Client guide

First Home Buyer Conveyancing

Purchasing your first home is a major milestone, but navigating deposits, KiwiSaver withdrawals, Kāinga Ora grants, and bank loan approvals can feel overwhelming. At Quay Law, we specialize in guiding first-time buyers safely through the legal process.

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Core Milestones

✔ **KiwiSaver Vetting**: 15-day application window administration.

✔ **Kāinga Ora Support**: Managing grants and partner schemes.

✔ **Gifting Verification**: Drafting bank-compliant Deeds of Gift.

✔ **Pre-Signing Audits**: Checking contracts *before* you sign.

1. KiwiSaver Withdrawals

We coordinate with your KiwiSaver provider to withdraw funds for your deposit or settlement. We draft the statutory declarations and verify your documents to ensure the funds land in our Trust Account on time.

15-Working-Day Rule applies

2. Kāinga Ora Grants

If you qualify for the Kāinga Ora First Home Grant or First Home Loan, we execute the solicitor certifications and compile compliance documentation to release the subsidy prior to settlement.

Full compliance oversight

3. Family Deposit Gifting

If parents are gifting deposit funds, banks require a formal declaration that the funds are non-repayable. We draft compliant **Deeds of Gift** to prevent bank approval delays.

Bank-approved drafting

Navigating New Zealand Government Buyer Schemes

1. Kāinga Ora First Home Partner

The First Home Partner scheme is a co-ownership model where Kāinga Ora purchases a share of the home with you (up to 25% or $200,000) to bridge a deposit gap. You buy out Kāinga Ora's share over time.

**Legal Implications**: This scheme requires a co-ownership agreement and registering both yourself and Kāinga Ora on the LINZ land title. We draft and review these agreements, ensuring your obligations, exit strategies, and annual reviews are clearly defined.

2. The 15-Working-Day KiwiSaver Rule

KiwiSaver providers require a minimum of **15 working days** from receiving completed paperwork to release deposit funds. If you apply late, the funds will not arrive in time for settlement, triggering default interest or contract cancellation.

VITAL TIP: Never make an offer with a finance or settlement clause under 15 working days if you rely on KiwiSaver. We will review your Sale and Purchase contract *before* you sign to align dates with your provider's windows.

Guarantor vs. Co-Borrower

If parents are assisting, banks may require them to register as either a **Guarantor** or a **Co-borrower**:

**Guarantor**: The parent guarantees to pay the mortgage if you default. Their liability is usually limited to a specific portion of the loan.
**Co-borrower**: The parent is added to the mortgage directly. They are jointly and severally liable for the *entire* loan amount, affecting their own borrowing capacity.

Independent Advice Required: To prevent conflicts of interest, banks require parents acting as guarantors to receive independent legal advice from a separate law firm before signing.

Helping Family Buy Their First Home

Review our dedicated guide on helping family buy their first home to understand asset structures, deeds of gift, and independent advice rules.

READ FAMILY GIFTING GUIDE

Protect Your First Home Investment

Ensure your Sale and Purchase Agreement has the correct protective conditions. We offer fast draft contract and title audits. Request a transparent fee quote online before you sign.

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First-Home Buyer FAQs

Yes. You can withdraw KiwiSaver funds to pay either the initial contract deposit or the balance on settlement day. However, because KiwiSaver funds cannot be released until the contract is signed, you must insert a specific clause in the agreement allowing the deposit to be paid upon unconditional status or directly from KiwiSaver release proceeds.

A Deed of Gift is a legal document signed by your parents confirming that the deposit funds they provided are a gift, not a loan, and they have no interest in the property and require no repayment. Banks require this to ensure you have no outstanding debts that could affect your mortgage serviceability.

The First Home Grant gives eligible buyers who have contributed to KiwiSaver for at least 3 years a grant of up to $5,000 for an existing home or up to $10,000 for a new build. Income and house price caps apply. We coordinate the release of these grant funds directly into our trust account for settlement.

Discuss Your Residential Transaction

Get in touch with Quay Law to review a Sale and Purchase Agreement, audit a land title, or arrange legal settlement.