Home loans for
self-employed Kiwis

Most major New Zealand banks want to see at least two years of steady business history. They need to know that your earnings from last year weren't just luck and that you can keep making enough money to repay a mortgage. That said, two years is not an absolute rule, the type of business matters. A contractor with a consistent client and predictable income may be assessed more favourably than a new café owner with variable earnings. 

Yes, in some cases. Most banks in New Zealand want to see two years of business history, but you might still qualify with just one year of records. Lenders will check if you have solid prior experience in the same field and strong earnings in your first year. Non-bank lenders can be even more flexible. Some Non-bank lenders accept applications from borrowers who have been self-employed for as little as six months, using alternative documentation such as six months of business bank statements. 

You'll need your last two years of financial statements (Profit & Loss and Balance Sheet) and the matching IRD Summary of Earnings or tax assessments. Banks also want to see your recent business bank statements to check for steady cash flow. If your most recent tax year ended recently, they might also ask for interim management accounts to show how your business is performing now. Having your accounts on software like Xero or MYOB makes this process significantly faster and cheaper. 

Yes. KiwiSaver first home withdrawal rules apply equally to self-employed members. The key difference is that if you're self-employed, working as a contractor, freelancer or sole trader and not receiving PAYE income, some of the benefits of employment are not available, such as having your employer make contributions. You need to make your own contributions directly. If you contribute at least $1,042.86 before 30 June each year, you'll receive the maximum government contribution of $260.72. 

Yes, but not unfairly. Banks want to lend to successful business owners. They just need more convincing than they do with PAYE employees, who can show a couple of payslips. The key difference is income verification. If you're self-employed, the bank bases your mortgage on your taxable profit, not what you pay yourself. This means careful tax planning that minimises your declared income can work against you at mortgage application time.