New Zealand’s mortgage market is changing. Tighter bank criteria, CCCFA obligations, and Reserve Bank DTI rules mean some borrowers are finding the bank pathway harder than expected. Non-bank lenders have become a mainstream option, not just a “last resort.” Use this checklist to decide if a non-bank mortgage could suit your situation.
Step 1: Assess Your Circumstances
- First-home buyer? Are you struggling to tick every bank box despite genuine ability to repay?
- Investor? Do you need portfolio lending, bridging finance, or flexible treatment of rental/short-stay income?
- Income type? Are you self-employed, is your income commission-based, seasonal, or from overseas?
- Credit profile? Do you have a recent blemish that doesn’t reflect your current financial position?
- Timeline? Are you working to an auction date or tight conditional deadline a bank may not meet?
Step 2: Understand What Non-Banks Offer
Non-bank lenders focus on flexibility and speed. They may:
- Accept alternative documentation such as bank statements or accountant letters.
- Assess income more holistically, including rental or overseas earnings.
- Offer bridging, near-prime, or interest-only options where banks cannot.
- Provide quicker decisions for time-sensitive purchases.
Step 3: Consider the Trade-Offs
- Rates: May be slightly higher than major banks in exchange for speed and flexibility.
- Fees: Check establishment and ongoing costs carefully.
- Exit strategy: Do you plan to refinance to a bank later once your profile fits?
Step 4: Build Your Checklist
Tick the boxes that apply to you:
[ ] I can afford the repayments but don’t fit my bank’s documentation requirements.
[ ] I’m self-employed, a contractor, or have multiple income streams.
[ ] I need to settle quickly (e.g. auction, bridging).
[ ] I’ve had a one-off credit issue but my finances are strong today.
[ ] I want flexibility in loan structure (interest-only, portfolio lending, non-standard terms).
If you’ve ticked more than one, a non-bank mortgage may be worth exploring.
Case Study Snapshots
- First-home buyer in Auckland: Approved by a non-bank using alternative income verification; refinanced to a bank 18 months later once tax returns caught up.
- Investor in Christchurch: Used non-bank bridging finance to secure a property ahead of settlement, then switched to bank funding once their existing sale went through.
Disclaimer: This checklist is for general information only and is not financial advice. Borrowers should seek professional guidance from a licensed financial adviser before making decisions.