The questions and original answers

With two salaried incomes and a 25% deposit, you’re in a good position to start planning for your first home in New Zealand. The key is to work out what you can comfortably afford together, how much cash you’ll need beyond the deposit, and what kind of mortgage suits your lives before you start visiting properties.

I’d approach it in this order. You don’t need to have every answer before talking to a mortgage adviser, but doing this groundwork will help you make better decisions and avoid borrowing more than you’re comfortable with.

1. Work out your real budget as a couple

Start with your combined finances rather than the maximum amount a bank might lend you.

• Combined take-home pay: Calculate what lands in your bank accounts each payday after tax, KiwiSaver contributions and other deductions.
• Existing commitments: Include student loans, car loans, credit cards, buy-now-pay-later accounts, personal loans and any financial commitments to others.
• Normal living costs: Include groceries, transport, insurance, subscriptions, holidays, eating out and other regular spending.
• Future changes: Think about children, parental leave, career changes, one partner reducing hours or a planned move.

Then work out how much you could comfortably put towards housing every month while still saving and enjoying life.

A useful exercise is to practise making a mortgage-sized payment into savings for three to six months. This helps you test whether the budget is realistic before you commit.

2. Calculate your full cash budget

A 25% deposit is a strong starting point. It would leave you borrowing 75% of the purchase price, assuming you use the full deposit and there are no other adjustments.

Here’s how the numbers work for different purchase prices.

Home price	25% deposit	Mortgage
NZ$600,000	$150,000	$450,000
NZ$700,000	$175,000	$525,000
NZ$800,000	$200,000	$600,000
NZ$900,000	$225,000	$675,000

These are illustrations, not recommendations about what you should spend.

Don’t put every dollar of your savings into the deposit. Allow for:

• Solicitor or conveyancer fees.
• Building inspection and, where appropriate, a methamphetamine or other specialist inspection.
• LIM report and title checks.
• Valuation fees, if required by the lender.
• Moving costs, immediate repairs, furniture and appliances.
• An emergency fund for unexpected expenses after settlement.

Your practical deposit budget is your available savings minus these upfront costs and the cash reserve you want to retain.

3. Understand what a bank will assess

Having two salaried jobs can make your income easier to document, but approval depends on more than your salaries and deposit.

Lenders will generally look at:

• Income stability: Employment contracts, salary, probation periods and any variable income.
• Living expenses: What you actually spend, not just what you think you could spend.
• Debts and credit limits: Loans, credit cards and buy-now-pay-later facilities can affect borrowing capacity, even if you rarely use them.
• Credit history: Check for errors and resolve overdue payments if any exist.
• The property itself: Its valuation, condition and suitability as security for the loan.

New Zealand also has debt-to-income (DTI) restrictions. For owner-occupiers, borrowing above six times annual gross income, after accounting for debt, is considered high-DTI lending. Banks can make some high-DTI loans, but only within regulatory limits, and they still apply their own affordability assessments. This is not a guarantee that you can borrow six times your income. Understanding debt-to-income (DTI) restrictions - Reserve Bank of New ZealandMortgages and home loans

With a 25% deposit, your starting loan-to-value ratio would be around 75%. That is below the usual 80% low-equity threshold, although the bank's valuation and lending criteria still matter. Find out how much of a mortgage you could get » SortedTimeline for loan-to-value ratio restrictions - Reserve Bank of New Zealand

Before applying, consider paying down expensive debt and reviewing unused credit card limits with your lender. Avoid taking on new debt or making major financial changes while your application is being assessed.

4. Stress-test your mortgage repayments

Don't build your budget around today's most attractive advertised interest rate. Rates can change, and your mortgage payment may increase when a fixed term ends.

For example, these are approximate principal-and-interest repayments on a 30-year mortgage, before rates, insurance and other homeownership costs.

Mortgage	At 5% interest	At 7% interest
$450,000	$2,416/month	$2,994/month
$525,000	$2,818/month	$3,493/month
$600,000	$3,221/month	$3,992/month
$675,000	$3,624/month	$4,491/month

Illustrative calculations only; actual repayments depend on the loan terms and interest rate offered.

Ask yourselves:

• Could we still afford the mortgage if interest rates rose by two percentage points?
• What if one of us lost our job or had to stop working for several months?
• Could we cover a major repair without using a credit card?
• Would we still be able to save for retirement, holidays and other goals?

A good borrowing amount is one that lets you answer these questions confidently, not simply the largest amount a lender approves. Sorted has a useful mortgage borrowing guide. Find out how much of a mortgage you could get » SortedBudget planner » Sorted

5. Agree on your mortgage preferences

You don't need to pick a specific bank or interest rate yet, but discuss what matters to you as a couple.

• Loan term: A 30-year term generally lowers required monthly payments compared with a shorter term, but usually increases the total interest paid.
• Fixed versus floating: Fixed rates provide payment certainty for a set period; floating rates offer flexibility but can change. Splitting the loan across different terms may be worth discussing.
• Extra repayments: Check whether you want the flexibility to make lump-sum payments or increase regular repayments, and what restrictions apply.
• Repayment frequency: Weekly, fortnightly or monthly payments may suit your pay cycles differently.
• Offset or revolving-credit facilities: These can be useful if you have savings or irregular income, but need careful management.

Ask a lender or mortgage adviser to compare options based on your circumstances and show you the fees, restrictions and total cost—not just the headline interest rate.

6. Check whether you can use KiwiSaver or other first-home support

Before settling on your deposit amount, check whether either of you has KiwiSaver savings that could be used.

If you meet the eligibility criteria, you may be able to withdraw most of your KiwiSaver balance to help buy your first home. Generally, you must leave at least $1,000 in your account, and there are other qualifying conditions. If you're both eligible, you may each be able to withdraw funds.

You can check the rules through your KiwiSaver provider and Settled's first-home buyer guide. Keep calm and get settled into your first home

Also check current Kāinga Ora support options, including the First Home Loan, to see whether any are relevant to your circumstances. Don't assume you qualify, but don't overlook support you might be eligible for.

7. Agree on how you'll buy together

This is especially important when you're buying as a couple. Have an honest conversation about:

• Whether you are contributing equal deposits or different amounts.
• Whether you want to own the property in equal shares or another arrangement.
• How you'll divide mortgage payments, rates, insurance, repairs and other costs.
• What would happen if you separated, one of you wanted to sell, or one partner could no longer contribute.

If your deposit contributions or ownership shares differ, ask a property lawyer about a property-sharing or contracting-out agreement before you buy. It is much easier to agree on the arrangements now than during a stressful situation later.

8. Get mortgage pre-approval before serious house hunting

Once you've worked through the numbers, speak with your bank or a mortgage adviser. They can help you establish a realistic borrowing range and explain what documentation you'll need.

Gather these documents in advance:

• Recent payslips and employment details.
• Bank statements and a record of regular expenses.
• Details of all debts and credit facilities.
• Evidence of your deposit and savings history.
• KiwiSaver statements, if relevant.
• Identification and any other documents requested by the lender.

Ask about pre-approval, how long it lasts, what conditions apply and whether it covers the types of properties you're considering.

Pre-approval is not the same as unconditional final approval for a particular property. The lender may still need to approve the property and complete further checks. Engage a property lawyer early, and have them review the sale and purchase agreement before you sign. Keep calm and get settled into your first homeWorking with a lawyer or conveyancer

Your first-home preparation checklist

Getting mortgage-ready

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Calculate combined take-home pay and monthly expenses

Agree on a comfortable monthly housing budget

Work out the deposit and cash buffer after purchase costs

Review debts, credit cards and credit history

Check KiwiSaver withdrawal eligibility

Discuss ownership shares and what happens if circumstances change

Compare mortgage structures and stress-test repayments

Gather documents and arrange mortgage pre-approval

Choose a property lawyer or conveyancer

Copy checklist

Want to work out your likely price range?

The three most useful numbers to start with are your combined annual salaries before tax, your total deposit savings (including any KiwiSaver you expect to withdraw), and your existing monthly debt repayments.

If you share those three figures, I can help you estimate a sensible home-price range and compare example mortgage repayments—without assuming you should borrow the maximum a bank will offer.