Find out what's on your credit record before applying for a home loan.
A credit record includes the payment history for any loans and credit such as:
Payment history for utilities including electricity, gas and phone accounts might also be listed on a credit record.
It’s free to get a copy of your credit record from any of the three credit reporting companies in New Zealand (their links are below), but if you need the information quickly, you might have to pay for it.
If your record is wrong, it might stop you getting credit, so check it carefully for incorrect information such as:
Any insolvency procedure affects your credit rating and your ability to find a bank or other lender willing to lend you money. If you have joint assets, your partner might be impacted, and it may also limit your ability to find landlords who’ll rent to you.
What's an average credit score in New Zealand?
Most credit scores are between 500 - 900. Anything above approximately 600 is considered 'good'.
What does my credit score need to be to get a home loan?
There are a number of scales used in the New Zealand market for credit scoring. They don't pre-determine if you can get a loan. Rather they provide a gauge as to past credit issues.
What if I have bad credit?
If you have at least a 20% deposit, possibly by including your KiwiSaver, there are now options for home loans with bank and specialist lenders if you have a below average credit score.
The good news is that accessing your KiwiSaver funds or a HomeStart Grant, as a deposit, does not rely on your credit score.
Does the number inquiries on my credit check matter?
When assessing your account conduct and credit history, a credit check may be performed. The number of inquiries on your credit check may be higher, especially if you are shopping around with different lenders. It is important to be able to explain why you may have a high number of inquiries on your credit report, as to mitigate and minimise the impact of your credit score upon assessment, should this be lower than expected.
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