How much deposit do I need to buy a house in Christchurch

If you're planning to buy a home in Christchurch or the wider Canterbury region, one of the first questions you'll hit is: how much deposit do I actually need? The answer depends on whether you're buying an existing home or planning a new build, and whether you qualify for any low deposit options. 

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What's the minimum deposit for a first home in Christchurch right now?

For most existing homes, banks typically require a minimum 20% deposit. On a median priced Christchurch home, that's a significant sum, which is exactly why so many first home buyers look at KiwiSaver withdrawals, Kāinga Ora schemes, or low deposit lending options before ruling themselves out.

Some of these options can move the deposit required to as low as 5% - so it’s a good idea to have a look at what you are eligible for, as you might be closer to buying a home than you think. 

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Can I use KiwiSaver towards my deposit?

Yes. If you've been contributing to KiwiSaver for at least three years, you may be able to withdraw most of your balance to put towards your first home, provided you meet the eligibility criteria.

Many first home buyers combine both their KiwiSaver with their own savings to reach their deposit target faster.

If you're not sure how much you could access, this is one of the quickest things a mortgage adviser can check for you and it can often change the whole timeline.

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Are there low deposit options if I don't have a 20% deposit for a home?

In some cases, yes. Certain lenders will consider deposits as low as 10–15% for first home buyers, particularly for those with stable income and a clean credit history.

There are also schemes such as the First Home Loan which is underwritten by Kāinga Ora that can support eligible buyers with a smaller deposit, as low as 5%

Low deposit lending isn't available everywhere or to everyone. It depends on the lender, your income (as you still need to be able to meet repayments) and the property itself, which is why comparing options across multiple lenders matters more here than almost anywhere else in the borrowing process.

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Does the deposit requirement differ for new builds vs existing homes?

Yes, often and usually in your favour. Many banks will lend against a new build with a lower deposit than they would for an existing property, sometimes as low as 10-20% depending on the lender and your circumstances. This is one reason we see a growing number of Canterbury first home buyers turning to land and build or turnkey options, particularly in the newer Christchurch subdivisions and surrounding districts.

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The lowdown

Deposit requirements aren't one-size-fits-all, and the 20% deposit rule is often more flexible than people assume once you take into account KiwiSaver, low deposit lending, and new build options. The fastest way to find out where you actually stand is to talk it through with a local adviser who knows the Canterbury and Christchurch markets and understands the best lenders for your unique situation. 

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Ready to find out how much deposit you'd need for a first home? Get in touch with the team at Loan Market Agile for a free, no obligation chat.

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