Your First Home, Simplified: A Step-by-Step Guide for First-Time Buyers

Buying your first home doesn’t have to be overwhelming - here’s a practical guide to make it smooth, informed, and stress-free.

Build Your Home-Buying A-Team

Before diving into open homes, assemble your support crew.

You’ll need:

✅ A lawyer to review your contract and protect your interests (that’s where we come in!); and

✅ A mortgage broker or bank to help you understand what you can borrow and secure pre-approval.

There will likely be a real estate agent involved too (they act for the seller, but you’ll be dealing with them too. Or you might have your own buyer’s agent (highly recommend for first home buyers – it’s great having someone in your corner who understands the process and paperwork.)

Other helpful professionals include a valuer (if your bank requires a formal valuation), a building inspector (to uncover issues beneath the surface), and an insurance broker or company (you’ll need cover in place before settlement).

💡 Tip: Get mortgage pre-approval before making any offers.

Work Out What You Can Afford

Getting your finances in order is key.

KiwiSaver withdrawal: if you’re eligible, you can use your KiwiSaver savings toward your deposit or settlement. Your real estate agent needs to know this early, because special conditions must be included in your offer to make it possible to use your KiwiSaver for the deposit.

Gifts or loans from family: talk to your lawyer, as banks may apply extra criteria.

Also, don’t forget to budget for legal fees, LIM and builder’s reports, insurance, rates, moving costs, utility connections, and any immediate repairs or maintenance.

Learn the Lingo

Buying property comes with its own language:

Agreement for Sale and Purchase: the contract; it’s legally binding once signed.
Contract deposit: usually 10% (unless negotiated otherwise), paid when you go unconditional/confirmation date.
Unconditional/confirmation date: when all your contract conditions are met, and the deal is locked in.
Settlement: the day you pay the remaining balance and get the keys.
Chattels: the fixtures and fittings included in the sale, such as curtains, light fittings, and appliances. Always confirm the chattels list in the contract to avoid disputes later.

Before You Sign Anything

Signing the Sale and Purchase Agreement is often a whirlwind of excitement and nerves. Before you sign, have your lawyer review the contract. If that’s not possible, add a solicitor’s approval clause so your lawyer can review it afterwards.

💡 Note: A solicitor’s approval clause should be specific and not used as a general ‘get out’ clause. We can help you word this correctly to ensure it’s effective.

Common Conditions to Include

Make sure your contract includes essential conditions like:

Finance: gives you time to get your loan approved
Builder’s report: reveals any hidden issues
LIM report: tells you what the Council knows about the property
Chattels list: confirm what’s included and excluded in the sale.

Frequently Asked Questions

What’s the difference between contract deposit and bank deposit?

The contract deposit is what you agree to pay the seller (usually 10%) when the agreement goes unconditional (unless negotiated otherwise). The bank deposit is the amount your lender requires you to contribute toward the purchase before they'll lend you the rest.

Can I use my KiwiSaver for the deposit?

Yes – but only if the agreement is made conditional on your lawyer holding the funds (in trust) until settlement. Start your KiwiSaver application as soon as possible after signing the contract, as strict timing and documentation are required.

What is a pre-settlement inspection and do I have to do it?

It's not compulsory, but we strongly recommend it. This is your chance to check the property is in the same condition as when you signed the contract and that all agreed chattels are present.

What happens on settlement day?

We'll manage the legal side – transferring the title, paying the purchase price, and registering your mortgage. You’ll receive the keys once the transaction is fully processed, which can sometimes be later in the day.

What if the seller won't agree to include a condition I need?

Then we'll talk strategy. Sometimes we can reword or negotiate the clause.

Final Checklist

Before you pop the champagne, tick off these steps:

✅ Set your budget (including all costs)
✅ Get mortgage pre-approval
✅ Assemble your A-Team (lawyer, broker etc)
✅ Research the property (LIM, builder’s report, title, insurance) – we’ll help with this!
✅ Confirm chattels and (if applicable) body corporate details
✅ Review and sign contract (with legal advice)
✅ Meet all conditions (finance, LIM, building report etc)
✅ Arrange insurance
✅ Pay deposit
✅ Do a pre-settlement inspection
✅ Settle and get your keys!
✅ Get a will (or update your will!)

Ready to get started?

Whether you’re about to make an offer or still comparing options, our team at RWA Lawyers can help you feel confident and protected through every step of the buying journey. 👉 Get in touch with us to chat about your first home plans.

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