If you’re asking whether you can get a mortgage with bad credit in NZ, the key is your credit file – paid/unpaid defaults, recent arrears, the number of recent credit inquiries, and time since discharge (if applicable).
You’re not alone. Banks apply strict rules. Specialist lenders assess the context and today’s conduct which means approval is still possible if you’ve shown stability and affordability recently.
If you’re ready to explore actual lender options, visit our Bad Credit Home Loans page – our team specialises in approvals for borrowers with credit challenges.
Can I Get a Mortgage With Bad Credit?
Yes – specialist lenders assess case-by-case and can approve where banks won’t, provided today’s affordable and account conduct stack up. We handle the process and present your application in the best light so you have a fair shot at approval.
What Is a Credit Score or Credit Rating?
It’s a score that is calculated by using the public record of your credit history. This record is called the credit report. A credit report contains information such as loans you’ve taken out and any payment defaults against your name.
Common negative factors
A credit score is made up of a number of factors, including:
- Defaults – paid vs unpaid, how recent, how many
- Arrears/dishonours – any in the last 90 days?
- Hard inquiries – multiple recent applications can suppress approval odds
- Bankruptcy – time since discharge and clean conduct since
- Stability – address/employment tenure (for context only)
The number of loans you have and their amounts can also affect the score. Hire-purchase agreements and car loans, for example, will negatively affect credit scoring.
If you’d like more information on credit records and credit scores, we recommend the sorted.org information page. It details how to can check your credit report and manage any issues.
Why Does My Credit Score Matter When Applying For a Loan?
Cleaning past issues takes effort, and a decline can feel unfair. Mortgages involve large sums and real risk for you and the lender.
Lenders must follow responsible lending rules under the Credit Contracts and Consumer Finance Act (CCCFA).
How Lenders Treat Paid Defaults Over Time
A paid default that’s older than 12 months does not end your chances. Here’s how lenders usually look at it.
Specialist (non bank) lenders
- Often open to considering your application once a default is paid and older than 12 months.
- Will still price for risk and may ask for a stronger deposit.
- Care most about your recent conduct (last 90-190 days), affordability at test rates, and a clear explanation of what happened and what’s changed.
Main banks
- Stricter. A single, older paid default may be acceptable case-by-case if everything else is spotless.
- Typically want more “seasoning” (e.g. 18-24 months clean), no other adverse items, tidy statements and strong overall servicing.
- Multiple or recent defaults usually fall outside bank policy for now.
What improves your chances?
- Evidence the default is paid or settled (credit file updated or closure letter)
- Clean banking for 90-180 days (no unarranged overdrafts or dishonours)
- A short cause-and-fix note (why it happened, what’s changed to prevent repeat)
- Lower LVR (larger deposit) to reduce lender risk.
- Fewer recent credit inquiries – only apply where approval is likely.
How we position your application
- If the default is paid and older than 12 months we usually target a specialist lender first for higher approval odds, then set a 12-24 roadmap back to a main bank.
- If you want to try a bank sooner, we’ll make sure the file is spotless now, strengthen deposit where possible, and present a tight, evidence-based explanation.
When a bank isn’t a fit today, our non bank lending services can get you moving while we map milestones back to bank rates.
If your goal is a mortgage with bad credit in NZ today, we’ll structure it so you can refinance to bank pricing when the milestones are met.
How Can I Get a Mortgage If I Have Bad Credit?
A bad credit score makes a bank loan unlikely. Non bank lenders that assess case-by-case. They price for risk with higher initial rates, but can still approve if today’s affordability and conduct stack up.
The key is using a mortgage specialist who matches your profile to the right lender. We work with major banks and a wide range of non bank lenders.
We handle the paperwork and present your case clearly, so you get the best shot at approval.
Once you’ve got your home loan, aim to lift your credit score over the next 12-24 months. Then we can refinance to a bank for sharper rates. Pay on time. Keep statements clean, and simplify debt where possible.
If cash flow is the barrier right now, consider debt consolidation. This will reduce unsecured commitments and improve affordability (we’ll model this first).
The fastest progress comes from a tailored plan. This means tidy conduct, the right lender today, and a refinance target tomorrow. We’ll guide you through each step so there are no surprises. Get in touch about your mortgage options.
★ We Are Trusted
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.