How to Get a Mortgage in New Zealand

Ready to buy a home, but unsure on where to begin? Finding a mortgage can be a daunting prospect, but not to worry, we have you covered. If you don't know your pre-approvals from your settlements, follow our step-by-step guide to get you started.

1. Check Your Finances

Before applying for a mortgage, take a good look at your financial situation. Lenders want to know that you can afford repayments, so they’ll assess your income, expenses, debts, and savings. Your credit score also plays a big role—it affects how much you can borrow and the interest rates you’ll be offered.

2. Save for a Deposit

Most banks require a 20% deposit for a standard home loan. But if you’re a first-home buyer, you might qualify for a mortgage with as little as 5% through schemes like First Home Loans. If your deposit is lower, you may need Lender’s Mortgage Insurance (LMI), which adds to your borrowing costs.

3. Get Pre-Approved

A mortgage pre approval is like a useful guide rope. It should give you an idea of how much a lender is willing to loan you, so you have a budget when making an offer. While it’s not a full guarantee of final approval, it serves as a useful reference. Pre-approvals usually last three and six months, so you can spend that time house-hunting with confidence.

4. Compare Mortgage Options

Home loans can vary massively. Interest rates, repayment terms, and fees all differ lender to lender. A skilled mortgage advisor can help you sift through your options and find the best deal. They can also help you choose your specific loan terms—whether you prefer a fixed-rate mortgage for stable payments or a variable-rate loan for potentially lower initial costs.

5. Apply for a Mortgage

Found your dream home? Now it’s time for a formal mortgage application. You’ll need to provide proof of income, ID, bank statements, and details of the property. The lender will assess your application before making a final loan offer.

Again, working with a mortgage broker or advisor can help simplify this process. With your information in hand they can handle the entire process for you.

6. Loan Approval & Settlement

If your mortgage is approved, your lender will issue a formal loan offer. Your lawyer will handle the legal details, and once settlement is complete—you’re officially a homeowner! Be sure to review your loan terms carefully before signing.

Buying a home? Make the mortgage process easy with expert guidance. Get started today.