Buying a house for the first time isn't just a financial step-it's an emotional rollercoaster. Whether you're cautiously optimistic or just want to know exactly what lies ahead, here's your spoiler-free guide to the full home buying journey. No nasty surprises.
Step 1: Get Pre-Approval from the Bank
Before you start falling in love with character villas or attending every auction in town, you need a mortgage pre-approval.
Pre-approval is a written offer from a bank confirming how much they're willing to lend you. Most pre-approvals are conditional-meaning the bank will lend you the money, but only if certain criteria are met (like verifying your income or deposit source). If all conditions are cleared, it becomes unconditional. Learn more about what your Letter of Offer contains.
Pre-approvals usually last 60–90 days. You can renew them, but it's best to start looking seriously once it's in place.
What Do You Need for Pre-Approval?
You'll need proof of deposit such as savings, KiwiSaver, or gifting from family (note: you can't borrow your deposit from a finance company). You'll also need proof of income including payslips, financial statements, and even flatmate income in some cases. Banks will also run a debt check and factor in existing debt when assessing your affordability. You may also be eligible for KiwiSaver withdrawal or the First Home Loan scheme. Your mortgage adviser can help you pull these together.
Step 2: Make an Offer on a Property
Start house-hunting
Once pre-approved, it's time to hit those open homes (slip-on shoes recommended). Explore your options: new builds, existing homes, apartments, or mortgagee sales. Each has its own pros, cons, and quirks.
Do your homework
Found a place you love? Now it's due diligence time. Order a LIM report and/or building inspection, check the property title for easements, covenants or cross-leases, review the Sale and Purchase Agreement, and ask your lawyer to review all documents before signing.
Conditional vs Unconditional Offer
Based on your due diligence and your bank's requirements, you'll decide whether to make a conditional offer (subject to finance, inspections, etc.) or an unconditional offer (where you commit no matter what). Note: All auction bids are unconditional.
Offer accepted? Time to pay the deposit
Congratulations! If your offer is accepted and it's unconditional, you'll need to pay the deposit straight away-usually 10%. It's non-refundable. If your offer was conditional, the deposit is due once conditions are satisfied.
Step 3: Prepare for Settlement
Once you've gone unconditional, the countdown to settlement day begins.
In the first steps after going unconditional, provide your lawyer with your IRD number and photo ID, arrange home and contents insurance, and consider life and health insurance just in case the unexpected happens.
Two weeks out, complete your KiwiSaver withdrawal paperwork (at least 10 days before settlement) and meet with your mortgage adviser to confirm mortgage structure and interest rates.
One week out, meet with your lawyer to sign your loan documents and the bank will open your accounts.
Two days out, do a pre-settlement inspection, transfer any cash contribution to your lawyer, and chill the champagne (essential).
Step 4: Settlement Day
On settlement day, your lawyer sends the funds to the seller's lawyer. Once confirmed, the agent hands over the keys. That's it-you officially own your home!
After Settlement
You're a homeowner now! A few final tasks remain. Double-check your mortgage account is set up correctly and keep your broker in the loop for fixing new rates in future, restructuring your mortgage, applying for top-ups for renovations, and planning your next purchase whether home or investment.
Welcome to the property ladder-your journey has just begun.
Need Help With Your Mortgage?
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