For New Zealanders aiming to step onto the property ladder, 2025 brings fresh updates to First Home Grants. With the housing market shifting and government policies evolving, knowing exactly what assistance is available is crucial. Here’s a complete breakdown for first-home buyers this year.
What is the First Home Grant?
The First Home Grant is a government initiative managed by Kāinga Ora — Homes and Communities. It provides financial assistance to eligible first-home buyers purchasing existing homes or building new ones. As of May 2025, the grant amounts and eligibility criteria have been adjusted to reflect current housing market conditions.
How Much Can You Claim in 2025?
Here’s a detailed table showing the latest First Home Grant amounts:
| Type of Home | Amount per Person | Maximum for Two People |
|---|---|---|
| Existing Home | Up to $5,000 | Up to $10,000 |
| New Build/Home | Up to $10,000 | Up to $20,000 |
Key Updates:
- Increased grant amounts for new builds to encourage construction.
- More flexible income thresholds.
- Region-specific price caps adjusted for inflation.
Updated Eligibility Criteria in 2025
To qualify for a First Home Grant in 2025, you must:
- Have contributed to KiwiSaver for at least three years.
- Earn under $100,000 annually (single) or $150,000 combined (couples).
- Be buying a home within the regional house price caps.
- Not currently own property or land.
- Intend to live in the home for at least six months continuously.
House Price Caps by Region
In May 2025, these are the general price caps you must stay under:
| Region | Existing Home Cap | New Build Cap |
| Auckland | $875,000 | $925,000 |
| Wellington | $750,000 | $800,000 |
| Christchurch | $675,000 | $725,000 |
| Rest of New Zealand | $625,000 | $675,000 |
Note: Specific smaller regional caps may vary slightly. Always double-check Kāinga Ora’s latest data before proceeding.
Changes to KiwiSaver Withdrawal in 2025
Alongside the First Home Grant, you can still withdraw most of your KiwiSaver funds to help buy your first home. In 2025, the rules allow withdrawal of all contributions (except the $1,000 government kickstart) and earnings, provided the home will be your principal place of residence.
Special Conditions for New Builds
If you are buying land to build on or purchasing a newly constructed home:
- You must provide evidence such as a fixed-price building contract.
- The new property must have a Code Compliance Certificate (CCC) issued within the past 12 months.
This approach supports more affordable housing being added to the market.
How to Apply for a First Home Grant in 2025
- Check your eligibility.
- Gather documentation: Income statements, KiwiSaver proof, Sale and Purchase Agreement.
- Submit an application through Kāinga Ora’s online portal.
- Wait for pre-approval or grant approval: Processing times vary but allow at least 4-6 weeks.
Applicants are strongly encouraged to apply for pre-approval before house hunting.
Common Mistakes to Avoid
- Applying after signing a Sale and Purchase Agreement without prior approval.
- Misjudging the regional price caps.
- Not having the correct documentation ready.
Planning ahead can prevent delays or disqualification.
Conclusion
In 2025, the First Home Grant continues to be a vital tool for New Zealanders breaking into homeownership. With higher grant limits for new builds, updated income thresholds, and regional cap adjustments, more buyers can take advantage of the opportunity. Make sure to understand the latest requirements, prepare your application carefully, and seek pre-approval early to avoid missing out.
FAQ
What is the maximum First Home Grant I can receive in 2025?
You can claim up to $10,000 for an existing home or $20,000 for a new build if two eligible people are applying together.
Can I still withdraw KiwiSaver funds alongside the First Home Grant?
Yes, you can use both. The KiwiSaver withdrawal and First Home Grant work together to boost your buying power.
How long must I live in the home after buying it?
You must live in the home for at least six consecutive months. Selling or renting it out earlier could require repayment of the grant.
What happens if I exceed the income cap?
If your income is over the set limits, you will not be eligible for the grant, but you may still qualify for KiwiSaver First Home Withdrawal alone.
Is pre-approval mandatory?
Pre-approval is not mandatory but is highly recommended. It secures your eligibility before you commit to buying a property.
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