What are the different ways to buy a property?

There are many different ways to buy property in New Zealand. At present, auctions are very common, because they usually command the best price for the vendor. 


An auction is where multiple would-be buyers bid on a house. The winner is considered to have entered an unconditional purchase, so diligent homework is required beforehand. A Real Estate Agent should provide a copy of the sale and purchase agreement, title, and maybe the LIM report. A building inspection and evaluation may also be required, which may run up the cost if a would-be buyer continually bids at multiple auctions. 
Auctions also require that would-be buyers register their interest before bidding day and to be able to front a 10% deposit after winning the auction.  

The format for an auction is the following: Everyone interested in the property bids at the same time. The highest offer wins, as long as the seller's reserve is met. As mentioned above, bids are binding, so it is necessary that bidders are entirely certain about their decision and that they have all their finances in order.  

The bidding format of an auction tends to drive up the price of homes significantly, given the competition involved. This is especially the case with upscale homes that provide high-end features like nice views or being in a respectable neighborhood. Another perk for the seller is that they set a specific selling date, which can significantly shorten the buying period. Partially for this reason, they are more common in larger cities, such as Auckland, so that sellers are not stuck with hefty, extra mortgages.  



A tender is where a buyer puts in a written offer with a specified timeframe and the seller considers the offer alongside others. Conditions can be placed on the offer but may result in it becoming less appealing than others.   

No price is set in a tender. Interested buyers submit an offer in writing, and the seller picks the offer that is most agreeable (which may not always be the highest offer). Sellers can either accept the offer, in which case it becomes legally binding, or they can negotiate with the bidder. The other offers are off limits to the winning bidder, giving the seller negotiating power. 


Private Sale

Private sales are where the buyer negotiates directly with the seller. (Not sold through a Real Estate Agency) Once the buyer has negotiated with the seller and agreed on a purchase price, the buyer will then need to instruct their Solicitor to draw up the Sale and Purchase Agreement for the purchase. (It is imperative to discuss this contract with your Solicitor prior to signing any binding contracts).  

Once signed this is then sent to the sellers Solicitor for the seller to accept and sign.  
Private sales typically demand that the deposit is paid to the Solicitor once the contract is unconditional. 

Lenders are more likely to require a registered  valuation report to confirm that the buyer is not overpaying for the property and there is no deferred maintenance of concern. 

Can I get a Loan?

Each bank has its own lending criteria, and if you meet all their conditions, there's no reason why you shouldn't get a loan. We will assist you in shopping around for the best deal just like we did for thousands of our satisfied customers.

What can my deposit comprise of?

A deposit can consist of gifts from parents, home start grants, funds from the sale of assets, Kiwisaver, and equity in your parents' home (should they agree).  
Each lender considers differently how to treat cases such as significant inheritances or the selling of assets to cover deposits. 

What If I am self-employed?

You must be able to show at least two years of steady income that meets requirements. This is where your tax situation can work against you if you failed in the past to declare all or most of your income. Your cash flow must reflect an ability to afford the loan, otherwise, you are at risk for being turned down. Generally, lenders will want your loan payments to not exceed 30-35% of your monthly income. 

Can I use my KiwiSaver?

First home buyers who have been in KiwiSaver for at least 3 years may be eligible to withdraw funds from their Kiwisaver (excluding the $1,000 kickstart). Buyers may also be eligible to access a Kiwisaver Homestart Grant, which is provided by Housing New Zealand.  

Another option is the use of a guarantor who offers security for the borrowed portion over 80% of the purchase price. Guarantors should be close family and in a strong financial position, and they should seek independent legal advice before making any binding commitments. 

How to Decide On My Repayments?

Buying your first home shouldn't be a financial burden, so know the full details of your repayments before you finalize the deal. Since owning a home has many other expenses such as home insurance, council rates, mortgage repayment insurance, body corporate fees and repair charges, it is important to carefully plan the size of each repayment. 

Use our online calculator to get a fair idea about the weekly or monthly repayments you'll need to make.

Are There Any Secrets For A yes

Every bank will expect you to pay any outstanding defaults before even considering your application. Most banks check your credit history, so people with a bad record have a poor chance receiving an approval for mortgage finance. Here's what banks will be looking for during credit checks: 

  1. Outstanding defaults  
  2. Dishonour fees 
  3. No. of enquiries for credit 
  4. Paid defaults 
  5. Names of the companies to which the applicant owes money 
What's meant by a Pre-Approval?

A pre-approval, also called conditional offer of finance, is a written approval from a lender stating that you are eligible to borrow a certain sum, subject to some conditions. Once you receive your pre-approval, go through it carefully to make sure that you understand all the conditions mentioned in it. Some common conditions you'll find in the pre-approval are:  

  1. A copy of the sale and purchase agreement being satisfactory to the bank. 
  2. The Registered Valuation must me agreeable to the bank.  

In order to get a strong pre-approval letter, you must provide all the documents (with full transparency) along with your application. The ideal pre-approvals are the ones with a minimum number of conditions. 

Deciding the Conditions: 

When you're purchasing by offer and negotiation, you have the chance to define the conditions before the sale actually happens. But, be careful not to set too many conditions as this may cause the deal to fail. If all of the conditions are satisfied within the specified time, your offer becomes unconditional meaning that you're bound by the law to purchase the house. On the other hand, if the conditions aren't met, you have a right to negotiate or withdraw your offer. For example, if you mentioned a clean LIM report as a condition, and the LIM has some problems, you have full powers to cancel the offer. 

If the property needs some repair work, you may set a condition telling the seller to finish the repairs by a certain date. Failure to meet this condition may not stop the sale but can delay the settlement until they are met. 

So you've made an Offer, What's next?

It entirely depends on what the seller does. If he accepts your offer, then the contract is dated and you have a binding agreement. In the case where he isn't satisfied, he may suggest a counter offer with altered price, conditions or timeframes. Then, you'll have three choices - agreeing with the sellers counter offer, making a new counter offer yourself, or just walking away.

What are my costs?

In addition to the purchase price of your house, here are a few expenses that you should be prepared for. 




$500 to $700 

Pre-Purchase Building Inspection 

$450 to $1,000 


from $250 

Legal fees 

from $1500 

Share of rates already paid by the vendor 

Varies - can be as much as 25% or the annual rates bill. But is usually around $200 to $400. This is added to the Solicitor cost 

Low equity premium 
(if you borrow more than 80%) 

This depends on the size of your Mortgage and maybe able to be added to your mortgage 

Connecting gas, electricity, phone and Sky TV 

$300 to $1,000 

House moving costs 

We have a complimentary Trailer for you 


At Own It Mortgages, we will work hard to ensure that the lender will provide a cash contribution to help you with these expenses.

Apply Now Testimonials

Simple Mortgage Calculator:

How much are you borrowing?

Over how many years?

At what Interest Rate?

What do our clients think?

  • Bauro and  Alana

    'Hi Lorna, We received the pizzas last night. It was a nice little touch to add to our first weekend in our first home. 

    Thanks to you and your team for helping us purchase our first home. We have a lot of respect for the customer service you and your team provided. You live up to your reputation and we are glad we used your services. '

    Bauro and Alana Ann

The Mortgage Process


Work out how much you can afford to borrow.


Gather information & paperwork to obtain a pre-approval

Figure out where to buy

Start looking for a home and make an offer conditional to finance. Think about any other conditions you may like to put on your Sale and Purchase Agreement such as builders report, Registered Valuation and a move in date

Finalise all conditions to purchase

Finalise finance, arrange inspections and valuations as required

Going unconditional

make sure you are happy with the above inspections and reports, if so, then you are ready to unconditionally purchase this property


Talk to us about the best ways to pay off your mortgage and chat about how risk insurance may benefit you

  • Build It

    A key advantage of building your home is that you get to choose the features and final additions that suit your needs, style, and preference. Nevertheless, while the prospect of creating your dream home from scratch appears exciting, the challenge of finding the right financing solution cannot be overlooked. Are you a first time home builder confused about the building process and the various lending practices involved? Well, worry no more, as we are here to keep you informed and educated on all the latest trends on building a new home. 

    learn more
  • Buy It

    So, you have owned your home for a while and thinking about purchasing another home? Perhaps a change of lifestyle? An upgrade to a larger home or the desire to live more minimalist - or maybe you are in a position to purchase that second home you've always dreamed of in that special vacation spot meant for you. No matter what your circumstances are, we are here to assist you Buy It!

    learn more
  • Refinance It

    Refinancing simply means paying off your original mortgage and replacing it with a new one. If you are a homeowner, refinancing your mortgage can be a real money-saving strategy. Most banks offer a range of cash incentives to entice customers to refinance. In some cases, these incentives will cover costs of breaking the current mortgage and legal fees with possible surplus cash for you. So you may end up with a better interest rate and a little more cash. Talk to us and see if there are savings to be made.

    learn more
Site by Jet Creative Studio