Purchasing your first home is a major milestone, but it can also be overwhelming. From sorting your finances to navigating legal documents, each step requires careful planning and informed decision-making. This guide is designed to help first-home buyers understand the process, avoid common pitfalls, and move forward with confidence. Whether you're just starting to explore your options or preparing for settlement day, you'll find clear, practical advice to support you at every stage.
Step 1: Get Financially Ready
Before you start browsing listings, get your finances sorted:
- KiwiSaver First Home Withdrawal: If you've been contributing for 3+ years, you may be eligible to withdraw most of your savings to help with your deposit.
- First Home Grant: Kāinga Ora offers up to $10,000 for new builds or $5,000 for existing homes.
- Deposit Requirements: Most banks require 20%, but with a First Home Loan, you may only need 5%.
Step 2: Get Mortgage Pre-Approval
Apply for pre-approval with your bank or mortgage broker:
- This gives you a clear budget and shows sellers you're serious.
- Pre-approvals typically last 60–90 days.
- Use mortgage calculators and compare interest rates to find the best deal.
Step 3: Start House Hunting
Use platforms like Trade Me, OneRoof, and real estate agents to find properties. Consider:
- Ownership types: Freehold, leasehold, unit title, cross-lease.
- Sale methods: Auction, deadline sale, price by negotiation.
Step 4: Engage a Property Lawyer Early
Don’t sign anything without legal advice. A property lawyer:
- Reviews the Sale and Purchase Agreement.
- Advises on conditions like finance, LIM, and building reports.
- Orders and reviews the LIM report and conducts a title search to check for easements, covenants, or other restrictions.
- Discusses the findings with you to ensure you understand any risks or legal implications.
Our experienced property team supports first-home buyers with clear, practical legal advice. We help you understand the fine print and avoid costly mistakes.
Step 5: Make an Offer
You can make:
- Conditional Offer: Subject to finance, inspections, etc.
- Unconditional Offer: Common in auctions—no conditions.
Once accepted, the agreement becomes legally binding. You’ll pay a deposit (usually 10%) into the seller’s lawyer’s trust account.
Step 6: Complete Due Diligence
Once your offer is accepted, it's time to do your homework on the property. This includes:
- Your lawyer ordering and reviewing the LIM report and title.
- You organising a building inspection to assess the property's condition.
- Your lawyer reviewing the inspection report and, if any issues arise, liaising with the real estate agent or seller’s lawyer to negotiate repairs, compensation, or other solutions.
We ensure your due diligence is thorough and legally sound, helping you make informed decisions before settlement.
Step 7: Apply for KiwiSaver Withdrawal
Your lawyer will:
- Provide a solicitor’s undertaking.
- Submit documents to your KiwiSaver provider.
- Ensure funds are available for settlement.
Step 8: Final Inspection (Pre-Settlement)
This is your chance to check the property before settlement:
- Confirm all chattels (e.g. oven, heat pump) are present and working.
- Check for new damage or rubbish left behind.
- Ensure agreed repairs have been completed.
If any issues are found, your lawyer can work with the agent or seller’s lawyer to resolve them before settlement.
Step 9: Finalise Your Mortgage
Once your offer is unconditional:
- Your bank confirms the loan.
- You sign mortgage documents with your lawyer.
- Arrange house insurance effective from settlement day.
Step 10: Settlement Day
This is when ownership officially transfers:
- Your lawyer pays the balance to the seller’s lawyer.
- Title is registered with LINZ.
- You receive the keys and can move in.
Step 11: Move-In Day
After settlement:
- Set up utilities (power, water, internet).
- Update your address.
- Celebrate your new home!
How Long Does It Take?
- Pre-approval to offer: 1–3 months.
- Offer to settlement: 4–6 weeks.
- KiwiSaver withdrawal: Allow 10–20 working days.
Why Choose Patel Nand Legal?
Buying your first home is exciting—but it’s also complex. Our team at Patel Nand Legal specialises in property law and supports first-home buyers across Auckland and beyond. We’ll guide you through every step, from reviewing contracts and LIMs to final inspection and settlement.
