Buying your first home can feel like a massive leap, especially when you’re balancing rent, rising costs, and everyone’s opinion on what you should be doing.

And while we can’t do anything about Uncle Kev’s classic “back in my day…” lectures, we can share something that might actually change things for you:

You might be able to build your first home with just a 10% deposit.

Yep, not 20%, not some magic number you’ll never catch up to.

Just 10% down, and you could be on your way to building your first home.

Most People Don’t Even Know This Is Possible

A lot of first-home buyers assume the whole thing is out of reach. So they keep saving, keep waiting, and keep watching the market move.

But what if building wasn’t just possible…
What if it was actually easier?

  • No stressful auctions
  • No scary renovation blowouts
  • Fixed-price build contracts that make lending simpler
  • And yes, Affordable Builders House + Land packages that work with just 10% down

You don’t need everything figured out, you just need to know this pathway exists.

How the Money Works (Without the Financial Jargon)

When you build, there are two popular ways the payment side is structured. Here’s the simple, plain-English version:

Progress Payments

Your home is built in stages, and your bank releases funds at each step, slab, framing, roof, etc.
You only pay for what’s been completed.
Since you’re paying as the build progresses, you avoid covering the interest a builder would take on if they financed the whole thing first.
Translation: it’s the more affordable option overall.

Turnkey

This one’s the go-to for many first-home buyers.
You pay the deposit now, and nothing else until the home is completely finished.
Turnkey is popular with investors and off-the-plan buyers who want simplicity and zero surprises.

Either way, you don’t need a huge pile of cash upfront, and you’re not stuck paying rent and a full mortgage at the same time. The structure can flex around your financial situation.

What Do Banks Actually Want?

Honestly, it’s not as intimidating as people make it sound.

Most lenders simply want:

  • Around a 10% deposit
  • A fixed-price build contract (we sort that for you)
  • Proof of your income and expenses
  • Plans and consents (already part of the process)

Many banks prefer new builds because they’re efficient, healthier, and less likely to come with expensive surprises.

Building Might Be Your Best Move

Maybe you ruled out buying because it felt impossible.

Maybe you never even looked into building.

But now you know:
It’s doable. It’s realistic. And for a lot of buyers, it’s the smartest path into the market.

No disrespect to Uncle Kev… but this is the kind of advice worth paying attention to.

FAQs

Can I really build with just a 10% deposit?

In many cases, yes. Lenders often accept 10% for new builds, depending on your income and the build contract. It’s a realistic option for heaps of first-home buyers.

Is building more expensive than buying an existing home?

Not always. Fixed-price builds mean no auctions, no reno surprises, and no hidden repair costs. New homes are more efficient and cheaper to run long-term.

What’s the difference between progress payments and turnkey?

  • Progress payments: Loan is released in stages as the build progresses.
  • Turnkey: Deposit now, and nothing more until you get the keys.
    Both options work — it just depends on your financial setup.

What help can Affordable Builders give me?

We guide you from the first conversation to the final handover.
We can connect you with trusted lending professionals, create a fixed-price contract, and manage the build from start to finish.

Learn more or start your journey at affordablebuilders.co.nz