What Does it Really Cost to Buy a First Home?

Thinking about buying your first home? It’s exciting, but it can also feel overwhelming once you start looking at the numbers. There’s more to it than just a deposit and a mortgage. We’ve done the homework so you know exactly what to expect (and roughly what it might cost), helping you plan with confidence and avoid nasty surprises.

Saving for a Deposit

Most lenders in New Zealand want a deposit of 10%–20% of the purchase price. On a $500,000 home, that’s between $50,000 and $100,000.

Check early if you’re eligible for:

• KiwiSaver First-Home Withdrawal.

• Kāinga Ora First Home Loan.

Each has its own criteria and regional price caps, so knowing your options upfront can significantly impact your buying power.

Getting a Mortgage

Your mortgage will likely be the biggest financial commitment you’ll ever make, so it’s worth shopping around.

Whether you go directly to your bank or work with a mortgage broker, take the time to compare interest rates, loan structures, and fees. A good broker can explain your options and sometimes secure deals not available through your bank, while a strong relationship with your bank can also work in your favour.

Ask for recommendations, compare offers, and don’t rush the process – a little extra time here can save you thousands in the long run.

A Registered Valuation

Sometimes your bank may require a registered valuation before approving your mortgage. This is an independent assessment of your property’s current market value, carried out by a registered valuer, not to be confused with a council rates valuation, which is mainly used for setting rates and may be outdated.

Registered valuations typically cost between $700 and $1,200, depending on the property’s location and size.

Lawyer Fees

You’ll need a lawyer to:

• Review your Sale & Purchase Agreement and mortgage documents and handle the conveyancing (transferring the property into your name).

• Legal fees for first-home buyers usually range from $1,200 to $2,500. Ask for a fixed-fee quote and check what’s included. Some lawyers charge extra for things like KiwiSaver withdrawals or working with trusts, so it’s worth asking upfront.

Builder’s Report

A builder’s report (pre-purchase report, builders inspection) is like a health check for a house. It can spot structural issues or repairs that may be needed before you commit. Costs depend on the property’s size and complexity, but most fall between $350 and $1,000. While it’s a visual inspection only, it can give you peace of mind – and negotiating power if problems are found.

If you have a friend or family member that is willing to do this for you, good news, you can save some money here!

Land Information Memorandum (LIM)

A LIM is a property’s report card from the council. It covers zoning, drainage, and any risks or restrictions, and can reveal hidden issues like unconsented work, flood zones, or future council projects. LIMs usually cost $290 to $600 and can be ordered directly from the council or via your lawyer.

Real Estate Agent Fees

Good news! If you are buying a house, you don't have to pay anything to the real estate agent (hooray!).

Ongoing Costs

Your mortgage is just one part of the picture. Homeowners also need to budget for:

• House and contents insurance.

• Council rates.

• General maintenance and repairs.

• The occasional unexpected bill (roof leak, hot water cylinder replacement, etc.).

Setting aside a small monthly buffer from the start can make these costs much easier to manage.

The more you know about the true costs of buying a home, the fewer surprises you’ll face. With a clear plan and the right advice, you can step onto the property ladder with confidence.

Still have questions about buying your first home? Download our First-home buyers ‘Go-To Guide’ or get in touch with Rise Real Estate; no question is too big or small!

Contact Us Now