Home loan pre-approval in NZ: what it is and how long it lasts

Pre-approval, which banks also call conditional approval, is a bank’s indication of how much it may lend you, subject to conditions. It is not a loan offer for a particular house. The banks whose pages we read give it a short life: ANZ says up to three months, ASB up to 90 days, and Kiwibank usually 90 days, often extendable by another 90 days if your situation stays the same (all accessed 10 November 2026). Final, unconditional approval comes later, once you have found a property and met the conditions. Pre-approval can also shrink: in our worked example below, a household pre-approved for about $770,000 would fall to about $689,765 after taking on a $25,000 car loan at $550 a month. Banks decide; this is general information, not financial advice.

What pre-approval is

When you apply for pre-approval, the bank looks at your income, debts, living costs and deposit, runs them through its own lending tests, and tells you a figure it may lend up to. BNZ describes a conditional approval, “sometimes referred to as ‘pre-approval’”, as an offer to fund a purchase up to a set amount, subject to the bank’s stated conditions. Kiwibank calls conditional approval “an indication of how much we may be able to lend you”. ASB calls its pre-approval “a conditional approval that we can lend you a certain amount of money”. ANZ says its pre-approval is free and there is no obligation to take it up.

The figure comes from the same three limits our calculator uses: whether you can afford repayments at the bank’s test rate, the Reserve Bank’s debt-to-income rule, and the deposit (LVR) rules. A bank uses its own living-cost benchmarks and its own policies, which it does not publish, so its number can differ from ours. Our guide to how banks assess your application walks through the checks.

Typical documents, from the bank pages we read: identity (ANZ suggests a passport or driver’s licence), recent payslips or an employment contract, about three months of statements for accounts held at other banks, statements for loans you have, and evidence of your deposit. BNZ asks self-employed applicants for the business’s last two annual financial statements; see our self-employed guide.

Conditional vs unconditional approval

There are two stages, and the words matter.

BNZ says “all conditional approvals come with conditions you’ll need to meet before the final approval is given”. ASB’s pre-approval holds “provided the property you purchase meets ASB’s home loan criteria”. Kiwibank says that when you apply for unconditional approval it will do “a quick check of the property”, which “may include asking for a property valuation or additional details”.

This is why a buyer with pre-approval usually still puts a finance condition in an offer. If you want to buy at auction, or to make an offer without a finance condition, talk to your bank first about what approval you need before you commit, because an auction purchase is generally unconditional once your bid is accepted.

How long pre-approval lasts

Each bank sets its own period. These are the statements on the bank pages we read on 10 November 2026, alphabetically. Each is a single source for that bank’s own policy.

If your search runs past the expiry date, the bank will usually look at your finances again before renewing. That fresh look uses the bank’s rules and test rates on the day, not the ones in force when you were first approved.

What can change your pre-approval

A pre-approval is only as good as the information behind it. These are the common things that move it, each of which feeds one of the three limits.

• New debt. A car loan, personal loan or new credit card adds a repayment (cutting serviceability) and adds to your total debt for the DTI rule. Card and overdraft limits count, not just balances (Kiwibank). See credit cards and borrowing.
• A change in income. A new job, a move to part time, parental leave or a drop in overtime changes your take-home pay and gross income.
• A change in test rates. Banks set their own test rates and can change them. The rates we use were confirmed in July 2026: ANZ 6.85%, ASB 6.85%, BNZ 7.10%, Kiwibank 6.95% and Westpac 6.95%.
• A change in the rules. The Reserve Bank reviews LVR and DTI settings; it kept them unchanged in August 2026 (interest.co.nz, 14 August 2026).
• The property. The home must meet the bank’s criteria, and a valuation below the price can mean your deposit no longer covers the LVR the bank needs.
• Your deposit. Spending savings, or a KiwiSaver withdrawal turning out smaller than expected, lowers the deposit the LVR limit works from.

Worked example: how much a change can cost

Take a couple earning $65,000 each ($130,000 a year), taking home about $8,311 a month after tax, ACC and 3.5% KiwiSaver (2026/27 rates). They spend $3,200 a month on living costs, have $10,000 of credit card limits and no other debt, and have a $200,000 deposit. We test at the average of the five banks’ test rates, 6.94%, over 30 years.

The deposit limit is $800,000 in every row ($200,000 at 80%), so it never binds here. The car loan costs this couple about $80,000 of borrowing, more than three times the loan itself, because $550 a month is money the bank assumes cannot go on a mortgage at the test rate for 30 years. The last row is a sensitivity, not a forecast: we do not predict test rates. Living costs here are their own figure, which is above our floor of $2,400 a month for two adults (our assumption, not a bank figure).

The lesson is simple: between pre-approval and settlement, avoid new credit, keep your job steady if you can, and tell the bank about any change. You can rerun these numbers with your own figures in the borrowing calculator.

Getting pre-approval

You can apply directly with a bank or go through a mortgage adviser, who can approach more than one lender. Our advisers vs banks guide compares the two neutrally. Either way, it helps to have your documents ready, to list every debt and card limit honestly, and to know your deposit, including any KiwiSaver withdrawal.

Pre-approval is a good early step for first home buyers because it tells you your price range before you pay for reports; our first home buyer steps show where it fits. It is not a promise: the bank makes its final decision when you apply for unconditional approval.

Rates as at 10 November 2026; test rates confirmed July 2026.

Questions people ask

How long does home loan pre-approval last in NZ?

It depends on the bank. ANZ says up to three months; ASB says up to 90 days from issue; Kiwibank says conditional approval usually lasts 90 days and can usually be extended for another 90 days if your situation stays the same (pages accessed 10 November 2026).

Is pre-approval the same as conditional approval?

Yes, in practice. BNZ describes a conditional approval as “sometimes referred to as ‘pre-approval’”. It comes with conditions you must meet before final, unconditional approval.

Can I buy at auction with pre-approval?

Talk to your bank first. An auction purchase is generally unconditional once your bid is accepted, so you need to know your finance is confirmed for that property before you bid.

Does pre-approval affect my credit?

Applying usually means the bank looks at your credit record and finances. If you apply with several lenders, ask each how it records the enquiry; a mortgage adviser can approach more than one lender for you.

Can my pre-approval be withdrawn?

It can change if your situation changes, if the property does not meet the bank’s criteria, or when it expires and the bank reassesses you under the rules on the day. Banks decide.