PHOTO: Media Release – Wednesday 18 February 2026. SUPPLIED
ASB Bank has announced it will now offer the Kāinga Ora – Homes and Communities First Home Loan, expanding support for New Zealanders struggling to save a traditional 20% house deposit.
The move signals another step in ASB’s strategy to improve access to home ownership amid ongoing cost-of-living pressures and rising property prices.
🏠 A 5% Deposit Option for First-Home Buyers
The Kāinga Ora First Home Loan is specifically designed for buyers who can afford regular mortgage repayments but find it difficult to accumulate a 20% deposit while paying rent and managing everyday expenses.
Under the scheme:
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Eligible buyers can purchase their first home with just a 5% deposit
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The loan is underwritten by Kāinga Ora
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Standard lending criteria and income caps apply
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Buyers must meet eligibility requirements
ASB Executive General Manager Personal Banking, Adam Boyd, says the initiative addresses one of the biggest hurdles facing aspiring homeowners.
“Home ownership is a cornerstone of financial wellbeing and security for many New Zealanders. This loan helps to get more people into their own homes without the challenge of saving a large deposit while managing everyday expenses, like rent.”
📉 Breaking Down Deposit Barriers
Saving a 20% deposit has become one of the most significant barriers for first-home buyers in New Zealand — particularly in major centres like Auckland, Wellington and Christchurch.
Boyd says offering the First Home Loan helps reduce that barrier.
“By offering the First Home Loan, we’re helping to break down one of the biggest barriers to homeownership and opening doors for more New Zealanders to create their future and put down roots in their communities.”
🤝 Specialist Support for First-Home Buyers
ASB says customers accessing the First Home Loan will also benefit from:
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Specialist trained first-home lending advisers
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Structured guidance through the mortgage process
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Access to ASB’s First Home Buyer cashback offer (where eligible)
Buyers who have contributed to KiwiSaver for at least three years may also be eligible to withdraw their savings to help fund their purchase.
Boyd says the bank is focused on supporting customers through what is often the biggest financial decision of their lives.
“We’re committed to walking alongside our customers through one of the biggest financial decisions they’ll make.”
📌 What This Means for the NZ Housing Market
The expansion of First Home Loan offerings across major banks could:
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Increase buyer activity in the lower price brackets
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Support first-home demand in regional markets
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Provide confidence to buyers currently sidelined by deposit requirements
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Add momentum to entry-level property segments
As affordability pressures remain front-of-mind for Kiwi households, low-deposit pathways are likely to remain a key policy and banking focus throughout 2026.