A home loan application in NZ can feel daunting, especially if you’re not sure what lenders are actually assessing behind the scenes. The good news is that it’s usually less mysterious than it feels.
While every bank has its own lending criteria, most home loan applications are assessed using the same core factors. Understanding these can help you feel more prepared and confident before you apply.
Income: A Key Part of a Home Loan Application NZ
Banks want to see that you have a reliable and sustainable income to support loan repayments.
This usually includes:
- Salary or wages
- Self-employed or contract income (often averaged over time)
- Rental income (sometimes discounted)
- Regular allowances or bonuses (depending on consistency)
They’ll look not just at how much you earn, but how stable your income is and how long you’ve been receiving it.
Spending and Everyday Expenses
Your everyday spending helps the bank understand how much money you realistically have left each month after your bills.
This includes:
- Living costs such as food, utilities, and transport
- Existing debts like credit cards, personal loans, or car finance
- Subscriptions or regular commitments
Banks typically review recent bank statements to get a clear picture. This isn’t about judging your lifestyle, but about making sure repayments are affordable for you.
Your Deposit
Your deposit shows how much you’ve already contributed toward the purchase.
Deposits can come from:
- Savings
- KiwiSaver (for eligible buyers)
- Sale of another property
- Gifts or family support (usually with a declaration)
For many first-home buyers, Kainga Ora is government assistance designed to help you get on the home ownership ladder. We can help you see if you’re eligible. Learn more here.
Generally, a larger deposit can give you access to more loan options, but there are still pathways available for buyers with smaller deposits depending on their circumstances.
Credit History
Your credit history gives lenders insight into how you’ve managed credit in the past.
They look for things like:
- Whether repayments have been made on time
- How much credit you currently have available
- Any missed payments or defaults
A less-than-perfect credit history doesn’t automatically mean a no. In a home loan application NZ lenders look at the full picture, including any explanations around past issues.
A Final Thought on a Home Loan Application NZ
A home loan application isn’t about ticking every box perfectly. It’s about the full picture — your income, commitments, goals, and what’s realistic for your household.
If you’re considering a home loan application NZ and want to understand where you stand, having a conversation before you apply can help clarify your options and reduce unnecessary stress.