The questions and original answers

With two salaried incomes and a 25% deposit, you’re starting from a strong position. Before applying for a first home loan in New Zealand, the goal is to make your finances easy for a lender to verify and to avoid surprises during the affordability assessment. Lenders will mainly look at your income, deposit, expenses, debts, credit history and ability to manage repayments. BNZ

1. Get your documents together

Prepare a folder (digital is fine) with:

• Photo ID for both applicants (e.g., passport or NZ driver licence)
• Proof of address (such as a recent bank statement or utility bill)
• Recent payslips (often the last 2–3 payslips)
• Employment details
  • employment contracts or employer letters if available
  • confirmation of permanent/full-time status if relevant
• Bank statements
  • usually several months of transaction history showing income, spending and savings patterns
• KiwiSaver information if you plan to use KiwiSaver funds for the purchase
• Deposit evidence
  • savings account statements
  • KiwiSaver balance/withdrawal estimate
  • records of any gifts or other deposit sources Kāinga Ora – Homes and Communities

2. Make a clear deposit picture

With a 25% deposit, prepare a simple breakdown:

• Total deposit available: $___
• Savings: $___
• KiwiSaver: $___
• Gifts/family assistance (if any): $___
• Other funds: $___

Keep records showing where the money came from. If there are large recent deposits into your accounts, be ready to explain them.

3. Review your spending before the bank does

For the few months before applying:

• Avoid unusual large purchases if possible.
• Keep regular bills and commitments under control.
• Review subscriptions and discretionary spending.
• Make sure your bank statements reflect your normal lifestyle.

Banks commonly ask for detailed living expenses, including things like groceries, utilities, transport, insurance, childcare, subscriptions and debt repayments. BNZ

A useful exercise is to create your own household budget:

Income

• Net salary 1: $___
• Net salary 2: $___

Regular costs

• Rent/board
• Food
• Transport
• Insurance
• Utilities
• Phone/internet
• Subscriptions
• Childcare (if applicable)
• Other commitments

Future mortgage comfort check

• Estimate what repayments would feel comfortable, not just the maximum a bank might approve.

4. Clear up debts and credit commitments

Before applying, list:

• Credit cards (including unused limits)
• Personal loans
• Car finance
• Student loans
• Buy Now Pay Later accounts
• Hire purchases

Even small ongoing commitments can affect borrowing capacity because lenders consider your total obligations. Westpac NZ

If you have credit cards you rarely use, consider whether reducing limits or closing unused accounts makes sense before applying.

5. Check your credit history

Make sure:

• There are no unpaid bills or defaults
• Your details are correct with credit reporting agencies
• Any old issues have been resolved

6. Decide what you want before approaching lenders

Have a rough idea of:

• Target purchase price range
• Preferred loan amount
• Whether you want fixed, floating, or split-rate options
• How much cash buffer you want left after settlement

A 25% deposit is helpful, but you’ll also want money available for costs such as legal fees, inspections, moving costs, insurance, rates adjustments and repairs.

7. Get pre-approval rather than only a borrowing estimate

A conditional approval/pre-approval can help you understand your realistic buying range before making offers. It is usually based on your financial position and later depends on the property meeting the lender’s requirements. Kāinga Ora – Homes and Communities

8. Consider talking to both a bank and a mortgage adviser

A mortgage adviser can compare lenders’ criteria, while going directly to your bank may be simpler if your finances are straightforward. With two salaried incomes and a 25% deposit, you’re likely to be a relatively straightforward application, but different lenders can assess income and expenses differently.

A good “ready to apply” checklist would be:

• ✅ 3 months of clean bank statements
• ✅ Recent payslips for both applicants
• ✅ Deposit evidence organised
• ✅ KiwiSaver withdrawal information (if using it)
• ✅ Full list of debts and commitments
• ✅ Household budget completed
• ✅ ID and address documents ready
• ✅ No new debt or big purchases before applying

One extra thing to consider: keep a separate emergency buffer after the deposit rather than putting every available dollar into the house. It can make the first year of home ownership much easier.