Life Insurance Myths Debunked: What Every Kiwi Should Know

If you’re planning to buy a home in Hamilton or anywhere in the Waikato region, one of the first questions you’ll ask is: How much can I borrow for a mortgage? It’s a big decision, and the answer depends on a few key things — your income, your expenses, your deposit, and even your credit score.

What Affects How Much You Can Borrow for a Mortgage?

Income, Expenses, and Credit Score

Your income is the starting point. Lenders want to know how much you earn — and how stable that income is. If you’re employed full-time, that’s fairly straightforward. If you’re self-employed or your income varies, they’ll look more closely at your financial history to understand your earning patterns.

But income is only part of the picture. Your existing debts also play a big role. Credit cards, car loans, and other personal loans can all affect how much you’re able to borrow. Lenders consider your total financial commitments to make sure you can comfortably manage a mortgage on top of them. Keeping your debt under control shows you can handle repayments responsibly, which strengthens your application.

Deposit Size and LVR (Loan-to-Value Ratio)

Your deposit is the amount of money you put toward the purchase upfront. In New Zealand, most lenders prefer a deposit of at least 20%. But there are options for lower deposits — especially for first-home buyers. You may be able to get a loan with a deposit from as little as 5%.

How Do Banks and Brokers Assess How Much You Can Borrow for a Mortgage?

Bank Assessments

When you apply directly with a bank, they’ll use their own calculator to work out how much you could borrow. They look at:

Income – not just how much you earn, but how stable it is (salary, self-employed income, or contract work).
Expenses – your everyday living costs such as food, transport, insurance, and utilities.
Debts – things like credit cards, car loans, personal loans, Afterpay, or store finance. Even small limits on unused credit cards are counted.
Deposit – how much you’ve saved or built up through KiwiSaver or other sources.

On top of that, banks apply a test (or “stress”) interest rate, which is higher than the current rate. This is to check whether you could still afford repayments if interest rates rise in the future.

Broker Assessments

Mortgage brokers, like Andre Stokes here in Hamilton, take a wider view. Instead of relying on just one bank’s criteria, brokers work with multiple lenders — each with their own calculators and lending rules. This means:

You’ll often have a better chance of approval if one bank says “no.”
You can compare borrowing amounts across lenders.
You’re more likely to find a solution that fits your income, debt, and goals.

Brokers also help you present your application in the best light — especially if you’re self-employed, have variable income, or already have existing debts.

Borrow for a Mortgage in Waikato: What’s Typical?

Waikato Property Prices

Property values across the Waikato Region can vary considerably, depending on the location:

Hamilton City: The average house price as of June 2025 is approximately NZ$788,171, according to CoreLogic data compiled by Opes Partners.
Waikato Region Overall: Median prices hover around NZ$735,000 as of June 2025, having surged from about NZ$340,000 a decade earlier.
Te Kūiti (Waitomo District): This remains one of the most affordable areas in the region. The average house value stands at NZ$392,550,

This underscores a substantial price range—from Te Kūiti’s mid-$300k to Hamilton’s upper-$700k—highlighting how location plays a pivotal role in affordability for buyers.

First-Home Buyers in Waikato

If you’re taking your first steps onto the property ladder, you may have access to several helpful schemes:

1. KiwiSaver First-Home Withdrawal

After contributing to KiwiSaver (or a complying super fund) for at least three years, you may be able to withdraw most of your savings—including member contributions, employer contributions, government contributions, and investment earnings—to help with your first home purchase.

You must leave a minimum of NZ$1,000 in your KiwiSaver account, and not all funds are withdrawable (e.g., Australian super transfers and certain government kick-start amounts may be excluded).

Withdrawals are restricted to a property you intend to live in—this cannot be used to purchase investment properties.
Check out the IRD website for more information

2. Kāinga Ora First-Home Loan

With this option, you can secure a home loan with a deposit as low as 5%, thanks to Kāinga Ora underwriting the remainder of the deposit risk for participating lenders.
Kāinga Ora – Homes and Communities

Eligibility criteria include being a first-home buyer (or a previous owner in a similar financial place as a first-home buyer), meeting maximum income thresholds (e.g., <$95,000 for individuals without dependants or <$150,000 combined for co-buyers), and purchasing a home you intend to live in.

The loan includes a 1.2% Lender’s Mortgage Insurance (LMI) premium, payable upfront or added to the loan balance.

Tips to Increase How Much You Can Borrow for a Mortgage

Reduce Your Debt
Banks look closely at your existing debt, such as credit cards, personal loans, and car finance. Paying these down (or closing unused credit facilities) lowers your monthly commitments, which can free up more borrowing power.
Increase Your Deposit
The bigger your deposit, the less risk the lender takes on. This can not only increase how much you’re able to borrow but may also give you access to better interest rates and more lenders.
Improve Your Credit Score
Your credit history shows lenders how reliable you are with money. Paying bills on time, avoiding missed payments, and keeping debt levels manageable can strengthen your application and make banks more willing to lend.
Use a Broker
Mortgage brokers have access to a wide range of lenders and know the different borrowing criteria. They can help present your situation in the best possible way and find a lender who’s more likely to offer you the maximum amount.

Contact Andre for a Personalised Borrowing Assessment

Every buyer is different. Your income, deposit, and goals all affect how much you can borrow for a mortgage. Andre Stokes is a local mortgage broker based in Hamilton. He knows the Waikato market and works with a range of lenders.

Ready to find out how much you can borrow? Contact Andre today for a free, personalised borrowing assessment.

Life Insurance is often misunderstood. Many Kiwis think it’s complicated or not necessary. Some may even believe they don’t need it at all. In reality, life insurance is simple, and it can protect your family and loved ones when they need it most. Let’s debunk some of the most common life insurance myths and get clear on what it can do for you.

Myth 1: “I Don’t Need Life Insurance Because I’m Healthy”

It’s easy to think that if you’re fit and healthy, you don’t need life insurance. Many people believe that being young and healthy protects them from the unexpected. But accidents and illnesses can happen to anyone, regardless of age or health. Life insurance provides a financial safety net for your family if something unexpected were to happen. By getting life insurance while you’re young and healthy, you can often secure lower premiums, making it an affordable way to plan for the future.

Myth 2: “Life Insurance Is Too Expensive”

One of the biggest myths is that life insurance costs too much. Many Kiwis assume it’s unaffordable and don’t even look into it. However, the truth is, there are different types of life insurance policies available that can fit a variety of budgets. Term life insurance, for example, is often less expensive than people expect. It provides coverage for a specific period, such as 10, 20, or 30 years, and can offer peace of mind without breaking the bank. You may be surprised how affordable a policy can be, especially if you apply when you’re younger.

Myth 3: “I Don’t Need Life Insurance Because I’m Single and Don’t Have Kids”

Many single people or those without children believe they don’t need life insurance. However, life insurance can still play an important role in protecting your financial responsibilities. Even if you’re single, you may have debts like student loans, a mortgage, or credit card debt that could be passed on to your family. Life insurance can cover these costs, ensuring your loved ones aren’t left with financial burdens after your passing. It’s also worth considering the future. You may not have dependents now, but that could change down the track. Securing a policy while you’re young and healthy can lock in affordable rates for when you do have a family.

Myth 4: “My Employer’s Insurance Is Enough”

Some people believe that the life insurance provided by their employer is enough coverage. While it’s great to have this benefit, employer-provided life insurance often isn’t sufficient to meet all of your family’s needs. Most employer policies provide coverage that’s one to two times your annual salary. While this might seem like a lot, it might not be enough to cover all future expenses, such as mortgage payments, living costs, or children’s education. Plus, if you change jobs or lose your job, you may lose your life insurance coverage. Having your own policy ensures you’re always protected.

Myth 5: “Life Insurance Only Benefits My Family If I Pass Away”

Another misconception is that life insurance only comes into play after you die. While the main purpose of life insurance is to provide a payout after death, some policies offer living benefits. For example, some life insurance policies can provide financial assistance if you’re diagnosed with a terminal illness or face a serious injury. This can help cover medical costs, loss of income, and more. Life insurance can be a versatile tool for protecting yourself and your family during tough times.

Myth 6: “I Don’t Need Life Insurance If I Have Savings”

While having savings is essential, it might not be enough to cover all the costs your family could face if you’re no longer there. Funeral costs, ongoing bills, mortgage repayments, and children’s education are just some of the expenses that may need to be covered. Even a large savings account can be quickly drained by these costs. Life insurance ensures your family has the financial support they need, without relying solely on your savings.

Myth 7: “It’s Too Late to Get Life Insurance”

Some people think it’s too late to get life insurance, especially if they’re older. While it’s true that life insurance can be more expensive as you age, it’s not too late to get coverage. Many policies are available for people over 50, and it’s always better to have some coverage than none at all. If you’re concerned about cost, talk to a financial advisor about the types of policies available. There may be options to suit your needs and budget.

Why Life Insurance Matters

Life insurance is about protecting those you love. It’s a way to ensure your family can manage financially if you’re no longer there to support them. Whether it’s covering funeral costs, paying off debts, or providing for your children’s future, life insurance offers peace of mind. Knowing your family is protected can give you confidence that they’ll be taken care of, no matter what happens.

How to Get the Right Life Insurance

Choosing the right life insurance policy can be overwhelming. There are many types of policies, each with its own benefits and costs. This is where working with an independent advisor can help. An advisor, like Andre Stokes from Mortgage and Insurance New Zealand, can walk you through your options, explain the benefits of each policy, and help you find one that suits your needs and budget.

Call to Action: Protect Your Future Today

Don’t let life insurance myths keep you from securing the protection your family needs. Now that you know the facts, it’s time to take action. Contact Andre Stokes today for a free consultation. Andre is here to answer your questions and guide you in choosing the right life insurance for you and your family.

Call Andre today to get started – it’s easier than you think to protect your loved ones.