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?
AI summary
Your credit score is a crucial factor when applying for a home loan, indicating your financial reliability to lenders. A high score (700+) improves your chances of approval, while a low score may lead to higher interest rates or a smaller loan amount.
You can check your score for free with agencies like Centrix, Equifax, and illion. To improve your rating:
- Pay bills on time
- Reduce existing debt
- Avoid new credit applications
If your score is low, a mortgage broker can help you explore options.
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:
| 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. |
How to check your credit score in New Zealand
What affects your credit score?
It's easy to find our your credit score in NZ.
Can you get a home loan with a bad credit score?
How to improve your credit score before buying a home
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