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, explaining how a loan uses your house as security. It defines key terms like principal, interest, and equity.

While a 20% deposit is standard, first-home buyers can explore options including:

- KiwiSaver withdrawals

- The First Home Loan scheme

Borrowing limits are guided by DTI and LVR rules, and the guide covers loan types like fixed and floating rates, helping you navigate the path to homeownership confidently.

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.