FAQs

Short answer:

How much you can borrow depends on your income, deposit, and existing financial commitments. Most New Zealand lenders work within a range of four to six times household income.

Detailed explanation:

Lenders in New Zealand use two key tools to decide borrowing power: the loan-to-value ratio (LVR) and the debt-to-income ratio (DTI).

• LVR: Most banks require a 20 percent deposit, which means you can borrow up to 80 percent of the property’s value. However, Kāinga Ora’s First Home Loan allows eligible buyers to purchase with as little as 5 percent.
• DTI: The Reserve Bank limits lending to about six times gross annual income. So, a household earning $100,000 can expect borrowing of roughly $500,000 to $600,000, depending on debts and living costs. Banks also “stress test” repayments at higher interest rates to check that you could still afford the loan if rates increase.

For a more accurate figure, a quick Reality Check with our team can show you what different

banks would lend based on your own numbers.

Short answer: A mortgage broker compares multiple banks and lenders, negotiates better deals, and handles the paperwork for free, since the lender pays our commission. You complete one application and we approach the lenders on your behalf.

Detailed explanation:

Going directly to a bank limits you to that bank’s products and policies. A broker gives you access to many lenders, including smaller banks and non-bank options that you cannot approach yourself. Brokers understand which lenders suit first home buyers, self-employed borrowers, or people with complex income.

A good broker will structure your loan so repayments and future goals align, explain how rate options work, and handle the back-and-forth with the lender. If one bank declines your application, we try others without you having to start again.

Using a mortgage broker does not cost you more. In fact, we often secure sharper rates and cashback offers. Our clients in Christchurch and across New Zealand use us because it saves time, avoids stress, and often leads to better approvals.

Short answer: No. Our service is free for most borrowers because lenders pay us when your loan settles.

Detailed explanation:

Mortgage brokers in New Zealand are paid by the lender through a standard commission structure. You receive the same or better interest rate as going direct.

The only time a fee may apply is in complex or non-standard situations. For example, if your opportunity sits with a non-bank lender, or the application is withdrawn before settlement. Any potential cost is discussed upfront so there are no surprises.

In short, you get professional advice, multiple lender options, and a streamlined process, all at no additional cost to you.

Short answer:

Most buyers need 20 percent. Some can buy with 10 percent, and eligible first-home buyers can purchase with 5 percent under Kāinga Ora.

Detailed explanation:

• Standard bank loans: 20 percent deposit lets you borrow up to 80 percent of a property’s value.
• Low deposit loans: Some banks will lend up to 90 percent (10 percent deposit) for strong applications with stable income and low debt.
• Kāinga Ora First Home Loan: Available through selected lenders for eligible buyers with a 5 percent deposit. You must meet income caps and live in the property for at least six months.

Example:

a single buyer earning under $95,000 or a couple earning under $150,000 may qualify for this scheme.

We help you check eligibility, calculate what you can afford, and match you with lenders offering the right product for your situation.

Short answer: Yes, you can use your KiwiSaver to help fund your first home if you have been contributing to your KiwiSaver for at least three years and the home will be your main residence.

Detailed explanation:

You can withdraw nearly all your KiwiSaver balance (your contributions, your employer’s contributions, and any investment growth) as long as you leave at least $1,000 in your fund.

To qualify, you must not have owned property before, although Kāinga Ora’s “second-chance” rule may apply if you are in a similar position to a first-home buyer.

We guide you through the application forms and timing so your funds are ready by settlement day.

Short answer: Yes. A gifted deposit is common and accepted by most lenders as long as it is from a family member.

Detailed explanation:

The lender will need a signed “gift certificate” from the person providing the funds, confirming the money is non-interest bearing and repayments are not immediately required.

Sometimes families choose to document a ‘deed of acknowledgment of debt’, meaning the gift is repayable in the future, and this is done through your solicitor.

We provide templates and help ensure the paperwork meets the bank’s legal requirements.

Short answer:

Most home loans take between two and six weeks from start to settlement.

Detailed explanation:

1. Pre-approval (1 to 10 days): You submit income documents, payslips, bank statements, and ID. Straightforward applications can be approved within three days, while self-employed or complex cases can take longer.

2. House hunting and offer: Once pre-approved, you can make offers with confidence. This stage depends entirely on the property market.

3. Final approval and settlement (2 to 4 weeks): After your offer is accepted, the bank confirms valuation, checks legal details, and prepares loan documents. Settlement (when the title transfers and keys are handed over) typically follows two to four weeks

later.

We coordinate each step and keep you updated so there are no surprises.

Short answer: Conditional approval means the bank will lend once specific conditions are met. Unconditional approval means all checks are complete and the loan is fully approved.

Detailed explanation:

Common conditions include verifying income, confirming property valuation, and reviewing deposit evidence. Once those are satisfied, the bank issues an unconditional approval, which allows you to proceed confidently to settlement.

Conditional approval gives you a clear picture of your budget while you complete your due diligence. We help manage the conditions so you reach unconditional status quickly.

Short answer: It is risky to bid without confirmed finance. At auctions you must be unconditional on the day of auction.

Detailed explanation:

Before bidding, make sure your approval is current, your deposit is available, and you have a solicitor engaged. We review the property and confirm lender requirements before you commit.

Short answer:

Allow $1,500 to $2,500 for extra costs.

Detailed explanation:

You should budget for:

• Legal and conveyancing fees
• LIM reports and building inspections
• Registered valuation (if required)

These costs can add up, so planning ahead prevents stress near settlement. Often banks offer a ‘cashback’ incentive of up to 1% of your loan total which can help pay for these fees.

Short answer: Often yes. Brokers negotiate daily with multiple lenders and access exclusive offers.

Detailed explanation:

Because we work with many banks, we see rate specials before the public does. We also negotiate for cashbacks and reduced fees.

Short answer:

Proof of identity, income, savings, debts, and deposit.

Detailed explanation:

You will typically need:

Self-employed applicants add two years of accounts and tax returns. Having everything ready helps us get you approved faster.

Passport or driver license

Recent pay slips or income evidence

Three months of bank statements

Deposit proof (savings, KiwiSaver, or gift letter)

Details of loans, credit cards, or other commitments

Short answer:

Yes. You just need to show income stability and provide the right documents.

Detailed explanation:

Most lenders assess the average of your last two years’ taxable income. They may also request business bank statements and signed financials from your accountant.

If you have been trading less than two years, some specialist lenders can still help based on current turnover and future contracts.

We package your application to highlight stability and help lenders understand your business story.

Short answer: There are still options through non-bank and specialist lenders.

Detailed explanation:

Some lenders are willing to work with clients who have past defaults or missed payments if you can show improvements and good recent conduct.

We start by checking your credit report, explaining what it means, and helping you tidy up small issues before applying.

A clear explanation and a realistic structure can turn a no into an approval.

Short answer: Try again with a different lender. Each lender has different rules.

Detailed explanation:

One lender might decline because of overtime income or student loans, while another may accept them. We work with multiple banks and specialist lenders, so we can repackage your application quickly. Small adjustments often make a big difference. Persistence pays off.

Short answer:

Yes. We are based in Christchurch and support clients across Canterbury and throughout New Zealand.

Detailed explanation:

Most of our work happens online or by phone, but we regularly meet clients in person around Christchurch, Rolleston, Lincoln, and North Canterbury. We understand the regional markets and price ranges across the area, which helps you buy confidently.

Short answer:

Yes. A property lawyer or conveyancer is essential for managing contracts and settlement.

Detailed explanation:

They review your sale agreement, conduct title and LIM checks, ensure all conditions are met, and handle the transfer of ownership on settlement day.

We coordinate with your lawyer to keep the process smooth and avoid last-minute issues.

Short answer: Home insurance is mandatory before settlement.

Detailed explanation:

You must have home insurance in place before the bank releases funds. Contents insurance protects your belongings, and mortgage protection insurance can cover repayments if illness, injury, or redundancy affect income.

We can help assess what cover is sensible for your situation and connect you with trusted providers.