Buying guide

How your credit score can impact buying a house in New Zealand

What is a credit score, and why does it matter when you’re buying a house?

Last updated: 16 April 2025 | 5 min read

AI summary

Your credit score is a crucial factor when applying for a home loan in New Zealand, acting as a financial trust rating for lenders. Scores range from 0-1000, with 700+ considered excellent.

A low score can result in smaller loan offers or higher interest rates. You can check your score for free with agencies like Centrix, Equifax, and illion. To improve your rating, pay bills on time, reduce existing debt, and avoid new credit applications before applying for a mortgage.

What you’ll learn:

Why your credit score matters

A good credit score matters most when you're seeking pre-approval for a home loan.

What is a good or bad credit score?

While each lender has its own criteria, here’s a general guide:

Credit scores range from 0 - 1000
Score Range	What It Means
700–1000	700–1000	Excellent – you're in great shape to apply for a mortgage.	Excellent – you're in great shape to apply for a mortgage.
500–700	500–700	Average – you’ll probably be fine, as long as the other factors lenders look into appear okay.	Average – you’ll probably be fine, as long as the other factors lenders look into appear okay.
300–500	300–500	Below average – you may face higher interest rates or be offered a smaller loan.	Below average – you may face higher interest rates or be offered a smaller loan.
Below 300	Below 300	Poor – getting a home loan will be tough, but not impossible.	Poor – getting a home loan will be tough, but not impossible.