What to Know About Getting a Pre-Approval in NZ
If you’re starting your first-home buying journey in New Zealand, one of the smartest steps you can take is getting a mortgage pre-approval. It’s the foundation of a confident, stress-free buying process — and it puts you in a stronger position when you find the home you want.
Here’s everything you need to know about getting a pre-approval in NZ in 2025.
What Is a Pre-Approval?
A pre-approval (also known as “approval in principle”) is a conditional commitment from a bank or lender confirming how much they are willing to lend you. It’s not a guarantee of finance, but it gives you a clear borrowing limit and helps you shop with confidence.
Most pre-approvals are valid for 90 days, and they outline key conditions you must meet before the loan becomes unconditional.
Why Pre-Approval Matters
1. You Know Exactly What You Can Afford
No more guessing. Your pre-approval sets a clear price range so you don’t waste time on homes outside your budget.
2. Stronger Offers
Sellers and agents take you more seriously when you already have finance approved — especially in competitive markets or when making conditional offers.
3. Faster Decision-Making
When the right home appears, you can act quickly without delays. This can be the difference between securing the property and missing out.
What You Need Before Applying
To get a pre-approval in NZ, lenders will typically ask for:
Recent payslips and employment details
Bank statements (usually 3 months)
Details of loans, credit cards, and buy-now-pay-later accounts
Your KiwiSaver balance if using it for your deposit
Proof of savings and deposit sources
ID and proof of address
A mortgage adviser can package your application, explain what lenders look for, and present your case more strongly.
What Banks Look At
When assessing your pre-approval, lenders focus on:
1. Income Stability
Regular, reliable income — including overtime or bonuses when consistent.
2. Spending Behaviour
Banks review your day-to-day transactions. High discretionary spending, gambling transactions, or frequent overdrafts can impact approval.
3. Deposit Size
Most banks prefer a 20% deposit, but many offer low-deposit options (10%) strong applicant profiles or at 5% deposit through the First Home Loan scheme and with 5% deposit with one of the major banks with or even 5% for really strong applicant profiles with one of the major banks
4. Credit History
Late payments, collections, or defaults can reduce your borrowing power.
How Long the Pre-Approval Process Takes
Most pre-approvals take 3–10 working days, depending on the lender and your financial situation. During busy market periods, it can take a little longer — which is why applying early is essential.
After You Get Pre-Approval
Once you’re pre-approved, you can start house hunting — but remember that conditions still apply. Your lender will need to review:
The specific property you want to buy
The Sale & Purchase Agreement
A registered valuation (sometimes required)
Once these checks are complete and all conditions are satisfied, your loan becomes unconditional, and you’re ready to settle.
Final Thoughts
Getting a pre-approval is one of the smartest moves you can make as a first-home buyer in NZ. It sets your budget, boosts your confidence, and gives you credibility with real estate agents and sellers.
If you’re unsure where to start, a mortgage adviser can assess your situation, recommend the right lenders, and guide you through the process — making sure your pre-approval is rock-solid when it’s time to make an offer.