Real Estate Finance

An owner lives in 40% of a house and rents the other 60% as a separate flat for the whole time she owns it. She sells within two years. Can she use the bright-line main home exclusion?

A buyer bought a house meaning to live in it, but a job offer overseas meant she never moved in. She rented it out and sold it 18 months after title transferred. Does the main home exclusion apply?

A mother buys a house in her own name and her adult son lives in it as his home; she lives elsewhere. She sells it 20 months later. Can she use the bright-line main home exclusion?

A vendor inherited her late father's house eight months ago and now wants to sell it. She asks whether the bright-line test will tax any gain. What is correct?

An investor's title to a rental was transferred to him on 1 March 2024. He signs a binding agreement to sell it on 10 February 2026, settling in April 2026. The property was never his home. Does the bright-line test apply?

A buyer's lender approves a home loan without asking about the buyer's expenses. Under the lender responsibility principles in s 9C of the Credit Contracts and Consumer Finance Act 2003, what must a lender make reasonable inquiries about before lending?

A borrower received the lender's initial disclosure for a consumer credit contract on Monday and now regrets the loan. Under s 27 of the Credit Contracts and Consumer Finance Act 2003, what right does the borrower have?

Homeowners want to top up their existing mortgage to add a bedroom to their house. A salesperson tells them construction lending is exempt from DTI limits. According to the Reserve Bank, is the salesperson right?

A client buying a new home needs short-term finance to settle before their current home sells. The extra amount will be repaid from the sale proceeds. How is that short-term amount treated under the Reserve Bank's DTI rules?

A couple plan to live in the home they buy. Their combined gross income is $100,000 and they have a $50,000 car loan. Using the Reserve Bank's debt-to-income (DTI) threshold for owner-occupiers, above what new borrowing would they be treated as high-DTI?

A vendor's buyer has been declined by a bank because the loan would be high-DTI. The buyer asks whether a non-bank lender faces the same Reserve Bank DTI limits. What is correct?

An investor with assessed gross income of $90,000 (including expected rent) and a $200,000 mortgage on her own home wants to buy a rental. Under the Reserve Bank's DTI settings, what is the most she can borrow for the rental before the loan is high-DTI?

A buyer asks how a Kāinga Ora First Home Loan works. Which description is accurate?

A First Home Loan borrower sees a 1.2% Lender's Mortgage Insurance charge on the loan documents and assumes it will cover repayments if they lose their job. What does this premium actually do?

An investor buying a house to rent to long-term tenants suggests she will register for GST so she can claim GST back on the purchase price. What does Inland Revenue say?

A vendor is GST-registered because she runs her apartment as short-stay accommodation. She now sells the apartment. What does Inland Revenue say about GST on the sale?

A GST-registered developer sells a vacant section to a GST-registered builder, who will build a house on it to sell. The builder will not live there, nor will anyone associated with him. How is GST charged on the sale?

In September 2026 a first home buyer asks which government-backed home ownership scheme they can still apply for. Which is correct?

A landlord bought an existing rental in 2022 with a mortgage. How much of the mortgage interest on that rental can she claim as a deduction for the income year starting 1 April 2025, under Inland Revenue's interest limitation rules?

James has been contributing to KiwiSaver for 4 years and wants to withdraw funds for his first home. His KiwiSaver balance is $45,000, but $15,000 consists of government contributions and employer matching. What is the maximum he can withdraw for his house deposit?

How long must a KiwiSaver member have been contributing before they can withdraw funds for their first home?

What is the maximum amount a first home buyer can withdraw from their KiwiSaver account for a house deposit?

A buyer owned a flat ten years ago, sold it, and has never used KiwiSaver to buy a home. He has been a member for five years and now owns no property. Who decides whether he can make a first-home withdrawal as a previous home owner?

A purchaser's agreement is unconditional and they are using a KiwiSaver first-home withdrawal. They ask the salesperson whether the KiwiSaver money can be paid to the agency as the deposit. How are approved first-home withdrawal funds paid?

A buyer who has been in KiwiSaver for six years holds a small share in Māori freehold land through her whānau but owns no other property. Does that interest stop her making a first-home withdrawal?

A buyer who moved from Australia transferred her Australian superannuation into KiwiSaver. After more than three years of membership she plans a first-home withdrawal. Which part of her balance cannot be withdrawn?

A first-time buyer with four years in KiwiSaver wants to use a withdrawal to buy a flat that she will rent to tenants while she keeps living with her parents. Can she use a first-home withdrawal?

Under the Credit Contracts and Consumer Finance Act 2003 and the Responsible Lending Code, what must a lender be satisfied of before approving a home loan?

Which of the following is NOT typically considered by banks when assessing lending criteria?

When assessing a mortgage application, which factor is typically given the highest priority by New Zealand lenders?

Sarah earns $80,000 annually and wants to borrow $400,000. What is her debt-to-income ratio?

What is typically considered the maximum debt-to-income ratio that New Zealand lenders will accept for mortgage applications?

Which factor would typically have the LEAST impact on a lender's assessment of a mortgage application in New Zealand?

A bank checks how much of a borrower's gross income would go on debt repayments. The borrower earns $80,000 a year, already pays $800 a month on other debts, and the new mortgage would cost $2,200 a month. What share of gross income would the repayments take?

A couple earns $120,000 a year combined. If their lender applies a debt-to-income limit of 6 times gross income, what is the most total debt they could hold?

A buyer asks a salesperson which bank's home loan to take. The salesperson explains what a finance condition is, lists the published cost of a bank's fixed rate, and suggests the buyer speak to a mortgage adviser. Under Schedule 5 of the Financial Markets Conduct Act 2013, has the salesperson given financial advice?

A buyer with a 10% deposit wants to buy a townhouse directly from the developer two months after its completion. How do the Reserve Bank's LVR restrictions treat this loan?

What is the current standard LVR (Loan-to-Value Ratio) restriction for owner-occupier residential property purchases in New Zealand?

What does LVR stand for in New Zealand mortgage lending?

A property is valued at $600,000 and the buyer has a $100,000 deposit. What LVR would this loan represent?

A couple with a combined income of $120,000 wants to buy their first home for $650,000. They have a 15% deposit. What is their LVR?

Sarah earns $80,000 annually and has saved $50,000 for a house deposit. She wants to buy a property for $400,000. What LVR would this represent?

A couple with combined income of $120,000 wants to purchase a $750,000 existing home in Auckland with an 85% LVR loan. They have been in KiwiSaver for 4 years. What is the most significant barrier to their purchase?

As at September 2026, an investor wants to buy a $600,000 rental property with a $150,000 deposit. Given the Reserve Bank's LVR restrictions for investors, what is the likely outcome?

A couple own their home and rent out a holiday bach to others for about six weeks a year. They want a loan secured on the bach. How does the Reserve Bank classify the bach for its LVR restrictions?

A first home buyer at an open home says, "With only a 15% deposit, the Reserve Bank rules make it illegal for any bank to lend to me." Which response is accurate under the Reserve Bank's loan-to-value ratio (LVR) restrictions?

A borrower wants lower repayments for the first three years while the loan balance stays the same, then to start repaying principal. Which structure fits?

In a revolving credit mortgage, what happens when the borrower makes payments above the minimum required amount?

A borrower has a $400,000 mortgage split equally between a 2-year fixed rate at 6.5% and a floating rate currently at 7.2%. If interest rates increase by 1%, what will be the impact on their total annual interest cost?

Which type of mortgage interest rate stays the same for an agreed period, such as two years?

A revolving credit mortgage differs from a traditional table mortgage primarily because it:

Which type of mortgage has an interest rate that can change during the loan term based on market conditions?

A borrower took out a $400,000 mortgage and has paid $2,200 every month for five years. The balance owing is still exactly $400,000. Which repayment structure is this most likely to be?

Which type of mortgage allows borrowers to make additional payments that can be re-borrowed later?

What is the key difference between a table mortgage and an interest-only mortgage in terms of monthly payments?

What is the main advantage of a table mortgage compared to an interest-only mortgage?

What is a key advantage of a revolving credit mortgage facility?