Mortgage Pre-Approval Quiz

Steps Lenders Take in Pre-Approval

When you apply for pre-approval, lenders want to be sure you can manage a mortgage responsibly. They’ll usually check:

• Credit history – A credit report shows how reliably you’ve repaid past debts.

• Income – Payslips, employment contracts, or self-employed financials confirm steady earnings.

• Deposit – How much you’ve saved, including KiwiSaver or First Home Grants.

• Debts & expenses – Car loans, student loans, credit cards, and even subscriptions get factored in.

• Living costs – Banks may stress-test your budget against higher interest rates to see if you can still manage repayments.

Tips for Comparing Lenders

Not all mortgages are created equal. When weighing up your options, look beyond the headline rate:

• Interest rate vs. total cost – A slightly lower rate could save thousands over the life of the loan.

• Loan structure – Fixed, floating, or split loans can change flexibility and repayment costs.

• Fees & break costs – Some lenders charge higher setup fees or penalties if you switch early.

• Customer service – Access to a broker or mobile manager can make the process smoother.

FAQs About Mortgage Pre-Approval in NZ

👩‍❤️‍👨 Case Study: Getting Ahead with Pre-Approval

Emma and Josh, first-home buyers in Wellington, got their pre-approval sorted months before house hunting. When they found the right place, they could move quickly — while other buyers scrambled for paperwork. Their conditional offer was accepted over higher bids because the seller trusted they could settle without delays. Pre-approval gave them the confidence and credibility to secure their home.