For many Auckland first-home buyers, the biggest number standing between renting and owning is not the weekly mortgage repayment.

It is the deposit.

You may be earning a steady income, paying rent every week and contributing to KiwiSaver, yet still assume you need $100,000 or more sitting in a savings account before speaking to a bank.

That is not necessarily the case.

Some eligible first-home buyers can access 5% deposit lending, KiwiSaver may be available toward a first-home purchase, and Homes by Pillar is currently offering eligible buyers up to $20,000 through its First Home Buyer Contribution on selected properties.

So could $25,000 put you closer to buying your first Auckland home than you think?

The short answer is: potentially - but your deposit is only one part of the equation.

A lender still needs to be satisfied that you can comfortably service the mortgage, and your individual income, expenses, debts, credit position and chosen property all matter.

The best first step is therefore not asking, “Can I definitely buy with $25,000?”

It is asking:

“What would my current savings, KiwiSaver, lending position and available buyer support allow me to do?”

That is a much more useful question.

What does a 5% first-home deposit actually look like?

A 5% deposit can dramatically change the amount of money a buyer needs to accumulate before exploring home ownership.

On a $500,000 property, 5% is $25,000.

On a $550,000 property, 5% is $27,500.

On a $600,000 property, 5% is $30,000.

Compare that with a conventional 20% deposit on the same homes and the difference becomes substantial.

New Zealand's Kāinga Ora First Home Loan currently allows eligible buyers to purchase with a minimum 5% deposit through participating lenders. It is important, however, to understand that having 5% available does not guarantee finance approval. The lender still assesses the application and the buyer must satisfy the applicable First Home Loan and lending criteria.

If you want a deeper explanation of how 5%, 10% and 20% deposits compare, read our guide to 5% deposits for first-home buyers in New Zealand.

Does $25,000 have to be sitting in your bank account?

This is another area where first-home buyers can underestimate their position.

Your deposit position may not be limited to the cash you have saved in an everyday savings account.

For eligible buyers, KiwiSaver may form part of the money available toward buying a first home.

Kāinga Ora states that if you have been a KiwiSaver member for at least three years, you may be able to withdraw your savings toward your first home, subject to eligibility requirements. At least $1,000 must generally remain in the KiwiSaver account. First-home buyers apply through their KiwiSaver scheme provider.

That means someone looking at a $25,000 savings target should first establish their real position.

A buyer might, for example, have cash savings and a separate KiwiSaver balance accumulated over several years. Once both are understood, the gap between “I can't buy yet” and “this may be worth investigating” can look quite different.

The key word is eligible. Do not assume what will be available from KiwiSaver; confirm your position with your provider before relying on the funds.

What is the Homes by Pillar First Home Buyer Contribution?

Homes by Pillar is also offering up to $20,000 toward selected Pillar homes for eligible first-home buyers.

This is a Homes by Pillar promotional contribution.

It is not the former government First Home Grant.

The previous First Home Grant ended in 2024, so we deliberately distinguish the Pillar contribution from government assistance.

The amount available and whether a buyer qualifies will depend on the selected home, the purchaser's circumstances and the terms and conditions applying to the offer.

You can read the full explanation in our guide to the Homes by Pillar First Home Buyer Contribution.

Eligible purchasers may also be able to use the contribution alongside their own savings and an eligible KiwiSaver withdrawal, subject to the offer terms and their lender's treatment of the contribution.

That last point matters.

A $20,000 contribution does not replace mortgage approval and should not be treated as a universal $20,000 reduction in the deposit a bank requires. Your lender or mortgage adviser needs to assess how all sources of funds fit into your particular application.

So could $25,000 actually be enough to get started?

It may be enough to start the conversation, and that is the distinction many first-home buyers miss.

Imagine you are considering a home around the $500,000 to $600,000 range.

At a 5% deposit, the mathematical deposit would be approximately $25,000 to $30,000.

You might then have your own cash savings, an eligible KiwiSaver withdrawal and potentially qualify for support available on a selected Homes by Pillar property.

That does not automatically mean the bank will approve the purchase. Nor does it mean you should put every dollar you have into the deposit.

You also need to think about legal fees, insurance, rates, moving costs, potential lending fees and having enough financial breathing room after settlement.

But the calculation demonstrates something important:

You should not automatically assume you need a traditional 20% cash deposit before finding out what is possible.

Our existing First Home Buyer Auckland guide explains how budget, property size, suburb and new-build options can change the picture considerably.

Deposit and borrowing power are two different problems

This is probably the most important concept for a first-home buyer to understand. Having enough deposit does not necessarily mean you can afford the mortgage.

And being able to comfortably meet potential mortgage repayments does not necessarily mean you have accumulated enough deposit.

They are two separate hurdles.

A lender will typically consider your household income, regular expenditure, existing debts, credit history, dependants and proposed borrowing when determining whether a mortgage is affordable.

That is why somebody with a smaller deposit and strong income may have a very different outcome from somebody with a larger deposit but limited borrowing capacity.

The purpose of exploring low-deposit pathways is therefore not to encourage people to borrow beyond what they can afford.

It is to help buyers whose deposit is the main barrier understand whether alternative pathways are available.

What if you are currently paying $600, $700 or $800 a week in rent?

Rent is another reason many households struggle to build a large deposit quickly.

At $700 per week, annual rent adds up to approximately $36,400.

That does not mean a mortgage of $700 per week would automatically be a better financial decision.

Homeowners also need to consider rates, insurance, maintenance and other ownership costs, while renters retain greater flexibility and are generally not responsible for major property repairs.

But if you are already meeting significant weekly rent while continuing to save, it can be worth investigating whether your financial position is closer to home ownership than you assumed.

We explore that question properly - including the advantages of continuing to rent — in our detailed guide to renting versus buying in Auckland in 2026.

What can first-home buyers currently explore around Auckland?

Your first home does not need to be your forever home.

For some buyers, the more realistic starting point is a well-designed two-bedroom new build in an accessible suburb rather than stretching the budget for a traditional four-bedroom standalone property.

Homes by Pillar currently has completed new-build options across South Auckland, East Auckland, Central Auckland, West Auckland and the North Shore. Current availability changes, so always check the individual development page before making decisions.

In South Auckland, buyers can explore 16–18 Lincoln Road, Manurewa East, 31 Tennessee Avenue, Māngere East and 114 Coronation Road, Māngere Bridge. Buyers particularly interested in the south can also read our First Home Buyer South Auckland guide.

In East Auckland, 9 Glenside Avenue, Pakuranga provides another current new-build option.

For buyers wanting convenient connections toward central Auckland and SH16, there is 2 Fairlands Avenue, Waterview.

West Auckland buyers can compare 16 Geneva Place, Blockhouse Bay, 47 Yeovil Road, Te Atatu Peninsula and the larger four-bedroom standalone option at 84 Matipo Road, Te Atatu Peninsula.

On the North Shore, buyers can explore 16 Dallinghoe Crescent, Milford.

Or compare the entire current portfolio through the Homes by Pillar Auckland developments page.

The purpose of looking across multiple suburbs is not simply to find the lowest price.

Your commute, bedroom requirements, transport, parking, schools, lifestyle and long-term affordability should all form part of the decision.

What should you do before deciding you cannot afford your first home?

Start by replacing assumptions with actual numbers.

Find out what you have in savings. Check your KiwiSaver position. Understand your monthly expenses and existing debts. Then speak with a lender or mortgage adviser about the mortgage amount you could realistically service.

After that, compare homes within a budget that leaves room for normal life.

You can also read our step-by-step guide to buying a house in New Zealand or review the practical Homes by Pillar buying process from first enquiry through to settlement.

If you are considering a home that is still under construction, our guide to buying off the plan in Auckland explains how that process differs.

And if you are wondering whether you should delay your plans because lending conditions may change, read should first-home buyers wait for 5% deposit changes?.

Get your own numbers at the First Home Buyer Evening

Generic examples are useful.

Your own numbers are better.

Homes by Pillar is hosting a First Home Buyer Evening in Parnell on Thursday, 15 October, from 4:00pm to 6:00pm.

The evening is designed for people who are considering buying their first home but are not necessarily sure whether they are ready yet.

Mortgage advisers will be available to explain deposits, KiwiSaver, pre-approval and what lenders look for, while the Homes by Pillar team can explain current properties and the up to $20,000 First Home Buyer Contribution available to eligible purchasers of selected homes. The event is currently listed as free to attend, with limited seating.

Whether you have $5,000, $25,000, money in KiwiSaver or simply a lot of questions, the purpose of the evening is to help you understand your actual starting position.

You do not need to guess whether your first home is three months away or three years away. Find out what the numbers say.

Reserve your free seat at the Homes by Pillar First Home Buyer Evening →