The questions we get most.

A turnkey purchase usually requires a deposit, with the remaining price paid when the completed home settles. Under a progress payment contract, the lender releases funds in stages as construction reaches agreed milestones. The exact deposit, drawdown schedule and evidence requirements come from the signed contract and lender approval. For example, ANZ says its later construction drawdowns may require builder invoices matching the original payment schedule and, in some cases, staged valuations. A turnkey label does not remove settlement risk: your approval conditions still need to be satisfied when the property is ready. Have your solicitor review the contract before signing, and have the finance sequence checked against the payment dates.

SourcesANZ construction drawdown guidance·Homelend construction finance guide

There is no single deposit that applies to every buyer. The property, occupancy, lender and strength of the application all matter. The Reserve Bank currently classifies owner occupier lending above 80 percent LVR as high LVR, but its rules are bank speed limits rather than an individual right to borrow 80 percent. A bank can require more equity. Eligible first home buyers may be able to use a Kāinga Ora First Home Loan with a 5 percent deposit, subject to Kāinga Ora requirements and the participating lender's criteria. Confirm the current rules before making an offer, because a deposit that is theoretically possible may still produce stricter approval conditions or higher costs.

SourcesReserve Bank LVR restrictions·Kāinga Ora home ownership options

You may be eligible for a first home withdrawal after being a KiwiSaver member for at least three years. Inland Revenue says eligible members can withdraw their own contributions, employer contributions, government contributions and investment earnings, but must leave at least $1,000 in the account. Other restrictions apply, including to amounts transferred from an Australian complying superannuation scheme. Your KiwiSaver provider processes the withdrawal, and your solicitor usually needs the approved funds for the property transaction. Start the provider process early and do not assume the account balance shown online is the exact amount available. Check the official rules and your provider's required documents before relying on the withdrawal.

SourcesInland Revenue first home withdrawal rules

A borrowing estimate depends on verified income, living expenses, existing debt, credit limits, dependants, loan term, interest test rates and the property. The Reserve Bank DTI rules also limit the share of new bank lending that can go above specified debt to income thresholds. Current rules allow 20 percent of owner occupier lending above a DTI of 6 and 20 percent of investor lending above a DTI of 7. These are bank speed limits, not personal borrowing entitlements, and lenders still apply their own affordability policies. A useful assessment therefore tests your actual documents with suitable lenders and shows which input is constraining the result instead of quoting one generic income multiple.

SourcesReserve Bank DTI explanation·Home loan and refinancing guide

Allow for professional advice and property checks as well as the purchase deposit. Depending on the property and lender, that can include legal or conveyancing work, a LIM, building inspection, valuation, insurance and lender fees. You may also need moving costs, urgent repairs or rates adjustments at settlement. The exact checks should reflect the property rather than a generic list. Settled recommends choosing a lawyer or conveyancer early and having legal documents reviewed before signing. Ask the lender or adviser which reports are approval conditions, then keep a separate cash buffer so paying for due diligence does not leave the settlement funds short.

SourcesSettled property due diligence guidance

Homelend generally does not charge a fee for mortgage advice because a lender usually pays commission when a loan settles. A fee may apply if no lender commission is received or if commission is clawed back after the loan is repaid or materially changed within the period stated in the adviser disclosure. The current Homelend disclosure caps the described clawback fee at $2,500 plus GST, calculated at $250 plus GST per hour, and says any fee will be agreed in writing in advance. Your adviser must give you the disclosure that applies to your engagement. The FMA also recommends asking how an adviser is paid, whether payment differs by lender and which fees could apply.

SourcesFMA guide to mortgage advice·Homelend adviser disclosures

Refinancing is worth reviewing when the expected benefit of changing lender or structure exceeds the costs and supports your wider plan. Compare break costs, legal or valuation costs, incentives, new fees, repayment flexibility and the period you expect to keep the loan. A lower advertised rate is not enough on its own. Reserve Bank LVR and DTI restrictions contain exemptions for refinancing where the new loan does not exceed the original loan value, but the new lender still decides whether the application meets its criteria. Ask for the current lender's retention or restructure options as well as external offers, then compare them over the same time period.

SourcesReserve Bank LVR restrictions·Home loan and refinancing guide

Start with the land and building contract, then add every cost needed to reach completion. Depending on the project, that may include design, consent, engineering, surveying, valuation, insurance, utility connections, professional fees, interest during construction and a contingency for approved changes or overruns. Reconcile the full sources and uses of funds before applying, because the contract price may not cover the whole project. Lenders can require invoices and updated evidence before progressive drawdowns. Keep a record of variations and discuss cost increases before committing to them, since additional lending requires a fresh assessment and may depend on the property value at that stage.

SourcesANZ construction project guidance·Construction and development finance guide

Principal and interest repayments cover interest and reduce the loan balance. Interest only repayments cover the interest charged during the agreed period but do not reduce principal. This usually lowers the scheduled payment for that period, but the remaining principal still has to be repaid later. If the overall loan term does not change, the later principal and interest repayment can be higher because repayment occurs over fewer years. Interest only can suit a defined cash flow purpose, but it is not automatically better for an investor. Compare the total cost, the exit from the interest only period and how the structure affects future borrowing capacity.

SourcesANZ interest only repayment explanation·Property investment lending guide

The exact list depends on the lender and income type, but begin with identification, proof of address, recent income evidence, bank statements, confirmation of the deposit and statements for every existing debt or credit limit. Once a property is involved, include the signed sale and purchase agreement and any valuation or construction documents required by the lender. Self employed applicants commonly need financial statements, tax records and current trading information. Tell the adviser about expected changes to income, expenses or household circumstances. Clean, complete and consistent documents reduce avoidable questions, but they do not guarantee approval because the lender still assesses affordability, security and credit risk.

SourcesKāinga Ora preparing and applying guide·Talk to Homelend