Not necessarily. A 20% deposit is a familiar benchmark in home lending, but it is not the only possible pathway for a new-build purchase. The amount you need depends on your lender, your financial position, the way the land and build are structured, and the lending product you are applying for.

That means there is no safe one-line answer such as “you only need 10% for a new build” or “everyone needs 20%”. Some eligible first-home buyers may be able to use a lower-deposit lending option; others may need a larger contribution. The right number is the one your lender is prepared to accept for your specific project.

Why the deposit question is more complicated for a new build

With an existing home, the purchase structure is often straightforward: you agree a price, pay a deposit under the sale and purchase agreement, then settle the balance. A new build can involve a house-and-land package, a land purchase plus separate building contract, or another ownership and funding arrangement.

Those structures can affect when money is needed, how a lender assesses the project, and how progress payments are managed. Your lender may consider the contract price, valuation, land value, equity, income, commitments and the details of the building agreement. A “deposit” can also mean different things in different documents, so make sure you understand whether someone is referring to your total financial contribution, a payment under a land agreement, or a payment due under a building contract.

When could a lower deposit be possible?

One current option for some eligible first-home buyers is the Kāinga Ora First Home Loan. Kāinga Ora says this programme has a minimum deposit requirement of 5% of the purchase price, including eligible savings, gifts and first-home withdrawals. It also has eligibility requirements, and participating lenders make the final lending decision using their own criteria.

You may also be able to use KiwiSaver toward an eligible first-home purchase if you meet the rules. KiwiSaver can contribute to your funds, but it is not a guarantee of finance. Your lender, KiwiSaver provider and solicitor need to confirm how it fits the transaction.

What should you ask a lender or mortgage broker?

Speak to a lender or mortgage broker with new-build experience early. Ask:

What total deposit or equity do I need for this type of build? Ask for the answer in the context of the actual proposed land and build structure.
Can KiwiSaver, savings or a gifted amount be counted? Confirm what evidence is needed and when the funds must be available.
Am I eligible to explore a First Home Loan? Ask about current eligibility, lender criteria and whether the property and contract structure fit.
How will drawdowns or progressive payments work? Understand what the lender requires before releasing funds through the build.

Do not forget the costs outside the deposit

Your deposit is important, but it is not the whole budget. Depending on the project, you may need to plan for legal advice, valuation, lender or application fees, insurance arrangements, land costs, design costs, site-specific work, landscaping, fencing and other items that are not part of the headline build price.

How Today Homes can support your planning

With a new build, a 20% deposit is not the only possibility. Today Homes can help you understand the home, section and building side of a potential project, and explain what information is needed as you move through the process. We can give you clear pricing and also put you in touch with an experienced Mortgage Adviser who can help you through this process.

Final thoughts: get a confirmed number before you commit

You may not need a 20% deposit to build a new home, but you should never rely on a generic percentage alone. Your required contribution will depend on the lender, product and project structure, as well as your own financial position.

Do You Need a 20% Deposit to Build a New Home in New Zealand?