Let’s Talk Deposits!

The Kiwi dream of owning a home can be scary, but with the right people behind you and the right advice, it doesn’t need to be! Knowing the process and what is involved to get you started to secure your financial future is the biggest step.

Here at Total Mortgages, we get it, we get the sacrifice needed to purchase your First Home and we have a team of experts available every step of the way to help guide you throughout the journey.

For most of us the biggest roadblock we face when buying a home is the deposit. One of the very first things you need to consider is what funds you have available to contribute toward the purchase.

We’ve broken it down for you with some of the most common options you may have available:


If you are enrolled in Kiwisaver and have been a member for a minimum 3 years you may be eligible to withdraw your KiwiSaver and use the funds towards the purchase. The withdrawal is handled by your solicitor and funds will be transferred to your solicitor prior to settlement. You will need to leave a minimum of $1,000 in your KiwiSaver account, and if you have purchased a property in the past, you may be eligible for the second chance withdrawal scheme.

First Home Grant

This is a benefit offered by the New Zealand Government to assist with a cash grant covering a portion of the deposit. Customers who are eligible will receive $1,000 for each year they have been contributing to Kiwisaver, to a maximum of $5,000 for an existing developed property or $2,000 for each year they have been contributing, to a maximum of $10,000 for the construction of a newly developed home (terms and conditions apply).


This one easy – any available funds in your bank account are usually viewed by the banks as genuine savings, provided they have been sitting in your account for a minimum of three consecutive months or accumulated over a period of time from your income credits.

Sale of Assets

Decluttering is one of the easiest ways to get some extra cash! This could be a valuable option to free up some money you can use for your new purchase.


You may be fortunate enough to be employed by a company that offers a superannuation scheme, this could be in addition to your Kiwisaver fund and accumulated over time from your income. Most schemes will allow you to withdraw an amount to use as a deposit towards purchasing your first home, however, this will be at the discretion of the scheme provider, so please contact your provider for the terms and conditions.

Family Gift

The main thing you need to consider with a “Gift” is to make sure this is in fact “gifted money” and not a loan. If it is a “Gift” there is no intention for the person who is providing the money to be a co-owner and with no future requirement of the funds to be repaid. Usually, a gifting certificate is provided to the bank as part of your finance application.

Deed of Acknowledgement of Debt

A Deed of Acknowledgement of Debt, also known as DOAD or deed of debt for short, is a perfect way to record a loan from one party to another. It is an agreement between two parties stating that a specified amount of money is loaned and repayable in the future, generally upon house sale. The criteria is a lot stricter than a gift, and in order to leave it out of lenders’ debt servicing calculations, there must be no repayments or interest-bearing on the loan. 

We understand every person’s situation is different and for personalised advice on how to get your foot in the door, book a call with one of our advisers and let us take the stress out of your next purchase.

Share this post

Like to know more?

If you would like to chat to one of our team please feel free to call us or schedule a call via the link below. 

Multi Awarding Winning