Home Finance in New Zealand

Owning your home, especially the first one, is a thrilling experience mixed with lots of doubts and confusion. Sometimes, you do not know where to start, who to talk to, or even where to research accurate information. This article hopes to give you useful insights to help make your experience delightful and hustle free. Let’s get started, shall we?

Home Finance in NZ

Home Finance

Home finance is not to be taken lightly as it involves a large sum of money. A simple mistake or under calculation can lead to a lot of hardship and stress. Make sure you plan everything in advance before getting a home loan in New Zealand. 

House Finance Plan


First and foremost, plan your funds: The truth this, the amount of disposable income you have determines the home finance you can get in New Zealand. Getting to know your finances is the first step of your homeownership journey.

Calculate your total monthly income and subtract all your monthly expenses to see how much money you have left to finance the loan. After that, use an online mortgage calculator to see your possibilities on how much you can afford, estimate the interest rate, etc. the online calculator helps you determine how much money you can comfortably afford to pay without breaking a bank.

Apart from these estimates, when planning your finances, it is essential to consider other significant financial commitments attached to home finance such as legal fees, building checks, and reports, insurance, etc.


What you can afford and what you want is two different things, so make sure only look for the type of house you can afford. It is very easy to go over your planned budget so stick to your planned house finance budget and get the best best house with what you can afford. 


Determine the type of house that you want: There are many houses for sale in New Zealand. All of which suit different needs for different clientele. The types of homes include villas, bungalows, townhouses, apartments, etc. They all have varying functionalities and cost, so it is wise to evaluate your needs and budget to know the type of home that suits you the most. Also, another determinant is the size of your family, if you intend to live there.

Home Finance in New Zealand


This is a critical step in your homeownership journey; it will determine whether you get a good deal or a bad one. If possible, talk to someone who has already bought a home in New Zealand. There is always something you can learn that will guide you in making the right, knowledgeable decisions. In addition to that, use the internet; there are many websites with straightforward tools that you can use to seek the best rates and enjoy a smooth process for your homeownership journey.


Many institutions offer mortgage facilities here in New Zealand; they include; banks, finance companies, specialist home loan companies, and building societies. You can either approach them directly or through credit brokers, though many lenders avoid the latter.

In most cases, many lenders require you to raise at least 20% of the total home value, and then the lender finances 80%. The home is also used as the collateral, such that when you fail to meet your repayment obligations, the lender repossesses it to recoup their money. There are several factors that lenders have to assess before giving you a home loan.

These include; your ability to repay the loan, outstanding debts, credit history, and banking history. All these should be to increase your chances of getting access to home financing in New Zealand. After this, the lender will give you an offer of the maximum loan they can grant you. Then the negotiation phase begins; during negotiation, you should inquire about the type of interest attached to your home loan; the Fixed interest rate (remains the same for an agreed duration), and floating interest rate (fluctuates according to the market forces).

Make it official: after everything has been set and done and all the legal paperwork is complete, you will sign all the documents to officiate the process.


There are a lot of things to consider when dealing with house finance in New Zealand. We have put together some of the best tips to consider when getting home finance in New Zealand


  1. Year of construction: Some homes built in the 1990s and 2000s have had leakage issues due to the use of poorly-treated timber. Having the house inspected for water damage will save you a whole lot of money from unprecedented repairs.
  2. Use a lawyer: if you are a first-time homeowner or an NZ non-resident who is not familiar with the homeownership process in New Zealand, it is probably wise to pay a conveyancing fee to be safe. They handle the legal side of the contract (rights, obligations, and risks) and can help negotiate, title search, and arrange for payments.


Kiwi Finance Terms of use


Trust but verify: before you append your signature on any document, ensure that you read all the terms and instructions in the fine print. Some sales agents can mislead you to attain their own goals and targets. Listen to what they have to say, but the bottom line is to read for yourself and understand.


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