If you’re getting ready to apply for a home loan in New Zealand, understanding what lenders actually look at can make the whole process feel a lot less uncertain. Knowing how your application is assessed can help you prepare properly and avoid unnecessary surprises once the process is underway.
The good news is that you don’t need to figure it all out on your own. One of the most common things we help borrowers with is understanding how different lenders are likely to view their situation — and making sure the right information is prepared before anything is submitted.
Put simply, mortgage lenders will assess your:
If you’re unsure how a lender may assess your situation, speaking with a mortgage adviser early can help you understand your options before applying.
Most main bank lenders will generally accept a 10% deposit for new builds and a 20% deposit for existing properties. Some banks may even have capacity to accept less than 20% deposit for existing properties (this is always changing, so check in with us). As a first-home buyer, you can use your KiwiSaver if you’ve been in the scheme for at least three years.
You might be lucky and have parents who can gift or lend you money to get you into your first home. But be aware that if the money is a loan, the lender will take the repayments into account when calculating your income.
If you have less than 20% and want to buy an existing property, you may be able to get a loan under the First Home Loan scheme, if you meet the criteria. Otherwise, depending on their current lending policy, there may still be lending options available. Talk to us about whether you could get a low-equity loan.
As mentioned above, most main bank lenders will accept a 10% deposit for new builds and a 20% deposit for existing properties. You can use the proceeds of the sale of your current house for the deposit, or you can get a bridging loan to buy your next home before selling your current one. In that case, you would use the equity in your current house to get the bridging loan.
Most main bank lenders usually require larger deposits for investment properties than they do for owner-occupied homes. In many cases, investors may need around a 30% deposit for an existing property, while new builds can sometimes qualify for lower deposit requirements.
Investors will often use equity from their current property towards the deposit for their next purchase. Some lenders may also consider lower-deposit lending for certain new-build investment properties, depending on the property type, overall financial position, and current lending policies.
In some cases, lower-deposit lending for new builds may only apply once the property title and code compliance certificate have been issued, and settlement may need to occur within a specific timeframe following loan approval.
Lending policies and low-deposit exceptions can change regularly, which is why getting advice before applying can be extremely helpful.
Whether you’re buying your first home, moving to your next property, or purchasing an investment property, using a mortgage adviser can help you understand which lenders may best suit your situation. Mortgage advisers have an up-to-date view of current lending policies and can often save you a considerable amount of time and research.
One of the most common questions borrowers ask is how much income they need to qualify for a mortgage. The answer depends largely on how much you’re borrowing, your existing financial commitments, and how the lender assesses affordability at the time you apply. To get an idea, check out our mortgage calculator. Enter the amount you want to borrow, set the period to 30 years, and set the interest rate at, say between 6.4% and 7.5%. That is the approximate period and rate the banks use to test your affordability at the time of writing (May 2026). However, some banks require a 25-year term for investment properties. The period they will use, also depends on how many working years you have left to repay your mortgage.
The calculator will then give you an estimate of what your repayments could look like. If your income doesn’t perfectly align with a lender’s affordability calculations straight away, don’t panic. Every lender assesses applications slightly differently, and factors like existing debts, living costs, loan term, and deposit size can all influence the outcome.
Be aware that any debt you have, will also be taken into account when the lender calculates your income. They’ll also make the calculations assuming that your credit card and overdraft limits will be maxed out. Reducing unnecesasry detbt and lower unused creit limits where possible can help strenghten an application.
Debt-to-income (DTI) restrictions are one of the affordability checks some lenders apply when assessing a mortgage application. In simple terms, they look at how much debt you have relative to your income. They use that as one way to assess borrowing capacity.
That said, DTI is just one part of the picture. Lenders weigh it alongside income, deposit, spending habits, and existing financial commitments, so it rarely tells the whole story on its own.
If you’re unsure how DTI restrictions might apply to your situation, a mortgage adviser can walk you through how lenders are currently approaching applications and what that means for you specifically.
If you’re self-employed, lenders will generally want to see evidence that your income is stable and consistent. In most cases, that means providing at least two years of financial statements and tax records.
If you haven’t been self-employed for that long yet, it doesn’t necessarily close the door. Requirements can vary depending on the lender and the wider strength of your application, so it’s worth understanding what options may still be available to you.
Credit history is only one part of a home loan application, but it can still influence how a lender views overall risk and affordability. A credit issue does not always mean a mortgage application will be unsuccessful, but lenders will generally consider the severity, timing, and wider financial picture when assessing an application.
If you’d like to understand how lenders may view your credit history, you can also read our guides on getting a mortgage with bad credit and getting a mortgage after being discharged from bankruptcy.
Lenders will usually review your recent bank statements to understand how you manage your money day to day. They’re generally looking for signs that your spending is manageable alongside the repayments you may need to make on a mortgage.
Regular savings, stable account conduct, and responsible use of credit can all help support an application. On the other hand, frequent overdrawing, missed repayments, or high discretionary spending may raise concerns about affordability.
This topic is an evolving one. In recent years, lending rules became stricter around affordability assessments, which meant lenders examined everyday spending much more closely. While the rules have since become more practical, lenders still need to confirm that a borrower can realistically afford their repayments.
Thankfully, the rules have loosened as of this writing. The code still requires lenders to determine whether a borrower can afford a loan, but now they can use common sense and allow for individual circumstances.
It’s still a great exercise to live as if you have a mortgage, before you apply for a home loan. It gives you a taste of what your budget will be and demonstrates to lenders that you will be able to support a mortgage. To do this, use our mortgage calculator to determine your approximate fortnightly mortgage repayment, then minus any rent you pay. The figure you’re left with is how much you need to save each fortnight.
As part of the application process, lenders will usually ask for documents that help verify your financial position and confirm the information provided in your application. Having these prepared early can help avoid delays and make the process smoother.
Depending on your situation, lenders may ask for:
Some lenders may request additional information depending on the type of property, your employment structure, or how complex your financial situation is.
A well-prepared application helps lenders get a clear picture of your financial position quickly — and that clarity matters. Missing documents, inconsistent information, or incomplete details can slow things down and create unnecessary back-and-forth during assessment, which is frustrating for everyone involved.
This is where having the right support makes a genuine difference. A big part of what we do is making sure everything is properly prepared before anything goes to a lender — so the process runs as smoothly as possible from the start. We manage the application process to ensure you’re putting your best foot forward when applying for a loan.
If you’re planning to purchase a property or want to review your current mortgage structure, get in touch and we’ll help you work through it.
Angela is an accredited Financial Adviser, licensed under FSP742251 and has been in the Financial Industry since 2006. Our 5-star Google reviews reflect the excellent customer experience we promise — making your home loan journey positive, stress-free, and rewarding. At Platinum Mortgages, our clients are the reason we exist — so you can be confident every step is guided by genuine care and expertise.
