With a pre-approval on a home loan you can house hunt with confidence, knowing exactly how much you’ll be able to afford.
Should I apply for pre-approval?
That’s completely up to you, although it’s a common practice here in New Zealand and can be helpful for first home buyers who may not know how much money they can borrow. However some people will wait until they’ve found a home they want to make an offer on, or have made an offer already.
What does pre-approval mean?
Conditional pre-approval means you’ve been approved as a borrower providing nothing changes for you, and the home you choose meets the loan provider’s lending conditions. This pre-approval tells sellers you’re a serious buyer – and if you want to bid at auction, pre-approval is a must-have, so please talk to us first.
A pre-approval is usually valid for 6 months, so you have plenty of time to house hunt. Renewing your pre-approval is easy too – just contact us when the expiry date is approaching.
With pre-approval on a loan you’ll know what you can spend, giving you the ability to quickly make an offer once you’ve found a great property.
Note: If you’re buying at auction and want to buy an apartment or a lifestyle block, talk to us first as pre-approval may not cover some circumstances, and we may need some additional information from you.
What we need from you
We will tailor this to suit your circumstances and the needs of your loan application.
The following list will apply to most situations, there may more information required but to get us started this information is required.
Identification: copy of driver’s licence or passport identification.
Income if you’re an employee: evidence of income by way of any one of the following;
Your three most recent payslips or
a letter from your employer that confirms your annual salary and your length of employment with the employer, or your work contract
Income if you’re self-employed:
a tax assessment from IRD for the last financial year,
Last 2 years financial accounts prepared by a chartered accountant, if self-employed.
Deposit: evidence of your deposit is usually by way of latest KiwiSaver statement share certificates.
Account conduct: evidence of satisfactory account conduct requires 3 months bank statements all accounts. These statements can be internet statements but they do need to show the running balance after each transaction have your banks letterhead and your account number on them.