Learn
How lending really works
The rules and the maths lenders use, written so you can walk into any bank already knowing the questions that matter.
How lenders work out how much you can borrow
Lenders start with your income, take off tax, living costs and the repayments on any other debts, and see what's left. Then they work out the largest…
Read the guideRules · 1 min readLVR and DTI: the two rules behind every home loan
Loan-to-value ratio (LVR) is your loan divided by the property's value. Borrow $640,000 on an $800,000 home and your LVR is 80%, meaning a 20%…
Read the guideStructure · 1 min readFixed, floating or both?
A fixed rate stays the same for a set term, from six months to five years. You know your repayments, but extra repayments are limited and leaving…
Read the guideSwitching · 1 min readBreak costs, explained
If you leave a fixed rate early, the lender may charge a break cost. It applies when the lender's cost of funding has fallen since you fixed, because…
Read the guideSwitching · 1 min readCashbacks and clawbacks
Many lenders pay a cash contribution when you take out or move a loan. It's real money, but it comes with a condition: leave within a set period,…
Read the guideCredit · 1 min readYour credit file
New Zealand has three credit reporting agencies: Centrix, Equifax and illion. Each holds a file on most adults, showing credit applications,…
Read the guideBusiness · 1 min readWhat business lenders look for
Business lenders often think in terms of five Cs. Character: your track record and how you've handled credit. Capacity: whether the business's cash…
Read the guideRules · 1 min readResponsible lending rules in 2026
Consumer lending in New Zealand is governed by the Credit Contracts and Consumer Finance Act (CCCFA). The detailed affordability rules that required…
Read the guideBorrowing · 1 min readSelf-employed? How lenders read your income
Banks usually want two years of financial statements and tax returns, and many use an average of the two. If your latest year was stronger, some…
Read the guideBuying · 1 min readFrom offer to settlement: what happens when
Pre-approval: a lender agrees in principle how much it will lend, subject to conditions. It gives you a budget and the confidence to make…
Read the guideCommercial · 1 min readInterest cover: how commercial lenders size a loan
For commercial property and business lending, the key test is interest cover: the income available to pay interest, divided by the annual interest. A…
Read the guideCommercial · 1 min readRestructuring commercial debt: act before the deadline
The best time to restructure is before you have to. Early signs include a facility expiring within a year, an annual review with new conditions,…
Read the guideDevelopment · 1 min readHow development finance works
Every development loan starts with the feasibility: what the project will cost in total, what it will be worth on completion, and the margin in…
Read the guideDevelopment · 1 min readConstruction loans: progress payments and interest during the build
A construction loan is paid out in stages as the build progresses, typically for the deposit, foundations or floor, framing, closing in, and…
Read the guideFAQs
Questions we hear every week
Does it cost anything to use Mutual Trust?
Lenders pay us a commission when your loan settles. We may charge a fee in some cases, depending on your situation, and we always agree it with you up front. If you repay or refinance within 27 months, a clawback fee of up to $3,000 may apply. Fees and commissions
Will talking to you affect my credit score?
No. A conversation doesn't touch your credit file. A credit check happens only when an application is made, with your consent, and each application can show on your file.
How long does approval take?
It depends on the lender and how complete your application is. Straightforward applications can move quickly; business, construction and specialist lending take longer. Having your documents ready is the biggest thing you can control.
What is pre-approval?
A conditional approval before you've found a property. It shows how much a lender will lend, subject to conditions such as a valuation. Pre-approvals last for a limited time, so ask how long yours is valid.
Can I use my KiwiSaver to buy my first home?
Many first-home buyers can withdraw their KiwiSaver savings after being a member for at least three years, leaving at least $1,000 in the account. Your scheme provider confirms eligibility and handles the withdrawal.
Do you only work with banks?
No. We work with lenders from the major banks to specialist non-bank lenders. Non-bank lenders can help when bank criteria don't fit, usually at a higher cost.
I'm self-employed. Can I still get a home loan?
Yes. Lenders look at your financial statements and tax returns, usually for two years. Some lenders accept a shorter history. Self-employed home loans
What happens when my fixed rate ends?
Your lender will offer new rates, usually a few weeks before. You can refix, go floating, or move to another lender, counting break costs, cashback clawbacks and any adviser fee. We review the options with you before your term ends.
Do you arrange business and vehicle finance too?
Yes: business loans, commercial property, working capital, equipment, vehicles, personal loans and debt consolidation.
Can you help if my bank wants to reduce my commercial lending?
Yes, and the earlier the better. We review every facility, build a plan around realistic cash flow and present it to banks and non-bank lenders that suit your situation. If you've received a formal demand or default notice, get legal advice straight away too. Commercial debt restructuring
Do you arrange finance for first-time developers?
Often, yes, especially for smaller projects. Lenders weigh experience heavily, so a strong project team, a realistic feasibility and more equity all help. Non-bank lenders can be more flexible than banks. Development finance
What is a residual stock loan?
A loan against completed homes or units that haven't sold yet. It repays the construction lender and gives you time to sell at the right price. Residual stock loans
Do you give investment advice?
No. We advise on loans and personal insurance, not investments. For KiwiSaver funds, shares or other investments, talk to an investment adviser.
I'm struggling with my repayments. What should I do?
Talk to your lender early. There are options, and free help is available. Financial hardship help