First Home Loan

First Home Loans

Owning your own home just got a lot easier with a First Home Loan.

With a First Home Loan you only need a 5% deposit which makes getting into your first home that much easier.

A First Home Loan offers:

  • 5% deposit for home loans up to $500,000 (or $550,000 for a new property) in Hamilton or Tauranga city.
  • 5% deposit for home loans up to $400,000 (or $500,000 for a new property) for the rest of Waikato and Bay of Plenty.
  • The option of two or more borrowers living together, jointly borrowing to purchase a home.

You may be eligible for a First Home Loan if:

  • You will be living in the home you purchase
  • You have a maximum household income of $85,000 per annum before tax (1 borrower)
  • You can have a maximum of household income of $130,000 per annum before tax (2 or more borrowers)
  • You are a first home buyer

Applying for a First Home Loan is similar to applying for one of our home loans. For more information about our First Home Loans visit our frequently asked questions, give us a call or visit Kāinga Ora's website.


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First Home Loan FAQ
  • What is a First Home Loan?

    Kāinga Ora insures First Home Loans that are issued by selected banks and other lenders so that home loans that sit outside normal lending criteria can be made to First Home Buyers. First Credit Union’s normal application process and terms and conditions still apply.

  • Am I eligible for a First Home Loan?

    To be eligible for a First Home Loan you will need to have a 5% deposit and will need to meet the income cap and be looking to purchase a house within the regional price cap. At First Credit Union, we understand that a home loan is a big commitment, so we will look at your income, expenses and other debt you may have to ensure that you can afford repayments before we make a decision.

  • Do I have to be living in the home I want to buy?

    Yes, it is a condition of the First Home Loan initiative that you must live in the home you are buying. A First Home Loan can not be used to buy an investment property or rental.

  • What is the Lender’s Mortgage Insurance?

    As part of the First Home Loan initiative you will need to pay a 1 percent Lender’s Mortgage Insurance premium. This can be added to your home loan with First Credit Union.

  • How do I apply?

    We will need a completed home loan application form, as well as some further documents in order to process your application. Come in and see us at one of our branches, or contact our call centre.

  • What information will I need to provide?
    • A completed Home Loan Application form. If you don’t have an application form or you need assistance with it, give us a call or come in and see us to go over your application in person.
    • Proof of Income. We’ll need to see 3 of your most recent payslips; or an original letter from your employer confirming your base annual salary and starting date. If you’re self-employed we’ll need to see signed final financial accounts for the last two years of self-employment (prepared by a chartered accountant).
    • Last 6 months bank statements – for your main transactional account/s.
    • Proof of outstanding balances on any personal loans, hire purchases and credit cards (including Farmers card, Warehouse card, Q-card etc).


    Required on Pre-Approval –

    • Copy of Sale & Purchase Agreement.
    • Registered valuation on the property you want to buy (if applicable).
    • Statutory Declaration of Gift - Deposit (If applicable).
    • Life and/or Loan Repayment insurance
    • House insurance
  • How much will my repayments be?

    This will depend on how much you borrow and for how long. First Credit Union will work with you to tailor repayments that will suit your budget.

  • Do I also have to pay an application fee?

    No. First Credit Union doesn’t charge any application fees on their home loans- which could save you hundreds!

  • What about insurance?

    Insurance of the property you purchase is compulsory.

  • Do I need a lawyer?

    Yes – your lawyer will act on your behalf, regarding all legal requirements in refinancing or purchasing the property.  

  • Can I get pre-approval?

    Yes you can. Final approval is subject to your deposit and the property you are purchasing. We may also advise you that we require a registered valuation.

  • What is the interest rate?

    Visit rates and fees for information about First Credit Union’s home loan rates.