# HL-Q078: Choosing a loan
We're a couple buying our first home. We both have salaried jobs, about a 25% deposit and little experience with mortgages. Which lenders would you suggest we talk to first, and why?
Borrower: First-home couple with a 25% deposit
[Study](https://nzbrands.ai/research/banking/home-lending/) · Collected 11 October 2026
## chatgpt
Answer ID: df5fbbfd-f1e0-4d54-93ec-1e64e02f9688
For your situation in New Zealand, I’d start by talking to two or three banks and one independent mortgage adviser before committing to a lender. You have a strong starting point: two salaried incomes, a 25% deposit and the goal of buying your first home together.
The key is not simply finding the lowest advertised interest rate. You want a lender that will assess your combined income fairly, offer a competitive total package, and help you understand repayments, loan structure and what happens if your circumstances change.
## 1. The lenders I’d approach first
I'd compare a mix of large banks and lenders with different mortgage offerings, rather than assuming your everyday bank will be the best option.
## 1. SBS Bank
My first comparison
I'd put SBS near the top of your list because its 2026 Canstar First Home Buyers Award recognises its combination of mortgage pricing, cashback and first-home-buyer support. Its FirstHome Combo includes a discounted fixed rate and potential contributions towards cash, insurance and KiwiSaver, subject to eligibility. [First Home Buyers Award 2026](https://www.canstar.co.nz/star-rating-reports/first-home-buyers/)[Compare first home buyer mortgages in New Zealand](https://www.canstar.co.nz/home-loans/first-home-buyers/)
Website: [sbsbank.co.nz](https://www.sbsbank.co.nz/)
## 2. ANZ
A useful large-bank benchmark for a straightforward application with two salaries and a 25% deposit. Ask for its best special fixed rates, cash contribution and options for splitting the loan into manageable portions.
Website: [anz.co.nz](https://www.anz.co.nz/)
## 3. ASB
Worth comparing for its home-loan package and first-home-buyer offering. Ask for the effective cost of the loan after any cash contribution, and whether it can improve on a competing written quote.
Website: [asb.co.nz](https://www.asb.co.nz/)
## 4. BNZ
Another strong comparison, particularly because BNZ advertises a first-home-buyer cash contribution of at least $5,000 on eligible new loans of $250,000 or more. Check the current offer and its repayment conditions before counting it as a saving. [Cash back home loan offer](https://www.bnz.co.nz/personal-banking/home-loans/cash-back-home-loan-offer)[First home buyers](https://www.bnz.co.nz/personal-banking/home-loans/first-home-buyers)
Website: [bnz.co.nz](https://www.bnz.co.nz/)
## 5. Kiwibank
A worthwhile extra quote to broaden your comparison beyond the four largest banks. Compare its current fixed rates, flexibility for extra repayments and total package rather than relying on the advertised rate alone.
Website: [kiwibank.co.nz](https://www.kiwibank.co.nz/)
These are lenders I'd approach first, not a guarantee of the cheapest offer. Current promotions and rates change, and the best result will depend on your loan size and financial details.
## 2. Why I'd also talk to a mortgage adviser
For first-time buyers, an independent mortgage adviser can be especially useful because they can help you compare lending criteria, negotiate with lenders they work with, and explain the application process. But advisers do not necessarily cover every bank, so ask which lenders they can access and how they are paid. [Find financial advice and support with money » Sorted](https://sorted.org.nz/guides/planning-and-budgeting/getting-advice/)[How to find a good deal on your mortgage » Sorted](https://sorted.org.nz/guides/home-buying/shopping-for-a-mortgage/)
Choose an adviser who:
- Is appropriately licensed or works for a licensed Financial Advice Provider.
- Will compare more than one lender and explain why they're recommending a particular one.
- Clearly discloses commissions, any fees you might pay and any cashback clawback conditions.
- Explains the trade-offs rather than just telling you how much you can borrow.
You can find advisers through [Financial Advice NZ](https://financialadvice.nz/) and check registration through the [Financial Service Providers Register](https://fsp-register.companiesoffice.govt.nz/).
## 3. What matters most with your 25% deposit
With a 25% deposit, you'd generally be borrowing 75% of the purchase price. That puts you above the usual 20% deposit threshold for standard owner-occupied lending, assuming the lender accepts the property's valuation and your deposit meets its requirements. [Find out how much of a mortgage you could get » Sorted](https://sorted.org.nz/guides/home-buying/how-much-can-we-borrow/)[Types of mortgages in New Zealand, and how to choose » Sorted](https://sorted.org.nz/guides/home-buying/mortgage-types/)
I'd focus on these four things:
- The actual interest rate offered: ask for the best rate available to you, not just the advertised special.
- Cashback and conditions: compare the cash contribution alongside the interest rate, fees and any requirement to stay with the bank for a set period.
- Repayment flexibility: find out how much extra you can repay without penalties if your incomes rise or you receive a bonus.
- Affordability under pressure: make sure repayments would remain manageable if interest rates rose or one of you temporarily stopped earning.
One practical tip: don't use your entire savings balance for the deposit. Budget separately for legal fees, a property inspection, moving costs, insurance and an emergency fund. [How to find a good deal on your mortgage » Sorted](https://sorted.org.nz/guides/home-buying/shopping-for-a-mortgage/)[How to save for a deposit and other costs when buying a home » Sorted](https://sorted.org.nz/guides/home-buying/how-to-save-for-a-deposit-and-other-costs-when-buying-a-home/)
## 4. Questions to take to your first meetings
You can use this checklist when talking to banks or an adviser.
### Your mortgage meeting checklist
0 of 7
What is the maximum loan you would consider for us, and what repayment would you recommend?
What is your best available fixed rate for our deposit and loan size?
What cashback or other incentives are available, and what are the conditions?
Can we make extra repayments without break fees or penalties?
What would our repayments be if interest rates rose by 2 percentage points?
What fees and other costs should we budget for before settlement?
How much emergency savings would you recommend keeping after buying?
Copy checklist
For a plain-English guide before those meetings, [Sorted's mortgage comparison guide](https://sorted.org.nz/guides/home-buying/shopping-for-a-mortgage/) is a useful starting point.
## 5. Let’s narrow this down to the best options for you
The best lender will depend quite heavily on how much you're borrowing and how comfortably your salaries cover repayments.
Roughly what is your combined annual income before tax, and what price range are you hoping to buy in? An approximate figure for each is fine. With that, I can help you prioritise which lenders to approach and what loan structure to ask them about.
---
## gemini
Answer ID: 154dcf55-109f-425c-8333-127fba2341e5
Congratulations on reaching this milestone! Having both stable salaried jobs and a **25% deposit** puts you in an exceptionally strong position in the New Zealand housing market. A 25% deposit means you comfortably clear the standard 20% equity threshold, placing you in the lowest-risk tier for lenders. This means you will completely avoid Low Equity Margins (LEMs) or low-equity fees and will have access to banks' most competitive "special" interest rates.
When you have little mortgage experience, knowing where to start can feel overwhelming. Below is a breakdown of which lenders to approach first and a strategic look at how to approach them.
---
### Which Lenders to Talk to First
As first home buyers with a solid financial profile, you should cast a wide net across both major retail banks and alternative options.
1. **Your Main Day-to-Day Bank:**
* **Why start here:** Convenience is the main advantage. They already see your salary deposits, spending patterns, and savings history. If you have been contributing to KiwiSaver with them, they can streamline your First Home Withdrawal.
* **The catch:** They may not automatically offer you their sharpest rate upfront, as they know you are already "in-house." Use them to establish a baseline pre-approval.
2. **A Couple of Competing Major Banks (e.g., ANZ, ASB, Westpac, or BNZ):**
* **Why talk to them:** New Zealand’s major banks operate under Reserve Bank of New Zealand (RBNZ) rules, but their internal credit scoring, debt-to-income (DTI) caps, and allowances for lending differ slightly.
* **The leverage:** Having pre-approvals or competitive offers from two different major banks gives you powerful leverage to negotiate cash-back offers or better interest rate discounts.
3. **Customer-Owned and Challenger Banks (e.g., SBS Bank, TSB, or The Co-operative Bank):**
* **Why talk to them:** These institutions frequently win awards for first home buyer service and are often aggressive with pricing, special cash-back contributions, or flexible lending criteria to win business away from the big four Australian-owned banks.
4. **Consider Using a Free Mortgage Adviser (Broker):**
* **Why it helps beginners:** Instead of walking into four different banks individually, a good mortgage adviser does the legwork for you. They look across 20+ lenders, present your application in the best light, handle the paperwork, and **their service is free to you** (they are paid commission by the lender upon settlement). For first-time buyers with little experience, an adviser acts as an educational guide through conditional offers, LIM reports, and settlement conditions.
---
### Strategic Next Steps for Your Position
Because you have a 25% deposit and salaried incomes, lenders will look closely at two primary factors under current lending rules:
* **Serviceability (DTIs and Expenses):** Banks will assess your borrowing capacity based on your combined household income against your living expenses. Debt-to-Income (DTI) limits are active in New Zealand, but with stable salaries and a 25% buffer, you should have plenty of headroom.
* **Cash Back Incentives:** Most lenders offer cash-back contributions (a percentage or flat cash amount upon drawdown) for new home loans. Always factor these into your choice, but check the "clawback" clauses—if you refinance or sell within 3 to 4 years, you may have to pay a portion of it back.
---
### Explore Your Borrowing Scenario
To see how changing your loan amount, interest rate, or time horizon impacts your future mortgage, use the simulation framework below to test numbers before talking to a lender:
```json
{
"labels": {
"currencySymbol": "$",
"title": "First Home Mortgage Projection",
"xAxis": "Years",
"yAxis": "Remaining Loan Balance",
"slidersTitle": "Adjust mortgage parameters",
"footerNote": "*Model based on a standard 30-year principal and interest repayment structure for a sample $600k loan."
},
"xParam": "years",
"params": [
{ "key": "initial", "label": "Loan amount", "value": 600000, "min": 200000, "max": 1200000, "step": 10000, "format": "currency" },
{ "key": "monthly", "label": "Monthly payment", "value": 3800, "min": 1500, "max": 8000, "step": 50, "format": "currency" },
{ "key": "rate", "label": "Interest rate (%)", "value": 5.8, "min": 3.0, "max": 9.0, "step": 0.1, "format": "percent" },
{ "key": "years", "label": "Time horizon (years)", "value": 30, "min": 5, "max": 30, "step": 1, "format": "years" }
],
"series": [
{
"key": "remaining_balance",
"label": "Loan Amortization Balance",
"colorVar": "--chart-1",
"fill": true,
"formula": "rate > 0 ? Math.max(0, initial * Math.pow(1 + rate/100/12, t*12) - monthly * ((Math.pow(1 + rate/100/12, t*12) - 1) / (rate/100/12))) : Math.max(0, initial - monthly * 12 * t)"
}
],
"summary": [
{ "label": "Starting Loan", "value": "initial", "format": "currency" },
{ "label": "Assumed Interest Rate", "value": "rate", "format": "percent" },
{ "label": "Balance After Horizon", "value": "remaining_balance", "format": "currency", "colorClass": "positive" }
]
}
```
---
## ai-mode
Answer ID: 805b3001-e654-4cbc-8748-d7ddb6b94e28
With a solid 25% deposit and secure salaried jobs, you are in a strong position as first-home buyers. Because you have limited experience with mortgages, your priority should be balancing competitive interest rates, cash-back offers, and—crucially—educational guidance that walks you through the mechanics of a home loan.
The recommended lenders and channels to talk to first, and the reasons why, are organized below:
* * **A Mortgage Broker (Free Service)**
* **Why talk to them first:** A mortgage broker does not work for a single bank; instead, they shop the market across multiple major and mid-tier lenders on your behalf. For first-home buyers with little experience, they act as an educator, paperwork navigator, and negotiator. Best of all, their service is generally free to you because they are paid a commission by the lender you ultimately choose. They can tell you immediately which bank's policy is currently most favorable for your specific income and property type. Check out resources like [LifeDirect Mortgages](https://www.lifedirect.co.nz) or independent guides on MoneyHub NZ to understand how brokers operate.
* **The "Big Four" Major Banks (ANZ, ASB, BNZ, and Westpac)**
* **Why talk to them:** These institutions hold the majority of the market and frequently offer aggressive **first-home buyer cash-back contributions** (often thousands of dollars deposited into your account upon drawdown to help cover legal or moving costs). They also offer specialized green/sustainable home loan top-up upgrades at low or zero interest if you plan to add heat pumps, double glazing, or solar panels later.
* **The catch:** You have to approach them individually or let a broker do it to compare their "special" fixed rates (which usually require you to credit your regular salaries to an everyday account with them).
* **Kiwibank**
* **Why talk to them:** As a major New Zealand-owned bank, Kiwibank is often competitive on first-home buyer specials, green loan packages, and regional community support. Many first-home buyers prefer talking to them as a locally-focused alternative to the large Australian-owned big four.
* **Customer-Owned or Regional/Smaller Banks (TSB, SBS Bank, and The Co-operative Bank)**
* **Why talk to them:** These banks frequently rank highest in New Zealand customer satisfaction surveys and can sometimes offer more flexible, personalized lending assessments or competitive standard fixed rates that rival the big four. SBS Bank, for instance, has specialized offerings tailored strictly for first-home buyers. [MoneyHub NZ]
*
To help narrow down whether you should start with a **broker** or approach a **specific bank** , let me know:
* Are you looking at **established existing homes** or a **brand-new build**?
* Would you prefer to **deal with a single person** who compares everything for you (a broker), or do you already **bank with one of these institutions** out of habit?
---
## ai-overviews
Answer ID: 74aabd40-5566-45d0-bb06-8566ee51ad35
As a salaried couple with a **25% deposit** , you are in an **excellent financial position**. Because your deposit is over the standard 20% threshold, you bypass low-equity fees and strict Reserve Bank Loan-to-Value Ratio (LVR) restrictions. This makes you highly attractive to lenders.
Since you have little experience with mortgages, your priority should be finding a balance between competitive pricing (rates and cash incentives) and strong guidance.
* * *
🏛️ The Best Approach: Use a Mortgage Broker First
Before approaching specific banks, my primary recommendation is to contact a **registered Mortgage Broker (or Mortgage Adviser)**.
* **Why it fits you best:** In New Zealand, brokers do the heavy lifting for free (they are paid via bank commissions). They will assess your salaried income, package your application cleanly, and negotiate with multiple banks simultaneously to secure lower interest rates and higher cash-back offers than you would likely get on your own.
* **Top Broker Networks:** You can find highly rated advisers through established networks like **[Squirrel](https://www.squirrel.co.nz/)** , **[Mike Pero Mortgages](https://mikepero.co.nz/)** , or **[Loan Market](https://www.loanmarket.co.nz/)**.
* * *
🏦 Banks to Talk to Directly (or via a Broker)
If you prefer to deal with banks directly, or want to know which lenders to target, start with these:
Lender| Why Talk to Them First?| Best For...
---|---|---
**Your Current Main Bank**
_(ANZ, ASB, Westpac, or BNZ)_| They already have your transaction history, salary credits, and spending habits. This can result in a **faster, smoother pre-approval process**.| Speed and convenience.
**[Kiwibank](https://www.kiwibank.co.nz/)**| As a New Zealand-owned bank, they frequently target first-home buyers with competitive fixed rates and are generally known for a supportive, less intimidating customer service experience.| Straightforward guidance for beginners.
**[ANZ](https://www.anz.co.nz/)** or **[ASB](https://www.asb.co.nz/)**| As NZ's largest home lenders, they have massive balance sheets. They are highly competitive on **cash-back incentives** (often giving thousands of dollars toward your legal fees) for clean, 25%-deposit applications.| Maximising cash-back offers.
**The Co-operative Bank**| A smaller, customer-owned option. Because they share profits with customers rather than corporate shareholders, they regularly offer some of the most competitive standard rates on the market.| Lower interest rates.
* * *
⚠️ Hidden "Trap" to Watch Out For: Serviceability Test Rates
As first-time buyers, it is easy to look only at the advertised interest rate. However, banks do not test your ability to repay the loan at the advertised rate. They test you at a **"serviceability test rate"** (often 2% to 3% higher than actual rates) to ensure you can cope if interest rates rise.
If you have high credit card limits, personal loans, or "Buy Now Pay Later" accounts (like Afterpay), banks will artificially scale down your borrowing power—even if you don't owe anything on them. **Close these accounts before applying.**
* * *
🚀 Recommended Next Steps
1. **Gather your paperwork:** Collect your last 3 months of certified bank statements, your latest salaried payslips, and a summary of your KiwiSaver balances (if you plan to withdraw funds).
2. **Obtain Mortgage Pre-Approval:** This defines your exact house-hunting budget and gives you the confidence to make offers on properties.
If you'd like to narrow this down, let me know:
* Do you plan to use **KiwiSaver withdrawals** to form part of that 25% deposit?
* Do you have any **other debts** (student loans, car finance, credit cards)?
* Do you prefer a **digital-first online process** , or do you want **face-to-face guidance**?