but it is not the only way in. Several paths exist for buyers with less — each with its own trade-offs.
Why 20% matters
The Reserve Bank limits how much of a bank's new lending can go to owner-occupiers with small deposits. Because that lending is rationed, banks price and approve it more cautiously. With 20% equity you sit outside those limits, which usually means more lenders, sharper rates and fewer conditions.
Buying with 10–15%
Many banks will still consider first-home applications in this range, particularly for existing houses rather than apartments or new builds. Expect:
- A low-equity premium or fee — either a margin added to your rate or a one-off charge.
- Closer scrutiny of income stability and account conduct.
- Longer timeframes, as low-deposit lending is approved in batches.
The First Home Loan
Underwritten by Kāinga Ora and offered through selected lenders, the First Home Loan can allow eligible buyers to purchase with as little as 5% deposit. Income caps and lender criteria apply, and not every lender participates.
New builds
Lending on a brand-new home, or a turn-key build, is generally exempt from the low-deposit restrictions. This is why some first-home buyers find a new build is achievable on a deposit that would not stretch to an existing house.
Using family support
A gift from parents, or a limited guarantee secured against their property, can lift you over the 20% line. A guarantee keeps their cash intact but puts their equity at risk, so it deserves independent legal advice on both sides.
Low-deposit lending is not second best — it is how a large share of first homes are bought. The goal is simply to know which route fits your income, your deposit and the type of property you want.
This article is general information only and not personalised financial advice. Everyone's situation is different — get in touch for guidance specific to you.