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.
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.
When reviewing your documentation, lenders evaluate:
| Assessment Area | What They're Looking For | Why It Matters |
|---|---|---|
| Identity | You are who you say you are | AML/KYC legal requirements |
| Income | Sufficient, stable, and ongoing income | Ability to make repayments |
| Employment | Job security and length of service | Income reliability |
| Expenses | Realistic living costs and spending habits | Affordability assessment |
| Debts | Existing financial commitments | Impact on serviceability |
| Savings | Genuine deposit and savings pattern | Financial discipline |
| Credit history | Past borrowing behavior | Risk assessment |
| Assets | What you own | Overall financial position |
Why preparation matters:
The better prepared you are, the smoother the process will be.
Here's everything you'll need, organized by category. Not every borrower needs every document, but this comprehensive list covers all common scenarios.
Essential for everyone:
Once you find a property:
If applicable:
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.
Acceptable forms of primary ID (you need ONE):
| Document Type | Requirements | Validity |
|---|---|---|
| NZ Passport | Current and not expired | Preferred option |
| NZ Driver License | Full license, current | Widely accepted |
| Overseas passport | Valid with NZ visa/residence | May need additional ID |
Important notes:
Proof of address (dated within last 3 months):
If your primary ID doesn't show address:
If you're applying with a partner, spouse, or co-borrower:
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.
Standard requirements:
| Document | Details Required |
|---|---|
| Last 3 payslips | Must show name, employer, pay period, gross and net income, deductions |
| Employment letter | On company letterhead confirming role, start date, salary, employment type (permanent/fixed-term) |
| IR3 or summary of earnings | From myIR showing annual income |
What payslips should show:
Red flags to avoid:
Self-employment requires more comprehensive documentation due to variable income and tax structures.
Required documents:
| Document | Time Period | Purpose |
|---|---|---|
| Financial statements | Last 2 years | Profit and loss, balance sheet |
| IR3 tax returns | Last 2 years | Filed and accepted by IRD |
| IRD summary of earnings | Current | Verification of filed returns |
| Business bank statements | Last 3-6 months | Cash flow assessment |
| Accountant's letter | Current year | Projected income, trading confirmation |
| Company/trust documents | If applicable | Structure verification |
Additional considerations for self-employed:
Common self-employment structures:
| Structure | Additional Documents Needed |
|---|---|
| Sole trader | IR3 returns, business bank statements |
| Partnership | Partnership agreement, IR7 returns |
| Company | Company financials, shareholder salary evidence |
| Trust | Trust deed, beneficiary details |
Contract workers need:
Fixed-term contracts:
Additional requirements:
If claiming boarder income:
If earning rental income:
Government benefits can count toward income:
Benefits that may be accepted:
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.
Provide statements for:
Even include:
Why they need all accounts:
Positive indicators:
| Indicator | What It Shows |
|---|---|
| Regular income deposits | Stable employment |
| Consistent savings transfers | Financial discipline |
| Bills paid on time | Responsible money management |
| Account always in credit | Living within means |
| Growing savings balance | Genuine savings pattern |
| Organized transactions | Good financial habits |
Red flags lenders watch for:
| Red Flag | Why It's Concerning | Potential Impact |
|---|---|---|
| Frequent overdrafts | Poor cash flow management | May decline or reduce loan |
| Dishonor fees | Insufficient funds | Questions about affordability |
| Gambling transactions | Financial risk behavior | May decline entirely |
| Large unexplained deposits | Undisclosed income or borrowed deposit | Require explanation |
| Living paycheck to paycheck | No financial buffer | Affordability concerns |
| Excessive cash withdrawals | Untrackable spending | Can't assess true expenses |
| Buy Now Pay Later usage | Short-term debt accumulation | Reduces borrowing capacity |
Before applying:
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.
You must provide details for ALL of the following:
| Debt Type | What to Provide | How It's Assessed |
|---|---|---|
| Credit cards | Recent statements, current balance, credit limit | Assessed at 3-5% of limit monthly |
| Personal loans | Loan statement, remaining balance, monthly payment | Full monthly payment reduces capacity |
| Car loans | Loan statement, balance, term, payment | Full monthly payment counted |
| Hire purchase | Agreement, balance, monthly payment | Full monthly payment counted |
| Student loan | Loan balance from IRD | 12% of income counted |
| BNPL accounts | Afterpay, Zip, Laybuy statements | Indicates poor money management |
| Overdraft facilities | Even if unused | Potential future commitment |
| Guarantor obligations | If you guarantee someone else's debt | Contingent liability |
Important: Lenders don't just look at your credit card balance—they assess based on the LIMIT.
Example:
This is why closing paid-off credit cards before applying is crucial.
Multiple Buy Now Pay Later accounts raise serious concerns with lenders.
Why BNPL is problematic:
What to do:
If you've recently paid off debts:
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.
| Loan Type | Minimum Deposit | Preferred Deposit | Low Equity Premium (LEP) |
|---|---|---|---|
| Standard loan | 10% | 20% | Yes if under 20% |
| First Home Loan | 5% | 10% | Varies by lender |
| Investment property | 30% | 35% | Yes if under 35% |
| Second/subsequent property | 20% | 30% | May apply under 30% |
Low Equity Premium (LEP) explained:
Acceptable deposit sources:
| Source | Acceptability | Documentation Required |
|---|---|---|
| Personal savings | Best - shows discipline | 3-6 months statements showing accumulation |
| KiwiSaver withdrawal | Excellent | KiwiSaver statement, withdrawal application |
| First Home Grant | Additional boost | Eligibility confirmation, application |
| Gift from family | Accepted with conditions | Gift letter, gifter's ID, proof of funds |
| Sale of assets | Accepted | Sale agreements, bank statements |
| Inheritance | Accepted | Estate documentation, bank deposit proof |
| Bonus or tax refund | Acceptable | Payslip or IRD documentation |
Problematic deposit sources:
Banks want to see you've saved money consistently over time, not just received a windfall.
What qualifies as genuine savings:
What doesn't qualify:
Timeline: Most lenders want to see at least 3-6 months of savings history.
KiwiSaver First Home Withdrawal:
Documentation needed:
See our complete KiwiSaver First Home Withdrawal guide for more details.
If family is helping with your deposit, lenders require specific documentation.
Gift letter must include:
Additional requirements:
Best practice: Have gift transferred at least 1-2 months before application so it appears in your statements as regular funds.
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.
Standard expense breakdown:
| Category | What to Include | Monthly Budget Range |
|---|---|---|
| Housing | Rent or board | $200-800 |
| Utilities | Power, gas, water, internet, phone | $150-350 |
| Food | Groceries and household supplies | $400-800 |
| Transport | Fuel, public transport, parking, vehicle costs | $150-500 |
| Insurance | Health, contents, vehicle | $50-200 |
| Healthcare | Medical, dental, prescriptions | $50-150 |
| Personal care | Haircuts, toiletries, clothing | $50-200 |
| Entertainment | Dining out, subscriptions, hobbies | $100-400 |
| Education | Childcare, school costs, courses | $0-800 |
| Other | Savings, gifts, miscellaneous | $100-300 |
Family-specific expenses:
Lenders compare your stated expenses against:
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.
Before applying:
Categories often forgotten:
Once you've found a property and made an offer, you'll need property-specific documentation for final approval.
Essential details the lender needs:
Important: Don't make an unconditional offer until you have confirmed finance approval for that specific property.
What it is:
Valuation outcomes:
| Outcome | What It Means | What Happens Next |
|---|---|---|
| At or above purchase price | Good news | Application proceeds normally |
| Below purchase price | Shortfall | Need larger deposit or renegotiate price |
| Significantly below | Major issue | May need to withdraw or add substantial deposit |
If valuation comes in low:
What it includes:
Who orders it:
Why lenders care:
What it assesses:
Who arranges it:
Why lenders want to see it:
Red flags that may affect lending:
Depending on your circumstances, additional documentation may be required.
Additional requirements:
Income assessment:
Required documentation:
Why it matters:
If a family member is providing a guarantee:
Guarantor must provide:
Types of guarantees:
Important: Guarantors should seek independent legal and financial advice before committing.
Trust documentation:
Company documentation:
Why it's complex:
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.
Step 1: Personalized Checklist
Step 2: Document Review
Step 3: Lender Liaison
Step 4: Problem Solving
Step 5: Multiple Lender Applications
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Book your free First-Home Planning Session with Luminate today.
We'll:
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:
📞 Call 0800 333 400Disclaimer: 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.