Deposit
The cash or usable equity you put towards the purchase. A larger deposit means less borrowing, a lower interest rate, and fewer fees.
Mortgage basics
What Is A Mortgage & How Does It Work?
The home loan is the debt, and the mortgage is what gives the lender the right to claim the property should you fall behind on the home loan.
Most people use "mortgage" and "home loan" interchangeably, but they're two different things. The home loan is the money you borrow to buy the property. The mortgage is the security your lender registers against that property until the loan is paid off.
Every home loan is built from the same core parts:
The anatomy of a home loanPrincipal
The amount you borrow from the lender.
Interest
The cost of borrowing that money, charged as a percentage of what you still owe.
Loan term
How long you have to repay the home loan. A longer term lowers each repayment but raises the total interest you pay over time.
Repayments
The regular payments you make, typically fortnightly or monthly. Each one covers the interest owed and chips away at the principal amount.
Equity
What the property is worth minus what you still owe. It grows as you repay the home loan and as the property's value rises.
Interest is calculated on your outstanding balance, so every dollar you pay off the principal reduces the interest you're charged from that point on. Paying down the loan faster can save you a significant amount over the loan term.
Loan types explained
Understand Your Home Loan Options
We explain the benefits and trade-offs of each home loan option.
Fixed Rate
Your rate stays the same for an agreed term, giving you predictable repayments during that period.
Floating Rate
Your rate can move, but you usually have greater freedom to make extra repayments.
Split Loan
Part is fixed and part is floating, balancing repayment certainty with some flexibility.
Offset Mortgage
Linked savings reduce the portion of your loan charged interest while your money remains accessible.
Revolving Credit
Your income and everyday spending move through a flexible loan account, which can suit disciplined borrowers with regular surplus income.
Interest-Only Loan
For an agreed period, repayments cover interest without reducing the principal. This lowers payments temporarily but may increase the long-term cost.
Table Loan
Regular repayments cover interest and gradually repay the amount borrowed over the loan term.
The full offer, not just the rate
We Look Beyond The Advertised Interest Rate
The lowest advertised rate is not automatically the right home loan. We compare the full offer, including:
- Interest rates, fees and available cash contributions
- Repayment flexibility and early repayment conditions
- How each lender assesses your income, deposit and existing liabilities
- The support available when your fixed term ends or your plans change
Working across multiple banks and non-bank lenders lets us look beyond the policy of one bank. We recommend the options that suit your position best.
How we work
How it works
From “Can We Afford It” To Keys In Hand
1.
Find out what you can really borrow
We look at your income, expenses, liabilities and deposit to work out how much you can borrow, and just as importantly, how much you can comfortably repay.
2.
Let us shop the market for you
Instead of you going from bank to bank, we compare rates, fees, lending policies and loan features across banks and non-bank lenders. We're looking for the best home loan fit, not just the lowest advertised interest rate.
3.
Apply with confidence
You get a simple checklist of what we need. We put your application together, present it to the lender in its best light and handle their questions, so you're not stuck chasing paperwork.
4.
Settle in, and stay on the right loan
Once you're approved, we fine-tune your loan structure and work with your lawyer through to settlement. When it's time to refix, we catch up again and check in your situation again.
Whatever you are planning
Home Loan Advice For Different Plans
We also advise on low deposit home loans, mortgage pre-approval, refinancing and changing banks, refixing and restructuring your mortgage, investment property loans, construction and renovation loans and bridging finance.
Low Deposit Home Loans
Mortgage Pre-Approval
Refinancing & Changing Banks
Refix & Restructure
Investment Property Loans
Construction & Renovation Loans
Bridging Finance
How Much Can I Borrow?
Tell us what you're planning and we'll help you work out the best path.
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Home Loan Advice Clients Recommend
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Bax5 months ago
Sarah is super helpful and easy to work with, she actively communicated and answered all of my silly questions quickly. Highly recommend her for first home buyers and buyers in general. Great to work with and very informed!
Helene McDonagh7 months ago
Sarah was absolutely amazing in guiding us through the process as first home buyers. She truly went above and beyond, taking the time to answer all of our (sometimes silly!) questions and making sure we felt supported every step of the way. She was always available to help, even on weekends, whether by call or text, which made such a stressful process feel so much easier. We would highly recommend Sarah and couldn’t have asked for a better experience.
Toni Tittleton10 months ago
Sarah been amazing to deal with! She has helped my partner and I get into our first home. She answered all our thousands of questions! Which really helped us understand the process :) (thanks Sarah!!)
Rashmika Gajjara year ago
I had the pleasure of working with Sarah as my mortgage advisor for purchasing my first home, and I couldn’t be more grateful for her support throughout the process. From the very beginning, she was extremely helpful and transparent, explaining every detail in a way that made everything clear and easy to understand. I thought it would be a stressful and overwhelming experience but it was smooth and straightforward thanks to her guidance. She made the whole journey feel effortless. I would highly recommend Sarah to anyone looking for a reliable and supportive mortgage advisor.
CourtNZa year ago
Sarah has gone above and beyond for us and has been an amazing support while we were buying our first home! She was always available to answer any of our weird and wonderful questions and was super knowledgeable about all aspects of the process. We cannot thank her or recommend her enough! Thanks Sarah :-)
Poppy Maya year ago
Sarah was awesome to deal with and helped us get into our first home :) She was super flexible with meeting times and uses google meets so that we could take the meeting from anywhere. Sarah is super friendly and no question was a dumb question for her, which made us feel really comfortable. She explained each step of the process really clearly and helped us apply for a home loan with the banks, fix our home loan and will be following us up when its time to re-fix. 10/10!
How Much Deposit Do I Need For A Home Loan In New Zealand?
Most banks prefer a 20% deposit, but that is not a legal requirement. A limited amount of lending is available below 20%, and some buyers may qualify for options such as a Kāinga Ora First Home Loan. We go through the real cost of low deposit home loans with you, including a higher interest rate, a low equity margin or a one-off premium, depending on the lender.
How Much Can I Borrow?
Lenders consider your income, regular expenses, existing debts, deposit, dependants and the repayments you could manage at a higher test rate. Online calculators provide an estimate, but an adviser can assess your position against current lender policies.
Should I Get Pre-Approval Before Looking At Homes?
Pre-approval gives you an indication of how much a lender may be prepared to lend, subject to its conditions and approval of the property. Pre-approvals are commonly valid for 90 days. It can help you set a realistic search range, but it is not a guarantee of final approval.
What Documents Will I Need For A Home Loan Application?
Common requirements include identification, proof of income, recent bank statements, evidence of your deposit and details of existing short and long term liabilities. Self-employed applicants may also need financial statements and tax information. We give you a clear checklist for your situation.
Is A Fixed Or Floating Home Loan Better?
Neither is always better. Fixed rates offer repayment certainty for an agreed term, while floating loans generally provide greater repayment flexibility. Some borrowers split their loan to use both. The right structure depends on your cash flow, plans and comfort with changing rates.
Next step
Ready To Run Your Numbers?
Tell us what you are planning and we'll help you understand your borrowing position, compare suitable lenders and choose a home loan structure that works for you.