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?
AI summary
Your credit score is a crucial factor for lenders when you apply for a home loan in New Zealand. A high score (700+) shows you're reliable, improving your chances of approval and better interest rates. A low score may result in a smaller loan or tougher conditions.
You can check your score for free with agencies like Centrix, Equifax, and illion. To improve your rating, pay bills on time, reduce debt, and avoid new credit applications before buying.
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:
| 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. |
How to check your credit score in New Zealand
What affects your credit score?
It's easy to find our your credit score in NZ.
Can you get a home loan with a bad credit score?
How to improve your credit score before buying a home
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