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Evidence · Home lending

The questions and original answers

Explore every question and captured response in the home-lending study, including answers asked nationally and from four cities.

questions
193
captured answers
1,094
AI platforms
4
collected
11 October 2026

01

Every question, with its answers

Each question was written as a voter would ask it and went to all four assistants. Some were also asked from a town. Open a question to read every answer to it in full.

Showing 20 of 193 questions

Show all 193

02

The tables behind the study

Every figure on the study page comes from these tables. They are CSV files, which open in any spreadsheet.

  • Question catalogue

    questions.csv

    One row per question.

    Question ID, borrower, exact question, group and collected answers

    193rows

    Download question catalogue (CSV)

  • Answers

    answers.csv

    One row per answer, with its full text.

    Answer ID, question ID, borrower, assistant, city, words, coded recommendations, showed a link and full text

    1,094rows

    Download answers (CSV)

  • Sources by answer

    sources.csv

    One row for each website recorded as a source of an answer.

    Answer ID, question ID, assistant, city, website and publisher type

    4,574rows

    Download sources by answer (CSV)

  • Checks against official sources

    checks.csv

    One row per statement checked.

    Check, answer ID, assistant, what the answer said, verdict, what the source says, source and date

    4rows

    Download checks against official sources (CSV)

  • Recommendation coding

    recommendation-coding.csv

    One row per coded national loan-choice or support answer.

    Answer ID, question ID, borrower, assistant, question group, recommended lenders and supporting passages

    360rows

    Download recommendation coding (CSV)

  • Platform comparisons

    platform-recommendation-counts.csv

    One row per platform, lender and question group.

    Matched panel, recommended answers, denominator and supporting answer IDs

    105rows

    Download platform comparisons (CSV)

  • City comparisons

    city-recommendation-counts.csv

    One row per city, lender and question group.

    Matched panel, recommended answers, denominator and supporting answer IDs

    112rows

    Download city comparisons (CSV)

Use these tables to trace findings back to the original questions and answers. The full text of each answer is also on this page, under its question.

03

Read in full and checked

Some answers were read in detail or checked against official sources. Those appear on the study page, beside the findings they support.

ChatGPT · National

I bought my first home last year and I'm a contractor, so my income goes up and down. My bank doesn't seem to understand that when I ask about my repayments. Are there banks that are better with contract or self-employed borrowers, and is it worth switching?

Congratulations on buying your first home! Being a contractor can make mortgages more complicated than they need to be, especially when your income varies from month to month but your mortgage repayments stay the same.

Yes, some New Zealand lenders may be a better fit for contractors and self-employed borrowers. But the best bank for you isn't necessarily the one with the lowest advertised interest rate. It's the one that understands your income pattern, assesses your ability to repay fairly, and offers flexibility when cash flow gets tight.

Because you've only owned your home for about a year, I'd look at two things separately: whether your current bank can give you a better repayment arrangement, and whether another lender would assess your circumstances more favourably.

1. Which New Zealand lenders are worth investigating?

I'd start with these options. This is a shortlist to investigate, not a claim that one bank is definitively best for contractors.

ANZ New Zealand

Worth including in a comparison of mainstream banks. Ask how they assess variable contract income, whether they can review your repayment structure, and what evidence they need to understand your earnings.

Best for: comparing mainstream lending and existing-loan options.

BNZ

BNZ publishes guidance for refinancing and accepts business financial statements from self-employed applicants. Ask how its assessment would treat your contract history and fluctuating income. Refinancing your home loanPreparing for a home loan appointment

Best for: a concrete alternative quote from a major bank.

Kiwibank

Worth including when comparing a New Zealand-owned bank's lending assessment and mortgage structures. Ask whether your income evidence and repayment needs fit its criteria.

Best for: another mainstream comparison.

Luminate

A specialist option that explicitly works with self-employed people, contractors and company owners. It considers factors such as cash flow, business accounts and retained profits. Ask whether its lending options suit your existing mortgage, not just a new purchase. Self-employed home Loans NZ | Mortgage Lending Options

Best for: a more tailored assessment if a standard bank struggles to interpret your income.

One important distinction: a lender that is good at approving a self-employed person for a new mortgage isn't necessarily better at adjusting repayments on an existing one. Some specialist lenders may also charge higher rates or fees, so compare the whole arrangement.

2. What matters more than the bank's name?

When you're a contractor, the key is how a lender interprets your income.

For example, your earnings might look like this:

  • Month 1: $12,000 invoiced
  • Month 2: $4,000 invoiced
  • Month 3: $9,000 invoiced

A good assessment should look beyond one quiet month. Depending on your business structure and the lender's policy, it may consider your accounts, tax returns, contract history, current work pipeline and income after business expenses. Some lenders have specific requirements for how long you've been self-employed. How NZ banks assess self-employed income for a mortgageSelf-employed home Loans NZ | Mortgage Lending Options

I'd specifically ask prospective lenders:

  • How many years of financial statements or tax returns do you require?
  • Can you consider confirmed upcoming contracts as well as historical income?
  • How do you calculate income if I operate through a limited company?
  • Can you structure repayments around my cash flow without making the mortgage more expensive overall?

3. Is switching banks worth it?

Potentially, yes — but I would explore a restructure with your current bank first.

Option When it could help Main trade-off
Restructure your current loan You want more manageable repayments or a different fixed/floating split Your bank may not offer the flexibility you need
Refinance to another mainstream bank Another lender offers a better rate or more suitable structure New lending approval, legal costs and possible break fees
Use an offset or revolving-credit facility You have cash reserves that vary with invoice payments Requires discipline; interest and access conditions vary
Consider a specialist lender Mainstream banks struggle with your income documentation Potentially higher rates, fees or stricter conditions

Before switching, calculate the total cost, including any fixed-rate break fee, legal fees and repayment of an existing cashback incentive. Also check whether the new bank's offer requires you to stay for a set period. BNZ's refinancing guidance explains these potential costs. Refinancing your mortgageMortgages and home loans

And if the problem is that your income is temporarily too low to cover repayments, don't wait for a refinance to solve it. Contact your current bank early and ask what short-term assistance is available. New Zealand borrowers experiencing financial hardship can apply for certain changes to their loan contract, subject to eligibility and assessment. Hardship and financial difficultyFinancial hardship application

4. My recommended next step

I'd speak to an independent, licensed mortgage adviser who regularly handles self-employed borrowers. Ask them to compare at least two mainstream banks and one specialist option, using your actual income figures. You can ask about fees and which lenders they work with before engaging them; Consumer Protection NZ explains what to check when choosing a mortgage broker. Mortgages and home loans

Get these documents together first:

  • Your last two years of financial statements and tax returns, if available.
  • Your current mortgage balance, interest rate and fixed-rate expiry date.
  • A summary of monthly income, business expenses and personal drawings.
  • Current contracts and evidence of upcoming work.
  • Your savings buffer and the repayments you could comfortably sustain in a quiet month.

Let me narrow this down to your situation

There's one key question that will help me distinguish whether you need a more flexible mortgage or a bank that's better at assessing contractor income.

You don't need to share your bank account details, exact income or mortgage balance to get started. With those three answers, I can give you a much more targeted shortlist and explain whether switching is likely to be worthwhile.

Ask anything

ChatGPT can make mistakes. Check important info.

Captured 11 October 2026

Gemini · National

I bought my first home last year and I'm a contractor, so my income goes up and down. My bank doesn't seem to understand that when I ask about my repayments. Are there banks that are better with contract or self-employed borrowers, and is it worth switching?

Buying your first home as a contractor is a huge milestone, but dealing with traditional bank algorithms when your income fluctuates is notoriously frustrating. The disconnect usually happens because retail bank front-line staff and standard automated credit scoring systems are built for PAYE earners with predictable, identical fortnightly or monthly payslips.

Navigating how New Zealand lenders treat contractor income, whether switching banks helps, and actionable steps to make your fluctuations work in your favor can help clarify your options.

Do Some Banks Understand Contractors Better?

Yes, absolutely. While all major registered banks in New Zealand operate under the same Reserve Bank lending rules and credit regulations, their internal credit policies and risk appetites for self-employed and contractor income vary significantly.

  • The "Box-Ticking" Major Banks: Some mainstream banks rigidly rely on automated metrics—frequently demanding two full years of finalized, accountant-prepared year-end financial statements and averaging them out, or heavily penalizing your borrowing capacity if your latest year dipped. If you only have one or two years of history, or if your income had a quiet patch, they often default to a "computer says no" response.
  • The More Flexible Lenders: Other major banks and specific non-bank or "near-prime" lenders are far more accustomed to looking at the "story" behind a contractor's income. They will look at things like ongoing contracts, industry demand, historical earning capacity across your career (not just your tax return), and how your accountant structures your legitimate business write-offs.

Is It Worth Switching?

Switching your main personal banking or moving your mortgage can be worth it, but shopping around directly with other retail banks on your own often yields the same brick wall.

Instead of moving banks blindly, the most effective move for a contractor is to use a registered mortgage broker who specializes in self-employed and contractor lending.

  • A good broker doesn't cost you anything (they are typically paid commission by the lender upon settlement).
  • They know which specific banks have credit policies that favor fluctuating income, and they know which underwriters to avoid.
  • They act as a translator, packaging your financial data (such as Xero reports, GST returns, and signed contracts) into a credit narrative that makes sense to a bank.

Action Plan: How to Position Your Contractor Income

If you want to restructure your mortgage, look into refinancing, or prepare for future borrowing, take these steps:

  1. Audit your "Taxable Profit" vs. "Actual Cash Flow": Remember that banks generally assess you on your taxable net profit (after accountant-approved business deductions for home office, vehicle, equipment, etc.) rather than your gross turnover or cash drawings. If your accountant has aggressively minimized your taxable income to lower your tax bill, it unfortunately also lowers what the bank thinks you can afford.
  2. Gather Alternative Proof of Income: Collect your current client contracts, continuous work history, invoices, and management profit-and-loss statements (e.g., straight out of Xero or Hnry) for the current financial year. Lenders love seeing that even if last month dipped, your pipeline for the next 6 to 12 months is robust.
  3. Engage a Specialized Mortgage Adviser: Contact a recommended adviser who explicitly handles self-employed and contractor clients. Give them your exact structure (sole trader, company, or mixed) and ask them to assess which lenders will look favorably on your income fluctuations before submitting a formal application.

Are you currently operating as a sole trader or through a limited company, and do you have a full year or more of accounts ready?

Ask Gemini

Gemini is AI and can make mistakes.

Captured 11 October 2026

Google AI Mode · National

I bought my first home last year and I'm a contractor, so my income goes up and down. My bank doesn't seem to understand that when I ask about my repayments. Are there banks that are better with contract or self-employed borrowers, and is it worth switching?

Yes, retail banks in New Zealand vary significantly in how comfortably and flexibly they handle variable, contracting, or self-employed income. Standard frontline retail staff or automated credit scoring systems at mainstream banks often struggle with non-PAYE income because it doesn’t fit neatly into a standard monthly payslip box.

Are some banks better than others?

  • Mainstream/Tier 1 Banks: Major lenders (such as ANZ, ASB, BNZ, Kiwibank, and Westpac) can be great, but it heavily depends on who reviews your application. Generally, they prefer to see a solid 2 years of financial history (IR3 tax returns and year-end accounts). However, some mainstream mobile mortgage managers are much more experienced with small businesses and contractors than a standard branch teller, knowing how to factor in net profit, add-backs (like depreciation or personal vehicle use), and retain retained earnings. [MoneyHub NZ]

  • Non-Bank Lenders: If your contracting history is under two years or your income fluctuates wildly year-on-year, specialized non-bank lenders (such as Pepper Money, Liberty Financial, or Avanti Finance) offer alternative documentation ("alt-doc") home loans. They look closer at recent business bank statements rather than just old tax returns, though their interest rates can sometimes be higher.

Is it worth switching?

Switching banks involves discharge fees, legal/solicitor costs, and potentially losing cash-back incentives you received when you first bought your home last year. Before jumping ship to a new bank, try these steps first:

  1. Speak to a Mortgage Broker: A good independent broker doesn't cost you anything directly (they are usually paid by the lender) and they specialize in translating self-employed/contractor financials into a format that bank credit risk teams actually understand. They also know which specific bank's credit policy is currently friendlier to contractors.
  2. Talk to a Mobile Mortgage Manager: Instead of dealing with the general customer service line or a local branch, ask your current bank to escalate your query or assign a dedicated mobile mortgage manager or business banking specialist who deals with self-employed clients daily.
  3. Get your paperwork polished: Often, banks push back because the accountant-prepared figures don't clearly show your true disposable income. Having 6 months of clear business and personal transaction records alongside your IR3s can make all the difference.

To help figure out if switching makes sense, tell me:

  • How long have you been contracting?
  • Do you have 2 full years of IR3 tax returns/financial statements, or is it less than that?
Ask anything

Captured 11 October 2026

AI Overviews · National

I bought my first home last year and I'm a contractor, so my income goes up and down. My bank doesn't seem to understand that when I ask about my repayments. Are there banks that are better with contract or self-employed borrowers, and is it worth switching?

AI Overview

Navigating home loan adjustments when your contracting income fluctuates can be incredibly frustrating, especially if your current bank treats you like a rigid PAYE employee.

Mainstream New Zealand banks generally use identical, standardized serviceability calculators, meaning no single major bank is inherently "better" at accommodating irregular income for existing loans. However, switching lenders or restructuring your mortgage can dramatically change how you manage your payments.

Is it worth switching banks?

Switching banks (refinancing) just for regular repayment flexibility is rarely worth the hassle and cost on its own, but it becomes highly viable if you want to change your overall loan structure. Before moving, consider the hidden costs:

  • Clawback Fees: Because you bought your first home just last year, switching now will almost certainly trigger a cashback clawback from your current bank, forcing you to repay the cash bonus they gave you when you signed.

  • Legal Fees: You will need to pay a lawyer roughly $1,000 to $1,500 to handle the discharge of your old mortgage and registration of the new one.

  • Break Fees: If you are currently locked into a fixed-term interest rate, your bank may charge you break fees to leave early.

How NZ Lenders Differ on Contractor Policies

If you do decide to switch or look at alternative options, different tiers of lenders view variable income through very different lenses:

Lender Tier Examples How They Handle Contractor Income
Mainstream Banks (Tier 1) ANZ, ASB, BNZ, Westpac, Kiwibank They strictly require 2 years of IR3 tax returns and financial statements. They average your income out and "shade" (discount) variable income by 20% or more to simulate a worst-case scenario. Exception: If you are a long-term, high-day-rate contractor (e.g., in IT or government), some Tier 1 banks will look at your current contract daily rate rather than historical financials.
Regional & Customer-Owned The Co-operative Bank, SBS, TSB Often slightly more human-centric. They can sometimes evaluate your profile using only 1 year of financial records if you have a proven track record in the same industry.
Non-Bank Specialists (Tier 2) Resimac, Pepper Money, Avanti These lenders offer "Alt-Doc" (Alternative Documentation) loans. Instead of strict tax history, they accept 6 months of GST returns or business bank statements to prove your actual cash flow. The trade-off is that interest rates are usually higher.

The Real Fix: Restructure, Don't Just Switch

The issue isn't necessarily your bank; it's likely your loan structure. If your mortgage is entirely locked into rigid fixed-interest tranches, you have zero flexibility.

Instead of jumping to a new bank immediately, ask your current bank (or a mortgage broker) to help you restructure your loan into a hybrid framework designed for contractors:

  • Set up a Revolving Credit or Offset Account: Take a portion of your mortgage (e.g., $50,000) and place it into a floating, revolving credit account. When you have a high-income month, dump your surplus cash into this account to instantly lower your interest costs. During lean months, you can draw back down on this money to clear your regular expenses or cover the fixed portion of your mortgage.

  • Split into Multiple Fixed Tranches: Instead of locking your entire remaining balance into one big fixed term, break it down. For example, place a portion on a 1-year fix and another on a 2-year fix. This ensures that a portion of your mortgage is regularly coming up for renewal, allowing you to alter your repayment structures cleanly without paying break fees.

Your Next Step

Do not try to argue your case directly with a standard branch lender—they are bound by automated calculators. Instead, engage an independent New Zealand mortgage broker. A broker who specializes in self-employed and contractor profiles can look at your current loan structure, tell you exactly if a switch will cost you money in clawbacks, and negotiate directly with credit underwriters who actually understand variable cash flows.

Ask anything

Captured 11 October 2026