NZ Election 2026: What Each Party’s Housing Policy Means for First Home Buyers

New Zealanders vote on Saturday 7 November 2026, and housing is one of the biggest issues on the table. If you're saving for your first home, refixing your mortgage or thinking about an investment property, the next government's policies could affect your plans.

Here's a plain-English summary of what the main parties have proposed, and what it could mean for you. We don't take sides. Our job is to help you make sense of the changes, whoever wins.

Why this election matters for home buyers

The housing market has been flat through 2026. National property values are down about 1.3% over the year to September, and sales are around 14% lower than a year ago. But first home buyers are bucking the trend, making up a record 29.5% of purchases in the September quarter.

Many buyers and investors are holding off until after the election to see which policies go ahead. That's why it's worth understanding the options now.

What each party is proposing

Labour: a capital gains tax on investment property

Labour's headline policy is a 28% capital gains tax (CGT) on residential investment and commercial property.

The family home is exempt. So are farms, KiwiSaver and shares.
It would only apply to gains made from 1 July 2027. Any increase in value before that date would not be taxed.
The tax would be paid when the property is sold (on "realised" gains).
Labour has also committed to keeping 100% interest deductibility for rental property.

What it could mean for you: If you're buying a home to live in, this policy wouldn't tax your gains. If you own or plan to buy a rental, it could affect your long-term returns, so it's worth factoring into your plans.

National: wider access to 5% deposits

National has proposed expanding the Kāinga Ora First Home Loan scheme, which lets eligible buyers purchase with a deposit of just 5% instead of the usual 20%.

The income threshold for the scheme would rise to $300,000, so more households could qualify.
National has also promised no new taxes, which means no capital gains tax.

What it could mean for you: More first home buyers, especially couples on higher combined incomes, could get into a home with a smaller deposit. You'd still need to meet the lender's credit and affordability checks.

NZ First: shared ownership with the Government

NZ First is considering a shared-equity model, where the Government could co-own part of a first home alongside the buyer.

What it could mean for you: If introduced, you'd need a smaller mortgage because the Government would own a share of the property. Details such as how you'd buy back the Government's share haven't been confirmed yet.

ACT: removing ring-fencing on rental losses

ACT has proposed removing the ring-fencing of rental property losses. Currently, if your rental makes a loss, you can't use it to reduce the tax on your salary or other income.

What it could mean for you: Property investors could offset rental losses against other income, which may make investing more attractive.

Greens: a wealth tax and a longer bright-line test

The Greens haven't proposed a capital gains tax like Labour's. Instead, they've proposed a wealth tax and an extended bright-line test (the rule that taxes gains on properties sold within a set period).

Quick comparison

First home buyers: National (5% deposit access widened) and NZ First (shared equity) have the most direct policies.
Homeowners: Under Labour's proposal, the family home stays exempt from CGT.
Property investors: Labour's CGT would apply from 1 July 2027. ACT's proposal would allow rental losses to offset other income.

Should you wait until after the election to buy?

Not necessarily. Here are a few things to keep in mind:

These are proposals, not law. New Zealand usually ends up with a coalition government, so policies often change during negotiations.
Changes take time. Even if a policy goes ahead, it may not apply until 2027 or later.
Interest rates may matter more right now. Mortgage rates have been creeping up in 2026, which affects how much you can borrow and what your repayments will be.
Your situation is unique. The right time to buy depends on your deposit, income, job security and goals, not just politics.