When you apply for a home loan in New Zealand, the lender reviews the information and evidence in your application. This helps the lender understand the proposed borrowing and decide whether it can proceed. Knowing what lenders commonly check can help you provide clear, consistent information and avoid preventable delays.
Put simply, banks and other mortgage lenders may review your:
The exact information required depends on your circumstances and the lender. It can also depend on whether you have already found a property.
If you are unsure what applies to you, speak with a mortgage adviser before submitting an application. An early conversation can help you establish what information you need to provide.
This guide focuses on the application process and the evidence lenders review. For a broader explanation of the rules and requirements used to decide whether proposed lending fits a lender’s policy, read our guide to mortgage lending criteria in New Zealand.
A home loan application will usually involve these stages:
Processing time varies with the lender, the complexity of the application and whether all necessary information is available. A decision may also be conditional on an acceptable property, valuation, insurance or other requirements. Before making an offer without finance conditions, read our guide to going unconditional on a property.
There is no single processing time for every application. Timing can depend on the lender’s current workload, the type of approval requested, the complexity of the application and whether further information is required. Providing complete and consistent evidence at the outset can reduce avoidable follow-up, but it does not guarantee a particular decision date.
Your deposit is one part of the application information. It affects how much you need to borrow and the lender’s security position. The lender may ask for evidence confirming the funds available, where they have come from and whether any part of the deposit must be repaid.
This page explains how deposit evidence fits into an application rather than how much deposit you may need. First-home buyers can read our guide to the deposit needed to buy a house in New Zealand. If you are buying an investment property, read our investment-property deposit guide.
The lender must verify the income declared in your application. The evidence required will depend on how you earn that income. It may include payslips, employment information, bank statements, tax records or financial statements.
Variable income, overtime, commission, rental income and income from self-employment may require additional evidence. Different lenders can also assess some forms of income differently.
Existing debts, repayments and available credit limits are recorded separately. They do not change the amount of income you earn, but they are relevant when the lender assesses the overall application.
If you are self-employed, the lender may request financial statements, tax returns, IRD records or business bank statements. It may also request other supporting evidence.
The evidence required can depend on the lender, the history of the business and the overall application.
A shorter trading history does not automatically prevent you from obtaining a mortgage.
Read our guide to getting a mortgage when you have been self-employed for less than two years for a more detailed explanation.
A lender may obtain your credit report as part of the application process. This can help verify existing credit facilities and show repayment history, missed payments, defaults, arrears and recent credit enquiries.
Credit information is considered alongside the rest of the application. A credit issue does not automatically mean an application will be unsuccessful, but the lender may want further information before making a decision.
For detailed information, read our credit score guide. If you are concerned about defaults or adverse information, see our guide to getting a mortgage with bad credit.
Lenders may request recent bank statements. These can help verify your income, regular commitments, existing credit facilities and everyday spending.
The lender may notice missed payments, dishonoured transactions or frequent overdrawing. Regular transfers or commitments not recorded elsewhere may also require an explanation or further evidence.
Bank statements form one part of the complete assessment. The lender will consider them alongside the other information provided rather than treating every individual transaction as a decision on its own.
If you want practical steps you can take before applying, read our guide on how to prepare your finances for a mortgage.
The documents requested will depend on your circumstances, but lenders commonly need information that verifies your identity, income, financial commitments and the proposed purchase.
You may be asked to provide:
A lender may request additional information if your income, borrowing structure, deposit or proposed property requires further explanation.
A well-prepared application helps the lender understand your financial position and the proposed borrowing. Missing documents, inconsistent figures or incomplete information can cause delays and unnecessary follow-up questions.
Platinum Mortgages checks the application information and supporting evidence before anything is submitted. We can identify missing information, explain what is still required and manage communication with the lender as the application progresses.
Learn more about how we help with home loan service, or contact Platinum Mortgages to discuss your application.
Platinum Mortgages New Zealand Limited (FSP752271) is a Financial Advice Provider licensed and regulated by the Financial Markets Authority. Angela Downie (FSP742251) is a Financial Adviser at Platinum Mortgages who provides mortgage advice to New Zealand borrowers under that licence and has worked in the financial industry since 2006.
Angela’s experience includes reviewing home loan applications before submission, identifying missing or inconsistent information and helping borrowers provide the evidence a lender needs to assess their position clearly.
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