# HL-Q042: Choosing a loan My partner and I have run our own business for three years and want a home loan. We've owned a home before. Which lenders would you suggest for our situation? Borrower: Business-owning couple buying a household home [Study](https://nzbrands.ai/research/banking/home-lending/) · Collected 11 October 2026 ## chatgpt Answer ID: 041f489c-5dcd-4592-89a3-9a374086bf73 Given that you and your partner have **run your own business for three years and have owned a home before, I'd start with New Zealand's main banks and a mortgage adviser who specialises in self-employed borrowers.** Three years in business is a useful track record. If you have at least two years of completed financial statements, can demonstrate consistent income, and have a reasonable deposit, you may be in a good position to apply for a standard home loan. The key challenge is that lenders assess self-employed income differently from salaried income. They want to establish how much you can sustainably earn from your business, not simply how much money passes through your business accounts. ## 1. Which lenders would I recommend? I'd start with these five lenders, then consider specialist lenders if the major banks' assessment of your business income doesn't work in your favour. | Lender | Why I'd consider them | Official information | |---|---|---| | **ANZ** | A good starting point for a standard home loan application. ANZ accepts financial statements from self-employed applicants, preferably prepared by an accountant. | [ANZ home loans](https://www.anz.co.nz/personal/home-loans-mortgages/) | | **ASB** | Worth approaching if you have well-documented business income and can demonstrate that the repayments will be affordable. ASB requests up-to-date accountant-prepared financial statements from self-employed applicants. | [ASB home loans](https://www.asb.co.nz/home-loans-mortgages.html) | | **BNZ** | A strong option to investigate if you have two years of completed business accounts. BNZ specifically identifies the last two years of annual financial statements as evidence for self-employed borrowers. | [BNZ home loans](https://www.bnz.co.nz/personal-banking/home-loans) | | **Westpac** | Another major bank worth comparing, particularly if your accounts clearly demonstrate your ability to service a mortgage. Westpac requests the latest accountant-prepared financial statements for self-employed applicants. | [Westpac home loans](https://www.westpac.co.nz/home-loans-mortgages/) | | **Kiwibank** | Worth including in your comparison. Kiwibank offers access to home loan specialists who can guide you through conditional approval and the application process. | [Kiwibank home loans](https://www.kiwibank.co.nz/personal-banking/home-loans/) | These lenders' published application requirements support starting with the major banks, although none guarantees approval based on your business history alone. Your deposit, income, expenses and existing debts will all matter. [Sources: ANZ](https://www.anz.co.nz/personal/home-loans-mortgages/buying/pre-approval/), [ASB](https://www.asb.co.nz/home-loans-mortgages/home-loan-application-checklist-guide.html), [BNZ](https://www.bnz.co.nz/support/home-loans/buying-a-home/getting-conditional-approval), [Westpac](https://www.westpac.co.nz/home-loans-mortgages/how-to-apply-for-a-home-loan/), [Kiwibank](https://www.kiwibank.co.nz/personal-banking/home-loans/apply/). ### What about specialist lenders? If your business is profitable but the way you pay yourselves makes your income look low on paper, I'd also speak with a mortgage adviser who works with self-employed borrowers. Two options worth knowing about are: - **[Pepper Money](https://www.peppermoney.co.nz/home-loans/self-employed-alt-doc)** — offers alternative-documentation home loans for eligible self-employed applicants. Its published information says applications may be considered with as little as six months of business bank statements. Rates and eligibility depend on the application. - **[Luminate](https://www.luminate.co.nz/home-loans/self-employed-mortgages)** — a mortgage lending specialist that works with self-employed borrowers and can explore options across multiple lenders. I'd investigate these options if the major banks cannot recognise enough of your income to approve the amount you need. Specialist lending can be more flexible, but it may also be more expensive. **My preference would be to secure a standard bank mortgage if possible**, rather than paying a higher interest rate for a specialist loan unnecessarily. ## 2. How will lenders assess your business? Because you've been in business for three years, the next question is how that business is performing financially. Lenders will generally want to understand the following. **Your business income** They may look at your latest two years of financial statements and tax information to establish sustainable income. For example, if your business makes $180,000 in annual profit but you and your partner draw only $100,000 between you, the lender will need to understand your business structure and how much income is genuinely available to support your mortgage. The calculation depends on whether you operate as a sole trader, partnership or company. Don't assume that the business's entire profit will count as your personal income. **Your income history** A business that has grown steadily over three years may present a stronger application than one whose profits have declined significantly. If your latest financial year was particularly good, ask a mortgage adviser whether the lender can take that year's performance into account rather than simply averaging both years. **Your deposit** Your deposit will affect which lenders and interest rates are available to you. A deposit of 20% or more is a useful target for a standard owner-occupied home loan. Banks can make some loans with smaller deposits, but low-deposit lending is subject to restrictions and individual lending criteria. [Reserve Bank of New Zealand: LVR restrictions](https://www.rbnz.govt.nz/regulation-and-supervision/oversight-of-banks/standards-and-requirements-for-banks/macroprudential-policy/loan-to-value-ratio-restrictions). **Your existing financial commitments** Lenders will consider your personal expenses, business commitments, credit cards, personal loans and other debts when calculating how much you can borrow. If you have retained profits in your business, be prepared to explain whether those funds are available to you or needed to keep the business operating. ## 3. Does having owned a home before make a difference? Yes, potentially, but not necessarily in the way you might expect. Since you've owned a home before, you generally won't qualify as a first-home buyer simply because you're purchasing another property. However, **you may have an advantage if you have equity from a previous property or a substantial deposit from its sale**. If you've sold your previous home, the money left after repaying the mortgage and paying selling costs could provide a substantial deposit for your next purchase. If you still own your previous property, a lender may consider its equity and any rental income, but it will also take the existing mortgage and associated costs into account. Your previous homeownership doesn't automatically improve your borrowing capacity. Your current finances are what matter most. ## 4. What I'd do in your position I'd take these steps before committing to a particular lender. 1. **Get your business financials in order.** Have your accountant prepare your latest two years of financial statements and ensure your tax information is up to date. 2. **Calculate your available deposit.** Include savings, any proceeds from a previous property sale and other funds you can legitimately use. 3. **Speak with a self-employed mortgage adviser.** Ask them to assess your application across several banks rather than approaching just one lender. 4. **Get conditional approval.** This will give you an indication of your borrowing capacity before you commit to buying a property. I'd also ask the adviser to explain how each lender calculates your income. Two lenders can assess the same business differently, which may affect the amount they are prepared to lend. --- ## 5. Let me narrow this down to the best lenders for you I can make a much more useful recommendation if I know a little more about your circumstances. **The most important question is: what type of business do you and your partner run?** For example, are you: - A limited company, paying yourselves salaries or shareholder salaries? - A partnership? - Sole traders? - Contractors or self-employed professionals? This matters because lenders can treat business profits, shareholder salaries and self-employed income differently. Once I know that, I can help narrow down which lenders I'd approach first and what you can do to put your application in the strongest possible position. --- ## gemini Answer ID: 91c4c125-9b40-423a-b80a-2df163e6a4d7 Running your own business for three years puts you in a strong position compared to newer startups, as most mainstream New Zealand lenders typically look for a **minimum of two full financial years** of accounts. Because you have previously owned a home and have a stable 3-year trading history, you have several solid lending pathways available. --- ### Mainstream Lenders (The "Big Four" & Major Banks) * **Who they are:** ANZ, ASB, BNZ, Westpac, Kiwibank. * **Why they fit:** Having three years of completed financial statements means you easily clear the standard two-year hurdles for mainstream lenders. If your business net profit or shareholder drawings are consistent and healthy, the major banks will offer you their sharpest standard interest rates. * **What they require:** * Full financial statements (Profit & Loss, Balance Sheet) for the past two to three financial years prepared by an accountant. * Personal IR3 tax summaries or IR7 partnership/company documentation matching your accounts. * 3 to 6 months of personal and business bank statements. * Strong proof of your deposit or home equity (ideally 20% or more to avoid low-equity margins or fees). ### Second-Tier and Non-Bank Lenders * **Who they are:** Resimac, Bluestone, ASAP Finance, select specialist lenders. * **Why they might be useful:** While your 3-year history satisfies mainstream criteria, traditional banks can sometimes be rigid if your business uses aggressive tax-minimization strategies (showing low net taxable profit on paper despite strong cash flow). Non-bank lenders are often more flexible and can sometimes assess affordability based on alternative evidence like business bank statements, GST returns, or interim management accounts rather than strictly relying on historical net profit. * **The trade-off:** Interest rates are typically higher than mainstream banks, but they serve as a practical stepping stone if you need flexibility now with the intention to refinance back to a major bank later. --- ### Key Strategies to Strengthen Your Application 1. **Watch the "Tax vs. Profit" Trap:** Lenders assess your borrowing power based on what you *declare* you earn after expenses. If your accountant has minimized your taxable income to reduce tax liability, it directly reduces the income figure banks use for serviceability. 2. **Prepare "Add-Backs":** Work with your accountant to identify legitimate non-cash or one-off business expenses that can be added back to your net profit (such as depreciation on assets, one-off capital expenditures, or personal vehicle expenses run through the business). 3. **Organize Your Documentation Early:** Having clean, reconciled Xero reports (or equivalent accounting summaries), up-to-date GST filings, and clear separation between personal and business spending speeds up the approval process significantly. --- --- ## ai-overviews Answer ID: 0ce164b1-bce3-4276-9b4d-7544c0728980 Because your business has been trading for **three years** , you satisfy the strict timeframe requirements for standard home loans in New Zealand. Since you are previous homeowners, your path to approval will largely depend on how clean your business financials are and the size of your deposit. The primary lenders available to you generally fall into three distinct tiers: 1\. Main Tier-1 Banks (Best for competitive rates, requires full financials) If your last two years of financial statements show stable or increasing profits, you can target the major banks to secure standard, competitive interest rates. * **ANZ :** Widely regarded by mortgage advisers as one of the most flexible Tier-1 lenders for self-employed borrowers, particularly when navigating shareholder salaries and complex business structures. * **ASB , BNZ, and Westpac:** All write standard residential loans for business owners, but will strictly require two complete years of financial records (profit & loss, balance sheets) and your personal IR3 tax summaries. 2\. Regional & Customer-Owned Banks (More personal, case-by-case assessment) If your financials are strong but don't perfectly align with the rigid computer-model testing of the big four, smaller banks offer human-underwritten flexibility. * **Kiwibank :** Considers self-employed applications on a pragmatic case-by-case basis. * **SBS Bank , TSB, or The Co-operative Bank:** These customer-owned lenders are often more willing to look at a singular strong year of financials if supported by evidence of solid prior industry experience or upcoming contracts. 3\. Non-Bank Specialist Lenders (Best for alternative documentation) If your accountant has legally minimized your taxable net profit, or if your full financial statements for the most recent financial year are not yet signed off, non-bank lenders offer "Alt-Doc" (Alternative Documentation) home loans. They use 6 months of GST returns or business bank statements to verify income rather than full tax accounts. * **Pepper Money :** A major non-bank specialist offering very fast turnaround times and dedicated self-employed products utilizing 6 months of business bank statements. * **Avanti Finance and Liberty Financial:** Both are prominent non-bank lenders in NZ providing "near-prime" options that accommodate complex business tax setups, though interest rates sit slightly higher than the main banks. Real-Life Guide: Home Loans for the Self-Employed[Top 5 Non-Bank Lenders in New Zealand \[2026\] | Opes Partners](https://www.opespartners.co.nz/mortgage/non-bank-lenders-top-5)Self-Employed Mortgages Explained - MoneyHub NZSelf-Employed Home Loans NZ | Low-Doc Options * * * Key Requirements Checklist * **Financial Records:** Prepare 2 consecutive years of accountant-prepared financial statements and IR3 personal tax returns. * **Tax Compliance:** Main banks require a clean ledger with Inland Revenue (IRD). Any outstanding GST, provisional tax, or terminal tax debt in arrears will usually stall an application. * **The Deposit:** Aim for a **20% deposit**. While Tier-1 banks can sometimes do less for existing homes under low loan-to-value (LVR) caps, having 20% or more bypasses restrictive low-deposit rules and prevents additional low-equity premium fees. Because every New Zealand lender calculates self-employed income differently (some average the last two years, some take the lowest year, and others add back non-cash expenses like depreciation), working with an independent **mortgage broker** is highly recommended to protect your credit profile from multiple applications. To help point you toward the right tier of lenders, tell me: * Are your **financial statements up to date** and showing a stable profit, or do you have a complex tax structure? * Roughly what **percentage of a deposit** do you have ready to go? * Do you have any **outstanding tax liabilities** with the IRD?