Buying a property in New Zealand is significantly cheaper in transaction costs than buying in Australia — primarily because NZ has no stamp duty. But there's still a real cost stack to budget for: legal fees, LIM reports, building inspections, lender fees, and bank-imposed Low Equity Premiums for high-LVR borrowers.
Why NZ purchase costs are lower than Australia
No stamp duty. Abolished in 1999. This alone removes 3%–5% of the purchase price compared to Australian buyers. On a $850,000 purchase, that's roughly $35,000 of cost that doesn't apply in NZ.
What still applies:
| Cost | Typical range |
|---|---|
| Lawyer (conveyancing) | $1,500–$3,000 |
| LIM report | $200–$400 |
| Building inspection | $400–$800 |
| Bank application/registration | $0–$500 |
| Low Equity Premium (LVR > 80%) | 0.25%–1.0% of loan amount or rate margin |
| Settlement adjustments | $200–$1,000 |
Total non-deposit costs typically land at 1%–2% of purchase price in NZ, compared to 5%–6% in Australia.
The lawyer requirement
NZ uses lawyers (not conveyancers like Australia). The lawyer:
- Reviews the sale and purchase agreement
- Conducts title and property checks
- Prepares the settlement statement
- Handles the actual settlement transfer
- Lodges the change-of-ownership with LINZ
Costs $1,500–$3,000 for a standard residential purchase. Get 2–3 quotes — fees are negotiable, especially if you have other legal work to bundle.
LIM report — strongly recommended
A Land Information Memorandum is a council document showing everything the council knows about a property: building consents (and unconsented work), drainage and stormwater, natural hazards, zoning, rates owing, contaminated land status. Costs $200–$400 and is typically obtained between contract signing and settlement, or as a contractual condition.
Skipping the LIM is a real risk — unconsented bathroom additions, drainage problems, hazard zones, and outstanding council requisitions can be six-figure surprises. Always get a LIM for any property you don't know intimately.
Building inspection — essential for older properties
Builders' reports cost $400–$800. Essential for:
- Properties over 20 years old
- Weatherboard or older construction
- Visible signs of moisture, weatherproofing concerns, or structural issues
- Properties with significant un-obvious additions
Optional for modern apartments and recently-built homes, where you might rely on body corporate reports and the LIM instead.
RBNZ LVR rules — the deposit ceiling
The Reserve Bank of New Zealand sets the LVR caps:
- Owner-occupiers: standard 80% LVR (20% deposit). 15% allowance to lend above.
- Investors: standard 70% LVR (30% deposit). Tighter allowance.
If you're below the standard cap, you'll typically pay a Low Equity Premium (LEP) or Low Equity Margin (LEM) — the bank's compensation for the higher risk. LEP/LEM ranges from a 0.25% rate margin (just over 80% LVR) to 1.0%+ rate margin (95% LVR). Quite different from Australian LMI which is a one-off premium.
KiwiSaver as deposit
For first home buyers, KiwiSaver withdrawal is the most common path to the deposit. After 3 years of membership, you can withdraw your full balance (minus $1,000 minimum retained). This includes your contributions, employer contributions, government top-ups and investment returns. Use the KiwiSaver first home calculator to project your withdrawable balance.
First Home Loan scheme
Administered by Kāinga Ora through participating lenders, the First Home Loan scheme allows first home buyers to purchase with as little as 5% deposit — well below the standard 20% minimum. Eligibility is income-tested and price-capped (caps vary by region). Worth investigating if your KiwiSaver doesn't get you to 20% LVR.
Worked example: $750,000 purchase, FHB with 10% deposit, Auckland
| Cost | Amount |
|---|---|
| Lawyer | $2,200 |
| LIM | $300 |
| Building inspection | $650 |
| Bank application | $0 (waived under FHL package) |
| Settlement adjustments | $300 |
| Low Equity Premium (90% LVR) | ~$3,400 (one-off) or 0.5% rate margin |
| Total non-deposit cost (excl LEP) | ~$3,450 |
That's 0.46% of purchase price — substantially cheaper than the AU equivalent at $750k (where stamp duty alone would be $20,000+).
What to verify before settlement
- LIM report has been received and reviewed by your lawyer
- Builder's report has been received and any concerns addressed
- Bank's mortgage offer is confirmed at the agreed rate
- Insurance is arranged from settlement date (mortgage condition)
- Funds for settlement are with your lawyer 2 business days ahead
- Final inspection of the property is conducted before settlement
Frequently asked questions
Is there stamp duty in New Zealand?
No. New Zealand abolished stamp duty on property purchases in 1999. This is one of the largest cost differences between buying in NZ vs Australia — where stamp duty alone can be 3%–5% of the purchase price. NZ buyers should still budget 1%–2% of purchase price for the various other costs (legal, LIM, building inspection, lender fees).
What's a LIM report and do I need one?
A Land Information Memorandum (LIM) is a council-issued document detailing all relevant council records about a property — building consents, drainage, hazards, zoning, rates. LIMs cost $200–$400 and are usually obtained between contract signing and settlement (or as a contractual condition). Strongly recommended for every purchase. Some buyers skip LIMs on auction purchases — risky, but possible if you've done thorough due diligence.
What does a NZ lawyer charge for conveyancing?
$1,500–$3,000 for a standard residential purchase. NZ uses lawyers, not conveyancers — there's no equivalent licensed conveyancer profession in NZ. Lawyers handle contract review, title checks, settlement statement preparation, and the actual settlement transfer. Get 2–3 quotes; legal fees are often negotiable particularly if you have other legal work to bundle.
Do I need a building inspection?
Strongly recommended for any property over 20 years old, weatherboard construction, or with visible signs of moisture/structural concerns. Costs $400–$800 for a standard residential inspection. For modern apartments or recently-built homes, you might skip the building inspection but obtain a body corporate report instead. Builder's reports are typically a contractual condition.
How much deposit do I need in NZ?
RBNZ Loan-to-Value Ratio (LVR) rules currently require: 20% deposit for owner-occupiers (standard), 30% deposit for investors. Banks have a small allowance to lend above these thresholds (15% of OO loans can be over 80% LVR; tighter for investors). KiwiSaver first home withdrawal can fund the deposit if you've been a member 3+ years. For first home buyers, the First Home Loan scheme allows 5% deposit at participating lenders.
What about Lender's Mortgage Insurance in NZ?
NZ has a different equivalent: Low Equity Premium (LEP) or Low Equity Margin (LEM). When LVR is above 80%, banks charge either an upfront premium or an ongoing rate margin to compensate for the higher risk. LEP/LEM ranges from 0.25% rate margin (just over 80%) to 1.0%+ margin (95% LVR). Quite different from AU LMI which is a one-off premium.
Are there first home buyer grants in NZ?
The First Home Grant administered by Kāinga Ora was discontinued from 22 May 2024. KiwiSaver first home withdrawal still applies (your full balance minus $1,000), and the First Home Loan scheme allows 5% deposit through participating banks. Check Kāinga Ora's current schemes for any new programs that may have replaced or supplemented the grant.
Sources
Last updated: 2 May 2026