What Does Owning a Home Actually Cost? (The Stuff Nobody Tells First Home Buyers)

By Patrick Sargisson, Mortgage Adviser

So you've been saving your deposit, scrolling Trade Me Property at midnight, and starting to think, okay, maybe this is actually happening. Exciting stuff.

But before you get too deep into open homes, there's something worth getting clear on early: your mortgage repayment isn't the only cost that comes with owning a home.

Don't worry, none of this is meant to scare you off. I just want you going in with eyes wide open, because the first home buyers who feel most confident are the ones who actually understand their full numbers before they sign anything.

So let's break it down!

The Mortgage, obviously..

This is the one everyone knows about. Your mortgage repayment depends on three things:

Your loan size: that's your purchase price minus your deposit. Buy a $700,000 home with a $100,000 deposit and you're borrowing $600,000.

Your interest rate: in New Zealand right now, most first home buyers are fixing somewhere in the 4.5% – 6% range depending on the term they choose.

Your loan term: most people go with 25 or 30 years. A longer term means lower repayments week to week, but you'll pay more interest overall.

To put a real number on it: a $600,000 loan at 6.5% over 30 years works out to roughly $893 per week. Change the deposit, the rate or the term, and that number moves, which is exactly why it's worth sitting down with someone and modelling it properly before you commit.

Council Rates, This One Catches People Off Guard

If you've been renting, you've never had to think about council rates. Your landlord has been paying them quietly in the background.

Once you own, that's on you.

Rates are charged by your local council and go towards things like roads, rubbish collection, water, parks and community services. The amount you pay depends on the value of your property and which council area you're in.

Here's what you're roughly looking at across New Zealand:

Location Approx. Annual Rates:

Wellington City~$4,200

Auckland City~$3,800

Tauranga~$3,400

Hamilton~$3,100

Christchurch~$2,400

Selwyn District~$1,600

Ashburton~$1,400

In Christchurch that's about $46 a week. In Wellington, closer to $81 a week. Not massive on its own, but it's real money, and it's worth knowing about before you start budgeting.

Home Insurance, Non-Negotiable

Your bank won't settle your mortgage without proof of home insurance in place. It's not optional.

What you pay depends on where you live, the rebuild value of the home, and which insurer you go with. Areas with higher earthquake or weather risk such as Wellington, coastal properties, parts of Auckland tend to have higher premiums.

As a rough guide, most first home buyers in New Zealand are paying somewhere between $35 and $70 per week for house and contents insurance combined.

It's also worth knowing that insurance costs have been creeping up in recent years, so it's a good idea to get a proper quote early in your buying journey rather than just guessing.

What Does It All Look Like Together?

Let's use a simple example. You're buying in Christchurch for $750,000 with a $150,000 deposit:

Cost Weekly Mortgage (6.5%, 30 years)~$893

Council Rates~$46

Home Insurance~$44

Total~$983 per week

So in this example, you're looking at just under a thousand dollars a week all in. For a lot of first home buyers, that's actually really manageable, especially compared to what they're paying in rent. But the key thing is knowing that number before you buy, not after.

A Few Quick Tips Before You Go

Get your numbers sorted early. The sooner you know what you can actually afford, the more confidently you can approach the buying process. No more guessing at open homes.

Shop around on insurance. Premiums can vary a lot between insurers for the same property. Get a couple of quotes before you commit.

Don't forget rates go up. Council rates tend to increase a little each year. It's not dramatic, but worth factoring in when you're thinking long term.

Ready to Get Your Numbers Clear?

If you're a first home buyer trying to figure out what you can actually afford, and what it'll all cost week to week, that's exactly what I'm here for.

Book a free 30-minute strategy session with me and we'll go through your full picture together. Where you're at, what you need, and what your next steps look like. Simple, no pressure, no jargon.

Book Your Free 30-Minute Session →

Talk soon!

Pat