The questions and original answers

If you're self-employed and have conditional home-loan approval in New Zealand, the most important thing is to get your lender or mortgage adviser to confirm exactly what is still outstanding before you sign an unconditional sale and purchase agreement or waive your conditions.

Conditional approval is encouraging, but it isn't the same as final approval for a specific property. Your lender may still need to verify your business income, review the property and confirm that your deposit and lending structure meet its requirements.

Here's the checklist I'd work through before committing.

1. Get your finance fully confirmed

This is especially important when you're self-employed, because lenders often assess business income differently from salaried income.

• Confirm the remaining lending conditions in writing. Ask for a complete list of everything required to turn your conditional approval into unconditional approval.
• Confirm how your self-employed income has been assessed. Check which financial years, tax returns, financial statements and business income figures the lender has accepted.
• Check whether updated financial documents are needed. The lender may request recent accounts, management accounts, IR3 returns, IR10s, company accounts or accountant-prepared financial statements, depending on your business structure.
• Disclose any material changes to your business. A drop in revenue, loss of a major client, increased business debt or change in ownership could affect approval.
• Confirm the exact borrowing amount and repayment structure. Check the interest rate, fixed or floating portions, loan term, fees and whether any cash contribution or revolving credit facility is involved.
• Confirm your deposit is acceptable. Ask whether the source of your deposit, any gifted funds, business funds or recent large transactions need further documentation.
• Ask whether anything else could prevent drawdown. For example, changes to your financial position, new debt, credit-card limits or property-related requirements.

The key question to ask your lender or broker:

“Based on the property we're considering, our current financial position and the documents you've reviewed, what specific items remain before you can issue unconditional approval and confirm the funds will be available for settlement?”

Get the answer in writing. Don't rely on a general statement that you're likely to be approved.

2. Make sure the property itself meets the lender's requirements

Even if your income and deposit have been accepted, the bank still needs to be satisfied with the property you're buying. Confirming your financesGetting conditional approval

• Property-specific approval: Send the lender the address, proposed purchase price and draft or signed sale and purchase agreement, as requested.
• Valuation: Confirm whether a registered valuation is required and whether the lender will lend the amount you expect based on that valuation.
• Insurance: Check that you can obtain suitable house insurance on acceptable terms. Pay particular attention to exclusions, excesses and any known flood, landslip, earthquake or weathertightness issues.
• Title and ownership: Have your lawyer check the record of title for easements, covenants, restrictions, access rights and other issues.
• LIM and council records: Check consents, permitted building work, drainage, hazards and any additions that may not have been properly approved.
• Building inspection: Arrange an independent pre-purchase inspection. Investigate any structural, roofing, moisture, plumbing or other significant concerns.

Your lender may require some of these checks, but you should also do them to protect yourselves, even if the bank doesn't insist on them. Buying a housePrepare to make an offer

3. Get your lawyer to protect you before you sign

Engage a property lawyer or conveyancer before signing the sale and purchase agreement. The agent represents the seller's interests in the transaction, whereas your lawyer advises you. Working with a lawyer or conveyancerNZLS

Ask your lawyer to confirm:

• The agreement has an appropriate finance condition with a realistic deadline.
• You have enough time to obtain the lender's final approval and complete all required checks.
• The agreement includes any necessary building inspection, LIM and title conditions.
• The deposit amount, when it's payable, and the consequences of not settling are clear.
• The settlement date is achievable for your lender, lawyer and business cash flow.
• Any unusual clauses or vendor-supplied documents have been reviewed.

Important: A finance condition is not a guarantee that you can simply walk away if your bank delays or changes its mind. Its wording, deadline and requirements matter. Have your lawyer explain precisely what you must do if approval isn't obtained in time. Understanding the sale and purchase agreement when buyingNZLS

If you're buying at auction, the contract is generally unconditional when you win, so complete your finance, legal and property checks beforehand. Prepare to make an offer

4. Make sure you can comfortably afford the purchase

Being approved for a loan doesn't necessarily mean it's the right amount of debt for a self-employed household. Your income can fluctuate, and you may need to retain cash in the business for tax, GST, wages or operating costs.

• Calculate your repayments at the proposed interest rate and consider what happens when a fixed rate expires.
• Allow for council rates, insurance, maintenance, utilities and any body corporate levies.
• Keep a cash buffer after paying the deposit, legal fees, inspections and moving costs.
• Make sure your deposit doesn't leave the business short of working capital or upcoming tax payments.
• Ask your accountant to check that taking funds out of the business for the purchase is sensible for your business structure and tax position.
• Avoid taking on new finance or making significant changes to your finances before settlement without checking with your lender.

5. Your final go/no-go checklist

Before you waive your conditions and commit to the purchase, aim to have all of these confirmed:

Readiness checklist

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Lender has confirmed unconditional approval for this specific property

All self-employed income and deposit verification is complete

Required valuation and lender conditions are satisfied

Suitable property insurance is available

Lawyer has reviewed the agreement, title and relevant conditions

Building report, LIM and council checks are satisfactory

Deposit and settlement funds are ready and accessible

Repayments and remaining cash reserves are manageable

Use this as a practical checklist, not a substitute for your lender's or lawyer's confirmation.

For official guidance, see Settled.govt.nz: Confirming your finances and Consumer Protection: Preparing to make an offer.

One thing I'd clarify in your situation

Has your lender already reviewed and accepted your latest self-employed financial statements, or have you only received conditional approval based on your initial application?

That distinction makes a big difference to how much uncertainty remains before you commit to a property.