Buying guide

The ultimate guide to mortgages and home loans in New Zealand

Plain-English answers to the biggest mortgage questions, from deposits to repayments.

22 October 2025

AI summary

This guide demystifies mortgages for Kiwi home buyers. A mortgage is a loan using your house as security, typically requiring a 20% deposit. First-home buyers can access support like KiwiSaver withdrawals and the First Home Loan scheme.

Lenders assess borrowing capacity using Reserve Bank rules like Debt-to-income (DTI) and Loan-to-value (LVR) ratios. Key options include fixed, floating, and offset loans, offering different levels of flexibility. This guide provides a clear path to home ownership.

What you’ll learn

What is a mortgage?

Glossary: Key mortgage components & terms

By doing your research and understanding how mortgages work, you'll be one step ahead when it comes to purchasing a property.

Home loan deposits in NZ

Options for first-home buyers

Quick tips to reach your deposit goal faster:

How much can I borrow?

A mortgage broker will assess your income, expenses, and credit history to determine your maximum borrowing amount.

Why are home loan applications so strict?

The home loan process: A step-by-step guide

Work out what you can afford: look at your income, deposit, and repayments.
Compare lenders or use a broker: shop around for the best rates and terms.
Get your finances in shape: tuck your savings away, reduce debt, and have bank statements ready.
Pull together your deposit: aim for 20%, or check if you qualify for KiwiSaver or first-home buyer support.
Apply and get approved: secure conditional approval, make an offer, then finalise with your lawyer at settlement.