The Tides Have Turned: 4 Reasons Why Now is a Great Time for First Home Buyers.

The frantic FOMO, "Fear Of Missing Out" has been replaced by a cautious, considered FOO, "Fear Of Overpaying." For the first time in a long time, the power is shifting back to the buyer. If you've been waiting on the sidelines, this is the window of opportunity you've been looking for.

Here are four key reasons why the end of 2025 and the start of 2026 is looking like a prime time for first home buyers to make their move.

1. You Have the Power: More Choice & Less Frenzy

The single biggest change from previous years is the supply of properties. The number of homes listed for sale has risen significantly, and they are staying on the market for longer.

This is a game-changer for you. Instead of being one of 50 groups crammed into a 20-minute open home, you have time to browse, think, and do your homework.

More importantly, this shift brings back a buyer's most powerful tool: the conditional offer. You can now realistically make offers that are "subject to finance" or "subject to a builder's report" without being immediately dismissed. This dramatically reduces your risk and gives you the breathing room to make a smart, confident decision - not a panicked one.

2. Interest Rates Are Finally on Your Side

For the past 18 months, the story has been about rising rates. That story is now changing.

With the Reserve Bank cutting the Official Cash Rate (OCR) by 0.50% this month to 2.50%, the signal is clear: the peak of interest rates is behind us. Banks had already priced this in, with 1 and 2-year fixed rates becoming very competitive (around the 4.49% mark).

This has two immediate, positive effects for you:

Improved Affordability: Lower rates mean lower weekly or fortnightly mortgage repayments.
Increased Borrowing Power: As rates fall, the "test rates" banks use to assess your application also fall, which often means you can be approved for a slightly higher loan amount.

3. You Might Not Need a 20% Deposit

For many Kiwis, the biggest hurdle isn't the mortgage repayment; it's saving the massive 20% deposit. The great news is that you may not have to.

The First Home Loan (administered by Kāinga Ora) is a government-backed scheme designed specifically for buyers in this position. If you meet the income and house price caps, you could be eligible to buy a home with as little as a 5% deposit.

This scheme is the key that unlocks the door for so many first home buyers who have stable incomes and a solid savings history but are struggling to get that final 20% lump sum together.

4. You're Building Your Future, Not Your Landlord's

This is the fundamental "why" that never changes. Every rent payment you make is a 100% expense that builds your landlord's wealth.

When you own your home, a portion of every single mortgage payment goes towards paying down your loan principal. This is "forced equity" - you are building your own net worth with every repayment.

Unlike paying rent, which can (and does) increase year after year, a fixed-rate mortgage gives you predictable and stable housing costs. This financial certainty is incredibly powerful. As your property value (hopefully) appreciates over the long term and your loan balance decreases, you are building a valuable asset that provides a foundation for your financial future.

Is This Your Moment?

The market has shifted. We have more listings, less competition, falling interest rates, and fantastic low-deposit schemes still in play.