What Documents Do You Need for a Home Loan in New Zealand: Complete Checklist for 2025

Applying for a home loan can feel like a big task, especially if you've never done it before. You've saved your deposit, you've got your eye on a property, and now you're ready to talk to a lender. But before any bank or lender can give you a formal approval, they need to understand your full financial picture.

At Luminate Financial Group, we help hundreds of first-home buyers through this process every year. One of the first things we help our clients do is get their documentation in order. Having the right documents ready from the start can speed up your loan approval, reduce stress, and give you a real advantage when the right property comes along.

In this comprehensive guide, we'll walk you through exactly what documents you need for a mortgage application in New Zealand, why each one matters, and how to prepare them efficiently.

Why Lenders Need Documentation: Understanding the Process

Banks don't just hand out home loans based on income alone. They need to assess your overall financial position, your ability to repay the loan, and your stability. This process is governed by the Credit Contracts and Consumer Finance Act (CCCFA) and Responsible Lending Code, which require lenders to make reasonable inquiries about your financial situation.

What Lenders Are Assessing

When reviewing your documentation, lenders evaluate:

The Benefits of Being Document-Ready

Why preparation matters:

• Faster approval: Complete applications process in days instead of weeks
• Competitive advantage: Act quickly when you find the right property
• Better rates: Strong applications may negotiate better terms
• Less stress: Know exactly what's required upfront
• Identify issues early: Fix problems before formal application
• Multiple lender options: Apply to several lenders efficiently

The better prepared you are, the smoother the process will be.

Complete Home Loan Document Checklist for New Zealand

Here's everything you'll need, organized by category. Not every borrower needs every document, but this comprehensive list covers all common scenarios.

Quick Reference Checklist

Essential for everyone:

• ☐ Photo ID (passport or driver license)
• ☐ Proof of address
• ☐ Last 3 months payslips OR 2 years financials (self-employed)
• ☐ Last 3 months bank statements (all accounts)
• ☐ Credit card statements and loan details
• ☐ KiwiSaver statement or savings evidence
• ☐ Living expenses breakdown

Once you find a property:

• ☐ Signed Sale and Purchase Agreement
• ☐ Property valuation (often arranged by bank)
• ☐ LIM report
• ☐ Building inspection report

If applicable:

• ☐ Gift letter and gifter's ID
• ☐ Self-employment financial statements
• ☐ Rental income evidence
• ☐ Child support or maintenance documentation
• ☐ Guarantor documents

1. Proof of Identity and Address Verification

To start, you'll need to provide verified ID. This is a legal requirement under anti-money laundering (AML) and Know Your Customer (KYC) regulations established by the Department of Internal Affairs.

Primary Photo ID Requirements

Acceptable forms of primary ID (you need ONE):

Important notes:

• Learner or restricted licenses may require additional ID
• All ID must be current and not expired
• Photocopies must be clear and legible
• Some lenders require certified copies

Secondary ID and Proof of Address

Proof of address (dated within last 3 months):

• Utility bill (power, gas, water)
• Rates notice from local council
• Bank statement showing your address
• Tenancy agreement
• Government correspondence (IRD, Work and Income)

If your primary ID doesn't show address:

• Birth certificate
• 18+ card
• Citizenship certificate
• Additional bank statements

Joint Applications

If you're applying with a partner, spouse, or co-borrower:

• Each applicant needs their own complete ID documentation
• Proof of relationship may be requested (marriage certificate, joint accounts, shared address)
• Both parties must sign all application documents

2. Income Verification Documents

Income verification is critical because it determines how much you can borrow and whether you can afford repayments. Requirements vary significantly based on employment type.

For Salaried and Wage Earners (Permanent Employment)

Standard requirements:

What payslips should show:

• Your name and IRD number
• Employer name and details
• Pay period dates
• Gross income
• Tax deducted (PAYE)
• KiwiSaver contributions
• Any other deductions
• Net pay received

Red flags to avoid:

• Handwritten payslips (not accepted by most lenders)
• Missing employer details or IRD numbers
• Inconsistent income amounts without explanation
• Recent significant pay increases that aren't permanent

For Self-Employed Borrowers

Self-employment requires more comprehensive documentation due to variable income and tax structures.

Required documents:

Additional considerations for self-employed:

• Must have at least 2 years trading history
• Income assessed as average over 2 years or conservatively
• Add-backs for depreciation and one-off expenses may help
• Clear separation of business and personal finances essential
• GST returns may be requested
• Proof of contracts or ongoing work helps
• Some lenders require 20% deposit for self-employed

Common self-employment structures:

For Contractors and Fixed-Term Employees

Contract workers need:

• Current employment contract showing rate and term
• Last 12+ months history if possible
• Evidence of ongoing or future contracts
• Bank statements showing regular income deposits
• IR3 or summary of earnings
• Letter from contracting agency if applicable

Fixed-term contracts:

• Employment agreement showing term length
• Evidence of likelihood of renewal or ongoing work
• Longer history preferred (6+ months minimum)
• Letter from employer about renewal prospects

For Commission, Bonus, or Variable Income

Additional requirements:

• 12-24 months history of earnings
• Breakdown showing base salary vs. variable components
• Employment contract explaining commission structure
• Evidence that income is ongoing and reliable
• Some lenders only count percentage of variable income (e.g., 80%)

For Boarder or Rental Income

If claiming boarder income:

• Tenancy agreement or boarder arrangement letter
• Evidence of regular payments (bank statements)
• Lenders typically accept 50-70% of boarder income
• Must be sustainable arrangement

If earning rental income:

• Tenancy agreements for all properties
• Rental income statements
• Property expenses breakdown
• Rates and insurance evidence
• Property manager statements if applicable

For Beneficiaries (Work and Income Support)

Government benefits can count toward income:

• Letter from Work and Income confirming payment type and amount
• Evidence of how long benefit has been received
• Future benefit eligibility confirmation
• Bank statements showing benefit deposits
• May need larger deposit or have lower borrowing capacity

Benefits that may be accepted:

• Jobseeker Support
• Sole Parent Support
• Supported Living Payment
• Accommodation Supplement
• Working for Families tax credits

3. Bank Statements and Transaction History

Lenders typically request your last 3 months of bank statements for all accounts you hold. This provides insight into your spending habits, financial management, and savings discipline.

Which Bank Accounts to Include

Provide statements for:

• All everyday transaction accounts
• All savings accounts
• Joint accounts
• Any accounts showing income deposits
• Business accounts (if self-employed)
• Partner's accounts (if applying jointly)

Even include:

• Accounts with minimal activity
• Accounts being closed
• Accounts with other banks

Why they need all accounts:

• See complete financial picture
• Identify all income sources
• Spot undisclosed debts or commitments
• Assess lifestyle and spending habits
• Verify savings history
• Check for concerning transactions

What Lenders Look For in Your Statements

Positive indicators:

Red flags lenders watch for:

Tips for Clean Bank Statements

Before applying:

• Maintain 3+ months of clean banking history
• Keep account in credit with buffer
• Pay all bills on time
• Stop gambling entirely
• Reduce cash withdrawals
• Build regular savings pattern
• Avoid large unusual transactions without explanation

4. Credit Card, Loan, and Debt Statements

Lenders need to know about all existing debts because they affect your ability to service a mortgage. Full disclosure is essential—lenders will discover undisclosed debts through credit checks.

What Debts to Disclose

You must provide details for ALL of the following:

Why Credit Cards Are Assessed Differently

Important: Lenders don't just look at your credit card balance—they assess based on the LIMIT.

Example:

• Credit card limit: $10,000
• Current balance: $0 (paid in full monthly)
• Lender assessment: Assumes you use 3% of limit = $300/month
• Impact on borrowing: Reduces capacity by ~$55,000-75,000

This is why closing paid-off credit cards before applying is crucial.

Buy Now Pay Later: The New Mortgage Killer

Multiple Buy Now Pay Later accounts raise serious concerns with lenders.

Why BNPL is problematic:

• Indicates living beyond means
• Suggests inability to save for purchases
• Multiple accounts = red flag
• Easy to accumulate without realizing impact
• Shows short-term financial thinking

What to do:

• Pay off all BNPL accounts
• Close all accounts
• Stop using for 6+ months before applying
• Provides strong positive signal to lenders

Documenting Debt Clearance

If you've recently paid off debts:

• Provide final statement showing $0 balance
• Written confirmation account is closed
• Bank statement showing final payment
• Update credit file to show closure

5. Deposit and Savings Evidence

Your deposit is one of the most important aspects of your application. Lenders need to verify that you have the required funds and that they come from legitimate sources.

Minimum Deposit Requirements in NZ

Low Equity Premium (LEP) explained:

• Additional fee when deposit is under 20%
• Typically 0.25-1.50% per year added to interest rate
• OR upfront fee of 1-3% of loan amount
• Removed once you reach 20% equity (usually through property value increase or paying down loan)

What Counts as Your Deposit

Acceptable deposit sources:

Problematic deposit sources:

• Recently borrowed funds (personal loan for deposit)
• Unexplained large lump sums
• Cash deposits with no paper trail
• Funds from undisclosed sources

"Genuine Savings" Requirements

Banks want to see you've saved money consistently over time, not just received a windfall.

What qualifies as genuine savings:

• Regular deposits to savings account over 3-6 months
• Progressive KiwiSaver contributions
• Term deposits you've built up
• Managed funds or shares accumulated over time
• Consistent saving pattern visible in statements

What doesn't qualify:

• Money transferred from another account recently
• Recent gift or inheritance (helps, but doesn't show savings discipline)
• Lump sum bonus deposited last month
• Gambling or lottery winnings
• Cash savings with no history

Timeline: Most lenders want to see at least 3-6 months of savings history.

Using KiwiSaver for Your Deposit

KiwiSaver First Home Withdrawal:

• Can withdraw all except $1,000 kick-start
• Need 3+ years membership
• Requires signed Sale and Purchase Agreement
• Takes 10-20 business days to process
• Paid directly to your solicitor

Documentation needed:

• KiwiSaver statement showing current balance
• Proof of 3+ years membership
• First Home Withdrawal application form
• Sale and Purchase Agreement

See our complete KiwiSaver First Home Withdrawal guide for more details.

Gift Letters and Gifted Deposits

If family is helping with your deposit, lenders require specific documentation.

Gift letter must include:

• Amount being gifted
• Statement that it's a gift, not a loan
• Confirmation no repayment is expected
• Relationship between gifter and borrower
• Gifter's signature and date

Additional requirements:

• Gifter's photo ID
• Proof gifter has the funds (their bank statement)
• Evidence of transfer into your account
• Sometimes lawyer certification required

Best practice: Have gift transferred at least 1-2 months before application so it appears in your statements as regular funds.

6. Living Expenses and Budget Breakdown

Under the Credit Contracts and Consumer Finance Act (CCCFA), lenders must assess your actual living expenses to ensure the loan is affordable. You'll need to provide a realistic breakdown of your monthly spending.

Required Expense Categories

Standard expense breakdown:

Family-specific expenses:

• Childcare or daycare fees
• School fees, uniforms, activities
• Child support or maintenance payments
• Baby supplies and formula
• Extra food and clothing costs

How Lenders Assess Expenses

Lenders compare your stated expenses against:

• Your bank statements: Actual spending visible
• Household Expenditure Measure (HEM): Government benchmark for similar households
• Their internal benchmarks: Based on family size and location

Common issue: Understating expenses to look better

Result: Lender increases expenses to realistic levels anyway, and questions your financial awareness

Better approach: Be honest and realistic. Lenders would rather see accurate numbers.

Tips for Presenting Your Budget

Before applying:

• Track spending for 2-3 months
• Use actual data from bank statements
• Include all expenses, even small ones
• Don't forget annual costs (insurance, vehicle registration) – divide by 12
• Account for occasional expenses (gifts, car maintenance)
• Show room for unexpected costs

Categories often forgotten:

• Pet costs (food, vet, insurance)
• Vehicle maintenance and registration
• Annual subscriptions
• Gifts and celebrations
• Home maintenance items
• Personal care and grooming

7. Property-Specific Documents (Once You Find a Home)

Once you've found a property and made an offer, you'll need property-specific documentation for final approval.

Sale and Purchase Agreement

Essential details the lender needs:

• Purchase price
• Property address and legal description
• Settlement date
• Conditions (if any)
• Chattels included
• Vendor details
• Your solicitor's details

Important: Don't make an unconditional offer until you have confirmed finance approval for that specific property.

Property Valuation

What it is:

• Independent assessment of property's current market value
• Required by bank to ensure lending is secure
• Typically costs $400-800
• Often paid by bank as part of application
• Takes 3-7 days to complete

Valuation outcomes:

If valuation comes in low:

• Negotiate price down with seller
• Increase your deposit to cover gap
• Seek second valuation (costs extra)
• Walk away using finance condition

LIM Report (Land Information Memorandum)

What it includes:

• Building consents and code compliance certificates
• Property files and council correspondence
• Rates information and arrears
• Natural hazards (flooding, erosion, contamination)
• Zoning and planning restrictions
• Services (water, sewerage, stormwater)

Who orders it:

• Usually the buyer
• Cost: $200-400 from local council
• Takes 5-10 working days
• Essential for due diligence

Why lenders care:

• Unconsented work affects property value and lending
• Natural hazards affect insurability
• Rates arrears become buyer's responsibility
• Planning restrictions affect future use

Building Inspection Report

What it assesses:

• Overall structural condition
• Weathertightness
• Visible defects or damage
• Maintenance requirements
• Safety hazards
• Estimated costs for issues found

Who arranges it:

• Buyer engages licensed building inspector
• Cost: $500-1,200 depending on property size
• Takes 2-4 hours on-site, report within 2-3 days

Why lenders want to see it:

• Major defects affect property value
• Serious issues may make property unlendable
• Identifies risks to their security
• Influences loan approval decision

Red flags that may affect lending:

• Major weathertightness issues
• Structural damage or movement
• Extensive rot or decay
• Unconsented major renovations
• Serious safety hazards

8. Additional Documents for Specific Situations

Depending on your circumstances, additional documentation may be required.

For Investment Properties

Additional requirements:

• Rental appraisal or current tenancy agreement
• Property manager details (if using one)
• Rental income and expense history
• Insurance quotes for landlord cover
• Healthy Homes compliance evidence

Income assessment:

• Rental income typically counted at 70-80% (to account for vacancies and costs)
• Must show property is positively geared or you have capacity to cover shortfalls

For Separated or Divorced Applicants

Required documentation:

• Separation agreement
• Property settlement agreement
• Child support arrangement
• Court orders (if applicable)
• Proof other party has refinanced joint mortgage (if applicable)

Why it matters:

• Establishes financial independence
• Confirms ongoing commitments (child support)
• Verifies you're no longer liable for joint debts
• Shows clean financial separation

For Guarantor Applications

If a family member is providing a guarantee:

Guarantor must provide:

• Same documentation as borrower (ID, income, bank statements)
• Evidence of property equity or assets
• Consent and understanding of obligations
• Independent legal advice confirmation

Types of guarantees:

• Security guarantee: Guarantor's property used as additional security
• Servicing guarantee: Guarantor guarantees your ability to make repayments
• Limited guarantee: Guarantee capped at specific amount

Important: Guarantors should seek independent legal and financial advice before committing.

For Applicants with Trusts or Companies

Trust documentation:

• Complete trust deed
• List of trustees and beneficiaries
• Trust bank account statements
• Accountant letter explaining structure

Company documentation:

• Company constitution
• Shareholder details
• Financial statements
• NZBN lookup confirmation

Why it's complex:

• Lenders assess both personal and entity finances
• Income distribution affects personal income
• Additional legal and accounting review required
• May affect which lenders are suitable

How Luminate Financial Group Makes Documentation Easy

At Luminate, we understand that gathering documentation can feel overwhelming—especially if you're doing it for the first time. That's why we provide comprehensive support throughout the entire process.

Our Document Support Process

Step 1: Personalized Checklist

• Based on your specific situation (employment type, family structure, property type)
• Clear list of exactly what you need
• Guidance on where to obtain each document

Step 2: Document Review

• We review everything before submitting to lenders
• Identify any missing items or issues
• Suggest improvements to strengthen application
• Ensure statements show you in best light

Step 3: Lender Liaison

• We handle all communication with banks
• Submit applications on your behalf
• Follow up on any additional requests
• Explain any lender concerns and how to address them

Step 4: Problem Solving

• If documents reveal issues (spending patterns, recent job change, etc.)
• We create plan to address concerns
• May suggest delaying application to improve position
• Honest advice about realistic approval chances

Step 5: Multiple Lender Applications

• Submit to best-suited lenders simultaneously
• Saves time vs. sequential applications
• Increases approval chances
• Helps negotiate better rates

Common Documentation Issues We Help Fix

Problem: Bank statements show gambling transactions Solution: Stop immediately, wait 3+ months, apply with clean statements

Problem: Self-employed with incomplete financials Solution: Work with accountant to prepare proper statements, wait until 2 years trading completed

Problem: Recently changed jobs Solution: Wait until 3-6 months in role, or emphasize industry experience and provide detailed employment history

Problem: Undeclared debts or credit cards Solution: Disclose everything, close unnecessary accounts, pay down high balances before applying

Problem: Insufficient genuine savings Solution: Build 3-6 month consistent savings pattern before formal application

Frequently Asked Questions About Home Loan Documents

How long does it take to gather all documents?

For most employed borrowers with straightforward situations, 1-3 days. Self-employed borrowers may need 1-2 weeks to obtain financials from accountant. Starting early and being organized makes the process much faster.

What if I don't have all the documents?

Don't delay starting the conversation. We can assess your situation and give you a realistic timeline based on what's missing. Pre-approval can sometimes proceed with limited documents, with final approval pending complete documentation.

Can I use digital bank statements from my app?

Yes, most lenders accept digital statements downloaded from online banking, as long as they show all required information (bank name, account number, all transactions, opening/closing balance). Screenshots may not be accepted—download official PDFs.

Do both applicants need to provide everything if applying jointly?

Yes. Each applicant needs complete ID documentation. Financial documents (bank statements, income proof) are needed for all parties. Both applicants' information affects the total borrowing capacity.

What if my documents show concerning transactions?

Be honest and provide context. A single unusual transaction with explanation is better than trying to hide it. If statements show patterns of poor financial management, we may advise waiting 3-6 months to build cleaner history before applying.

How recent do documents need to be?

Generally dated within the last 3 months. Payslips should be most recent available. Financial statements must be from last financial year. Older documents may be requested for historical comparison but current documents are essential.

What if my payslips don't show all required information?

Request a detailed payslip from your employer or HR department. If employer uses basic payslips, supplement with employment letter confirming salary, role, and employment type. We can guide you on what additional documentation will satisfy lenders.

Can I edit or remove transactions from my statements?

Absolutely not. Altering financial documents is fraud and will result in immediate decline and potential legal consequences. Be transparent—lenders understand that not everyone has perfect financial history.

What if I've been self-employed for less than 2 years?

Some specialist lenders may consider applications with 12-18 months history if income is strong and consistent. You may need a larger deposit (20%+) and expect more scrutiny. Alternatively, wait until 2 years completed for better options and rates.

Do I need to provide documents for my partner if they're not on the application?

If you're married, in a de facto relationship, or living together, lenders typically want to see your partner's income and expenses even if they're not applying. This gives full household financial picture and affects affordability assessment.

What happens if the lender asks for additional documents during assessment?

This is common. Lenders may request clarification on specific transactions, additional income verification, or updated statements. We handle these requests on your behalf and ensure everything is provided promptly to avoid delays.

How long do lenders keep my documents on file?

Typically 7 years for regulatory compliance. Documents are stored securely and confidentially. When your loan settles or is declined, documents remain on file for audit and compliance purposes.

Final Thoughts: Be Prepared, Be Confident

Getting your documents in order is the first real step toward owning your home. While it might seem like a lot of paperwork, each document tells part of your financial story and helps lenders understand that you're a reliable borrower.

With the right preparation and expert guidance, the home loan application process becomes straightforward and manageable. When your documentation is complete and well-presented, your application moves faster, your approval is stronger, and you'll be in an excellent position to act quickly when the right property becomes available.

Remember: transparency and accuracy are key. Lenders appreciate honest, complete applications far more than applications that try to hide or minimize issues. If there are problems in your financial history, addressing them openly with your adviser allows you to present them in the best possible light or work on improvements before applying.

Ready to Get Started?

Book your free First-Home Planning Session with Luminate today.

We'll:

• Provide a personalized document checklist based on your situation
• Review your financial position and identify any potential issues
• Guide you through gathering and organizing everything you need
• Handle all lender communication and application submissions
• Support you from first consultation through to settlement

Don't let document gathering stress you out. With Luminate by your side, it's a straightforward process with a clear roadmap to success.

Contact Luminate Financial Group:

Disclaimer: This article provides general information only and should not be considered financial advice. Lending criteria, documentation requirements, and policies vary by lender and are subject to change. Always work with a qualified mortgage adviser who can provide personalized guidance for your specific situation.