Financing an Off the Plan Townhouse
SM Property

March 23, 2023

If you’re thinking of buying an off the plan townhouse in New Zealand, you may be wondering how to finance your purchase. While the process can seem daunting, there’s several options available to help you secure the necessary funds. We’re here to provide guidance on how to finance an off the plan townhouse in New Zealand.

Home Loan/ Mortgage

A home loan is a common option for financing an off the plan townhouse, or any property for that matter. Before applying for a home loan, it’s important to determine your budget and how much you can afford to borrow. Be sure to compare loan options from different lenders to find the best deal for your needs. Getting in touch with a mortgage broker is a great and free way to make this process easier.


To secure an off the plan townhouse, you’ll typically need to provide a deposit. The deposit amount can vary but is usually around 10% of the purchase price, or 20% if you’re an investor. In some cases, you will need as low as a 5% deposit – however, in this case you’ll need to make sure you can service a 95% loan. This is different from an existing property purchase, where you’ll normally need a 20% deposit, or 40% if you’re an investor. Be sure to budget for the deposit when planning your finances. We have a whole blog on tips to help save for your deposit faster – click here to read it.


If you’ve been contributing to KiwiSaver for at least three years, you may be eligible to withdraw your savings to put towards the purchase of an off the plan townhouse. The amount you can withdraw depends on how long you’ve been contributing and the value of your savings. You can visit the Kāinga Ora website, or talk to your complying funds manager to see all the terms and conditions, and what you are eligible for.

First Home Grant

The Kāinga Ora First Home Grant is a government scheme that provides financial assistance to eligible first-home buyers. This grant can be used towards your purchase deposit of an off the plan townhouse, and the amount you can get depends on several factors, including your income and the location of the property. Visit the Kāinga Ora website to check your eligibility.

Kāinga Ora First Home Partner

The Kāinga Ora First Home Partner Scheme is a government led shared ownership scheme that helps aspiring first home buyers whose deposit and home loan aren’t quite enough to buy a home that meets their needs. 

Shared ownership means you initially share ownership of the home with a third party who purchases the home with you (in this case Kāinga Ora). You are the majority homeowner and occupier, but Kāinga Ora will own a share in the home that you’ll buy out over time. It’s determined by several factors and is assessed on a case by case basis, including your deposit amount, how much your bank is willing to lend, and the contribution amount Kāinga Ora will make. Download or free Kāinga Ora guide here to learn more, or visit their website to get in touch with them for more information.

Financing an off the plan townhouse in NZ can seem overwhelming, but there are several options available to help you secure the necessary funds. Whether you’re getting a home loan, your KiwiSaver, First Home Grant or all of the above, it’s important to do your research and find the best deal for your needs. Be sure to consult with a financial advisor, such as a mortgage broker to help you make an informed decision.

We cater to your needs

See our tailored processes designed your needs. Select below.

First Home Buyers Guide

Thinking of buying your first home or just looking to understand the process?

Investors Guide

Wondering how to complete due diligence on a new property?