5 Essential Tips for First Home Buyers in Waikato

If you’re planning to buy a home in Hamilton or anywhere in the Waikato region, one of the first questions you’ll ask is: How much can I borrow for a mortgage? It’s a big decision, and the answer depends on a few key things — your income, your expenses, your deposit, and even your credit score.

What Affects How Much You Can Borrow for a Mortgage?

Income, Expenses, and Credit Score

Your income is the starting point. Lenders want to know how much you earn — and how stable that income is. If you’re employed full-time, that’s fairly straightforward. If you’re self-employed or your income varies, they’ll look more closely at your financial history to understand your earning patterns.

But income is only part of the picture. Your existing debts also play a big role. Credit cards, car loans, and other personal loans can all affect how much you’re able to borrow. Lenders consider your total financial commitments to make sure you can comfortably manage a mortgage on top of them. Keeping your debt under control shows you can handle repayments responsibly, which strengthens your application.

Deposit Size and LVR (Loan-to-Value Ratio)

Your deposit is the amount of money you put toward the purchase upfront. In New Zealand, most lenders prefer a deposit of at least 20%. But there are options for lower deposits — especially for first-home buyers. You may be able to get a loan with a deposit from as little as 5%.

How Do Banks and Brokers Assess How Much You Can Borrow for a Mortgage?

Bank Assessments

When you apply directly with a bank, they’ll use their own calculator to work out how much you could borrow. They look at:

Income – not just how much you earn, but how stable it is (salary, self-employed income, or contract work).
Expenses – your everyday living costs such as food, transport, insurance, and utilities.
Debts – things like credit cards, car loans, personal loans, Afterpay, or store finance. Even small limits on unused credit cards are counted.
Deposit – how much you’ve saved or built up through KiwiSaver or other sources.

On top of that, banks apply a test (or “stress”) interest rate, which is higher than the current rate. This is to check whether you could still afford repayments if interest rates rise in the future.

Broker Assessments

Mortgage brokers, like Andre Stokes here in Hamilton, take a wider view. Instead of relying on just one bank’s criteria, brokers work with multiple lenders — each with their own calculators and lending rules. This means:

You’ll often have a better chance of approval if one bank says “no.”
You can compare borrowing amounts across lenders.
You’re more likely to find a solution that fits your income, debt, and goals.

Brokers also help you present your application in the best light — especially if you’re self-employed, have variable income, or already have existing debts.

Borrow for a Mortgage in Waikato: What’s Typical?

Waikato Property Prices

Property values across the Waikato Region can vary considerably, depending on the location:

Hamilton City: The average house price as of June 2025 is approximately NZ$788,171, according to CoreLogic data compiled by Opes Partners.
Waikato Region Overall: Median prices hover around NZ$735,000 as of June 2025, having surged from about NZ$340,000 a decade earlier.
Te Kūiti (Waitomo District): This remains one of the most affordable areas in the region. The average house value stands at NZ$392,550,

This underscores a substantial price range—from Te Kūiti’s mid-$300k to Hamilton’s upper-$700k—highlighting how location plays a pivotal role in affordability for buyers.

First-Home Buyers in Waikato

If you’re taking your first steps onto the property ladder, you may have access to several helpful schemes:

1. KiwiSaver First-Home Withdrawal

After contributing to KiwiSaver (or a complying super fund) for at least three years, you may be able to withdraw most of your savings—including member contributions, employer contributions, government contributions, and investment earnings—to help with your first home purchase.

You must leave a minimum of NZ$1,000 in your KiwiSaver account, and not all funds are withdrawable (e.g., Australian super transfers and certain government kick-start amounts may be excluded).

Withdrawals are restricted to a property you intend to live in—this cannot be used to purchase investment properties.
Check out the IRD website for more information

2. Kāinga Ora First-Home Loan

With this option, you can secure a home loan with a deposit as low as 5%, thanks to Kāinga Ora underwriting the remainder of the deposit risk for participating lenders.
Kāinga Ora – Homes and Communities

Eligibility criteria include being a first-home buyer (or a previous owner in a similar financial place as a first-home buyer), meeting maximum income thresholds (e.g., <$95,000 for individuals without dependants or <$150,000 combined for co-buyers), and purchasing a home you intend to live in.

The loan includes a 1.2% Lender’s Mortgage Insurance (LMI) premium, payable upfront or added to the loan balance.

Tips to Increase How Much You Can Borrow for a Mortgage

Reduce Your Debt
Banks look closely at your existing debt, such as credit cards, personal loans, and car finance. Paying these down (or closing unused credit facilities) lowers your monthly commitments, which can free up more borrowing power.
Increase Your Deposit
The bigger your deposit, the less risk the lender takes on. This can not only increase how much you’re able to borrow but may also give you access to better interest rates and more lenders.
Improve Your Credit Score
Your credit history shows lenders how reliable you are with money. Paying bills on time, avoiding missed payments, and keeping debt levels manageable can strengthen your application and make banks more willing to lend.
Use a Broker
Mortgage brokers have access to a wide range of lenders and know the different borrowing criteria. They can help present your situation in the best possible way and find a lender who’s more likely to offer you the maximum amount.

Contact Andre for a Personalised Borrowing Assessment

Every buyer is different. Your income, deposit, and goals all affect how much you can borrow for a mortgage. Andre Stokes is a local mortgage broker based in Hamilton. He knows the Waikato market and works with a range of lenders.

Ready to find out how much you can borrow? Contact Andre today for a free, personalised borrowing assessment.

Buying your first home is an exciting step, and if you’re doing it in Waikato, you’re in the right place. The Waikato region offers great opportunities for first home buyers, with diverse suburbs, natural beauty, and a growing community. However, buying a home can be overwhelming, especially if it’s your first time. To help make the journey easier, we’ve put together five essential tips every first home buyer should know. With the right planning and advice, you’ll be holding the keys to your new home sooner than you think!

1. Understanding Your Budget and Deposit Requirements

Before you start looking at houses, it’s crucial to figure out your budget and deposit requirements. Knowing how much you can afford will help you focus on properties within your price range and avoid disappointment. Start by calculating your income, expenses, and any existing debts. From there, you’ll know how much you can comfortably afford for mortgage repayments each month.

Saving for a deposit is often the biggest challenge for first home buyers. In New Zealand, a 20% deposit is ideal, but there are options for smaller deposits, especially for first home buyers. You might qualify for a loan with as little as a 5% deposit through certain lenders. Make sure to check your eligibility for these schemes. Additionally, using your KiwiSaver savings can boost your deposit amount significantly. Don’t be shy about reaching out for professional advice to understand all your options.

2. Getting Pre-Approved for a Home Loan

Getting pre-approved for a home loan is an important step for first home buyers. Pre-approval shows you how much a lender is willing to lend you, giving you a clear price range for your search. It also shows real estate agents and sellers that you’re a serious buyer, making it easier to negotiate when you find the right property.

To get pre-approved, you’ll need to provide documents such as payslips, bank statements, and details about your financial situation. Lenders want to see proof of stable income and responsible money management. If you’re self-employed, you may need to provide additional documentation like business financials. The process might seem complicated, but working with a mortgage broker like Andre Stokes Mortgage and Insurance NZ can make it simple. We guide you through the paperwork, ensuring everything is in order, and help you understand the loan options available to you.

3. Choosing the Right Location in Waikato

Choosing the right location is a key part of buying your first home. Waikato offers a variety of suburbs, each with its own character, amenities, and community vibe. It’s important to think about what’s most important to you when picking a location. Do you want to be close to work, good schools, parks, or shopping centres? Are you after a quiet, family-friendly suburb, or do you prefer somewhere with a lively atmosphere?

Waikato’s up-and-coming areas, like Te Awamutu, Cambridge, and parts of Hamilton, are popular among first home buyers. These areas often provide good value for money, and they have the potential for growth, which can be a smart investment for your future. However, established suburbs also offer benefits like proximity to amenities and transport links. Consider visiting different suburbs to get a feel for the community and decide what works best for you. Remember, a home is more than just a building; it’s also about the lifestyle it provides.

4. Comparing Different Loan Options

When buying your first home, choosing the right loan is just as important as finding the right property. It’s essential to compare different loan options to find the best fit for your situation. In New Zealand, you’ll come across options like fixed-rate loans, variable-rate loans, and even offset accounts that can help you save on interest.

Fixed-rate loans provide certainty by locking in your interest rate for a set period, meaning your repayments stay the same. This can help you budget more easily, knowing your repayments won’t change for a few years. On the other hand, variable-rate loans offer more flexibility. Your interest rate can change, which may lead to lower repayments if rates drop. However, rates could also increase, so it’s important to consider whether you’re comfortable with this risk.

Offset accounts are another option to explore. They allow you to link your loan to a savings account, reducing the interest you pay based on the amount you keep in savings. Talking to a mortgage broker like Andre Stokes can help you understand these options in detail and find the best loan for your circumstances. We can compare lenders and loan features, ensuring you get the most suitable option for your needs.

5. Preparing for the Home-Buying Journey

Buying a home is more than just finding the right property and securing a loan; it’s about preparing for the entire journey. Once you’ve found a home you like, it’s important to get a professional building inspection. This ensures there are no hidden problems that could turn into costly repairs later. A building inspection can give you peace of mind or the information you need to negotiate a better price.

Next, make sure you have legal advice. Engaging a solicitor or conveyancer helps protect your interests throughout the buying process. They will check the property’s title and review the sale agreement to make sure everything is above board.

When it comes to making an offer, understanding the market can give you an edge. In competitive areas, properties can sell quickly, and you might need to act fast. Knowing what similar homes are selling for and having your pre-approval ready can help you make a strong offer. Andre Stokes at Mortgage and Insurance NZ can support you during this stage, providing advice and ensuring you’re in a good position to secure your dream home.

Conclusion

Buying your first home in Waikato can be an exciting and rewarding journey, but it’s important to be prepared. By understanding your budget, getting pre-approval, choosing the right location, comparing loan options, and preparing for the process, you can navigate the home-buying experience with confidence. Andre Stokes Mortgage and Insurance NZ is here to guide you through every step, ensuring you make informed decisions that align with your goals.

Ready to take the next step in your home-buying journey? Contact us today for personalised advice and support tailored to first home buyers in Waikato!