5 First Home Buyer Mistakes (And How to Avoid Them)

Waiting Too Long to Get Advice

Get help early — not just when you find a house.

Most first home buyers wait until they've found a property before talking to a mortgage adviser—but it pays to start sooner. You can also check whether you're eligible for a Kāinga Ora First Home Loan if you're applying for government support.

Getting early mortgage advice can:

• Help you understand your true borrowing power and price range

• Get your documentation and finances organized early

• Save you time and reduce stress when you find the right property

Better to know where you stand early—even if you're not quite ready to buy yet.

Focusing Only on Interest Rates

Lowest isn't always best—focus on total value instead.

Getting the lowest mortgage rate is great — but it's not the only factor to consider for first home buyers.

Your mortgage structure needs to consider:

• Loan structure (choosing between fixed and floating rates)

• Payment flexibility (options for making extra repayments)

• Break fees and hidden conditions that could cost you later

The wrong mortgage setup can cost you more long-term—even if the initial rate looks attractive.

Underestimating the Real Costs

There's more to buying a home than just the deposit.

First home buyers often focus on the deposit, but there are several other costs to plan for.

Your first home budget should include:

• Legal fees and conveyancing costs

• Property reports (LIM, building inspection)

• Moving expenses and home insurance

• Initial maintenance or renovations after settlement

For a detailed guide on first home costs and planning, Sorted.org.nz has a helpful breakdown.

A well-planned budget with a buffer helps reduce financial stress during your first home purchase.

Not Understanding KiwiSaver Rules

KiwiSaver helps—but it has specific requirements for first home withdrawals.

KiwiSaver can be a valuable tool for first home buyers — but you need to understand the rules and limitations.

• Minimum balance requirement: $1,000 must remain in your account

• One-time use: You can only withdraw for your first home once

• Bank criteria: You still need to meet standard lending requirements

While KiwiSaver providers explain the basics, I can help you coordinate everything between your provider, bank, and solicitor for a smoother process.

Start the KiwiSaver withdrawal process early—it can take up to 10 working days to process your application.

Going Straight to One Bank

Every bank has different criteria—comparing options maximizes your chances.

Each bank has different lending criteria, mortgage products, and flexibility for first home buyers. Consumer NZ breaks down how different lenders compare — but it's much easier when you have expert guidance from the start.

Working with a mortgage adviser means you'll get:

• Access to multiple lender options and rates

• Help avoiding common application mistakes

• A mortgage structure that matches your goals

Success isn't just about getting approved—it's about getting the right mortgage structure for your future.

Plan Your Deposit Journey

Use our calculator to map out your path to a first home deposit.

One of the biggest challenges for first home buyers is saving enough for a deposit. Use our calculator to understand how long it might take to reach your goal: