Buying guide

How your credit score can impact buying a house in New Zealand

What is a credit score, and why does it matter when you’re buying a house?

Last updated: 16 April 2025 | 5 min read

AI summary

Your credit score is a key factor lenders use when assessing your home loan application. A high score (700+) improves your chances of approval and better rates, while a low score can mean higher interest or a smaller loan amount.

You can check your score for free with NZ agencies like Centrix, Equifax, and illion.

To improve your score before buying, you should:

- Pay all bills on time

- Reduce existing debt

- Avoid applying for new credit.

What you’ll learn:

Why your credit score matters

A good credit score matters most when you're seeking pre-approval for a home loan.

What is a good or bad credit score?

While each lender has its own criteria, here’s a general guide:

Credit scores range from 0 - 1000
Score Range	What It Means
700–1000	700–1000	Excellent – you're in great shape to apply for a mortgage.	Excellent – you're in great shape to apply for a mortgage.
500–700	500–700	Average – you’ll probably be fine, as long as the other factors lenders look into appear okay.	Average – you’ll probably be fine, as long as the other factors lenders look into appear okay.
300–500	300–500	Below average – you may face higher interest rates or be offered a smaller loan.	Below average – you may face higher interest rates or be offered a smaller loan.
Below 300	Below 300	Poor – getting a home loan will be tough, but not impossible.	Poor – getting a home loan will be tough, but not impossible.