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Evidence · Home lending

The questions and original answers

Explore every question and captured response in the home-lending study, including answers asked nationally and from four cities.

questions
193
captured answers
1,094
AI platforms
4
collected
11 October 2026

01

Every question, with its answers

Each question was written as a voter would ask it and went to all four assistants. Some were also asked from a town. Open a question to read every answer to it in full.

Showing 20 of 193 questions

Show all 193

02

The tables behind the study

Every figure on the study page comes from these tables. They are CSV files, which open in any spreadsheet.

  • Question catalogue

    questions.csv

    One row per question.

    Question ID, borrower, exact question, group and collected answers

    193rows

    Download question catalogue (CSV)

  • Answers

    answers.csv

    One row per answer, with its full text.

    Answer ID, question ID, borrower, assistant, city, words, coded recommendations, showed a link and full text

    1,094rows

    Download answers (CSV)

  • Sources by answer

    sources.csv

    One row for each website recorded as a source of an answer.

    Answer ID, question ID, assistant, city, website and publisher type

    4,574rows

    Download sources by answer (CSV)

  • Checks against official sources

    checks.csv

    One row per statement checked.

    Check, answer ID, assistant, what the answer said, verdict, what the source says, source and date

    4rows

    Download checks against official sources (CSV)

  • Recommendation coding

    recommendation-coding.csv

    One row per coded national loan-choice or support answer.

    Answer ID, question ID, borrower, assistant, question group, recommended lenders and supporting passages

    360rows

    Download recommendation coding (CSV)

  • Platform comparisons

    platform-recommendation-counts.csv

    One row per platform, lender and question group.

    Matched panel, recommended answers, denominator and supporting answer IDs

    105rows

    Download platform comparisons (CSV)

  • City comparisons

    city-recommendation-counts.csv

    One row per city, lender and question group.

    Matched panel, recommended answers, denominator and supporting answer IDs

    112rows

    Download city comparisons (CSV)

Use these tables to trace findings back to the original questions and answers. The full text of each answer is also on this page, under its question.

03

Read in full and checked

Some answers were read in detail or checked against official sources. Those appear on the study page, beside the findings they support.

ChatGPT · National

I'm looking at my first mortgage. My contract income is uneven: some months are busy and others are quiet. What sort of loan setup should I consider so the repayments don't catch me out?

If your income goes up and down from month to month, I’d look for a mortgage that gives you predictable minimum repayments, flexibility when you have a good month, and a cash buffer for the quiet ones.

In New Zealand, you don't necessarily need a special mortgage for contract income. The key is choosing a structure that matches your cash flow, rather than one that only works when you're earning at your busiest.

Three mortgage setups worth considering

1. Fixed-rate mortgage with a manageable repayment

Good for stability

You lock in an interest rate for an agreed period, making your required repayments more predictable during that time.

  • Best for: Knowing your essential housing costs in advance.
  • Watch out for: Fixed loans can limit extra repayments, and breaking a fixed term may incur costs.

2. Split mortgage: fixed plus floating

Good for flexibility

Put most of the mortgage on a fixed rate and a smaller portion on a floating rate, which generally allows more flexible extra repayments.

  • Best for: Keeping your core payments steady while putting surplus contract income towards the loan.
  • Watch out for: Floating rates are usually higher than fixed rates, although this varies. Check fees and conditions.

3. Revolving credit or offset mortgage

You may be able to use savings or money sitting in your transaction account to reduce the interest charged on some or all of your mortgage balance.

  • Best for: Contractors with irregular invoice payments and enough discipline to keep surplus cash available.
  • Watch out for: Revolving credit can behave like a large overdraft. If you keep spending the available funds, the debt may not fall as planned.

The setup I’d investigate first

For a first-home buyer with uneven contract income, I’d compare a split mortgage with a fixed portion and a smaller floating or offset portion against a revolving-credit mortgage.

  • If you want peace of mind, lean towards the split mortgage.
  • If you have strong savings, good financial discipline and large swings in income, investigate revolving credit or offsetting.
  • Whichever you choose, keep enough cash available to cover quiet months rather than committing every good month to extra repayments.

These options have different repayment rules and interest-rate risks. Sorted NZ explains the trade-offs in its mortgage types guide. Types of mortgages in New Zealand, and how to choose » SortedExplaining different types of home loansRevolving mortgage - Giving you flexibility

How to stop repayments catching you out

  1. Budget from a quiet month, not a peak month. Work out what you can afford after tax, business expenses, ACC levies, income tax obligations and ordinary living costs.
  2. Build a mortgage buffer. Aim to keep several months of essential expenses and mortgage payments readily accessible, with the right amount depending on how unpredictable your contracts are.
  3. Separate tax money from spending money. If you invoice clients directly, don't treat the full payment as money available for your mortgage.
  4. Stress-test the repayments. Check whether you could still afford the loan if interest rates rose by 1–2 percentage points or work dried up temporarily.
  5. Check how the bank assesses your income. As a contractor, you may need tax returns, financial statements, bank statements and evidence of your work history. Requirements vary between lenders.

The New Zealand government's Consumer Protection mortgage guide is a useful starting point. Mortgages and home loansFind out how much of a mortgage you could get » Sorted

Let's narrow it down to your situation

The biggest factor is how your contract income behaves during the quiet periods.

Ask anything

ChatGPT can make mistakes. Check important info.

Captured 11 October 2026

Gemini · National

I'm looking at my first mortgage. My contract income is uneven: some months are busy and others are quiet. What sort of loan setup should I consider so the repayments don't catch me out?

Managing a uneven or fluctuating income when taking on your first mortgage in New Zealand requires a deliberate loan structure to prevent cash flow crunches during quieter months.

When your income varies seasonally or contractually, a standard fixed-rate table mortgage with rigid monthly repayments can quickly become stressful. Instead, New Zealand lenders offer several structural features and tools that allow you to smooth out income volatility.

Key Loan Setup Options for Uneven Incomes

1. The Split Loan Structure (The Foundation)

Rather than putting your entire mortgage on one fixed or floating rate, New Zealand banks allow you to split your borrowing into multiple distinct portions (e.g., 70% fixed, 30% floating).

  • The Fixed Portion: Lock in a portion of your mortgage (say, 1 to 3 years) to secure predictable baseline repayments for your quieter months.
  • The Floating / Revolving Portion: Keep a smaller portion floating or set up as a revolving credit facility. This gives you the flexibility to pay down extra lump sums rapidly during your busy months without incurring early repayment charges, while giving you borrowing headroom during slow months.

2. Revolving Credit Facility / Offset Account

A revolving credit account functions essentially like a giant overdraft or flexible credit line linked to your everyday transaction account.

  • How it helps: All your uneven income flows straight into this account, instantly reducing the principal balance on which interest is calculated. During quiet months, you draw on it to cover shortfalls.
  • The Caveat: It requires strict financial discipline, as there is usually no mandatory minimum principal repayment schedule—only an interest charge on the balance used.

3. Ability to Make Lump Sum Payments & Repayment Holidays

Most major New Zealand lenders allow borrowers on fixed-rate terms to make additional lump-sum payments up to a certain annual threshold (often up to 5% or 10% of the initial fixed loan amount per year) without penalty. Furthermore, some banks offer repayment holidays once you have built up sufficient ahead-of-schedule equity or prepayments.

Strategic Action Plan

  1. Calculate Your Baseline: Determine your absolute minimum lean-month income to design a fixed repayment baseline that your quietest months can comfortably sustain.
  2. Consult a Mortgage Adviser (Broker): In New Zealand, mortgage advisers are generally free to use (paid via lender commission) and have deep insights into which specific retail banks (e.g., ANZ, ASB, BNZ, Westpac, or Kiwibank) offer the most flexible bridging or revolving options for self-employed or contract workers.
  3. Build an Emergency Buffer: Aim to save a dedicated cash buffer equivalent to 3 to 6 months of mortgage payments before purchasing, specifically designated to cushion quiet contracting periods.
Ask Gemini

Gemini is AI and can make mistakes.

Captured 11 October 2026

Google AI Mode · National

I'm looking at my first mortgage. My contract income is uneven: some months are busy and others are quiet. What sort of loan setup should I consider so the repayments don't catch me out?

For uneven contract income, a split-loan structure combining a core fixed-rate portion with a revolving credit facility or floating offset portion provides the ideal balance of baseline security and cash flow flexibility.

When your income fluctuates, relying entirely on a standard rigid table loan can lead to missed payments or cash flow crunches during quiet months. New Zealand lenders offer structures that can be tailored to irregular earnings.

Recommended Loan Setup Components

  • Split Loan Structure : Divide your mortgage into two or more parts. Put a large baseline amount on a predictable fixed rate to lock in essential costs, and keep a smaller portion flexible.

  • Revolving Credit Facility : Act like a giant flexible overdraft linked to your main transactional account. During busy months, your high earnings flow straight in and slash the principal balance (reducing interest). During quiet months, you draw down on it up to your approved limit to cover standard bills without defaulting or needing bank approval. [The First Home Buyers Club]

  • Offset Mortgage : Link your everyday savings or offset account balances directly to a portion of the floating loan. The cash sitting in your account offsets the mortgage principal dollar-for-dollar so you only pay interest on the net difference, giving you access to cash when work is slow. [The First Home Buyers Club]

  • Flexible Repayment Frequencies : Align your fixed-rate payment frequencies with your cash flow cycles if possible (e.g., fortnightly or weekly), or build a dedicated cash buffer/emergency offset account during high-earning peaks to auto-fund the lean periods.

If you'd like, let me know:

  • What your estimated ratio of busy vs. quiet months looks like
  • Whether you have a cash buffer or savings already set aside for a deposit

I can help you estimate how to size the split between fixed and flexible portions.

Ask anything

Captured 11 October 2026

AI Overviews · National

I'm looking at my first mortgage. My contract income is uneven: some months are busy and others are quiet. What sort of loan setup should I consider so the repayments don't catch me out?

AI Overview

When managing an uneven contract income in New Zealand, the key to protecting your cash flow is a split-loan (or combined) structure that pairs a predictable fixed-rate portion with a highly flexible floating portion.

Structuring your mortgage this way helps prevent peak repayment periods from squeezing your budget during quiet contract months.

🏛️ The Ideal Loan Blueprint for Contractors

┌────────────────────────────────────────────────────────┐
│ YOUR TOTAL MORTGAGE │
└───────────────────────────┬────────────────────────────┘
│
┌─────────────┴─────────────┐
▼ ▼
┌─────────────────────────┐ ┌─────────────────────────┐
│ 80% - 90% FIXED RATE │ │ 10% - 20% FLEXIBLE │
│ (Predictable Base) │ │ (Offset / Revolving) │
└─────────────────────────┘ └─────────────────────────┘

1. The Fixed-Rate Portion (80% to 90% of total loan)

  • How it works: Lock in the majority of your mortgage at a fixed interest rate for 1 to 3 years.

  • Why it protects you: It establishes a consistent, predictable baseline payment every month or fortnight, regardless of how busy your contract work is. You can match this minimum baseline to what you earn during your quietest months.

2. The Flexible Portion (10% to 20% of total loan)

Instead of a standard floating rate, place the remaining balance into one of two specific structures:

Loan Type How It Works for Contractors Best Used For
Offset Mortgage Links your mortgage to your everyday and tax/savings accounts. You only pay interest on the difference. Parking your gross contract income and GST/income tax reserves to drastically lower your interest costs before paying Inland Revenue (IRD).
Revolving Credit Acts like a massive, low-interest overdraft. Your income goes straight in, and you draw money out as needed. Creating an emergency buffer during peak months that you can dip back into to cover your fixed payments during quiet periods.

⚠️ Hidden Friction Points for Contractors

  • Tougher Servicing Rules: Because your income fluctuates, NZ banks will not simply look at your best months. Lenders typically require 2 years of financial statements or tax assessments to average out your contract income.

  • The CCCFA Hurdle: Under the Credit Contracts and Consumer Finance Act (CCCFA), banks meticulously audit 3 to 6 months of living expenses. High discretionary spending during your "busy months" can negatively impact how much the bank allows you to borrow.

  • Debt-to-Income (DTI) Caps: Banks restrict total borrowing based on strict DTI frameworks (typically capping loans at roughly 6x your verified annual income).

📈 Step-by-Step Cash Flow Action Plan

  1. Build a 3-Month Cash Buffer: Before applying, accumulate a separate "buffer fund" equivalent to 3 months of basic living costs and projected mortgage payments to lean on during quiet contracts.

  2. Route Everything Through One Account: Ensure all contract invoices and business revenues pass cleanly through your primary bank accounts for at least 6 months to make income verification straightforward.

  3. Engage a Contractor-Friendly Mortgage Broker: Because bank policies regarding self-employed and contract income vary wildly in NZ, using a licensed mortgage adviser is highly recommended. They negotiate with multiple lenders on your behalf, usually at no cost to you.

If you'd like to tailor this layout further, let me know:

  • Have you been contracting for more or less than 2 years?

  • Do you operate as a sole trader or through a registered Ltd company?

  • Do you already have a deposit saved (e.g., via KiwiSaver)?

I can help map out exactly what documentation NZ banks will request from you.

Ask anything

Captured 11 October 2026