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 homebuyers. A mortgage is a long-term loan from a bank to buy property, with the house acting as security.

Your borrowing power is assessed using Debt-to-income (DTI) and Loan-to-value (LVR) ratios. While a 20% deposit is standard, first-home buyers can use:

- KiwiSaver withdrawals

- The First Home Loan scheme

Different loan structures like fixed or floating rates are available to suit your needs. Seeking professional advice is recommended to find the best solution.

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.