Discover the key to securing a mortgage in New Zealand and many other countries by understanding what qualifies as assets and how to present them to your lender. Learn about real property, bank accounts, vehicles, personal belongings, and more.
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“Hi, just wondering how much detail would I need to go into and what counts as an asset?
Furniture, car etc…but would I include clothes? (lol)“
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Hello! When you’re listing assets to get a mortgage approval in New Zealand or most other countries, the primary goal is to provide a comprehensive picture of your financial situation to the lender. Assets are items of value that you own, which can be used to secure the mortgage or demonstrate your financial stability. Here’s a general guideline on what counts as an asset and how much detail you should go into:
Real Property:
Include your home, any investment properties, and land you may own. Provide details like the property’s location, estimated value, and any existing mortgages on it.
Bank and Investment Accounts:
List all your savings accounts, checking accounts, investments (stocks, bonds, mutual funds), and retirement accounts (e.g., KiwiSaver in New Zealand). Mention the account type, current balance, and financial institution.
Vehicles:
Include any vehicles you own, like cars, boats, or motorcycles. Mention the make, model, year, and estimated value.
Personal Belongings:
While you can include valuable items like furniture, electronics, and collectibles, it’s not common practice to list everyday items such as clothing. However, if you have exceptionally valuable assets (e.g., valuable art or jewelry), you can consider including them in the list.
Other Assets:
Include any other assets you may have, such as valuable jewelry, art, or antiques. Be sure to provide an estimated value for each.
Debts:
List your outstanding debts like credit card balances, personal loans, student loans, and any other financial obligations.
It’s important to be accurate and provide documentation when possible to support the values you assign to your assets. Lenders typically verify the information you provide during the mortgage application process.
In New Zealand, mortgage lenders will also assess your ability to meet your mortgage payments, so it’s not just about the quantity of assets you have but also your income, expenses, and credit history. The specific documentation and level of detail required may vary from lender to lender, so it’s a good idea to ask your lender for their specific requirements and guidelines.
Hope this helps.
Regards, Clive Fernandes (Financial Adviser)
Director – National Capital
Disclosure: I am the director of National Capital, a KiwiSaver advice firm. The views expressed in this article are the views of the author. The information provided is of a general nature and is not intended to be personalised financial advice. You may seek appropriate financial advice from a Financial Adviser to suit your individual circumstances or contact National Capital.
