Pre-Approval Preparation Quiz

Documents You’ll Need

Before you even start talking to a lender, get these essentials ready. Having them on hand speeds up the process and avoids back-and-forth delays:

• Proof of income (recent payslips, employment contract, or tax returns if self-employed)

• Proof of identity (passport or driver licence)

• Bank statements (usually the last 3–6 months)

• Proof of deposit (savings history, KiwiSaver withdrawal statement, or gifted funds letter)

• Details of debts (credit cards, car loans, student loans)

Why Pre-Approval Matters

Pre-approval isn’t just a formality — it’s your green light to start house hunting with confidence. It tells you how much you can borrow, sets clear budget limits, and signals to real estate agents and sellers that you’re a serious buyer. In competitive NZ markets, having pre-approval can make the difference between your offer being taken seriously or overlooked.

Myth-Busting: The 20% Deposit Rule

A common belief is that you need a 20% deposit to buy a home in New Zealand. While that’s often true, it’s not the whole story:

• Some lenders accept deposits as low as 10%.

• First-home buyers may qualify for First Home Loans with just a 5% deposit, depending on criteria.

• Using KiwiSaver or First Home Grants can boost your deposit faster than you think.

So don’t rule yourself out before checking your options.

Common Mistakes to Avoid

Many first-home buyers trip up at the pre-approval stage by:

• Applying too early (before saving a consistent deposit record).

• Making big purchases (cars, furniture) that increase debt right before applying.

• Forgetting to disclose debts — even buy-now-pay-later accounts count.

• Not shopping around — different lenders may offer very different terms.