Frequently Asked Questions

Answers to the questions we hear most from first home buyers, families and investors. If yours isn’t here, book a free chat and ask us directly.

Working with a mortgage adviser

We look at your income, expenses, deposit, goals and plans, compare lenders, and recommend a lender, loan and structure that suits you. We then prepare and submit the application, deal with the lender for you, and work with your lawyer and other essential professionals through to settlement.

A bank can only offer its own home loan products. We work with more than 25 banks and non-bank lenders, so we can compare your options. Each lender assesses applications differently, so this matters. You also deal only with us throughout the process, rather than with each bank separately.

We work with more than 25 lenders, including both banks and non-bank lenders. Banks are usually the first choice, but non-bank lenders can help when your situation doesn’t fit a bank’s criteria. The full list is in our Public Disclosure.

In most cases, no. The lender pays us a commission when your loan settles, so our service is usually free to you. A fee may apply in a few situations, for example if a lender doesn’t pay commission or you repay or move your loan early. We explain any fees before you go ahead, and they are set out in the disclosure document we give you.

You can find more information about our fees in our Public Disclosure.

Most lenders pay us a commission when your loan settles. If a lender doesn’t pay commission, we charge an adviser fee instead, which we agree with you in writing before we go ahead. We may also receive a referral fee if we refer you to one of our partners. We tell you how we will be paid before you choose a lender, and our advice is based on your needs.

Yes. It usually takes 15 to 30 minutes, by phone, online or in person at our Rosedale office. We look at where you are now and what’s possible, with no obligation. Our advisers speak both English and Mandarin.

No. We focus on lending. For insurance, legal or KiwiSaver investment advice we can refer you to trusted specialists.

Pre-approval and applying

Pre-approval is a lender’s conditional agreement to lend you up to a set amount. It tells you your budget, lets you make offers with confidence, and makes you a stronger buyer. Most pre-approvals last 60 to 90 days, depending on the lender. If you need more time, you can renew it as often as needed, as long as you still meet the lender’s criteria. The first renewal is usually simple.

Usually one to two weeks once we have all your documents, but it depends on how busy lenders are and on your situation.

Usually photo ID, proof of address, recent payslips or financial statements if you are self-employed, three months of bank statements, details of your savings, KiwiSaver and any debts, and a list of your regular expenses. We’ll send you a checklist for your situation.

As early as possible. That gives time to check your borrowing, improve your position if needed, and get pre-approval before you start making offers.

Deposits and Borrowing

For a home you’ll live in, a 20% deposit gives you the most choice. Low-deposit loans are possible, but banks have limited room for them and may charge more. Investors usually need 30%. New builds are exempt from the Reserve Bank’s deposit (LVR) limits, so some lenders accept less. The Kāinga Ora First Home Loan needs as little as 5% if you meet its income limits.

Usually yes, if you’ve been a member for at least three years and are buying your first home to live in. You must leave at least $1,000 in your account. Your lawyer arranges the withdrawal, so start early. We don’t advise on KiwiSaver withdrawal eligibility, so please check the Kāinga Ora website or contact your KiwiSaver provider to confirm whether you qualify.

No. The First Home Grant closed to new applications in 2024. The First Home Loan and KiwiSaver withdrawal are still available.

Lenders look at your income, expenses, debts and credit history, and test your repayments at a rate higher than today’s market rates. The Reserve Bank also limits how much banks can lend above six times income for owner-occupiers, or seven times for investors. In the same situation, how much you can borrow can differ significantly from one lender to another, and it also depends on lending policies at the time your application is submitted. We use an assessment tool that closely follows the calculators lenders use, so talk to us for a realistic figure based on your situation.

Interest rates and loan structure

Fixed rates give certainty for a set term, but you can usually only make limited extra repayments during the fixed term. Floating rates can change at any time, but you can repay extra or switch whenever you like without worrying about break fees. When it’s time to decide on your loan structure, we’ll give you advice tailored to your situation.

It depends on your plans, your budget and the rates on offer. Splitting the loan across different terms can spread the risk of rates changing. We’ll talk you through the options when your loan is set up and each time a fixed rate ends.

Principal and interest repays the loan over time. Interest-only lowers repayments for a limited period, which can suit investors or short-term needs, but you don’t reduce the debt. Lenders limit how long and when interest-only is available.

Yes. We compare your current bank with other lenders, including break fees, cashback and legal costs, and tell you honestly whether moving is worth it. See Refinance.

A restructure means changing how your loan is set up. This could include splitting it into fixed and floating portions, changing the loan term, switching between interest-only and principal and interest, adding an offset or revolving credit account, or combining other debts into your home loan. If you own a rental property, your accountant may also recommend restructuring so that more of your borrowing is used for investment purposes, which may make more of your interest tax-deductible. We work alongside your accountant on this, as we don’t give tax advice. If part of your loan is on a fixed rate, a break fee may apply. We’ll check the costs and help you decide whether restructuring, refinancing or staying as you are suits you best.

After settlement

We check that any cashback has been paid and that your first repayment goes through smoothly. After that, we stay in touch through our annual reviews and help you each time your fixed rate is due to be refixed.

Yes. We offer a review every year, or sooner if a fixed rate is due to end within the next 12 months or your circumstances change. You can also contact us any time.

Still have a question?

Book a free, no-obligation chat with one of our licensed advisers.

BOOK A FREE CHAT

09 930 8999
support@profin.co.nz

112C Bush Road,
Rosedale, Auckland 0632

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