How to apply for a home loan
July 2016 changes to loan-to-value ratio (LVR) restrictions
We have made changes to the current loan-to-value ratio (LVR) restrictions, following a proposal by the Reserve Bank of New Zealand in July 2016. These will impact new home loans for owner-occupiers and residential property investors.
Starting your application
Starting a home loan application is easy. You can:
A checklist to help you get ready
Here’s a list of the things you’ll need to have with you when we meet to complete your application. If there’s anything you’re not sure about, just give us a call.
Confirming your income
- If you earn a salary or wage, please bring one of the following:
- Two recent consecutive pay slips
- A copy of your employment contract
- A letter from your employer stating your income
- If you’re self-employed:
- You’ll need to bring copies of your last two annual financial reports, as prepared by your accountant
- If you own or intend to buy an investment property:
- You’ll need a copy of the existing tenancy agreement or a rental appraisal from a local REINZ real estate agency, signed by the branch manager or the rental manager
Estimating your expenses
- Please bring a summary of your regular expenses, such as rent, power, gas, water, food, rates, transport, insurance and debt payments
If you’re a new customer to BNZ
- Please bring copies of your bank account statements covering the last six months
- If you’re refinancing from another bank, bring copies of your loan statements covering the last six months
- You’ll need two forms of identification, one with a photo of you, such as your passport or New Zealand driver licence
- If you’ve moved to New Zealand within the last five years, please bring a copy of your passport
Confirming your deposit
- Please bring something like a bank statement or term deposit receipt to show how much you have for the deposit on your new property
- If you’re applying for a Low Equity loan, because your deposit is less than 20% of the purchase price, you’ll need to bring copies of your savings account statements for the last six months to show your savings record. Please note, new BNZ home loan lending with an LVR of over 80% (less than a 20% deposit) may have a different interest rate and a low equity interest rate premium will apply. Find out more about the home loan changes
- If you’re applying for a home loan for a residential investment property and your deposit is less than 40% of the purchase price, Reserve Bank restrictions will apply (unless an exemption applies), and it is unlikely we’ll be able to approve the loan.
Sale and purchase agreements
- If you’ve already bought your new property, please bring a copy of the successful sale and purchase agreement
- If you’ve sold your existing property, bring a copy of that sale and purchase agreement
All home loans are subject to our lending criteria (including minimum equity requirements), terms and fees. Interest rates are subject to change. An establishment fee of up to $400 may apply for personal lending (the fee may be different for non-personal lending). Not for business purposes.