Mortgages and Home Loans

The prospect of applying for a mortgage can be daunting if you have never done it before. However, there's no need to worry, as we have compiled a list of some of the most crucial questions to help guide you through the process.

What is a mortgage?

A mortgage is a legal instrument which is registered against the title of a property. It is the lender’s security for a loan giving the lender the right to, amongst other rights, take the property and sell it if the loan is not repaid.


Further Information

A home loan is often described as a mortgage. A home loan is a type of loan where property is used as security. The borrower enters into an agreement with a bank (or another type of lender) where the bank lends money to the borrower to cover the cost of the property purchase. The bank then takes security (in the form of a mortgage) over the property. The borrower will continue making payments (generally principal and interest) over a set timespan until the home loan is repaid in full (including interest).

  • The size of the loan
  • The loan’s interest rate
  • The closing costs of the loan (extra fees at the end of the home-buying process)
  • The type of interest rate and whether it can change (is it fixed or adjustable?)
  • The loan term (how long you have to repay the loan)
  • Get your statements in order. Banks usually assess your most recent six months of bank statements, as well as any loan statements you might have.
  • Pay off any smaller loans. Reduce your short-term debt (like your student loans, Q cards, etc…) as much as possible. It’s wise to ensure your accounts look really good to the bank.
  • Find a good mortgage broker. A professional can go to the bank on your behalf. Once you give the mortgage broker the required statements, they can do the rest. Du Val has access to several mortgage brokers who can assist you toward securing a loan.
  • New Zealand’s banks and lenders have differing criteria on who can be eligible for a home loan.
  • We recommend you retain a mortgage broker to help you find the bank or lender to bring you the home loan that fits you best.

Need further help securing a loan?

Kāinga Ora has partnered with selected banks to underwrite First Home Loans for first home buyers, lowering the required deposit to 5%.


Some Kāinga Ora First Home Loan requirements are that you:

  • Be a New Zealand citizen, permanent resident, or a resident visa holder who is ‘ordinarily resident in New Zealand’.
  • Be a first home buyer, or a previous homeowner in a similar financial position to a first home buyer.
  • Have a before-tax income from the last 12 months of:
    • $95,000 or less for an individual buyer without dependents;
    • $150,000 or less for an individual buyer with one or more dependents;
    • $150,000 or less (combined) for two or more buyers, regardless of the number of dependents
  • Have a minimum deposit that is at least 5% of the purchase price of the home you are interested in buying (inclusive of all savings, grants, first-home withdrawals, and gifts).
  • Be purchasing a home for you to live in as your primary place of residence.
  • Not own any other property or land (This does not include ownership of Māori land).
  • Pay a 1% Lender’s Mortgage Insurance premium and loan application fee (if applied by the lender).
  • Meet the bank’s lending criteria.


For Kāinga Ora’s selected banks and lenders, and to learn each bank or lender’s individual criteria, go to First Home Loan :: Kāinga Ora – Homes and Communities (

How can we help?

Our experienced team can help guide you towards your property goals.

Connect with us for a FREE, no-obligation consultation with one of our team today.