First home buyer in NZ: the steps in order
The order of steps for a first home, from borrowing to settlement, with who to check each one with.
- Talk to a bank or mortgage adviser early. Ask how much you can borrow and what deposit they need.
- Check KiwiSaver first-home withdrawal and any grant or loan scheme rules with the providers before you commit.
- Get a written pre-approval before you bid. Auction offers cannot be made conditional on finance.What does Auction mean?An auction is a public sale where the highest bid wins once the seller's reserve price is met, and the winning bid is unconditional, with the deposit usually paid on the day. settled.govt.nz (Te Kāhui Kāinga Ora / REA): Buying by auction
- Order the LIM and builder's report, and have your lawyer review the contract before it becomes unconditional.What does LIM mean?A LIM (land information memorandum) is a report from the local council about the property, such as its rates and what the council's records hold on it. settled.govt.nz (Te Kāhui Kāinga Ora / REA): Understanding the sale and purchase agreementWhat does Building report mean?A building report is a written check of the property by an accredited inspector that lists any defects; settled.govt.nz suggests one that meets the standard NZS 4306:2005. settled.govt.nz (Te Kāhui Kāinga Ora / REA): Learning about the property
- After settlement, arrange insurance and keep records of move-in dates for the bright-line main-home rule.What does Settlement mean?Settlement day is the day you pay the balance of the purchase price and the property becomes yours. settled.govt.nz (Te Kāhui Kāinga Ora / REA): Settling on settlement dayWhat does Bright-line test mean?The bright-line test can make you pay income tax when you sell a home within the bright-line period, which IRD says is 2 years for property sold on or after 1 July 2024. Inland Revenue (IRD): The bright-line test
Check the details. Check eligibility with your KiwiSaver provider, IRD and Kāinga Ora, lending with your bank or adviser, and the contract with your lawyer.
Facts we checked
- IRD says the bright-line period is 2 years for property sold on or after 1 July 2024.IRD · accessed 2026-10-29
- IRD says the bright-line test does not apply to a sale of property that has been your main home.IRD · accessed 2026-10-29
Official pages
Shortened from a Berry article first written 2026-05-02. Figures we could not check against a public source were taken out. This is general information, not advice.