A home loan, also known as a mortgage, is a type of loan you can get from a bank or non-bank lender to help buy a home. You pay a deposit, and the lender loans you the rest. You then repay the loan, plus interest and any applicable fees, over time, until you fully own the property.
Home loans are secured loans, which means the property you buy acts as security for the loan. If you’re unable to repay the loan, the lender may sell the property to recover what’s owed.
Because most people don’t have hundreds of thousands of dollars saved, home loans are the most common way to buy a home in New Zealand.
In simple terms, a home loan lets you borrow the money you need to buy a house and pay it back over time.
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