The path to homeownership is an exciting journey, but for first-time buyers, navigating New Zealand’s housing market in 2025 comes with its own unique challenges and opportunities. From shifting interest rates to government schemes designed to support first-home buyers, understanding what lies ahead can help you make informed decisions. Let’s break down the key things you need to know as you take your first step onto the property ladder.
1. Interest Rates: Stability or Surprise?
In 2025, first-time buyers should pay close attention to interest rates, as they significantly impact your mortgage affordability. Although recent predictions suggest some stability after years of rate hikes, it’s important to remember that rates can be unpredictable. Think about getting pre-approval from your lender – this will give you a clearer picture of your borrowing power and help you lock in an interest rate before potential increases.
Tip: Don’t just accept the first offer from your bank. Shop around and compare rates. Many lenders offer competitive packages for first-time buyers, and working with a mortgage advisor could give you access to better deals.
2. Budgeting Beyond the Purchase Price
One of the most common mistakes first-time buyers make is underestimating the total costs involved in buying a home. Beyond the purchase price, you’ll need to budget for most of these additional expenses such as:
- Legal fees
- Building reports and inspections (if applicable)
- Mortgage broker fees (if applicable)
- Moving costs
- Insurance
- Rates

3. First-Home Buyer Schemes: Use Them to Your Advantage
The New Zealand government offers various programs designed to help first-time buyers enter the housing market. Make sure you’re aware of the key options available:
- First Home Loan: The Kainga Ora led scheme enables buyers with a deposit of as little as 5% to access home loans, provided they meet the criteria
- Residential Development Underwrite: This is a time-limited initiative for developers which allows first home buyers to get into affordable homes, eligibility criteria such as income caps and owner occupancy apply
Tip: Keep in mind that these schemes often come with price and location caps, so check if your target property qualifies.
4. Location, Location, Location
When buying your first home, location is more than just a matter of personal preference – it’s a key factor in long-term investment value. Consider areas experiencing growth and development, as they may offer better resale potential in the future. Proximity to amenities like schools, public transport, and shopping centres will also influence property value.
However, don’t overlook up-and-coming suburbs or regional areas. In 2025, many first-time buyers are finding opportunities outside major cities where property prices are more affordable.
5. Settling and Moving: Smooth Transitions
Once your offer is accepted, the settlement process begins. This involves finalising the legal paperwork, securing your mortgage, and conducting a final inspection of the property. Working closely with your lawyer or conveyancer will ensure everything is in order before the property officially becomes yours. When planning your move, factor in costs like hiring movers or renting a truck. Creating a detailed checklist can help you stay organised and avoid last-minute stress.
Purchasing your first home is a significant milestone, but it doesn’t have to be overwhelming. At Green Homes New Zealand, we believe that buying a home is more than just a transaction – it’s the foundation for your future. Whether you’re looking for energy-efficient designs or sustainable living options, our team is here to support you in building a home that meets your needs.
Ready to take the next step? Contact us today and let’s make your next home a reality.