What Happens When You Buy a House in New Zealand?

Buying a house for the first time isn’t just a financial step—it’s an emotional rollercoaster. Whether you're cautiously optimistic or just want to know exactly what lies ahead, here’s your spoiler-free guide to the full home buying journey. No nasty surprises. No dead dogs.

Step 1: Get Pre-Approval from the Bank

Before you start falling in love with character villas or attending every auction in town, you need a mortgage pre-approval.

Pre-approval is a written offer from a bank confirming how much they're willing to lend you. Most pre-approvals are conditional—meaning the bank will lend you the money, but only if certain criteria are met (like verifying your income or deposit source). If all conditions are cleared, it becomes unconditional.

Pre-approvals usually last 60–90 days. You can renew them, but it’s best to start looking seriously once it’s in place.

What Do You Need for Pre-Approval?

  • Proof of deposit – Savings, KiwiSaver, or gifting from family. (Spoiler: you can’t borrow your deposit from a finance company.)

  • Proof of income – This includes payslips, financial statements, and even flatmate income in some cases.

  • Debt check – Banks will factor in existing debt when assessing your affordability.

You may also be eligible for KiwiSaver withdrawal, a First Home Grant, or the First Home Loan scheme. Your mortgage adviser can help you pull these together.

Step 2: Make an Offer on a Property

Start house-hunting

Once pre-approved, it’s time to hit those open homes (slip-on shoes recommended). Explore your options: new builds, existing homes, apartments, or mortgagee sales. Each has its own pros, cons, and quirks.

Do your homework

Found a place you love? Now it’s due diligence time:

  • Order a LIM report and/or building inspection

  • Check the property title for easements, covenants or cross-leases

  • Review the Sale and Purchase Agreement

  • Ask your lawyer to review all documents before signing

Conditional vs Unconditional Offer

Based on your due diligence and your bank’s requirements, you’ll decide whether to make a conditional offer (subject to finance, inspections, etc.) or an unconditional offer (where you commit no matter what). Note: All auction bids are unconditional.

Common offer conditions include:

  • Final bank approval

  • Satisfactory LIM/building report

  • Confirmation of insurance availability

  • Agreed remedial work completed

If you're making an unconditional offer, your broker will need to get final approval for that specific property from the bank before you submit the offer.

Offer accepted? Time to pay the deposit

Congratulations! If your offer is accepted and it’s unconditional, you’ll need to pay the deposit straight away—usually 10%. It’s non-refundable. If your offer was conditional, the deposit is due once conditions are satisfied.

Step 3: Prepare for Settlement

Once you’ve gone unconditional, the countdown to settlement day begins.

First steps:

  • Provide your lawyer with your IRD number and photo ID

  • Arrange home and contents insurance

  • Consider life and health insurance—just in case the unexpected happens

Two weeks out:

  • Complete KiwiSaver withdrawal and First Home Grant paperwork (at least 10 days before settlement)

  • Meet with your mortgage adviser to confirm mortgage structure and interest rates

If you want to do some background reading:

  • [3 Questions to Ask Before Fixing Your Mortgage]

  • [Offset vs Revolving Credit]

  • [Weekly vs Monthly Payments]

One week out:

  • Meet with your lawyer to sign your loan documents

  • The bank will open your accounts

Two days out:

  • Do a pre-settlement inspection

  • Transfer any cash contribution to your lawyer

  • Chill the champagne (essential)

Step 4: Settlement Day

On settlement day, your lawyer sends the funds to the seller’s lawyer. Once confirmed, the agent hands over the keys. That’s it—you officially own your home!

Cue the bubbles and the inevitable remarks:

  • “Was that mark there before?”

  • “We’ll finish unpacking tomorrow.”

  • “Thank goodness we don’t have to go to another open home.”

After Settlement

You're a homeowner now! A few final tasks:

  • Double-check your mortgage account is set up correctly

  • Keep your broker in the loop for:

    • Fixing new rates in future

    • Restructuring your mortgage

    • Applying for top-ups (e.g. for renovations)

    • Planning your next purchase (home or investment)

Welcome to the property ladder—your journey has just begun.


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