Preparing for a home loan is about understanding your finances and the lender’s requirements before committing to a property. Use this checklist to organise the conversation with your lender or mortgage adviser.
Review income, regular spending and existing commitments. Allow for the costs of owning the proposed home, including rates, insurance, maintenance and any shared-property charges, as well as repayments.
Use a budget you can sustain rather than temporarily cutting spending to give an incomplete picture. Sorted’s deposit and buying-cost guidance can help you prepare.
Ask what deposit is required for the lending and property you are considering. Requirements differ between lenders, products and circumstances. A larger deposit may change your options, but it does not guarantee approval.
If you are buying your first home, explore our first-home resources and confirm any KiwiSaver withdrawal or support eligibility directly with the relevant provider.
Pay bills and existing debts on time and check that information supplied in an application is accurate. Discuss any missed payments or unusual circumstances with your adviser rather than assuming they rule out an application or will be overlooked.
Ask the lender or adviser which documents are needed, how current they must be and how to provide them securely. The list may depend on your employment or income arrangements and the purpose of the loan.
A conditional pre-approval does not approve every property within the stated amount. Confirm the expiry, conditions and property information the lender requires. Before making an unconditional offer or bidding at auction, establish what must be completed for the specific purchase.
Read Settled’s finance guidance and ask your lawyer to review proposed finance conditions before signing an agreement.
Ask a mortgage adviser which lenders and products they can consider, how they are paid and what fees or commission-related charges could apply. The lender makes the final lending decision.
Our existing mortgage-advice page introduces Brett Wood of Loan Market Coast to Coast and his contact options. Using that service is optional; you can choose your own adviser and lender.
For independent information about advice and fees, see the Financial Markets Authority’s mortgage-advice guidance.