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?

Last updated: 16 April 2025 | 5 min read

AI summary

Your credit score is a crucial factor for lenders when you apply for a home loan in New Zealand. A high score (700+) signals you're a reliable borrower, improving your chances of approval and securing better interest rates. A low score may result in a smaller loan or less favourable terms.

You can check your score for free with agencies like Centrix, Equifax, and illion. To improve your rating, focus on paying bills on time, reducing existing debt, and avoiding new credit applications.

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:

Credit scores range from 0 - 1000
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.