Buying at auction in NZ: your finance checklist

The place to resolve financing questions is before an auction, not after the winning bid. Settled explains that auctions are unconditional and the successful buyer usually pays the purchase deposit on auction day. Have your lawyer explain the specific auction agreement before bidding.

Confirm the particular property

A general home loan pre-approval may still require the lender to accept the property. Send the address, agreement and requested documents to your adviser early. Ask whether a valuation or further information is required, then allow time to obtain it.

Separate the bid limit from the borrowing limit

Your maximum bid must fit the total purchase plan, including your cash contribution and transaction costs. Decide your limit before the room becomes competitive. A higher bank limit is not a reason to abandon your household budget.

Resolve checks before the day

Discuss title, council information, inspection findings and insurance with the relevant professionals. If you need a change to the agreement, raise it with your lawyer before the auction; do not expect to add a finance condition after winning.

Rehearse the money movement

• Confirm the deposit amount, recipient and payment method independently.
• Check any transfer limits with your bank ahead of time.
• Confirm the settlement date and remaining funding arrangements.
• Keep written lender confirmation and your lawyer's contact details accessible.

If an essential issue remains unresolved, pausing can be more useful than bidding under pressure. Our home loan advisers can discuss the financing questions; your lawyer handles the legal commitment. For apartments, also review our apartment due-diligence guide.