TIP 1 - Sort out your Accounts 

An important part of your mortgage application checking your last 3 months of bank and credit card statements.  This is so the Bank can assess your money management to ensure you are a good applicant to lend money to.   

To demonstrate this, your bank statements should show: 

• Consistent deposits from income. 

• A monthly surplus after expenses. 

• Expenses align with the expenses declared in your loan application. 

• No un-arranged overdraft fees, bounced automatic payments. 

TIP 2 Prepare your KiwiSaver Withdrawal  

A KiwiSaver Withdrawal can provide a helping hand for first home buyers attempting to build a deposit.  Some banks may allow you to proceed with a 5% deposit. 

KiwiSaver Withdrawal 

• Contact you KiwiSaver Provider and ask them to send you a KiwiSaver Withdrawal Eligibility confirmation letter.   

• Discuss whether to switch your fund to a conservative KiwiSaver fund to reduce the fluctuations in the balance with your Mortgage Money Adviser. 

TIP 3 - Get a Credit Check 

Getting a credit credit is an important part of ensuring your loan application will be well received by the Bank. A credit check will show up any defaults from non-payment for things like hire-purchase or credit cards.  Any outstanding defaults need to be paid with an explanation for any settled defaults to help give the Bank comfort that your track record is for reliably paying your debts. 

Click to Centrix which provides provide free personal credit reports.

TIP 4  - Gather your Loan Application Documents 

A loan application requires a fair bit of supporting documents in order for the Bank to properly assess your suitability for a mortgage.  It is important to ensure your application includes these documents to avoid delay in processing. 

The supporting documents you will need are: 

• 3 months of bank statements. 

• 3 most recent payslips. 

• Most recent Year-End Financial Accounts if self-employed. 

• Copy of ID (passport or Birth Certificate and Driver's Licence). 

• Copy of Visa if you have provided a foreign passport 

• Evidence of your deposit (Savings account and/or KiwiSaver statements). 

• A Gifting Declaration if you are receiving a gift from your parents. 

If applying for a First Home Loan through Kāinga Ora you will also need to provide: 

• A letter from your employer or your employment contract confirming your job title, start date, contracted minimum hours, hourly rate and any commission/bonus/overtime arrangements. 

• Your IRD Income Details for the last 2 years (from today’s date). 

TIP 5- Have a Chat with A Mortgage Adviser 

 As with many specialist things done for the first time, buying a house is a process that benefits from expert advice.  That is where a mortgage adviser can be very beneficial in helping reduce the stress for an inexperienced home buyer. 

A mortgage advisor can help you: 

• Assess your readiness for buying your first home. 

• Guide you through the process of obtaining a mortgage. 

• Provide support for other steps in the home buying process. 

You can arrange a chat to one of our advisers here.