How to Get a Mortgage in New Zealand: The 7-Step Process for First Home Buyers
One of the biggest sources of anxiety for first-home buyers isn’t choosing a property—it’s applying for a mortgage. When the largest loan you've ever applied for is a $2,000 credit card, the idea of borrowing $400,000 or more can feel overwhelming.
But the mortgage process doesn’t need to be intimidating. In fact, it’s remarkably structured. There are seven key steps to follow, and a good mortgage broker will support you through each one. Here’s exactly what to expect.
Step 1: Your First Conversation With a Mortgage Broker
The journey typically begins with a phone call. During this initial chat, your broker will ask about your financial situation—how much deposit you have, what you earn, and what you're hoping to buy. This conversation helps identify whether you're currently facing a deposit hurdle (you haven’t saved enough) or an income hurdle (you don’t earn enough to borrow what you need).
Don’t worry if things aren’t perfect. This first call is all about understanding your position and beginning to build a plan. Even if you're not quite ready yet, your broker can help you figure out how to get there.
Step 2: Completing Your Online Application
After that first chat, your broker will send you a secure link to their online application form. This is where you’ll enter your financial details—your income, debts, spending, assets, and more. The form autosaves, so you can complete it at your own pace. If you’re unsure about any sections (for example, the profit from your business or KiwiSaver balance), leave it blank for now. Your broker will go over everything with you later.
Once submitted, the system will generate a personalised checklist of documents the bank will need. If you have them on hand, you can upload them directly. Otherwise, you can bring them to your meeting with the broker.
Step 3: Meeting Your Mortgage Broker
This meeting is your opportunity to fill in any gaps from your application and talk through the process in more detail. Your broker will confirm your financial position, help gather the remaining documents, and talk through your home buying goals. This is also when they’ll verify your ID in person as part of New Zealand’s anti-money laundering requirements.
During this meeting, you’ll review recent payslips or business financials, bank statements, KiwiSaver balances, and anything else that applies to your situation. If your deposit includes a gift from family, a gifting certificate will also be required. And if you’re buying through a trust or building a new home, there may be additional paperwork to provide.
By the end of this meeting, you and your broker should both have a clear understanding of what happens next.
Step 4: Submitting the Application to the Bank
Once your broker has reviewed all the details and documents, they’ll send your application to the bank (or multiple banks) for assessment. This part of the process can take anywhere from a couple of days to a week or more, depending on the bank’s workload.
If you’re planning to attend an auction or make an offer quickly, let your broker know right away. Mortgage approvals take time, and banks won’t issue final approval unless they’ve had a chance to fully assess your financial position.
Step 5: Receiving Your Letter of Offer
When the bank is happy with your application, they’ll issue a Letter of Offer. This is essentially your mortgage approval. It will state the amount you’re approved to borrow, along with a projected repayment figure.
Don’t panic if the repayment figure seems higher than expected. Banks are required to use conservative calculations—usually based on their floating rate—to give you a clear picture of your potential commitment. Your actual interest rate will likely be lower once the loan is finalised.
Letters of offer come in two forms: conditional and unconditional. A conditional offer means the bank still needs a bit more information, such as confirmation of your employment or further details on your deposit. An unconditional offer means you’ve cleared all their hurdles—aside from finding a property the bank approves as security.
Step 6: Meeting the Conditions
If the bank issues a conditional approval, your broker will help you meet the remaining requirements. This might include reducing a credit card limit, providing updated bank statements, or confirming changes to your income or deposit.
Once all the conditions are satisfied, your approval becomes unconditional. You can now confidently start looking for properties, knowing exactly how much you can borrow.
Your broker will likely recommend attending multiple open homes in your price range before making an offer. This gives you a feel for the market and ensures that when you find the right home, you’re ready to act.
When you're ready to make an offer, the bank will require a copy of the property’s Sale and Purchase Agreement (the blank version, not the signed one yet) and details about the purchase price. The bank will then assess whether the property is suitable security for the loan.
Remember, no mortgage approval is truly unconditional until the bank has signed off on the specific property.
Step 7: Structuring the Mortgage
Once your offer is accepted and the property is approved, it's time to finalise the loan. Your broker will meet with you again to discuss your mortgage structure. This includes choosing the mix of fixed and floating loans, deciding whether to use revolving credit or offset accounts, and selecting loan terms.
This final meeting is about tailoring the mortgage to suit your lifestyle, goals, and future plans. Your broker will explain each option clearly so you understand how your repayments will work and how you can manage the mortgage going forward.
Congratulations—You’ve Got a Mortgage!
At this point, you’ve officially secured your mortgage and are on the path to home ownership. Whether you’re excited, nervous, or a bit of both, know that those feelings are completely normal. Buying a home is one of the biggest financial steps you’ll ever take.
If you feel unsure at any point, lean on your broker. Their job isn’t just to help you get approved—it’s also to support you through every step of the journey.
