And why speaking to an independent mortgage adviser first could save you time, money, and stress.
Buying your first home is exciting – but the path to getting a mortgage can feel like a minefield. One wrong move early on (like heading straight to a bank without understanding your options) can cost you thousands or delay your dream.
So, before you sit down with a bank, here are 10 essential things every first-home buyer in New Zealand should know. And spoiler alert: talking to an independent adviser first could be the smartest move you make.
1. You don’t need a 20% deposit to buy a home
A lot of first home buyers think they need to have saved 20% of the purchase price — but that’s not always true. There are legitimate pathways with as little as 5% or 10% deposit, especially for those using KiwiSaver or the First Home Loan scheme.
>> A good adviser can help you access the right low-deposit option for your situation.
2. Banks can only offer their own products
When you talk directly to a bank, they’ll only show you what they offer – not what might be better for you elsewhere. An independent adviser (like Better Choice) works with multiple lenders, so you’re not boxed into one bank’s criteria or rates.
3. Your credit report matters more than you think
Missed bills, Buy Now Pay Later debt, or even too many credit checks can hurt your application. Get a copy of your credit report early and know what’s on it – so you can fix issues before applying.
4. What you earn is important – but so is how you earn it
Self-employed? Earning commissions or bonuses? Banks all treat income differently, and some are far more flexible than others. An adviser knows which lenders are more generous with your income type — banks won’t tell you that.
5. KiwiSaver isn’t automatic – you need to apply to use it You can’t just “use” your KiwiSaver – it takes time and paperwork to withdraw it for your first home. Talk to your provider early and get clear on the process. An adviser will help with this too, so you don’t miss deadlines or delay settlement.
6. You’ll need to prove everything
Banks want evidence: pay slips, ID, KiwiSaver statements, rental history, budgets, and more. Having this ready in advance speeds things up and makes you look more organised – which strengthens your application.
7. Pre-approval isn’t a guarantee
Just because you’re pre-approved doesn’t mean it’s locked in forever. Banks can still change their mind if interest rates move, your income changes, or the property doesn’t meet their criteria (e.g. tiny homes, apartments, etc.).
8. Not all debt is treated equally
Student loans, car finance, Afterpay, personal loans – it all gets assessed. The amount and type of debt you have can drastically reduce what you can borrow. It’s not just about how much you owe, but how that affects your monthly commitments.
9. Your spending habits matter
Yes, lenders will look at your last 3 months of bank statements. Regular takeaways, big nights out, or impulse buys might not stop your approval – but they will be noticed. Clean up your spending early to show you’re ready for homeownership.
10. It pays to get expert help early
Let’s be honest, this stuff can get confusing fast. Loan structures, bank rules, changing policies, interest rate fluctuations… it’s a lot. Talking to someone who lives and breathes it (and isn’t tied to a single lender) can make all the difference.
We offer practical, straight-up advice. We’ll look at your full picture – your finances, goals, KiwiSaver, and future plans and help you build a strategy that actually works for you.
Final Word: Don’t go it alone
Banks are there to sell their products. Our job is to find the best product for you. One conversation could save you stress, time, and thousands of dollars over the life of your mortgage. Ready to see where you stand?
Book your free first-home consultation with us today – no pressure, just clear advice and a smart plan to move forward.