Buying Your First Home: A Step-by-Step Guide

 

At Goodwill Law, we know that buying your first home is a big milestone — and it can feel daunting. From sorting your KiwiSaver to signing on the dotted line, there are many steps in the process. This blog walks you through what to expect, including how KiwiSaver can help and why getting advice early makes all the difference.

Step 1: Get Your Finances in Order

Before you begin looking at homes, it's important to understand your financial position.

  • KiwiSaver Withdrawal: If you've been a member of KiwiSaver for at least three years, you may be eligible to withdraw almost all of your KiwiSaver balance to put toward your first home (excluding $1,000, which must remain in your account). This includes your contributions, your employer’s contributions, government contributions, and investment returns.

  • Loan Pre-Approval: This confirms how much you can borrow and puts you in a strong position when making an offer. You can apply through your bank or via a mortgage broker.

Why consider a mortgage broker?
Mortgage brokers work with a range of banks and lenders. They can help you:

Compare interest rates and loan features across lenders

Access deals not always advertised to the public

Prepare your loan application and navigate lender requirements

Save time and stress, particularly if your situation is non-standard (e.g. you're self-employed or using gifted funds)

A good broker will advocate for you — and in most cases, their service is free to you as they're paid by the lender.

Step 2: Start House Hunting

With your finances clarified, you can start exploring what’s available.

  • Use websites like realestate.co.nz or trademe.co.nz to browse listings

  • Visit open homes and ask questions about the property, its history, and condition

  • Understand what property ownership structure suits you best — joint tenants (where the survivor takes full ownership) or tenants in common (where each owner’s share is part of their estate). Unsure what we are talking and want to learn more about ownership options, read our blog here - where we explore options for purchasing with another.

Step 3: Do Your Due Diligence

Before signing anything, it’s important to investigate the property thoroughly:

  • LIM Report: Provides council records, zoning, consents, and any known hazards

  • Builder’s Report: Identifies any maintenance issues, leaks, or structural concerns

  • Title Search: Your lawyer will check for restrictions such as easements or covenants

  • Finance & KiwiSaver Conditions: The agreement should be conditional on your finance being approved and KiwiSaver funds being available

Step 4: Signing the Agreement (With Legal Advice)

Once you’ve found a property, the next step is to sign an Agreement for Sale and Purchase. We recommend never signing without first consulting your lawyer. At Goodwill Law, we:

  • Review the contract and explain it in plain language

  • Make sure key conditions (finance, LIM, building report) are included

  • Advise on deposit amounts, timing, and access rights pre-settlement

  • Ensure the property is transferred into your preferred ownership structure

Step 5: Applying to Withdraw Your KiwiSaver

If you’re using KiwiSaver for the purchase:

  1. Your lawyer helps prepare and submit your First Home Withdrawal application

  2. You’ll need:

    • A signed sale and purchase agreement

    • Proof of ID and residence

    • A statutory declaration that you intend to live in the home

  3. Your provider usually takes around 10 working days to process the withdrawal

  4. Funds are paid directly to your lawyer’s trust account just before settlement

Important: You must apply before settlement. KiwiSaver funds cannot be used retrospectively.

Step 6: Going Unconditional and Preparing for Settlement

Once all conditions (finance, reports, etc.) are satisfied, the agreement becomes unconditional. From here:

  • Your lawyer liaises with the bank to arrange loan documents and settlements

  • You’ll sign the loan and mortgage documentation and arrange house insurance (this must be in place before settlement)

  • Any balance funds (e.g. from savings) will be paid into your lawyer’s trust account

Step 7: Settlement Day

On settlement day:

  • Your lender pays loan funds to your lawyer

  • KiwiSaver funds (if applicable) are released

  • Your lawyer pays the seller, registers the title transfer, and the home becomes legally yours

  • You receive the keys and can move in!

Key Tips for First-Home Buyers

  1. Get legal advice before signing anything

  2. Understand your full entitlements under KiwiSaver

  3. Consider using a mortgage broker to help find the best deal

  4. Plan for additional costs like legal fees, insurance, moving expenses, and council rates

  5. If you’re buying with someone else, consider a Property Sharing Agreement

How Goodwill Law Can Help

We work with first-home buyers across New Zealand — whether you're in New Plymouth, Napier, or further afield. Our team is here to guide you every step of the way, from due diligence and KiwiSaver withdrawal to reviewing contracts and registering your new title.

Transparent pricing: Goodwill Law offers competitive fixed-fee structures through our innovative online fee calculator, so you can get a clear estimate upfront and plan with confidence. Try it here.

You can also book a free meeting with a member of the team here.

Whether you’re just starting out or ready to sign, reach out — we’d love to help you make your first home purchase a success.

 
Will Downey