Source: Settled.govt.nz

If you’ve arranged a conditional pre-approved home loan with a bank or another lender and you’ve found a home to buy, you’ll need to confirm the loan before your offer goes unconditional.

Conditional pre-approved finance is a pre-approved home loan limit from your bank or lender. It’s a good idea to have conditional pre-approved finance arranged with your chosen lender before you start looking to buy a property. Conditional pre-approval is usually free and lasts for 3 months.

• Conditional pre-approval confirms the price range you can buy in.
• When you find a property you’d like to make an offer on, having conditional pre-approval will mean you can move quickly to make an offer.
• You will need conditional pre-approval if you are taking out a home loan to purchase a property at auction.
• Having conditional pre-approval on a home loan shows agents and sellers that you are a serious buyer.

Even with conditional pre-approval, most banks and lenders will require information about the property you’re buying before confirming the home loan, so any sale and purchase agreement may have to be conditional on finance. Your bank or lender may ask for:

• a copy of the signed sale and purchase agreement
• a property valuation report from an accredited property inspector, especially if it’s a private sale
• a LIM report.

Confirm your insurance

Your bank or lender will need proof that you have arranged property insurance before settlement day.

The Insurance Council of New Zealand (ICNZ) has a useful guide to home and property insurance.

Government help

You may be able to get government help to buy your first home if you're a KiwiSaver member, want to buy a house owned by Kāinga Ora or are Māori and want to live on your ancestral land.

For more information, head to https://bit.ly/34VZvie.

This page provides general information only and should not be relied on. You should always get advice from your own lawyer or talk to our team at Southland Real Estate directly.