Buying new - first home help

Buying new can be a great way to jump on the property ladder. 

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We may be seeing property prices slowing across the country, but affordability constraints and rising rental prices are making it harder for first home buyers to get a deposit together. For many, buying a new home is a great place to start, especially as ANZ economists have noted that high existing house prices have made building a house more attractive relative to buying an existing one.

Here are four reasons why you should consider buying new if you’re trying to get onto the property ladder:


If you’re eligible for a First Home Grant – the entitlement from the government for new homes is higher than it would be if you’re buying an existing home. This means you may be eligible for up to $10,000 towards a build or newly built property (double what you could receive if you buy an existing home).

First Home Loan

The house price caps for the First Home Loan are higher if you’re buying a new property – so it’s worth taking a look to see whether you’re eligible and what the cap is for your region. It may make all the difference!

5% deposit

If you’re eligible for the First Home Loan you may only need a 5% deposit whether you’re buying an existing or new home. If you don’t qualify for this though, there’s still another way to get around the 20% deposit requirement. You can usually avoid the banks’ loan-to-value ratio rules when buying a new property, which means you may only need a 5% deposit.

Ballot systems

New homes are being built specifically with first home buyers in mind. Some developments have ballot systems, whereby if you meet certain criteria as a first home buyer you can register your interest in a particular property. If your name is drawn from the ballot, you will get the first opportunity to buy the property. Many of these properties are within the First Home Loan caps so make sure you check to see if you qualify for additional financial support.

Take a look on Trade Me Property now to see what new properties are in your area.