In: Mortgage Tips

Applying for a first mortgage can be an exciting and stressful time. For most people, it’s the biggest debt they’ve ever had.

If you, or someone you know, is about to go through this, here are some key things to consider.

Account conduct

Being able to pay the required loan repayments isn’t the only thing that your lender will check. They will also look at how well you’re managing your money with your current level of outgoings.

For example, if you have unarranged overdrafts or had payments bouncing in the past, a lender may be hesitant to lend you the amount you need. That’s why, before applying, it’s important to spend a few months focusing on getting your account into good shape – paying every bill on time, putting some money aside each month, and cutting down on unnecessary spending.

Start with this question: Is there anything in your transaction history that you could look at improving?


Debt can affect your overall financial position when you apply for a loan, while also reducing the amount of money you have available to pay your home loan.

To give you an example, even an interest-free student loan can be a drawback in this way, reducing by 10 per cent the amount you have available each week to spend on a mortgage.

If you’d like to maximise your borrowing power, it’s a good idea to pay off as much debt as you can before you submit your application.


When applying for a home loan, it’s important to be as straight-forward and transparent as possible. Make sure you disclose every detail of your finances, including credit cards that you may have with another bank.

Lenders have access to a lot of information and, if they start to doubt your credibility as a borrower, it could be a black mark against your application – which unfortunately is hard to come back from.


As we said, taking the time to improve your financial position is crucial. So rather than rushing to get in, consider waiting until you have everything in tip-top shape before you apply.

Wait until you’ve pulled together the best deposit you can, your accounts are in the best position possible and your income is as good as it’s going to be for a while. Then take your time working with a mortgage adviser to find the right lender for your needs.

We can help

Over the past 25 years, our Mortgage Link advisers have helped thousands of New Zealanders get on the property ladder.

Keep in mind that one of the best ways to ensure that a home loan application is approved is to apply to the right lenders. At any one time, some lenders are more open to new lending than others, and some have more ability to cater to low-deposit borrowers, or those wanting an apartment, or any of the other variables that make one borrower different from another.

As mortgage advisers, we can help you work out who will have appetite for your type of application. Visit our website to find a Mortgage Link adviser close to you.


To get in touch with the team at Mortgage Link, please contact:
Josh Bronkhorst
[email protected]
021 835 506


Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.