Do I need a deposit to buy a home in New Zealand?

Most lenders require a deposit of at least 10% to 20%, although options may exist depending on your financial situation.

Can self-employed people get a mortgage?

Yes. Mortgage advisers can work with lenders who understand variable incomes and help present your financial documents clearly.

Why is income protection insurance important?

Income protection insurance helps cover a portion of your income if illness or injury prevents you from working.

Does using a mortgage adviser cost money?

In most cases mortgage advisers are paid by the lender once the loan is settled, meaning the service is typically free for clients.

Mortgage Finance Adviser In New Zealand FAQ | Mortgage Adviser Christchurch

Mortgage FAQs

Answers to common questions about home loans in New Zealand

What is a mortgage?

A mortgage is a loan used to purchase property. The lender provides funds and the borrower repays it over time with interest.

How much deposit do I need in New Zealand?

Most lenders require around 20%, although lower deposit options may be available depending on eligibility.

How long does mortgage approval take?

Approval can take from a few days to a couple of weeks depending on the lender and documentation provided.

Can I refinance my mortgage?

Yes, refinancing allows you to switch lenders or adjust loan terms to secure better interest rates or better features.

Why should I use an adviser instead of going directly to my bank?

Your bank only offers its own products. We compare multiple lenders to find better options and handle all paperwork and negotiations for you.

What if I have bad credit?

Bad credit doesn’t mean no options. We work with lenders who consider your situation and help you improve your chances.

I’m self-employed. Can I still get a home loan?

Yes. We work with lenders who understand variable income and help present your financials clearly for approval.

What’s the difference between refixing, restructuring, and refinancing?

Refixing: Locking in a new interest rate.
Restructuring: Adjusting your loan repayments.
Refinancing: Switching lenders or accessing equity.

What’s the first step?

What is the minimum deposit for first home buyers in New Zealand?

Typically, first home buyers need a 20% deposit. However, some lenders allow deposits as low as 10% or even 5% through special schemes like Kāinga Ora.

What is Kāinga Ora and how can it help me?

Kāinga Ora is a New Zealand government programme that supports first home buyers with low-deposit loans and grants, making home ownership more accessible.

Can I use my KiwiSaver to buy a house?

Yes, eligible first home buyers can withdraw most of their KiwiSaver savings to put towards their deposit, subject to certain conditions.

What are LVR restrictions in New Zealand?

Loan-to-Value Ratio (LVR) restrictions limit how much you can borrow compared to your deposit. For example, a 20% deposit means an 80% LVR.

Do I need pre-approval before house hunting?

Yes, getting pre-approval helps you understand your budget and shows sellers you are a serious buyer.

What costs should I budget for besides the deposit?

You should also budget for legal fees, valuation reports, building inspections, insurance, and moving costs.

What is a fixed vs floating interest rate?

A fixed rate stays the same for a set period, while a floating rate can change at any time based on market conditions.

Can I buy an investment property in New Zealand?

Yes, but investment properties usually require a higher deposit (often 30% or more) due to lending restrictions.

How much can I borrow for a home loan?

This depends on your income, expenses, debts, and deposit. Lenders assess your ability to repay the loan comfortably.

What is mortgage stress and how can I avoid it?

Mortgage stress happens when repayments become difficult to manage. Choosing the right loan structure and budgeting properly can help avoid it.

Do banks check my spending habits?

Yes, lenders review your bank statements to assess your spending and ensure you can manage repayments.

Can I get a mortgage as a migrant or on a work visa?

Yes, but eligibility depends on your residency status, visa type, and financial situation. Some lenders have specific policies for migrants.

Mortgage and Financial Advice FAQ: Christchurch, New Zealand