Rent or buy? Watch the two paths race.

Put in a house price and what you would rent instead. We show your money in both futures, year by year, and the year buying pulls ahead (if it does).

The two options

House price

Deposit you have saved

Mortgage interest rate (% a year) Rent for a similar home (per week)

How long will you stay: 10 years Loan term: 30 years

Change the assumptions (these are guesses, not facts)

House prices rise (% a year) Rent rises (% a year) Return if you invest the deposit instead (% a year, after tax) Council rates and water (per year)

Home insurance (per year)

Maintenance (% of house value a year) Buying costs (lawyer, reports, moving)

Selling costs (% of sale price, agent and legal)

Your money in each future

Buy: your equity in the homeRent: your invested savings

Where the buying money goes

This compares your wealth after selling, so the first-year numbers can look bad for buying because of the upfront and selling costs. We assume the rent-or-buy gap each month is invested. Real life has surprises: repairs, rate rises, job changes. Not financial advice. Talk to a licensed adviser before buying.

First home buyer? What is on offer in 2026

KKiwiSaver withdrawalAfter 3 years in KiwiSaver you can usually take out everything except $1,000 for your first home, and it must be your main home. Approval takes a few weeks.

LKainga Ora First Home LoanA 5% deposit loan with income caps (about $95k single, $150k for couples or with dependents). Check current rules with Kainga Ora.

GFirst Home GrantClosed to new applications on 30 May 2024 and has not returned, as far as we can tell.

BBank deposit rulesBanks can only lend a limited share at under a 20% deposit, so a 10% deposit is possible but depends on the bank.

These notes come from secondary sources and Kainga Ora and the Reserve Bank can change them. Always confirm with Kainga Ora, your bank, or a mortgage adviser.

What next?

Questions people ask

Is buying always better than renting?

No. If house prices are flat, rates are high, or you move within a few years, renting and investing the difference can win. Buying tends to win the longer you stay. Slide the years above to see.

Do I pay tax when I sell my home?

For a normal family home you live in, no. New Zealand has no general capital gains tax, and the bright-line rule (2 years) does not apply to your main home. Check Inland Revenue for your situation.

Where do the default numbers come from?

The 5.9% rate is close to the Reserve Bank's standard 2 year fixed rate for August 2026. The $750,000 price is close to the national median reported by REINZ for August 2026. The rest are our guesses. Change them to match what you are being quoted.

Why does renting sometimes win in the first years?

Buying has big upfront costs, and early mortgage payments are mostly interest. It takes time for house price growth and loan repayment to build equity.

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How we made this. The maths is a standard mortgage calculation plus a year by year comparison of your wealth. It is a planning aid, not advice. Rate and price defaults checked 2 October 2026.

Sources: RBNZ mortgage rates, REINZ, Kainga Ora, Inland Revenue.