Buying your first home with just a 5% deposit can feel impossible, especially when so much advice online suggests you need far more. Sharing their first home buying journey, Harsh and Hiral explain how they went from thinking they weren't ready to becoming homeowners with the support, guidance and confidence to take the next step.
How We Bought Our First Home With Just 5% Deposit
Like many first home buyers, Harsh and Hiral didn’t start by searching for mortgages or attending open homes. They started by questioning whether buying a home was even realistic.
While Hiral regularly browsed properties online, both assumed they simply weren’t ready. Rather than being big spenders, they describe themselves as people who had good intentions but struggled to consistently budget and organise their finances. They knew they needed a plan but kept putting it off, hoping they’d eventually get around to sorting everything themselves.
James says this is one of the most common barriers he sees.
People often believe they need to have everything perfectly organised before asking for help, when in reality that first conversation is often what gives them the confidence to start making progress. Instead of focusing solely on buying a house, the initial discussions centred on understanding Harsh and Hiral’s budget, spending habits and financial position.
Why A 5% Deposit Was Enough To Get Started
One of the biggest misconceptions around buying a first home is believing a 20% deposit is the only path into the market.
Mike explains that while 5% deposit lending comes with specific criteria, it can be a realistic option for some buyers. Waiting to save a full 20% can feel overwhelming, particularly when house prices remain high, leading many people to delay taking the first step altogether.
For Harsh and Hiral, hearing that home ownership was already within reach completely changed their mindset.
Rather than focusing on what they didn’t have, James helped them understand what was possible based on their current financial position. Once they compared their existing rent with estimated mortgage repayments and factored in ongoing ownership costs, buying a home no longer felt like an unrealistic goal.
Harsh says the biggest change wasn’t their finances it was their confidence. Having someone explain how mortgages worked, what the next steps looked like and what they could realistically afford removed much of the uncertainty that had been holding them back.
Confidence Was The Biggest Barrier
Throughout their journey, one theme keeps resurfacing: uncertainty.
Before speaking with James, Harsh and Hiral had spent months searching online, asking friends questions and trying to piece together information themselves. Instead of giving them confidence, the sheer amount of information became overwhelming.
Mike believes that’s a common experience for first home buyers.
Many people delay reaching out because they worry their finances aren’t organised enough or they feel they should already understand the process. In reality, he says those concerns often become the biggest obstacle to getting started.
Once Harsh and Hiral understood the buying process step by step, the unknown became much less intimidating, allowing them to focus on finding the right property rather than questioning whether home ownership was even possible.
Finding The Right Home Meant Changing Their Expectations
Their property search didn’t go exactly as planned.
Initially, they focused on suburbs they already knew well, including Mount Wellington and Mount Roskill. However, after viewing numerous properties, they realised their budget wasn’t stretching as far as they’d hoped in those areas.
Expanding their search just a few kilometres further made a significant difference.
Looking in Pakuranga opened up properties that offered more space and better value within the same budget. What began as a search for a forever home gradually became a search for the right first step onto the property ladder.
James also encouraged them to avoid overthinking every decision.
Rather than searching for the perfect property, he reminded them that a first home doesn’t have to be their last home. Sometimes buying a property that suits today’s needs creates opportunities that wouldn’t exist by waiting for the perfect house.
Buying A Home Is About More Than Finding The Property
Even after finding the right home, there were still plenty of hurdles to overcome.
Harsh and Hiral navigated negotiations, backup offers, finance approval, building inspections and legal due diligence while preparing to travel overseas. Managing time differences, signing documents remotely and working through KiwiSaver requirements added another layer of complexity to an already stressful process.
Mike explains that much of this stage comes down to reducing uncertainty.
Finance approval, loan structure, building inspections and legal reviews all exist to make sure buyers fully understand what they’re purchasing before committing. While it can feel overwhelming for first home buyers, having experienced professionals guide each step makes the process far easier to navigate.
For Harsh and Hiral, every completed step built more confidence, eventually leading them to settle on their first home.
Advice For Other First Home Buyers
Looking back, Harsh and Hiral’s advice is simple.
Don’t assume you know what’s possible before speaking to someone.
Rather than trying to figure everything out alone, they encourage other aspiring homeowners to seek professional advice early. Having someone review your finances, explain the process and answer your questions can provide clarity that months of online research often can’t.
Key Takeaways
- A 5% deposit may be enough to buy your first home if you meet the right lending criteria.
- Budgeting and understanding your finances are often the first steps, not finding a property.
- Confidence can be a bigger barrier than the deposit itself.
- Expanding your search area may open up better-value properties within your budget.
- Buying your first home involves much more than finding a property, with finance, legal checks and due diligence all playing an important role.
- Seeking professional advice early can provide clarity and confidence throughout the buying journey.
Next Steps
If you’re wondering whether you’re ready to buy your first home, the Lighthouse Financial team can review your finances, explain your options and help you understand what’s possible.
If you’d like to watch more, check out these other episodes below.
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Disclaimer:
The information in this article is general information only, is provided free of charge and does not constitute professional advice. We try to keep the information up to date. However, to the fullest extent permitted by law, we disclaim all warranties, express or implied, in relation to this article – including (without limitation) warranties as to accuracy, completeness and fitness for any particular purpose. Please seek independent advice before acting on any information in this article.
