When you speak to a lender or mortgage adviser in New Zealand about buying your next home before selling your current one, the key is to show them two things: how much equity you have in your existing house, and whether your family can comfortably manage the costs of owning two properties temporarily.

This is often called buying before selling or bridging finance. Your lender will want to understand how much you could borrow, what your current home is likely to sell for, and what happens if it takes longer than expected to sell.

Here's a practical checklist you can use to prepare for your meeting.

1. Information about the house you own

Property value and likely sale price

• Your best estimate of the current market value.
• A recent appraisal or appraisal letters from local real estate agents.
• Any recent comparable sales or a registered valuation, if available.
• The realistic price you would accept, as well as your ideal sale price.
• How quickly you think the house could sell.

Your existing mortgage

• Latest mortgage statement showing the outstanding balance.
• Current interest rate, loan term and repayment amount.
• Whether your loan is fixed or floating, and when any fixed term expires.
• Any revolving credit, second mortgage or other debt secured against the property.
• Any early repayment, break or discharge fees that might apply.

Costs and property details

• Annual council rates.
• Home insurance premiums.
• Regular maintenance costs and any upcoming major repairs.
• Real estate agent commission and marketing estimates.
• Any other property-related costs, such as body corporate levies, if applicable.
• Any relevant title, LIM or building reports already available.

The most useful figure is your estimated net equity.

For example, if your house might sell for NZ$900,000 and you owe NZ$500,000 on the mortgage, your gross equity is NZ$400,000. After agent fees, legal costs and other sale expenses, the amount available to put towards the next home will be lower.

Don't assume all of that equity can automatically be borrowed against or used before settlement. The lender will assess the property, your income, your existing debt and the proposed lending structure.

2. Information about your family budget

Your lender needs a realistic picture of your household finances, not just your income. Gather the following for everyone who will be on the mortgage.

Income and savings

• Recent payslips for each employed adult.

• Employment contracts or confirmation of employment, if available.

• If self-employed, recent business financial statements and tax information.

• Other income, such as rental income, bonuses or regular benefits.

• Savings and term deposits, KiwiSaver balances, and any other funds available for the move.

• Details of any financial gifts you expect to receive.

  Everyday family expenses

• Groceries, household supplies and eating out.

• Electricity, gas, water, internet and mobile phones.

• Childcare, school costs, uniforms and activities.

• Petrol, public transport, car loans and vehicle maintenance.

• Insurance, medical and dental expenses.

• Subscriptions, holidays, hobbies and other discretionary spending.

• Regular savings, KiwiSaver contributions and emergency-fund contributions.

  Debts and financial commitments

• Credit cards and their limits, even if you pay them off monthly.

• Personal loans, car finance and buy-now-pay-later balances.

• Student loan repayments and any other regular obligations.

• Child support, guarantees or other commitments that affect your finances.

• Recent bank statements showing everyday spending.

As a starting point, gather the last three months of bank and credit-card statements, plus your current loan statements. Some lenders may ask for different periods or extra evidence. BNZ, for example, lists recent income evidence, three consecutive months of transactional statements, details of debts, proof of deposit and identification among its application documents. Preparing for a home loan appointment

Build a budget for the overlap period

Don't prepare only your usual monthly budget. Work out what your finances would look like if you had to pay for both homes for a few months.

Monthly cost	What to estimate
Existing mortgage	Current required repayments
New mortgage or bridging loan	Proposed repayments and interest
Existing home	Rates, insurance, utilities and maintenance
New home	Rates, insurance, utilities and maintenance
Family living costs	Food, transport, childcare and other expenses
Moving and sale costs	Allow a separate amount for one-off costs

Ask the lender to model at least three scenarios: a quick sale at your expected price, a sale that takes several months, and a lower-than-expected sale price. Bridging finance can leave you carrying two sets of housing costs, and the risk is greater if your home sells late or for less than expected. Thinking about your finances when sellingBridging Finance

3. Information about the home you want to buy

If you've already found a property, bring:

• The asking price or the price range you're considering.
• The listing details and address.
• The expected deposit and settlement date.
• Any sale and purchase agreement, if you've made an offer.
• Any available LIM report, building inspection or valuation.
• An estimate of rates, insurance, utilities and likely maintenance costs.

If you haven't found a property yet, that's fine. Give the lender a realistic price range and explain what you need from the next home. You can also ask about conditional pre-approval and what further information will be needed before finance is confirmed. Confirming your finances

4. Questions to ask your lender

These are particularly important when buying before selling.

How much could we borrow while still owning our current home?

Can we access our existing equity before the sale settles? What security or additional lending would be required?

What type of bridging finance would suit us? Ask about the difference between open bridging, where the existing home hasn't sold, and closed bridging, where a sale is already agreed.

What would our repayments be during the overlap? Ask for the monthly total, interest rates, fees and whether interest-only payments are available.

What if our home takes six months to sell, or sells for less than expected? Ask what happens at the end of the bridging period and what your fallback options are.

Can we keep a cash buffer? Work out how much money you can retain for emergencies, moving expenses and unexpected repairs instead of committing all available equity.

The lender must assess whether the proposed lending is likely to be affordable, so be open about your real spending and any foreseeable changes in family income or expenses. What lenders must doBridging Finance

5. Your meeting preparation sheet

You can fill in these estimates before your appointment. Approximate numbers are fine for an initial conversation.

Estimates in New Zealand dollars (NZD)

Estimated value of your current home ($)

Outstanding mortgage ($)

Estimated gross equity (before selling costs)

$400,000

Target price of next home ($)

Combined monthly take-home income ($)

Usual monthly family spending, excluding mortgage ($)

Cash savings available for the move ($)

Expected time to sell current home

Under 3 months

3–6 months

6–12 months

Unsure

Other details for the lender (optional)

Copy meeting notes

These are preparation notes, not a borrowing-capacity calculation or loan approval. Gross equity excludes selling costs and may not equal the equity available to borrow.

My recommendation

Before making an unconditional offer on another home, ask the lender or a mortgage adviser to confirm the lending structure, the full cost of carrying both properties, and your options if the sale is delayed. Your solicitor or conveyancer can also help you understand the timing and conditions of the purchase and sale.

For an official New Zealand guide, see Settled.govt.nz — Thinking about your finances when selling.