Frequently Asked Questions
About mortgage advice in New Zealand
Q: What does a mortgage adviser do?
A: A mortgage adviser works with lenders on your behalf to find and structure lending that fits your situation. Unlike going directly to a bank, an adviser has access to multiple lenders and can assess your options across the market. At Crisp Financial, the focus goes further than finding a rate. We help you understand how different structures work, where the risks sit, and what your decision means over time.
Q: Is a mortgage adviser the same as a mortgage broker?
A: In New Zealand the terms are used interchangeably. The formal term under the Financial Markets Conduct Act is Financial Adviser. All advisers must be registered with the Financial Service Providers Register and operate under a Financial Advice Provider licence.
Q: How much does it cost to use a mortgage adviser in New Zealand?
A: In most cases, nothing. Mortgage advisers are paid a commission by the lender when a loan settles. That commission is similar regardless of which lender is chosen, so there is no incentive to push you toward any particular bank. Crisp Financial discloses all commissions as part of the advice process. In rare cases, where a lender does not provide commission a charge will be disclosed early in the process and agreed before proceeding.
Q: Why use an adviser instead of going directly to my bank?
A: Your bank can only offer you their own products. An adviser can assess options across multiple lenders and will often identify structures, lenders, or conditions your bank wouldn't suggest. This matters most when your situation is more complex, when you're an investor, when you're self-employed, or when you want to understand the trade-offs before you commit.
Buying your first home in New Zealand
Q: How much deposit do I need to buy a house in New Zealand?
A: The standard minimum deposit for owner-occupied property is 20%. However, banks can lend a portion of their book at higher LVR, meaning you may be able to buy with as little as 10% in some cases. First home buyers may also qualify for a Kainga Ora First Home Loan with a 5% deposit, subject to income and price caps. Your eligibility depends on your income, the property value, and lender policy at the time.
Q: What is LVR and how does it affect my borrowing?
A: LVR stands for Loan to Value Ratio. It is the amount you're borrowing expressed as a percentage of the property's value. A $600,000 home with a $120,000 deposit gives you an LVR of 80%. The Reserve Bank sets LVR restrictions that limit how much high-LVR lending banks can do, which is why having a larger deposit generally gives you more options and better rates.
Q: Can I use my KiwiSaver for a house deposit?
A: Yes. If you have been contributing to KiwiSaver for at least three years and are buying your first home, you can withdraw most of your balance for a deposit. You must leave a minimum of $1,000 in your account. Your eligibility and the amount available depend on your KiwiSaver provider and fund balance. Note that the First Home Grant was discontinued in May 2024 and is no longer available.
Q: What is a pre-approval and do I need one?
A: A pre-approval is conditional confirmation from a lender that they are willing to lend you up to a certain amount, subject to a suitable property and final verification. It is not a guarantee, but it gives you a clear price range before you start searching and signals to vendors that you are a serious buyer. Pre-approvals typically last 60 to 90 days.
Investment property lending in New Zealand
Q: How much deposit do I need for an investment property in New Zealand?
A: Most banks require a minimum 30 percent deposit for investment properties under current Reserve Bank LVR rules. New builds are exempt from this restriction, which means investors can often purchase a new build with a lower deposit. See our post on why new builds remain the smart entry point for NZ investors.
Q: What is DTI and how does it affect my ability to borrow as an investor?
A: DTI stands for Debt to Income ratio. It measures your total debt against your gross annual income. The Reserve Bank introduced DTI restrictions in 2024. Most banks apply a maximum DTI of around 6 for owner-occupiers and slightly lower for investors, though this varies by lender. If you have significant existing debt relative to your income, DTI can be the binding constraint rather than deposit size. See our post on the Mortgage Ready Test
Q: What is cross-collateralisation and should I avoid it?
A: Cross-collateralisation is when a lender uses multiple properties as security for your loans, tying them together. It simplifies administration for the bank but reduces your flexibility. If you want to sell one property or refinance, the bank has control over the whole portfolio. Crisp Financial generally structures investment lending to avoid this where possible.
Q: What is the difference between interest-only and principal and interest lending for investors?
A: Interest-only lending means your repayments only cover the interest charged, not the loan balance. This improves short-term cash flow but does not reduce your debt and typically carries a time limit. Principal and interest reduces the loan over time but requires higher repayments. The right choice depends on your cash flow position, tax situation, and investment timeline. See our full breakdown of IO vs P&I for NZ investors.
Q: Can I use equity in my existing home to buy an investment property?
A: Yes. If your home has increased in value or you have paid down your mortgage, you may have usable equity you can release to fund a deposit on an investment property. The amount available depends on the current value of your home, your existing mortgage balance, and lender policy. See our guide on moving from homeowner to investor using equity.
Refinancing and mortgage structure
Q: When should I consider refinancing my mortgage?
A: Refinancing is worth reviewing when your fixed rate is coming off, when your circumstances have changed significantly, when your current lender's terms no longer suit your goals, or when you want to restructure your debt. The decision isn't only about chasing a lower rate. It's about whether the structure is still the right one for where you're headed.
Q: What is mortgage portability?
A: Portability allows you to move your existing mortgage from one property to another when you sell and buy, without breaking the fixed term. Not all lenders offer this and conditions vary. It can be useful if you are upgrading your home and want to retain a favourable rate.
Q: Should I fix or float my mortgage in New Zealand?
A: This depends on your cash flow, risk tolerance, and how you expect rates to move. Fixing gives certainty on repayments. Floating gives flexibility to make extra payments or restructure without break costs. Many New Zealanders split their mortgage across different terms to balance both. The right structure depends on your specific situation, not a general rule.
Working with Crisp Financial
Q: Where is Crisp Financial based and can you help me if I am not in Wellington?
A: Crisp Financial is based in Wellington and works with clients across New Zealand. Most of our process can be handled remotely. Location is rarely a barrier.
Q: How do I get started?
A: The easiest starting point is a short conversation. We'll ask about your situation, what you're trying to achieve, and whether there's a sensible next step. There's no obligation and no paperwork required at that stage. Click here to book a chat or send an enquiry.