Applying for a mortgage online in New Zealand has become increasingly popular due to its convenience and efficiency. However, before you apply for mortgage online, it’s crucial to have all the necessary documents ready to ensure a smooth process. A well-prepared document checklist can save you time and help prevent delays in your application.
Here’s a comprehensive guide to what you need to gather before starting your online mortgage journey in New Zealand.
Proof of Identity
To comply with New Zealand’s anti-money laundering requirements, you’ll need to provide proof of identity. Acceptable forms include a passport, New Zealand driver’s licence, or a combination of other government-issued documents like a birth certificate paired with a photo ID.
Additionally, you may be required to provide proof of address, such as a recent utility bill, rates bill, or bank statement that shows your current residential address.
Proof of Income
Lenders in New Zealand will assess your ability to service the mortgage by examining your income. If you are employed, you’ll need to provide recent payslips (typically the last three months) and possibly an employment contract or letter from your employer.
For self-employed individuals, you’ll need to provide the last two years of financial statements, tax returns, and an Inland Revenue (IR) confirmation of your income, such as a summary of earnings or IR3 statements.
Bank Statements
Most New Zealand lenders require bank statements from the last three to six months. These statements give lenders insight into your financial habits, such as income deposits, regular expenses, and any evidence of savings behaviour. Ensure that your statements display your name, account details, and all transactions over the required period.
Credit History
Your credit history is an important factor for New Zealand lenders. Although they will conduct their credit check, having your copy of your credit report from New Zealand’s credit reporting agencies (e.g., Equifax, Centrix) can help you identify and address any issues beforehand. This report should reflect all loans, credit cards, and payment histories.
Details of Existing Debts and Financial Commitments
In New Zealand, it’s essential to disclose all existing financial commitments, including personal loans, student loans, credit cards, and other liabilities. Lenders use this information to calculate your debt-to-income ratio, which plays a crucial role in determining how much you can borrow.
Using a Mortgage Broker
Engaging an online mortgage broker in New Zealand can be beneficial, as they can guide you through the process, help find competitive rates, and ensure that you have all the required documents in place before you apply.
Having these documents prepared in advance will streamline the process when you apply for mortgage online in New Zealand. By organising your paperwork ahead of time, you can avoid delays and confidently move forward towards securing your new home.
