What are the costs of buying a home?

This is one of the most important questions to ask when you’re looking to buy your

first home — because the price on the listing isn’t the full story. A lot of people get

caught out by the other costs that come with buying and owning a property.

Let’s break it into two buckets:

1. Up-front costs (getting the keys)

2. Ongoing costs (actually owning the place)

I’ll walk through both.

1. Up-front costs

These are the things you’ll usually need before or during the purchase. Without

these, you generally won’t get far.

Deposit

For most owner-occupiers in New Zealand, banks are looking for a 20% deposit.

That said, there ARE low-deposit options. Some lenders will consider 10%, and in

certain situations even around 5%. But lower deposit lending comes with extra rules

and sometimes extra cost (for example, the bank may look harder at your

income/spending, or price the lending differently).

So the short version is: Yes, you might be able to buy with less than 20%, but it’s not

a one-size-fits-all thing. It’s worth talking that through with a mortgage adviser before

you assume you’re “not ready” — or before you assume you’re “all good”.

Legal costs / LIM

You’ll need a solicitor (property lawyer/conveyancer). They handle:

Transferring the title into your name

Registering the mortgage over the property

Helping you withdraw KiwiSaver (if you’re eligible)

Reviewing your Sale & Purchase Agreement

Reviewing the Land Information Memorandum (LIM) from the council

Checking your loan documents before you sign anything

Legal fees usually sit somewhere in the $1,500–$3,000 range for a fairly standard

purchase. More complex deals can cost more.

The LIM itself is usually an extra cost (often in the $300–$600 range). That’s a

council report that shows things like consents, drainage info, potential issues with the

site, etc.

If you don’t already have a solicitor you trust, we can point you in the right direction.

Building report

A building report isn’t strictly mandatory every single time, but in most cases it’s

strongly recommended.

Here’s what happens: a qualified inspector (often a builder) goes through the

property, looks at condition and build quality, and calls out any red flags — leaks,

cracking, dodgy workmanship, moisture issues, that sort of thing.

Yes, it’s usually another $500–$1,000 up front. But that report can literally save you

from buying a problem, or help you negotiate if something does come up.

Sometimes the seller will already have a report, but it’s often worth getting your own

so you’re not relying on someone else’s version.

Registered Valuation Report

A registered valuation is when an independent valuer goes to the property, looks at

the size/spec/condition, compares it to recent local sales, and gives a formal value.

You don’t always need one. But you’re more likely to need a valuation if:

You’re buying with a low deposit

You’re buying a new build

You’re buying privately (without a real estate agent involved)

The bank just wants a tighter view of the security

Expect roughly $800–$1,000 for a standard property. One important note: in most

cases the bank won’t accept “any valuer you like.” Valuations often have to be

ordered through the bank’s approved system (for example, Valocity/CoreLogic type

ordering) so the bank knows it’s genuinely independent. Please talk to your bank or

adviser before you order one, or you might end up paying twice.

Moving costs

This one gets ignored all the time.

Moving could be as cheap as shouting $50 worth of pizza and beers to family who

help you shift, or it could be several thousand dollars (even $10,000+ if you’re paying

movers to relocate you a long distance, pack everything, move large items, etc.).

The point is: moving isn’t just “we’ll figure it out on the day.” It’s a real cost and it hits

right at the end when you’re already stretched.

2. Ongoing costs of owning a home

Once you’re in the house, you’ve got more than just your mortgage repayments.

Here are the big four that can surprise first-home buyers:

Insurance

You’ll need house insurance, and you may want contents cover as well. The bank

will generally require proof of insurance before settlement.

Rates and water

Councils charge rates. Some areas also charge separately for water. You can usually

check the council website (or ask the agent) to get an idea of what the current

owners are paying.

Body corporate / resident association fees (if applicable)

If you’re buying an apartment, townhouse in a complex, or similar, there may be

shared costs for things like exterior maintenance, insurance on the building, shared

driveways, rubbish collection, landscaping, etc. Get a copy of the latest fees and any

upcoming works before you commit.

Maintenance

This is the one people forget.

Houses need ongoing money. Paint peels. Hot water cylinders die. Roofs leak. An

easy rule of thumb some people use is to set aside around 1% of the property value

per year for maintenance. Newer builds often cost less in the early years. Older

places (especially older weatherboard or anything with cladding questions) can cost

more.

If you budget nothing for maintenance, the first “surprise” bill will hurt.

Final thoughts

Some of these costs can feel a bit hefty, especially when you’re already stretching

for a deposit. The point here is not to scare you off buying a home. It’s to make sure

you’re walking in with eyes open, instead of getting hit with “Oh… I didn’t know about

that” at the worst possible moment.

Everyone’s situation is different, and the numbers above are ballpark ranges, not

quotes. But having a rough idea early can make the whole process way less

stressful.

What to do next

If you’re thinking about buying — even if you’re months away — it’s smart to map

this stuff out now. I can sit down with you, look at your deposit, your likely legal /

report costs, and what your ongoing costs might look like for the type of property

you’re targeting. The goal is simple: no surprises.

If you’d like that clarity before you start making offers, get in touch and we can go

through it in plain language, no pressure.