Property Law Online - Blog

Avoid These 6 Common Mistakes with Your KiwiSaver First Home Withdrawal

Tue, 14 Apr 2026 01:52:27 GMT

KiwiSaver First Home Withdrawal: 6 Mistakes That Could Delay Your First Home

Key Takeaways

Successful KiwiSaver withdrawals require a lead time of four to six weeks before settlement.
Eligibility depends on being a member of a KiwiSaver scheme for at least three years.
A minimum balance of $1,000 must remain in your KiwiSaver account after the withdrawal.
Previous home ownership, including property owned overseas, can impact your eligibility.
Early communication with your property lawyer ensures all documentation meets provider requirements.

Using KiwiSaver to buy your first home is a primary strategy for many New Zealanders. It has become a mainstream part of the property journey. According to data from MoneyHub , in the 2024 to 2025 financial year, approximately 43,600 people used a KiwiSaver first home withdrawal to get onto the ladder. This added up to a total of about $1.9 billion in funds. With the average first home withdrawal sitting at around $42,000, the stakes are incredibly high. If a mistake happens during the application process, it can jeopardise your ability to settle on time or even cause the deal to fall through entirely.

We see these funds as a critical pillar of financial resilience for Kiwi households. Statistics from Inland Revenue show that by June 2025, $1.9 billion had been withdrawn for first homes in a single year, which is a massive increase from the $257.8 million seen in 2015. At ConveyOnline, we focus on making the legal side of this process as smooth as possible. We help you manage the paperwork so your funds arrive exactly when they are needed. In our experience, avoiding a few common pitfalls can make the difference between a stressful settlement and a celebratory one.

1. Applying Too Late in the Process

How long does it take to get your KiwiSaver out for your first home? Most people underestimate the timeline required for the bank and the KiwiSaver provider to process the request. You should apply for a first-home withdrawal at least four to six weeks before your settlement date. While some providers are faster, the standard processing time is often two to four weeks. If you wait until the week before settlement to start the paperwork, you risk a delayed settlement, which can lead to penalty interest or the vendor cancelling the contract.

The KiwiSaver withdrawal guide suggests that giving yourself a generous buffer is the only way to ensure peace of mind. When you consider that the average withdrawal is $42,000, missing a deadline is a very expensive mistake to make. We recommend talking to your KiwiSaver provider as soon as you start looking at properties to understand their specific requirements and timeframes.

2. Misunderstanding the Three Year Membership Rule

Eligibility for a KiwiSaver first home withdrawal requires you to have been a member of a KiwiSaver scheme or a complying superannuation scheme for at least three years. A complying superannuation scheme is a workplace savings plan that has similar rules to KiwiSaver regarding withdrawals. If you have only been a member for two years and eleven months on the day you apply, your application will be declined. We have seen situations where buyers assumed they were eligible because they had been working for three years, but they had not actually joined the scheme until several months into their employment.

You can verify your join date by logging into your MyIR account or contacting your provider directly. If you have transferred from an Australian complying superannuation scheme, those funds are treated differently. You can generally use your KiwiSaver savings towards your home purchase, but the funds transferred from Australia must remain in your account until you reach retirement age. Understanding these nuances early helps you calculate exactly how much you can contribute to your deposit.

3. Failing to Leave the Required $1,000 Balance

A common misconception is that you can empty your entire KiwiSaver account to buy a home. The rules state that you must leave a minimum balance of $1,000 in your KiwiSaver account. This ensures your account remains open for future contributions and retirement savings. If your withdrawal application requests the full balance without accounting for this $1,000, the provider will adjust the amount, which might leave you short on your settlement funds.

Our detailed guide to using KiwiSaver for your first home deposit explains that you can withdraw your own contributions, employer contributions, the government contribution, and any investment returns. However, that $1,000 must stay put. We encourage buyers to check their total balance and subtract $1,000 when calculating their available funds for a home purchase.

4. Assuming Previous Ownership Overseas Does Not Count

The first home withdrawal is intended for people who have never owned a home or land before. This rule applies globally. If you have previously owned a home or land in another country, you are generally not considered a first home buyer. However, there is a "second chance" provision for previous homeowners who are now in a similar financial position to a first home buyer. This requires a specific determination from Kāinga Ora.

If you fall into this category, you must obtain a KiwiSaver first-home withdrawal determination from Kāinga Ora before you apply to your provider. This adds another layer of paperwork and time to the process. We suggest starting this conversation with your solicitor as early as possible. For more information on how we handle these complexities, you can view our house purchase conveyancing services , where we outline our fixed-fee structure for buyers.

5. Not Aligning KiwiSaver with Kāinga Ora Requirements

While the First Home Grant was discontinued in May 2024, many buyers still utilise the Kāinga Ora First Home Loan. This loan allows for a lower deposit, but it comes with its own set of eligibility criteria and documentation. A mistake we observe is buyers assuming that the KiwiSaver withdrawal and the First Home Loan are the same process. They are separate, though they often happen at the same time.

Data from the 2024 to 2025 financial year shows that while 43,600 people made first home withdrawals, many also had to navigate hardship withdrawals or other financial hurdles. In fact, hardship withdrawals (45,870 people) slightly outnumbered first home withdrawals by number during that period. This highlights how critical it is to have your financial ducks in a row. Our first home buyer blueprint provides a clear path for coordinating these different government-backed tools so you do not miss out on the support available to you.

6. Poor Communication with Your Property Lawyer

Your lawyer or solicitor is the one who must receive the KiwiSaver funds and hold them in trust for your settlement. They are also responsible for certifying your withdrawal application. A common mistake is not providing the correct documents to your lawyer early enough. Your lawyer needs the original application form, a copy of the sale and purchase agreement, and a solicitor's certificate. If there are errors in your paperwork, your lawyer cannot sign off on the application.

At ConveyOnline, we provide a transparent pricing model for these services. Our standard house purchase conveyancing starts from $1,799 inclusive (from $925 plus GST and disbursements). Because handling KiwiSaver funds involves additional legal steps and coordination with providers, we charge a KiwiSaver funds add-on of $300.00. If you are also using a Kāinga Ora loan or require specific grant handling, there is an additional $100.00 fee. We believe in being straight up about costs so there are no surprises at the end of your journey. By engaging us early, we can ensure your application is perfect before it reaches your KiwiSaver provider.

The Importance of Getting it Right the First Time

The sheer volume of people using KiwiSaver for housing shows how vital these funds are. Whether you are a teacher in Tauranga or a builder in Blenheim, your KiwiSaver is likely your biggest asset when buying a home. The process is unforgiving, and the rules are strict. If you provide an incorrect withdrawal eligibility letter or fail to meet the eligibility criteria, the delay can be devastating. We have seen how much stress a simple paperwork error can cause, and our goal is to eliminate that friction for you.

Treating the withdrawal as a professional project rather than a last-minute chore is the key to success. This means talking to your provider, checking your balance, and getting your legal team involved as soon as your offer is accepted. With the right preparation, you can focus on the excitement of moving into your first home rather than worrying about whether your money will arrive on time. If you are ready to start your journey, we are here to help you navigate the legalities of your KiwiSaver first-home withdrawal application with ease.

_Disclaimer: This article provides general information only and does not constitute financial or legal advice. You should consult with a qualified professional before making any financial decisions regarding your KiwiSaver or property purchase._

How Much Mortgage Can I Really Afford in NZ? A Step-by-Step Calculation Guide

Thu, 12 Mar 2026 23:00:39 GMT

How Much Mortgage Can I Afford? A Practical Guide for NZ Home Buyers

Key Takeaways

Bank affordability is determined by your Debt-to-Income (DTI) ratio and your ability to service a loan at higher interest rates.
The current New Zealand guideline for borrowing is approximately six times your annual household income.
A safety buffer of 15 to 20 percent below your maximum borrowing limit helps prevent becoming house poor.
Legal fees and ongoing costs like rates and insurance must be included in your initial budget.

We often see Kiwis start their property journey by scrolling through listings before they truly understand their numbers. In our experience, the most successful buyers are those who treat affordability as a precise calculation rather than a vague guess. Getting this right early means you can hunt for a home with confidence, knowing exactly what your bank will approve and what your lifestyle can actually sustain.

The scale of borrowing in New Zealand is significant. According to analysis from MoneyHub , New Zealand households owed $381.2 billion in mortgage debt in 2025. This is equivalent to about 91.3 percent of our Gross Domestic Product (GDP), which represents the total value of goods and services produced in the country. With new mortgage lending reaching $85.8 billion between January and November 2025, a 27.8 percent increase on the previous year, it is clear that many New Zealanders are active in the market. However, being active requires a disciplined approach to what you can truly afford.

How much can I borrow based on my income?

Your borrowing capacity is primarily dictated by your household income and your existing debt levels. Banks in New Zealand currently use a Debt-to-Income (DTI) ratio as a primary yardstick for lending. A DTI ratio is a simple calculation that compares your total debt to your gross annual income. For example, if your household earns $150,000 a year, a DTI of six would suggest a maximum total debt of $900,000.

According to the borrowing capacity guide from Calculate.co.nz, the standard DTI guideline is around 6x annual household income. While this provides a theoretical maximum, we recommend aiming for a total loan that sits 15 to 20 percent below this limit. This approach ensures you have breathing room for life's unexpected expenses. If you earn $100,000, a strict 6x DTI caps your debt at $600,000, but staying closer to $480,000 to $510,000 provides a much safer financial position.

Another common benchmark is the 28/36 rule. This guideline suggests that your fixed housing costs, including mortgage repayments, insurance, and rates, should ideally be no more than 28 percent of your gross income. Your total debt repayments, including car loans or credit cards, should stay below 36 percent. You can find more detail on these thresholds in the borrowing power calculator guide, which notes that mortgage repayments alone should generally stay under 35 percent of your pre-tax income.

Why are mortgage calculators giving higher results now?

The amount you can borrow changes as interest rates and market conditions shift. Recent data shows a positive trend for buyers. The Massey University Home Affordability Report from June 2025 indicates that national housing affordability improved by 26.8 percent over the year to May 2025. This improvement was largely driven by the two-year fixed mortgage rate falling from 7.38 percent in early 2024 to 5.66 percent by April 2025.

Lower interest rates mean your monthly repayments decrease, which allows the bank to lend you more. However, the national house price-to-income ratio still sits at 9.5x the average wage, even with a slight dip in the national median house price to $763,000. Because prices remain high relative to incomes, we advise caution. Even if a calculator says you can borrow more today because rates have dropped, you must still account for the possibility of rates rising again in the future.

The importance of the bank stress test

Banks do not just look at the current interest rate when they decide to lend to you. They use a "test rate" to ensure you can still afford your home if interest rates spike. Currently, banks often stress-test repayments at rates 2 to 2.5 percentage points above the market rate. This means if you are looking at a 5.7 percent mortgage, the bank is checking if you can still pay the bills at 8.5 percent or 9.0 percent.

We recommend running these numbers yourself. Take your projected loan amount and calculate the fortnightly payments at a 9 percent interest rate. If that figure makes you feel uneasy or leaves you with nothing for groceries and petrol, you should consider a smaller loan. Staying well within your means is the best way to avoid being "house poor," where all your income goes toward your mortgage, leaving nothing for a life outside your four walls.

Budgeting for the total cost of buying

Affordability is about more than just the mortgage repayment. You need to factor in the "unseen" costs of property ownership. These include local council rates, building insurance, and a maintenance fund for repairs. A common mistake we observe is buyers forgetting to budget for the legal transaction itself. Knowing these costs upfront allows you to set aside the necessary funds without dipping into your deposit.

At ConveyOnline, we provide transparent, all-inclusive pricing so you know exactly what you will pay. For a standard property purchase with no mortgage, our fees start from $1,799, which includes GST and disbursements. If you are using a mortgage, which most buyers are, there is an additional $150 per facility. Many of our clients are first-home buyers using specific government supports. We charge an additional $300 for KiwiSaver fund withdrawals and $100 for processing a First Home Grant. You can view our full breakdown of ConveyOnline’s transparent property law pricing to see how these fit into your budget.

For those starting out, we have developed a specific KiwiSaver & Kāinga Ora guide for NZ first-home buyers . This resource explains how to pull together your deposit and manage the legal requirements of your first purchase. Whether you are a teacher in Tauranga or a builder in Blenheim, having a clear legal roadmap is essential.

Revisiting affordability through refinancing

Your financial situation will change over time. Incomes rise, interest rates fluctuate, and your equity grows as you pay down your loan. Periodically reviewing your mortgage structure is a smart financial move. If interest rates have dropped significantly since you took out your loan, or if you have reached a lower Loan-to-Value Ratio (LVR), you might find better terms with a different lender. LVR is the size of your loan compared to the value of the property, expressed as a percentage.

When you decide to move your mortgage to a new bank, we can assist with the legal side of the transition. Our fees for refinancing your NZ mortgage start from $1,249, including GST and disbursements. We handle the entire process online, meaning you can complete your refinance without needing to attend any meetings with a lawyer. This makes it easy to keep your mortgage aligned with your current affordability levels as the market evolves.

Final thoughts on your borrowing journey

Determining how much mortgage you can afford is the most important decision you will make in the buying process. By using the 6x DTI guideline, applying a 15 to 20 percent safety buffer, and stress-testing your repayments at higher rates, you protect your financial future. Remember to include all costs, from insurance to legal fees, in your initial plan. This level of preparation ensures that when you finally get the keys to your new home, it remains a place of comfort rather than a source of stress.

_Disclaimer: This article provides general information only and does not constitute financial or legal advice. Every individual's financial situation is unique. We recommend seeking independent advice from a qualified financial adviser and a legal professional before making any significant property or mortgage decisions._

7 Common Conveyancing Problems in NZ and How to Solve Them

Sun, 01 Mar 2026 07:12:25 GMT

7 Common Conveyancing Pitfalls and How to Avoid Them

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal or financial advice. Property transactions involve significant financial commitments and legal obligations. We recommend seeking professional advice tailored to your specific circumstances before making any decisions.

Key Takeaways

Due diligence steps like ordering a LIM are time-bound and require at least ten working days for council processing.
KiwiSaver has become a massive funding source for first homes, with billions withdrawn annually, making timing and documentation critical.
Fixed-fee conveyancing provides price certainty by including GST and standard disbursements in the initial quote.
Unconsented works and title defects often surface late in the piece, requiring early investigation to prevent settlement delays.
Standardised natural hazard disclosures in 2025 mean LIM reports now contain more detailed risk information than ever before.

The 2025 property market reflects a period of cautious confidence. According to data from the Real Estate Institute of New Zealand (REINZ) , national residential sales counts increased 10.3% compared with 2024, reaching 80,655 sales. While the national median house price edged down slightly to $775,000, the steady volume of transactions means the legal "engine room" of these deals is busier than ever. In our experience, the primary danger in this environment involves letting avoidable legal or administrative issues derail a transaction at the last minute.

Conveyancing functions as the risk-management engine room of your property deal. It is where we identify and resolve problems before they become expensive mistakes. Whether you are buying a first home in Hamilton or selling a family residence in Christchurch, understanding the common hurdles can save you thousands of dollars and weeks of stress. We have seen these seven pitfalls trip up even the most prepared parties, but they are entirely manageable with the right approach.

1. LIM and Natural Hazard Surprises

A Land Information Memorandum (LIM) is a comprehensive report issued by the local council that provides a summary of all the information they hold about a specific property. Under section 44A of the Local Government Official Information and Meetings Act 1987, councils must issue a LIM within 10 working days. We often see buyers leave this too late, failing to account for this statutory timeframe in their finance or due diligence conditions.

Recent regulations effective from 1 July and 17 October 2025 now require clearer, standardised natural-hazard disclosures. This means your LIM will likely be more information-dense regarding flooding risks or coastal erosion. In 2025, council fees for a standard residential LIM ranged from $290 in Christchurch to $563.50 in Wellington, while Auckland charged $375 for a standard request and $506 for an urgent one. Building these costs and timelines into your initial plan ensures you have the facts before your deposit becomes non-refundable.

2. Title and Easement Defects

The Record of Title is the legal proof of ownership, but it also contains "interests" that can restrict how you use the land. An easement, for example, might allow a neighbour to run a driveway across your property or give a utility company the right to access pipes under your lawn. A common mistake we observe is buyers assuming a "clear title" means no restrictions exist.

In our experience, identifying these defects early allows us to advise you on whether a shared driveway agreement is missing or if a restrictive covenant prevents you from building the shed you planned. We review these documents as part of our standard online property law services , ensuring you know exactly what you are buying into before you sign on the dotted line.

3. Unconsented Works and Illegal Additions

Many New Zealand homes have undergone renovations, but many of those changes lack the necessary building consents or Code Compliance Certificates (CCC). A CCC is the final sign-off from the council confirming that building work meets the building code. If a previous owner added a deck or converted a garage without permission, the liability often passes to the new owner.

We recommend checking the council property file against the physical layout of the house. If the kitchen has been moved or a load-bearing wall has disappeared but the council records show the original 1950s floor plan, you have a problem. Resolving these issues through a "Safe and Sanitary" report or a Certificate of Acceptance takes time, so spotting them early is vital.

4. KiwiSaver and Kāinga Ora Timing Issues

KiwiSaver acts as a central pillar of first-home funding for many New Zealanders. Data from Inland Revenue shows that as at 30 June 2025, $2.3 billion had been withdrawn from KiwiSaver for first-home purchases or financial hardship since 2015. This includes $1.9 billion specifically for first homes. In December 2025 alone, $196.3 million was withdrawn for first-home purchases.

The sheer volume of applications means delays are common. RNZ reports that there were over 58,000 hardship withdrawals in 2025, adding further pressure to the system. We've seen deals nearly collapse because a buyer didn't realise their provider required 10 to 15 working days to process a withdrawal. Our team manages these applications routinely, and you can find more detail in our full KiwiSaver first-home deposit guide . We receive the funds into our trust account and time them perfectly for settlement to avoid any last-minute panic.

5. Finance and Valuation Roadblocks

A "pre-approval" from a bank is a helpful starting point, but it usually comes with strings attached. The bank will often require a registered valuation of the specific property you are buying before they give the final "yes." If the valuation comes in lower than your offer price, you may need to find a larger cash deposit to bridge the gap.

We've seen this happen when buyers get caught up in a multi-offer situation and bid more than the market value. Ensuring your finance condition gives you enough time to get a valuation and bank sign-off is a key part of our risk management process. We work closely with your mortgage broker to ensure all bank requirements are met well before the settlement date.

6. Insurance Complications

Obtaining house insurance has become more complex in recent years, particularly in areas prone to natural hazards. Banks will not settle a mortgage unless they have proof of insurance that is "held covered" from the day of settlement. If a property has a history of EQC claims or sits in a flood zone identified in the 2025 natural-hazard disclosures, some insurers may decline cover or charge a significant premium.

We advise all our clients to check insurance availability as their very first step. If you can't get insurance, you can't get a mortgage, and the deal cannot proceed. We handle the legal side of EQC claim transfers, which usually incurs a small add-on fee of $150.00, to ensure your interests are protected if there is ongoing damage to be repaired.

7\. Settlement Day Logistics

Settlement day is when the money moves and the keys are handed over, but it requires precise coordination. A common pitfall is the "domino effect," where a delay in one person's sale prevents them from buying their next home, holding up an entire chain of buyers and sellers. We've seen this happen when people try to move house on a Friday afternoon, leaving very little time to resolve banking glitches before the weekend.

Conducting your final pre-settlement inspection at least two working days before the big day allows time to address any issues, such as the seller leaving rubbish behind or a newly broken window. Our role is to coordinate with the other party's lawyer and the banks to ensure the money moves as early as possible on the day.

Transparent Costs for Peace of Mind

One of the biggest stresses in any property deal is the fear of hidden legal costs. We believe in providing clear, upfront pricing so you can budget with confidence. Our fees are all-inclusive of GST and standard disbursements, and we typically take them from the final settlement sum so you don't have to pay upfront.

Our standard transparent, fixed conveyancing fees from $1,499 (selling) and $1,799 (buying) cover the essential legal work. For more complex deals, we use a simple add-on menu:

KiwiSaver funds withdrawal: +$300.00
Kāinga Ora First Home Grant: +$100.00
Mortgage facility (per facility): +$150.00
Unit title sale or purchase: +$150.00
Trust involvement: +$200.00
Drafting a Sale and Purchase Agreement: +$150.00

By choosing a fixed-fee service, you remove the risk of an escalating hourly bill if a minor issue arises. Our goal is to make the process as straightforward as possible, using our experience to spot those seven pitfalls before they become problems. If you are ready to move forward with your next property move, our nationwide online property law service is here to manage the transaction from start to finish, keeping you updated every step of the way.

Online vs. Traditional Conveyancing: Which is Right for Your NZ Property Transaction?

Fri, 30 Jan 2026 02:54:12 GMT

Conveyancing and Property Law in New Zealand: Choosing the Right Legal Services

Key Takeaways

Online conveyancing provides a practical and cost-effective alternative to traditional law firms.
Electronic signatures are legally valid for most property documents in New Zealand.
Fixed-fee pricing models offer budget certainty for buyers and sellers.
Traditional in-person legal services remain suitable for highly complex or emotionally sensitive matters.

Buying or selling a home is a significant milestone, but the legal work behind the scenes often feels like a mystery. In our experience, many New Zealanders find themselves choosing between the familiar local law firm and the modern efficiency of an online conveyancing service. Both paths lead to the same goal: a legal transfer of property ownership. However, the way you get there, and what you pay for the privilege, can differ significantly.

The property market moves quickly. Data from Trade Me Property (2024) suggests that buyers should expect to spend around $1,400 to $2,000 for a basic property purchase , while sellers might pay between $1,300 and $1,800. For more complex transactions, those fees often climb north of $3,000. These figures highlight why more Kiwis are looking for transparency and predictability in their legal costs.

What is online conveyancing?

Online conveyancing is a professional legal service delivered entirely through digital channels, removing the need for physical office visits. We operate as a collaboration between the established regional firm Langley Twigg Law and digital specialists to provide a streamlined experience for clients across the country. By using a provincial law firm as our base, we keep overheads lower than city-based practices while maintaining high legal standards.

Our model focuses on being affordable, efficient New Zealand lawyers and conveyancing solicitors with a nationwide service. We aim to save you time and money by providing access to qualified legal advice without the requirement to sit down in an office. You can learn more about our online property lawyers and how we manage transactions from Kaitaia to Bluff.

Is online conveyancing cheaper than traditional services?

Online conveyancing is typically more affordable because it utilises digital workflows and remote communication to reduce administrative costs. MoneyHub (2025) notes that online conveyancing services are typically cheaper than non-online services because the work is completed without face-to-face meetings. This efficiency allows for fixed-fee structures that include GST (Goods and Services Tax) and disbursements.

Disbursements are out-of-pocket expenses your lawyer pays to third parties on your behalf, such as search fees for Land Information New Zealand (LINZ). While traditional firms often quote a base fee and add these costs later, we prefer a transparent approach. Our property law pricing starts from $1,799 for buying, $1,499 for selling, and $1,249 for refinancing, with all GST and disbursements included for standard transactions.

Breaking down the costs

To help you compare apples with apples, we provide clear pricing for common add-ons. For example, drafting a Sale and Purchase Agreement adds $150, while handling KiwiSaver funds involves an additional $300. If you are buying a unit title property or have a trust involved, these specific requirements are priced clearly at $150 and $200 respectively. This level of detail ensures you know exactly what your final bill will look like before settlement day.

Are electronic signatures legally valid for property transactions?

Electronic signatures are legally valid and just as enforceable as traditional pen-and-paper signatures for most property documents in New Zealand. This legal standing is established under the Contract and Commercial Law Act 2017 (CCLA). According to legal experts at Ross Holmes Lawyers, electronic signatures are valid for property sale and purchase agreements provided all parties agree to their use.

The shift toward digital has been further supported by recent updates to industry guidelines. Willis Legal points out that the October 2024 update to the Authority and Identity Requirements for E-dealing Guidelines allows for A&I forms to be signed and witnessed electronically. This means you can verify your identity and sign critical transfer documents from your living room, provided strict reliability and identity standards are met.

Choosing the right path for your property transaction

The choice between online and traditional services often comes down to the complexity of your situation. Traditional firms offer a physical presence that some find comforting during emotionally sensitive or highly complex multi-party disputes. If you prefer to drop into an office and have a face-to-face chat with your solicitor, the traditional model remains a steady choice.

However, for the majority of residential sales, purchases, and refinancing, the online model offers superior convenience. Take a first-home buyer in Hamilton, for example. They might be juggling full-time work and weekend viewings. An online service allows them to review documents and sign contracts at 8:00 PM on a Tuesday without needing to take time off work for a lawyer's appointment. This flexibility is why we see a growing preference for digital legal services.

The conveyancing process from start to finish

The legal journey remains the same regardless of the delivery method. It begins with the Sale and Purchase Agreement, moves through due diligence and satisfying conditions, and ends with the transfer of title on settlement day. Modern online services provide a clear, step-by-step framework to keep you informed at every stage.

We have seen that a well-structured digital workflow reduces the stress of missing deadlines or overlooking critical details. If you want to understand the timeline better, you can explore our A to Z process guide. It explains everything from initial consultations to the final exchange of keys, ensuring you feel empowered throughout your property journey.

Whether you are buying your first home or selling an investment property, the goal is a smooth, legally sound transaction. By choosing a service that aligns with your budget and lifestyle, you can focus on the excitement of your next move rather than the paperwork.

Disclaimer: This article provides general information only and does not constitute formal legal advice. Property law can be complex, and individual circumstances vary. We recommend seeking professional legal guidance specific to your situation before entering into any binding property agreements.

The Complete Guide to Discharging Your Mortgage in New Zealand

Mon, 15 Dec 2025 00:46:55 GMT

A Homeowner's Guide to Mortgage Discharge in NZ

Key Takeaways

A mortgage discharge is the legal process of removing a lender's security interest from your property title.
You need to discharge a mortgage when you sell your property, refinance your loan, or after you've fully paid it off.
The process is handled by a lawyer or conveyancer who liaises with your bank and registers the change electronically.
Costs include your lawyer's fee, a fee from your bank, and a land registration fee.

Whether you’re celebrating the final payment on your home loan or moving on to a new property, there's one last crucial step in the journey: the mortgage discharge.

It sounds technical, but it’s a standard part of property law in New Zealand. We've guided countless clients through this process, and our goal here is to demystify it for you. Think of this as a clear, straightforward chat about what happens, why it happens, and what you need to do to get it done.

What Exactly is a Discharge of Mortgage?

A discharge of mortgage is the formal, legal process of removing the mortgage from your property's title. When you first took out your home loan, the bank (the mortgagee) registered a mortgage against your property title as security. This gives them the right to sell the property if you fail to repay the loan.

Once the loan is repaid in full, that security is no longer needed. The discharge is the official act that removes the bank's claim, leaving you with a "clear" title. It’s the final piece of paperwork that confirms the property is 100% yours, free from the lender's interest.

Why Would You Need to Discharge a Mortgage?

In our experience, there are three main scenarios where a mortgage discharge is essential. Each one marks a significant milestone in your property ownership journey.

You've Sold Your Property

This is the most common reason we handle a mortgage discharge. When you sell your house, the buyer expects to receive a clear title, free of your old mortgage. On settlement day, a portion of the sale proceeds is used to repay your outstanding home loan balance. Once the bank receives this payment, we can proceed to discharge the mortgage. In our experience helping clients with their property sales across New Zealand , from Auckland to Wellington and Christchurch, this is a standard and non-negotiable part of the settlement process.

You've Paid Off Your Home Loan in Full

Congratulations! Making that final mortgage payment is a massive achievement. But here's something many homeowners don't realise: making the last payment doesn't automatically remove the mortgage from your title. The security remains registered until you formally instruct a lawyer to discharge it.

While there's no immediate requirement to act, we always recommend it. Having a clear title simplifies any future dealings with the property and gives you complete peace of mind.

You're Refinancing with a New Lender

Switching banks to get a better interest rate is a smart financial move. This process involves discharging your existing mortgage with your old bank and simultaneously registering a new mortgage in favour of your new lender. It’s essentially a swap. For homeowners who have already arranged their new finance with a bank or broker, our job is to manage this legal transaction. We've created an easy online process to handle the legal side, ensuring the old mortgage is discharged and the new one is registered correctly on the same day.

The Mortgage Discharge Process: A Step-by-Step Guide

While it might seem complex, the discharge process is a well-trodden path for any property lawyer. Here’s how we handle it on your behalf.

Instruction and Authority: You give us the green light to act. We'll have you sign an Authority and Instruction (A&I) form, which gives us the legal authority to deal with your property title electronically.
Lender Communication: We contact your bank to notify them of the upcoming discharge. We request a final repayment amount and their authority to remove the mortgage from the register.
Electronic Documentation: Gone are the days of paper documents. The bank prepares an electronic discharge instrument. This is all managed through the Land Information New Zealand (LINZ) e-dealing system.
Payment and Settlement: On the agreed-upon date, funds are paid to the bank to repay the loan in full. For a sale, this comes from the buyer's payment. For a refinance, it comes from the new lender.
Registration: As soon as the bank confirms they have their money, they release the discharge. We then submit the discharge instrument to LINZ for registration. The Registrar updates the record, and the mortgage is officially removed from your title.

How Much Does It Cost to Discharge a Mortgage in NZ?

The total cost to discharge a mortgage is made up of a few different parts: your bank’s fee, the LINZ registration fee, and your lawyer’s professional fee for managing the entire process.

Some banks in New Zealand charge a fixed fee to process their side of the discharge, which can vary. At ConveyOnline, we believe in transparent pricing with no surprises. For instance, our "Refinance Property" service, which includes discharging your old mortgage, starts from $1,249 (inclusive of GST and standard disbursements). We also clearly list any additional fees for more complex situations, such as if a Trust is involved (+$200), or the property has an EQC claim (+$150). We want our clients to have a full picture of the cost from the start.

How Long Does It Take to Discharge a Mortgage in NZ?

The timeframe really depends on the situation. For a property sale or refinance, everything is timed to happen on a specific settlement date. The background work starts a couple of weeks before, but the actual discharge is registered on that day.

If you've simply paid off your loan and want to clear the title, it typically takes between two to four weeks. The main factor influencing the timeline is how quickly your bank responds to our requests for the discharge authority. We are proactive in chasing this up to get it done as quickly as possible for our clients.

Can I Discharge My Mortgage Myself in NZ?

In practice, the answer is no. While it's technically possible for an individual to handle their own conveyancing, the mortgage discharge process is now conducted almost exclusively through the Landonline e-dealing platform. This system is restricted to registered users like lawyers and licensed conveyancers.

Furthermore, your bank will almost always require a solicitor to provide legal undertakings to ensure the loan is repaid correctly before the mortgage is removed. It’s a measure to protect all parties and ensure the Property Law Act 2007 is followed correctly.

Completing a mortgage discharge is the final step to unlocking the full value of your property journey. It's a formal legal process, but it doesn't have to be a difficult one.

If you're selling, refinancing, or have made that incredible final mortgage payment, our expert team is here to make the final step as simple and affordable as possible. Get in touch to see how we can help.

_Disclaimer: The information provided in this article is for general informational purposes only. It does not constitute legal or financial advice. We recommend you seek professional advice from a qualified lawyer or financial advisor for your specific situation._

NZ First Home Buyers: Your Blueprint to Keys in Hand (KiwiSaver & Kāinga Ora Guide)

Mon, 17 Nov 2025 00:27:55 GMT

The NZ First Home Buyer's Blueprint: From KiwiSaver to Keys in Hand

Key Takeaways

The Kāinga Ora First Home Loan is the main government support, allowing eligible buyers to purchase with a 5% deposit.
You can withdraw most of your KiwiSaver funds for a deposit after three three years of membership, leaving a minimum of $1,000.
Getting pre-approval for your loan is a critical first step, giving you a clear budget before you start house hunting.
The First Home Grant was discontinued in May 2024, so it's important to focus on the support that is still available.
Avoiding common mistakes like skipping a building report or underestimating costs is key to a smooth process.

Buying your first home is a massive milestone. It's exciting, but let's be honest, it can also feel overwhelming. The paperwork, the jargon, the financial hurdles—it’s a lot to handle.

At ConveyOnline, we've helped countless Kiwis navigate the legal side of their first property purchase. We believe the journey to getting your keys should be straightforward and affordable. That’s why we’ve created this blueprint. Think of it as your guide to securing that all-important first home loan and turning your homeownership dream into a reality.

Understanding Your First Home Loan

Before you even start looking at properties, you need to get your finances in order. Lenders want to see that you’re a reliable borrower. In our experience, this comes down to a few key things: a good credit history, stable employment, and a well-managed bank account that shows consistent savings.

Your first major step is getting pre-approval. This is an indication from a bank of how much they’re willing to lend you, based on your financial situation. It gives you a clear budget and shows sellers you’re a serious buyer.

Later in the process, you'll get formal approval. A formal, or unconditional, approval from a bank confirms that they've checked every detail of your application and are ready to lend you the money. This is the green light you need to go unconditional on a property.

Government Help: The Kāinga Ora First Home Loan

For many first-time buyers, saving a 20% deposit is the biggest barrier. This is where government assistance becomes essential.

It's important to know that the First Home Grant was discontinued in May 2024 . The primary support now available is the Kāinga Ora First Home Loan.

This scheme is designed to help Kiwis get onto the property ladder sooner. If you’re eligible, it allows you to buy a home with as little as a 5% deposit , as Kāinga Ora underwrites the loan to give the bank more security. You still apply for the loan through a participating bank or lender, not Kāinga Ora directly.

To qualify, you need to meet specific criteria. For example, an individual buyer must have earned $95,000 or less (before tax) in the last 12 months . For a couple or an individual with dependants, the combined income cap is $150,000. You also need to be a New Zealand citizen or permanent resident and plan to live in the house you buy.

Using Your KiwiSaver for a First Home Deposit

Your KiwiSaver account is one of the most powerful tools you have for buying your first home. It’s your money, and you can use it to build your deposit.

To be eligible for a KiwiSaver first-home withdrawal, you must have been a member for at least three years . If you meet that condition, you can typically withdraw all but $1,000 of your total balance to put towards your purchase. This can significantly boost your deposit and bring your homeownership goal within reach.

The withdrawal process itself is managed by your legal team. We handle these applications all the time. It involves completing the correct forms and coordinating with your KiwiSaver provider to ensure the funds are ready for settlement day. It's a process that needs to be done right, so having an experienced hand guiding it is crucial. For a deeper look into the specifics, check out our guide to using KiwiSaver for your first home deposit .

Your Step-by-Step Home Buying Journey

Once your finances are lining up, the journey to ownership follows a clear path. Breaking it down into steps makes it far more manageable.

1. Get Pre-Approved

This is your starting line. Talk to a mortgage broker or your bank to find out how much you can borrow. This defines your budget and makes your house hunt focused and realistic.

2. Start House Hunting

Now for the exciting part. With your budget set, you can start visiting open homes and finding a property that fits your needs. This is also the time to learn more about what to expect when buying your first home .

3. Make an Offer

Found the one? It’s time to make an offer. Your offer will likely be "conditional" on a few things, like securing finance, getting a satisfactory building report, and your lawyer approving the title.

4. Finalise the Loan and Legal Work

Once your offer is accepted, it's time to work through those conditions. Your lawyer will review the Sale and Purchase Agreement, check the property title, and help you with your KiwiSaver withdrawal. This is where we step in to handle the details, ensuring everything is legally sound before you go unconditional.

5. Settlement Day

This is the day it all comes together. We'll coordinate with the bank and the seller's lawyer to transfer the funds. Once everything is settled, you get the keys. Congratulations, you're a homeowner!

Common Mistakes We See First Home Buyers Make

We want your first home purchase to be a success story, not a cautionary tale. From our experience, a few common pitfalls can trip up first-time buyers. Being aware of them is the best way to avoid them.

Underestimating the Total Cost: The purchase price is just one part of the equation. You also need to budget for legal fees, a building report, a LIM report, moving costs, rates, and insurance. Forgetting these can put a real strain on your finances right from the start.

Skipping Due Diligence: It can be tempting to skip a building report to save a few hundred dollars, especially in a competitive market. Don't do it. A thorough inspection can uncover hidden issues that could cost you thousands down the line. It's one of the most important investments you'll make.

Not Understanding the Agreement: The Sale and Purchase Agreement is a legally binding contract. A common mistake we've observed is buyers not getting legal advice before they sign. You need to understand every clause and condition. That’s what we’re here for—to ensure your rights are protected. You can learn more about our property law services for home buyers and how we can help.

Ready to Take the Next Step?

Securing a first home loan and buying a property is a detailed process, but it doesn’t have to be a stressful one. With the right preparation and the right team on your side, you can move forward with confidence.

Our goal at ConveyOnline is to provide transparent, affordable, and expert legal support for Kiwis everywhere. When you’re ready to make your move, we’re here to handle the legal heavy lifting, so you can focus on the excitement of getting your new keys.

_Disclaimer: The information provided in this article is for general informational purposes only and does not constitute financial or legal advice. You should consult with a qualified professional before making any financial decisions related to purchasing a property._

Decoding the Costs: A Transparent Guide to Property Lawyer & Conveyancing Fees in NZ

Wed, 15 Oct 2025 01:52:01 GMT

Demystifying Property Lawyer and Conveyancing Fees in NZ

Key Takeaways

Conveyancing fees in New Zealand cover the legal work involved in property transactions.
Fees can vary significantly, often structured as fixed fees or hourly rates.
Hidden costs, known as disbursements, are common but can be avoided with all-inclusive pricing.
ConveyOnline offers transparent, all-inclusive pricing starting from $1,499 for selling and $1,799 for buying.
Choosing a service with upfront, fixed fees can help you budget confidently.

Navigating the legal landscape of property transactions in New Zealand can feel daunting, especially when it comes to understanding the costs involved. We often hear from clients who've been surprised by unexpected legal bills. That's why we believe in absolute transparency when it comes to property lawyer and conveyancing fees.

At ConveyOnline, we’re committed to making the process clear and affordable. For instance, our conveyancing fees start from just $1,499 for selling and $1,799 for buying a property. These prices are all-inclusive of GST (Goods and Services Tax) and disbursements, meaning no hidden surprises for you.

What Are Conveyancing Fees and Why Do You Pay Them?

Conveyancing fees are the costs associated with the legal and administrative work required to transfer ownership of a property from one person to another. This process is called conveyancing, and it's a crucial step whether you're buying, selling, or refinancing a property. Many people wonder, what does a property lawyer actually do during this time? Essentially, they ensure your transaction is legally sound and your interests are protected.

In our experience, these fees cover everything from drafting and reviewing sale and purchase agreements to conducting essential property searches and liaising with banks and real estate agents. It's a complex process that requires expertise in property law, and getting it right is vital.

Fixed Fee vs. Hourly Rates: Understanding the Difference

When you're looking for a property lawyer or conveyancer, you'll typically encounter two main fee structures: fixed fees or hourly rates.

Fixed Fee: This means you agree on a set price for the entire conveyancing process upfront. You know exactly what you'll pay, regardless of how many hours the lawyer spends on your case. This is our preferred model because it offers peace of mind.
Hourly Rate: With this structure, you're billed for every hour (or part thereof) the lawyer works on your transaction. While this can seem flexible, it often leads to uncertainty and can result in higher-than-expected legal bills, especially if unexpected issues arise.

A common mistake we observe is clients choosing an hourly rate, only to incur additional fees that quickly add up. We believe transparent, all-inclusive pricing is the best approach, which is why we take the conveyancing fee conveniently from the final settlement sum, meaning clients do not need to make any prepayments or use a credit card.

Unpacking "Disbursements": The Hidden Costs

One of the most common sources of unexpected costs in property transactions comes from what are known as 'disbursements'. These are out-of-pocket expenses paid by your lawyer to third parties on your behalf. While they are legitimate costs, they can sometimes be overlooked in initial quotes. Common disbursements include:

Land Information Memorandum (LIM) reports
Title search fees
Land Information New Zealand (LINZ) registration fees for transferring ownership
Council search fees
Bank discharge or registration fees for mortgages
Anti-money laundering (AML) verification costs

Many firms quote a legal fee and then add disbursements on top, leaving you guessing. Our approach is different: our prices are all-inclusive of GST and disbursements. This means the price we quote is the price you pay, allowing you to budget with confidence.

ConveyOnline's Transparent Pricing for New Zealand Property Transactions

We've designed our pricing to be as straightforward as possible, covering a range of residential property transactions across New Zealand. Whether you're in Auckland, Wellington, Christchurch, Hamilton, or anywhere else, our online conveyancing service is accessible and convenient. Here’s a breakdown of our starting fixed fees:

Buying Property: From $1,799 (includes GST & disbursements). If you're looking to buy a house , this covers the essential legal work.
Selling Property: From $1,499 (includes GST & disbursements).
Refinancing Mortgage: From $1,249 (includes GST & disbursements).

We also offer add-on services for specific situations, clearly priced so you know what to expect:

Unit Title: +$150
Using Kiwisaver funds: +$300
Per additional mortgage facility (e.g., if you have multiple lenders): +$150

This clear structure means you can compare our fixed conveyancing fees against other quotes with ease, knowing there won't be any hidden costs down the line.

Empowering You to Budget with Confidence

Understanding property lawyer and conveyancing costs shouldn't be a guessing game. By choosing a service that offers upfront, all-inclusive pricing, you empower yourself to budget accurately and avoid the stress of unexpected bills. We're here to demystify the legal process and provide a reliable, affordable solution for your property transaction needs.

For a detailed breakdown of our services and pricing, we encourage you to visit our property law pricing page .

Disclaimer

The information provided in this article is for general informational purposes only and does not constitute legal advice. Property law can be complex, and individual situations vary. We recommend consulting with a qualified property lawyer for advice tailored to your specific circumstances.

Your Legal Partner in Property: The Essential Role of NZ Conveyancers & Lawyers

Mon, 15 Sep 2025 23:08:54 GMT

Property Lawyer vs Conveyancer: Which One is Right for Your NZ Property Transaction?

Key Takeaways

Both property lawyers and registered conveyancers can legally manage the transfer of property title from one person to another in New Zealand.
The main difference is their scope of advice; property lawyers can provide comprehensive legal advice on related matters like trusts, wills, and relationship property, while conveyancers cannot.
For simple, straightforward transactions, a conveyancer may be sufficient. However, a property lawyer is essential for complex situations or for complete peace of mind.
While conveyancer fees can sometimes appear lower, the comprehensive protection and broader expertise offered by a property lawyer provide significant value and security.

Buying or selling a home is one of the biggest financial decisions you’ll ever make. As you navigate the process, you'll hear two terms used almost interchangeably: ‘property lawyer’ and ‘conveyancer’. It’s easy to assume they do the same job, but there are crucial differences that can have a big impact on your transaction. So, what sets them apart, and how do you choose the right professional for your needs?

Let's clear up the confusion and help you make an informed choice that protects your interests every step of the way.

What is Conveyancing?

At its heart, conveyancing is the legal process of transferring ownership of a property from one person or entity to another. This involves preparing and lodging a stack of legal documents, liaising with banks, conducting title searches, and ensuring the final settlement goes smoothly. Both property lawyers and licensed conveyancers are qualified to perform these core conveyancing tasks.

The Core Difference: Scope of Advice

The single most important distinction between a property lawyer and a conveyancer comes down to the breadth of advice they are legally allowed to give. A conveyancer is a specialist who focuses exclusively on the mechanics of transferring property. A property lawyer, on the other hand, does all of that and much more.

Because they are qualified solicitors, property lawyers can provide advice on a wide range of legal issues that often intersect with property ownership. As the experts at Wise Up note, "Property Lawyers in New Zealand have wider scope to advise you on the impact a property sale or purchase could have on, for example: Trusts, Wills, Enduring Powers of Attorney, Mortgages, Relationship property. A registered conveyancer is \ not\ qualified to advise on these matters." This means if your property transaction touches on any other part of your financial or personal life, a conveyancer’s hands are tied.

This is a critical point. A property transaction doesn't happen in a vacuum. It can affect your estate planning, asset protection, and relationship agreements. MoneyHub reinforces this, explaining that while a conveyancer is limited, a solicitor can handle both the property transfer and provide legal advice on associated issues. They state, "Engaging a solicitor is, for this reason, the most common choice in such situations as they take care of both your conveyancing and provide legal advice on these associated issues."

When Might You Need a Property Lawyer?

While a conveyancer might be suitable for a perfectly straightforward sale or purchase, many situations benefit from—or absolutely require—the expertise of a property lawyer. Think about whether your situation involves any of the following:

Complex Ownership Structures: Are you buying the property through a trust? A lawyer can advise on the trust's structure and ensure the purchase is compliant, whereas a conveyancer cannot set up a trust for you.
Relationship Property: If you're buying a house with a partner, a lawyer can help you draft a contracting out agreement (a 'prenup') to protect your individual assets.
Subdivisions or Title Issues: If you're dealing with cross-leases, subdivisions, or discover a defect on the property's title, a lawyer is equipped to navigate these legal complexities.
Estate Planning: A property lawyer can advise on how your new purchase fits into your will and overall estate plan, ensuring your assets are managed according to your wishes.
When Things Go Wrong: If a dispute arises with the other party or an unexpected legal issue crops up, a lawyer can provide representation and legal advice that a conveyancer simply can't.

Ultimately, using a property lawyer gives you a safety net. You have an expert on your side who can handle not just the standard process, but any curveballs that come your way.

Comparing the Costs: Lawyer vs Conveyancer

Cost is naturally a big factor for anyone buying or selling property. So, what can you expect to pay? According to Trade Me Property, you can "expect to spend around $1,400 to $2,000 for a basic property purchase including establishment of one mortgage." Some conveyancers may advertise lower starting prices, but these often don't include disbursements (like council reports or registration fees) or GST, and costs can climb if any complexity arises.

While a lawyer’s fee might sometimes be slightly higher than a conveyancer's, you’re paying for a far more comprehensive service and a higher level of protection. At ConveyOnline, we believe you shouldn't have to choose between affordability and expert legal oversight. We offer the security of a dedicated property lawyer at a transparent, fixed price. Our fees are all-inclusive, covering GST and standard disbursements, so there are no surprises. Better yet, our fee is taken from the final settlement sum, meaning no upfront payment is required from you.

Here’s a look at our competitive pricing:

Buying a Property: From $1,799
Selling a Property: From $1,499
Refinancing a Mortgage: From $1,249

For a clear, detailed breakdown of what’s included, you can see our competitive, all-inclusive pricing and get an instant quote online.

The ConveyOnline Advantage: Expert Lawyers, Online Convenience

We’ve designed a service that gives you the best of both worlds. You get the robust legal protection and peace of mind that comes from having an experienced lawyer handle your transaction, combined with the ease and efficiency of a fully online process. There’s no need to take time off work for in-person meetings; everything can be handled from anywhere in New Zealand.

When you work with us, you're not just getting an online platform. All the legal work for our expert property law services is completed by the team at Langley Twigg Law. This means you have a top provincial New Zealand law firm overseeing every detail of your transaction. As a member of the NZ Lawlink network, their expertise ensures the highest standard of legal care.

This unique collaboration between a tech company and an established law firm means you can move forward with confidence. To find out more about our experienced property lawyers and the legal expertise behind our service, you can learn about our team on our website.

Making the Right Choice for You

Choosing between a property lawyer and a conveyancer comes down to your specific circumstances and your appetite for risk. For the simplest of transactions with no potential complications on the horizon, a conveyancer might seem like a cost-effective choice. However, for most people, the small difference in cost is a worthwhile investment for the comprehensive protection and complete peace of mind that a property lawyer provides.

Why leave anything to chance? With our streamlined online service, you get the assurance of a qualified lawyer without the traditional hassle or cost, ensuring your property journey is smooth, secure, and stress-free.

Disclaimer

_The information provided in this article is for general informational purposes only and does not constitute legal advice. Property law is complex, and you should consult with a qualified professional to discuss your specific situation. All content is current as of the date of publication._

Property Conveyancing in New Zealand: The Definitive A-to-Z Process

Sun, 17 Aug 2025 05:27:48 GMT

A Definitive Guide to Property Conveyancing in New Zealand

Key Takeaways

The New Zealand property market is showing renewed activity, with a significant increase in the number of properties sold, making it a crucial time for buyers and sellers to be prepared.
Property conveyancing is the essential legal process of transferring a property's ownership from a seller to a buyer, involving steps like due diligence, signing agreements, and final settlement.
The conveyancing process typically follows a timeline that includes signing a Sale and Purchase Agreement, fulfilling conditions, going unconditional, and completing the transaction on settlement day.
Modern online conveyancing services provide a convenient, transparent, and efficient alternative to traditional in-person legal meetings, streamlining the entire process.

The New Zealand property market is buzzing with a sense of cautious optimism. While headlines might focus on slight shifts in median prices, the real story is in the activity on the ground. More Kiwis are buying and selling homes, signalling a return of confidence. With the real estate market in New Zealand projected to grow at an annual rate of 4.30% and reach a staggering market volume of US$1.10tn by 2029 , it’s clear that property remains a cornerstone of our nation's wealth. This projected growth, known as a Compound Annual Growth Rate (CAGR), indicates a steady and significant increase in the market's total value over the next few years.

But what does this mean for you? Whether you're a first-home buyer, a seasoned investor, or looking to sell the family home, one thing is certain: you'll need to navigate the conveyancing process. This legal journey, which transfers property ownership from one person to another, can often feel like a maze of jargon and paperwork. Our goal is to demystify it for you. This guide will break down everything you need to know, empowering you to make your next property move with clarity and confidence.

What's Happening in the New Zealand Property Market?

After a period of adjustment, the market is finding its feet again. Recent data shows a clear upward trend in activity. In fact, the number of properties sold in New Zealand rose by 8.9% in May 2025 compared to the previous year. This jump from 6,579 to 7,166 sales shows that buyers and sellers are re-engaging with the market. It’s not just residential properties, either. Investor confidence is also on the rise, with a growing interest in commercial assets. For example, retail property is now favoured by 9% of investors , more than double the figure from 2023. This renewed energy across the board makes understanding the transaction process more important than ever.

What Exactly is Property Conveyancing?

At its heart, property conveyancing is the legal process required to transfer ownership of real estate from the seller to the buyer. It’s the formal, behind-the-scenes work that ensures the sale is legally binding and that the property title is correctly updated. A conveyancing professional - usually a property lawyer - acts as your guide and representative, handling all the legal documentation and communication to ensure a smooth and secure transaction.

Traditionally, this meant multiple trips to a lawyer's office to sign stacks of paper. But things have changed. We believe the process should be as stress-free as the feeling of getting your new house keys. That's why our approach at ConveyOnline is designed for modern life. Our entire service is entirely virtual, eliminating the need for in-person meetings with lawyers. You can manage the whole process from the comfort of your home, saving you precious time and energy.

The Conveyancing Process: A Step-by-Step Guide

While every transaction is unique, the conveyancing journey generally follows a set path. Understanding these milestones can help you feel in control from start to finish.

1) The Sale and Purchase Agreement

This is the foundational document of any property transaction. The Sale and Purchase Agreement (S&P) is a legally binding contract that outlines all the terms and conditions of the sale, including the price, settlement date, and any special conditions. It's critical to have your property lawyer review this agreement before you sign it to ensure your interests are protected.

2) Due Diligence and Fulfilling Conditions

Once the agreement is signed, the "conditional" period begins. This is the buyer's opportunity to do their homework, a process known as due diligence. Common conditions include:

Finance: Securing final approval for a home loan.
LIM Report: Obtaining a Land Information Memorandum from the local council to check for any issues with the property.
Building Inspection: Getting a professional builder's report to identify any structural problems.
Insurance: Confirming that the property is insurable.
Solicitor’s approval: this let’s you pull out of the contract if your lawyer finds anything untoward in it.

Your conveyancer will help you navigate these conditions and ensure they are satisfied by the due dates outlined in the S&P agreement.

3) Going Unconditional

Once all conditions have been met and you've given your lawyer the green light, the agreement becomes "unconditional." This is a major milestone. At this point, both the buyer and seller are legally committed to completing the sale, and the buyer will typically pay the deposit to a trust account.

4) Pre-Settlement

In the lead-up to settlement day, your conveyancer is busy preparing all the necessary legal documents. This includes preparing mortgage documents for the bank and the Authority and Instruction (A&I) forms, which give your lawyer the authority to act on your behalf to transfer the property title and funds. You'll also conduct a pre-settlement inspection of the property to ensure it's in the same condition as when you signed the agreement.

5) Settlement Day

This is the day it all comes together. Your lawyer will work with the seller's lawyer and the banks to transfer the purchase funds. Once the seller's lawyer confirms the money has been received, they will authorise the release of the keys. Your lawyer will then register the change of ownership with Land Information New Zealand (LINZ), and the property is officially yours. For those buying a home, our dedicated team guides you through each of these stages, ensuring a seamless experience that fast-tracks the home ownership process so you can focus on the excitement of moving in.

How Much Does Conveyancing Cost in NZ?

The cost of conveyancing can vary depending on the complexity of the transaction. However, we believe in making things simple and transparent, which is why we offer fixed, all-inclusive pricing. You know exactly what you're paying from the outset, with no hidden surprises. Our fees are:

Buying a Property: From $1,799 (includes GST & disbursements)
Selling a Property: From $1,499 (includes GST & disbursements)
Refinancing a Mortgage: From $1,249 (includes GST & disbursements)

To make it even easier, our fees are taken from the final settlement sum , meaning you don’t need to worry about upfront payments or credit card bills. It’s all handled as part of the transaction, simplifying your budget and cash flow.

Navigate Your Next Property Move with Confidence

The New Zealand property market offers exciting opportunities, but success often lies in the details. The conveyancing process, while technical, is a manageable and straightforward journey with the right support. By understanding the key steps and partnering with a team that values clarity and convenience, you can navigate your transaction without the stress and confusion.

Whether you are buying, selling, or refinancing, our mission is to provide a reliable, affordable, and accessible service that puts you in control. Let us handle the legal heavy lifting so you can focus on what truly matters—your next chapter.

_Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal, financial, or professional advice. You should not rely on the information in this article as an alternative to legal advice from your lawyer or other professional services provider. If you have any specific questions about any legal matter, you should consult your lawyer or other professional services provider._

Refinancing Your NZ Mortgage: A Strategic Playbook for Financial Success

Thu, 17 Jul 2025 02:54:19 GMT

Refinance Your Mortgage: A Strategic Guide to a Better Home Loan in NZ

Key Takeaways

In a climate of economic uncertainty, it’s natural for Kiwi homeowners to feel cautious about making big financial moves. Yet, it’s often during these times that the most significant opportunities arise. Refinancing your mortgage is one such opportunity—a powerful strategic tool that can reshape your financial landscape for the better. Many New Zealanders are already exploring this path; a recent survey found that a net 29% of mortgage advisors are seeing more people looking for advice on refinancing their loan . This growing interest highlights a clear trend: homeowners are actively seeking ways to improve their financial position.

But what does it really mean to refinance your home loan? It’s more than just chasing a lower interest rate. It’s about taking control, optimising your biggest asset, and aligning your mortgage with your current life and future goals. Whether you're thinking of refinancing to reduce your monthly repayment, pay off your loan faster, or free up cash for other ventures, the process can feel daunting. That's where we come in. At ConveyOnline, we believe the legal side of property transactions should be simple, transparent, and affordable. Our goal with this guide is to demystify the refinancing process, giving you the clarity and confidence to decide if it's the right move for you. We offer convenient, reliable online property law services designed to be completely hassle-free, so you can focus on securing the best deal for your future.

Why Consider Refinancing Your Home Loan?

Refinancing your mortgage is essentially replacing your existing home loan with a new one, either with your current lender or a new bank. While the process requires some effort, the potential benefits can be substantial, making it a worthwhile consideration for many homeowners.

Secure a Lower Interest Rate

This is the most common reason people look to refinance. The mortgage market is competitive, and lenders are constantly updating their offers to attract new customers. Securing a lower interest rate, even by a small fraction of a percent, can lead to significant savings. A better rate reduces your interest costs, which can lower your regular loan repayments, freeing up cash flow for other expenses or savings. Alternatively, you could keep your repayments the same and pay off your mortgage years sooner, saving a considerable amount in interest over the loan term.

Consolidate High-Interest Debt

Do you have other debts like credit cards, personal loans, or car finance? These often come with much higher interest rates than a typical home loan. Refinancing allows you to roll these expensive debts into your mortgage. By consolidating them under a single, lower interest rate, you can simplify your finances with one manageable repayment and drastically reduce the total interest you pay. This can be a powerful strategy to get on top of your debt and accelerate your journey to being debt-free.

Unlock Home Equity for Other Goals

Over time, as you pay down your mortgage and your property value increases, you build up equity. Equity is the difference between your home's market value and your outstanding loan balance. Refinancing can be a smart way to access or ‘unlock’ a portion of this equity. Homeowners often use this capital to fund major life projects, such as:

Using your home's equity can be a more cost-effective way to borrow money for these goals compared to taking out a separate personal loan.

Restructure Your Loan for Better Flexibility

Your financial situation and goals change over time. The loan structure that worked for you as a first home buyer might not be the best fit five years later. Refinancing gives you a chance to restructure your mortgage to better suit your current needs. This could involve:

When Should You Refinance a Mortgage?

The best time to refinance your mortgage is when the benefits clearly outweigh the costs and effort involved. While there's no single perfect moment, certain triggers often signal that it's a good time to review your options. One of the most common opportunities is when your fixed rate period is coming to an end. This allows you to switch lenders without incurring a penalty or break fee. It's wise to start your research a month or two before your fixed term expires to give yourself plenty of time. Other key moments to consider refinancing include a significant drop in market interest rates, a substantial increase in your property's value (and therefore your equity), or a major change in your personal financial situation, such as a salary increase that allows you to make higher repayments and shorten your loan term.

The Refinancing Process Step-by-Step

Feeling ready to explore your options? Breaking the process down into manageable steps makes it much less intimidating. Here’s a clear path to follow when you’re looking to refinance your mortgage.

Step 1: Assess Your Financial Situation and Goals

Before you even talk to a lender, take stock. What are you trying to achieve? Do you want a lower repayment, to pay off debt, or to unlock equity? Calculate your current home equity (your property’s estimated value minus your loan balance). Check your credit score and gather documents like proof of income, bank statements, and details of your existing loan. This preparation will make the next steps much smoother.

Step 2: Research and Compare Lenders

Don't just accept the first offer you see. Shop around to find the best deal. Compare the interest rates, fees, and features offered by different banks and lenders. A mortgage adviser or broker can be invaluable here, as they can compare a wide range of products on your behalf and help you find a loan that suits your specific situation and goals.

Step 3: Submit Your Loan Application

Once you’ve chosen a lender and a loan product, it’s time to formally apply. This is where the documents you gathered in Step 1 come into play. The new lender will assess your application based on their lending criteria, which includes your income, expenses, credit history, and the equity in your home. They may also require a registered valuation of your property to confirm its market value.

Step 4: The Legal Conveyancing Process

Once your new loan is approved, the final step is the legal work, known as conveyancing. This involves your lawyer coordinating with your old bank and your new one. They will arrange for your existing mortgage to be discharged (paid off and removed from your property title) and the new mortgage to be registered. This ensures the new lender’s loan is secured against your property. This stage can seem complex, but it doesn’t have to be. At ConveyOnline, we specialise in making this part of the process seamless and stress-free. Our fixed-fee refinancing service starts from $1,249, with no need for in-person meetings with a lawyer . We handle all the legal details online, providing a convenient and affordable way to finalise your refinance from anywhere in NZ.

Common Questions About Refinancing Your Mortgage

It's natural to have questions when considering a financial move as significant as refinancing. Here are answers to some of the most common queries we hear.

What is the downside to refinancing your mortgage?

The main downside to refinancing is the associated costs. These can include legal fees for the conveyancing work, potential application or valuation fees from the new lender, and most significantly, a break fee if you are ending a fixed rate loan early. It's crucial to calculate whether the long-term savings from a lower interest rate will outweigh these upfront costs. There's also the risk that if you extend your loan term to get a lower repayment, you could end up paying more in total interest over the life of the loan. Always do the maths to ensure the move makes financial sense for you.

Can you refinance on a fixed-rate mortgage in NZ?

Yes, you can absolutely refinance while on a fixed interest rate, but you will likely have to pay a 'break fee' or 'break cost'. This fee compensates your current lender for the interest income they will lose because you are ending the fixed rate period early. The cost can vary significantly depending on how much time is left on your fixed term and how much interest rates have changed since you fixed. Your current bank can provide you with a quote for this break fee, which is a critical piece of information for working out if an early refinance is worth it.

Are there fees involved when refinancing?

Yes, there are several potential costs involved in refinancing. The main ones include the legal fees for the conveyancing work, a potential break fee if you're on a fixed rate, and sometimes application or valuation fees from the new lender. At ConveyOnline, we provide certainty around the legal costs. Our fee to manage the legal side of your Refinance Property is from $1,249 inclusive (from $775 + GST & disbursements), ensuring you know exactly what to budget for.

Why Choose ConveyOnline for Your Refinance?

When you’ve done the hard work of comparing lenders and securing a better mortgage, the last thing you need is a complicated or expensive legal process. We created ConveyOnline to modernise property law, making it more accessible, transparent, and affordable for all New Zealanders.

Our entire service is designed for your convenience. You can start the process from your couch without needing a credit card, and our simple 4-step online system guides you through everything. We handle the complex legal coordination between your old and new banks, ensuring a smooth transition. Our fixed-fee structure means no surprises—you know the cost upfront. By choosing us, you're choosing a reliable, efficient, and straightforward partner to help you finalise your smart financial move.

_ Disclaimer: The information provided in this article is for general informational purposes only and does not constitute financial or legal advice. Your financial situation is unique, and you should consult with a qualified financial adviser or mortgage broker to discuss your specific needs and circumstances before making any decisions about refinancing your mortgage. Lending criteria, fees, and interest rates vary between lenders and are subject to change._

Guide to Using KiwiSaver for Your First Home Deposit

Thu, 01 May 2025 07:14:39 GMT

Using Your KiwiSaver for a First Home Deposit in NZ

Buying your first home in New Zealand is a massive step, and often the biggest hurdle is pulling together the deposit. Good news though – if you're a KiwiSaver member, you might be able to use some of those savings to help get you over the line. Plus, there's a government grant that could give your deposit an extra boost. It can seem a bit complicated, but let's break it down in a straightforward, down-to-earth way.

Your KiwiSaver balance could be a key part of your first home journey. The scheme is designed to help you save for retirement, but there's a special provision that lets you withdraw most of your funds to buy your first pad. Understanding the rules around this withdrawal, alongside the Kāinga Ora First Home Grant, is essential for any aspiring first home buyer in NZ.

Can You Use Your KiwiSaver for a First Home Deposit?

Yes, absolutely! One of the main benefits of KiwiSaver, alongside retirement savings, is the ability to withdraw funds to help buy your first home. It's specifically designed to give first home buyers a leg up. However, you can't just empty the pot; there are some conditions you need to meet before you can access your funds.

The goal is to use your accumulated savings, including your contributions, your employer's contributions, and any government contributions (like the annual government contribution), towards your deposit or the purchase price of a property you plan to live in. It's important to remember that this is usually possible only if you haven't owned property before, though there are some exceptions under specific criteria.

Eligibility for a KiwiSaver First Home Withdrawal

To be eligible to dip into your KiwiSaver for your first home, you generally need to tick a few boxes:

If you have previously owned a home but no longer do, you may still be eligible for a KiwiSaver first home withdrawal under certain conditions. This is assessed by Kāinga Ora and depends on your current financial position and assets. It's worth checking with them directly if this applies to you.

How Much Can You Withdraw from KiwiSaver?

Provided you meet the eligibility criteria, you can generally withdraw your entire KiwiSaver balance except for a minimum of $1,000. This includes all your contributions, your employer's contributions, and all government contributions (like the kick-start and member tax credits), plus any investment earnings your savings have made over time. The exact amount available will be confirmed by your KiwiSaver provider when you apply.

It’s wise to check your current KiwiSaver balance and contribution history early in your home buying journey to get a realistic idea of how much you might have available. You can usually do this through your online account with your KiwiSaver provider or via MyIR on the IRD website .

The Kāinga Ora First Home Grant

Separate from your KiwiSaver withdrawal, you might also be eligible for the Kāinga Ora First Home Grant (formerly the HomeStart grant). This is a government grant paid directly to your solicitor or conveyancer at the time of settlement, adding extra funds to your deposit. Like the KiwiSaver withdrawal, it has its own set of eligibility criteria.

The grant amount depends on how long you've contributed to KiwiSaver and whether you're buying an existing home or a new build:

You can get the grant if you're buying with others who are also eligible, potentially pooling multiple grants towards one property.

Eligibility for the First Home Grant

The criteria for the First Home Grant are a bit stricter than the KiwiSaver withdrawal. You need to meet the KiwiSaver membership requirements mentioned above, plus:

Checking the latest eligibility criteria on the official Kāinga Ora website is highly recommended before you rely on the grant.

The Application Process

Applying to use your KiwiSaver and for the First Home Grant are separate processes, but both require coordination with your solicitor or conveyancer once you have an unconditional or near-unconditional sale and purchase agreement.

Getting your ducks in a row early and communicating with your KiwiSaver provider, Kāinga Ora, your bank, and your lawyer will make the process much smoother.

How a Property Lawyer Helps

Using your KiwiSaver and applying for the First Home Grant involves legal steps and paperwork that your solicitor or conveyancer handles. They are crucial intermediaries in getting the funds released from your KiwiSaver provider and Kāinga Ora in time for settlement.

Your property lawyer will:

Their role is vital in ensuring the funds are available exactly when needed to complete your property purchase.

Costs Involved When Using KiwiSaver and the First Home Grant

While the KiwiSaver withdrawal and First Home Grant boost your deposit, there are legal costs associated with accessing them. ConveyOnline offers clear pricing for property transactions.

For a standard property purchase, ConveyOnline's fee starts from $1,799 (includes GST & disbursements). When you are using funds from schemes like KiwiSaver and the First Home Grant, there are additional steps required by your property lawyer.

ConveyOnline charges an add-on fee of +$300.00 for handling KiwiSaver funds and +$100.00 for handling the Homestart (First Home) grant as part of their conveyancing service. These are added to the base purchase fee.

It's always a good idea to get a full breakdown of costs from your conveyancer upfront so you know exactly what to expect. You can find more details on ConveyOnline's property law pricing page .

Beyond legal fees, remember to budget for other costs like valuation reports, building inspections, and potentially lender fees. Planning for these helps avoid nasty surprises.

Ready to Get Started?

Using your KiwiSaver savings and the First Home Grant are fantastic ways to make buying your first home more achievable in New Zealand. Understanding the requirements and process early on is key to a smooth journey.

Once you've got your finance sorted and found the perfect place, you'll need a property lawyer to handle the conveyancing. This is where all the legal heavy lifting happens – from checking the title to managing the transfer of funds, including your KiwiSaver and grant money. ConveyOnline is here to assist you with your property transaction, offering a convenient and straightforward online service.

Their online property law services are designed to make the legal side of buying your first home as stress-free as possible. For more general information about the home buying process, check out their guide on what to expect when buying your first home . Once ready to get started, ConveyOnline can help with the conveyancing transaction.

_Disclaimer: This article provides general information only and should not be considered legal or financial advice. Eligibility rules for KiwiSaver withdrawals and the First Home Grant can change. Always consult with Kāinga Ora, your KiwiSaver provider, a financial advisor, and a property lawyer for advice specific to your personal situation._

Your first home - what to expect

Tue, 16 Feb 2021 02:06:00 GMT

Buying your first home - the beginners guide

Purchasing your first home is an unquestionably daunting experience. It's a huge life decision and one that not many of us have had any exposure to the process of. Below we try to give a little bit of an overview of what you might expect in your first home buying journey.

I've found a house - now what?

The first part of the house buying equation is finding the house you want to buy. That in itself can be the toughest part of the process in the current property market in New Zealand. Once you've found a house that has been listed, you'll notice there are a few different methods of sale that real estate agents tend to use.

By negotiation - this basically means you can put your best foot forward with any offer and start a discussion with the vendors.

By tender - here you need to put your best foot forward by a certain date. On that date, the agent then presents all the offers to the vendor and they pick which one they want to take. Keep an eye out for the term "unless sold prior" on these listings though, as that indicates the vendor can accept an offer before that tender date.

By deadline sale - this is similar to negotiation, except there is an end date put on.

By auction - here the house will be sold on the day of the auction if it meets reserve. That means you need to have all your ducks in a row before showing up at an auction, as you'll likely need to go unconditional on your offer at that point.

Can I afford it?

Once you've found your house, you'll need to start thinking about whether you can afford to purchase it. You'll be able to get a gauge for how much the seller is wanting based on the listing itself, what the real estate agent is telling you, and what 'bracket' it is listed for online (search between two price points and move the top or bottom point up or down until the listing doesn't show to figure that bracket out). Armed with that knowledge you can think about how much you'd like to pay for that property and get in touch with your bank to organise pre-approval for finance. Getting a loan can also be daunting, but your bank manager or mortgage broker will be able to step you through the process, and there are plenty of mortgage calculators online to help you understand things like the interest you'll pay, and what your repayments might be.

How do I make an offer?

The real estate agent you are dealing with will be able to guide you through the offer and acceptance process as well. There is a good chance that when you make the offer, the agent will have you complete that offer on an Agreement for Sale and Purchase - so that if it is accepted, the vendor can just sign that document and seal the deal. When making your offer you'll be able to stipulate any conditions you have. As a general rule, the less conditions you have, the more favourable the offer will be, but you'll need to decide if you want to make the sale 'conditional' on things like:

Finance - ie do you need to get confirmation from your bank about your mortgage?
Solicitors approval - do you want to make sure your lawyer has an opportunity to look over the contract?
Building report - do you want to have a builder check the house?

These conditions can be absolutely anything. They are basically things that you want to have happen before the contract becomes completely binding. They are very common, and agents are extremely used to putting conditions in contracts, and they will normally have a time period associated with them (eg conditional on finance being approved within 2 weeks).

What happens next?

Once you have your offer accepted, it's probably time to get in touch with your property lawyer. They will step you through the conveyancing part of the process, helping you get your Kiwisaver and First Home Grant if applicable and working with the other side to ensure the transfer of the settlement sum (what you owe for the house), and the house goes smoothly. Settlement date is the date you'll take ownership of the property and will be given the keys to your new home!

Just remember

It's daunting, but with the right professionals helping you through the process it can be an exciting and enjoyable experience purchasing your first home. Talk to your bank nice and early, and don't be afraid to put in conditions to suit your circumstances.

The importance of 'conditional on solicitor's approval'

Mon, 03 Aug 2020 02:15:00 GMT

One of the most common questions we get at Conveyonline is 'when should I get my lawyer involved in the property transaction?' It's a really sensible question - you want to make sure that you aren't signing up to a dud deal, and so your lawyer's input is hugely important.

While you can bring your lawyer into the equation at any point of the process (from viewing a house, right through to after an agreement has been signed), obviously it won't always be practical to have them involved early in the process. Sometimes you may be buying a property and needing to make an offer within hours on the weekend for example, and have no opportunity to chat to your lawyer (or find one for that matter!). On those occasions, and a ton of others, the importance of one simple condition is paramount. Wherever you aren't a hundred percent certain on something in your contract, or you want to make sure that your lawyer has been had a chance to look over the paperwork, make sure to include a condition that states the agreement is "conditional on solicitor's approval".

Those four words can save you time, money, and alot of headaches in the future. By including or adding them to your agreement, you have the freedom to make or accept and offer with the peace of mind that you'll be able to pull out of the contract if your lawyer isn't happy with something in it once they have had a chance to review it. It's a great little line to have in your back pocket, and a condition most sellers are very comfortable including in a contract.

If you've already got a contract signed and are looking for a lawyer to look it over, be sure to fill out our application form and get your property transaction under way!

Email trumps fax in property agreements

Thu, 14 Nov 2019 23:01:00 GMT

If you’ve sold or purchased a property recently it’s likely that you’ve used the Auckland District Law Society and Real Estate Institute of New Zealand Standard Agreement for Sale and Purchase. That document is the gold standard in New Zealand – used comprehensively throughout the industry to cut down on the amount of hours needed by lawyers in the conveyancing process. It comes as big news then that the Agreement is set to be fully revised for the first time since 2012. At the end of November an update will be released – after almost 2 years of work.

The main focus of the changes are to bring the Agreement in line with the modern world we live in. Putting a focus on modern technology and just generally updating the terms. There are three main areas that will see changes in this new revision.

Disputes

The change here focuses on the grounds of compensation being widened from ‘mis-description’ to ‘misrepresentation’. That change effectively creates an expansion of the range of areas under which a claim for compensation (and interim determination) can be made if a dispute arises during the agreement.

GST

The IRD has been brought on board to help tidy up the GST clause to make it more practicable. There were previous issues with timing of GST payment and the new clause seeks to fix that.

Email trumps fax

Lastly (and finally!) the agreement has altered to reflect the way we do business in 2019. Previously fax was noted as the primary method for notifying parties in the conveyancing process. That has now changed as the legal profession has finally caught up and made email that primary form of communication.

What does a property lawyer do?

Fri, 11 Oct 2019 02:10:00 GMT

Questions for your NZ conveyancing lawyer

Buying a house at any stage of your life is a big deal, and if it's your first home, it's an even more daunting prospect. After you've put in your offer and had it accepted, it's time to go through with the conveyancing legals. You'll no doubt be looking for a lawyer to help you through this part of the transaction - but what does that lawyer do? And what should you be asking them about?

The first question you need to be asking your lawyer is if they are a property and conveyancing specialist. The law in New Zealand is vast, so you'll find that lawyers specialise in certain areas. A criminal lawyer won't be in a very good position to help you with your property transaction, just like a conveyancing lawyer won't be the best advocate for you in criminal court. If you're on this site, our lawyers are all property law specialists, so you can have confidence that they have experience in the right area of law.

Next up you'll want to get to the nitty gritty of what your lawyer is going to cost you. What you'll probably find is that alot of lawyers will quote you their services 'plus GST and disbursements'. They'll possibly give you a rough estimate of fees, but will often fall back on their hourly rate as well. Everyone is pretty comfortable with GST in New Zealand (15%), but 'disbursements' is not something your average Joe would necessarily understand. They are basically all the incidental fees the lawyer incurs in undertaking your transaction. That will vary from lawyer to lawyer, but it could include postage fees, photocopying, filing fees and the like. On our homepage you'll find our pricing for property law transactions both inclusive and exclusive of GST & disbursements . That just let's you have a better gauge for comparison. The GST & disbursements could be $300+ with some firms, so it's important to keep in mind.

Once you've engaged your lawyer then it's down to the important legal part of the equation. You'll want to get them to suggest any clauses they think are worth adding to the contract (finance is a standard example, but there might be specific circumstances with your transaction that could need additional clauses), have them explain the LIM to you, and if it's a unit title then they should be discussing what that might mean for you. Every property transaction can be slightly different, so it's a good idea to have your client look over your contract for you before signing it. Alternatively, if you can't see a lawyer before signing your Agreement for Sale & Purchase, then it's always worth including a "solicitor's approval" clause - which means you can sign the contract and have your lawyer look through it after the fact.

Finally your property lawyer will ensure the conveyancing all goes through smoothly. They should let you know what happens on settlement day - when the money and property transfer takes place. Having the right property lawyer in your corner can make the entire house buying and selling process alot less stressful, so it's always worth considering.

Be sure to fill out our online application form if you'd like one of our conveyancing solicitors to help you through the process. They're pro's at what they do, so don't hesitate to ask them about any of the above as they work with you through your conveyancing journey.

Airbnb in New Zealand - the tax, law and insurance

Wed, 19 Jun 2019 23:56:00 GMT

What you need to know about being an AirBNB host in NZ

With so many tourists hitting NZ shores, more and more kiwis are turning to Airbnb as a possible way to supplement their income. The old adage goes that nothing in life comes free, so in this article we take a quick look at the tax, laws and other implications of running an Airbnb property. These are just a few quick musings of course, and your individual circumstance may vary from what is discussed below, so always contact a lawyer if you are after an actual legal opinion.

The tax man and your Airbnb

In a nutshell - income earned from short-term accommodation in New Zealand is taxable. You'll want to factor it into any Income Tax returns you make for the year, and will be able to claim your costs for things like rates, insurance and interest on your mortgage. Obviously, how much you can deduct will depend on how much the property is used for the Airbnb activity versus private use and other activities. If the property is held in trust or something similar, there may be some additional requirements surround deemed market rental - so it's worth talking to your accountant or lawyer about that one.

If your Airbnb is really cranking along and you're earning over $60k a year from it, you may also need to pay (and charge) GST. Overall, when it comes to your tax obligations and your Airbnb property, we'd definitely recommend having a quick chat with your accountant and being guided by their expert opinion.

What about my insurance?

As a general rule of thumb when it comes to anything insurance related, let your insurer know about any circumstances that change that you think they may want to know about. So, if you put your property on Airbnb, let your insurance company know. Have a really good read of your house and contents policy, and make sure you have a great understanding on what you are covered for. The devil is in the detail and you don't want to be caught out by the small print.

Will it affect my chances of getting a mortgage?

Banks tend to view investment properties and owner-occupied property slightly differently. You'll find that they will loan no more than 80% of the purchase price for an owner-occupied property, and only 60% of an investment property. If you are Airbnb'ing your property enough during the year, you might find it deemed as an investment property and only eligible for that lower loan amount.

Does the Council care?

This varies from Council to Council and region to region. In some places you'll be fine to run your Airbnb without any issue at all, while in other centres, there may be rules that you have to abide by. In Auckland for example, you may be required to pay a targetted levy, while in Queenstown you might have to meet certain criteria and pay increased rates. Make sure you check what your Council's policy is.

So what should I do now?

All of the above points may or may not apply to you. When it comes to Airbnb, everyones situation is different - just make sure you do your research. Chat to an accountant, your insurer, your bank and the Council and find out what their policies are. Chances are, you'll be fine!

What did the Tax Working Group say?

Tue, 05 Mar 2019 03:53:00 GMT

Capital Gains Tax and your property

As the political football of a capital gains tax continues to be thrown around, we thought we would take a step back and have a look at what the Tax Working Group actually recommended. Obviously any change to taxes which may affect a huge numbers of kiwis will face some opposition on it's way to becoming law, but below is a summary of the major takeaways the Tax Working Group has suggested for New Zealand.

Tax the capital gain on sale of land, shares, business assets, intangible assets such as intellectual property when the asset is sold.
The tax would NOT apply to the family home, and most personal assets. However, a holiday home WOULD be taxed.
The capital gain on shares in companies would be taxed but some capital losses may be used to be offset against other income.
The capital gain on the sale of a business would be taxed.
Exemptions from capital gains to be granted for some "life events" such as relationship breakup or death.
No changes to the income tax rates, but a recommendation to raise the income threshold for low and middle income groups.
No change to GST.
Changes to the emissions trading scheme to be more like a carbon tax - ie pollution is tax, while carbon reducing activities are rewarded.
No changes to current taxation of Maori assets and companies.
Review taxation of charities (ie making sure funds are being used for charitable purposes).
Extra resources for Inland Revenue for administration and enforcement.

NZ mortgage rates drop below 4%

Wed, 30 Jan 2019 22:16:00 GMT

Record low mortgage rates in NZ

'The banks are at it again' as they say, with both Kiwibank and Westpac both putting out low mortgage rates of 3.99 percent in the last couple of days. First it was Westpac with a one year 3.99 percent fixed rate, and now Kiwibank has gone one better with a two year rate of 3.99 percent. This is all on top of record low mortgage rates throughout the New Zealand banking system last year.

So what does this mean moving into the rest of 2019? It's always to look into a crystal ball when it comes to mortgage rates, but given the fixed term one year rate of 3.95% ANZ offered last year was the lowest rate from a major bank since the middle of last century, these are definitely very competitive rates being put forward.

It's also important to keep in mind that there is currently $64 billion in debt throughout New Zealand. That's a 10% increase last year, so we might be getting close to a point where the banks have grabbed every quality customer available to them. Right now that means very competitive rates to keep the increase of customers and profitability, but as customers thin out, that model may need to change.

Either way, it certainly seems like an extremely competitive time to be in the market for a mortgage.

The Australian Conveyancing Email Scam

Tue, 20 Nov 2018 03:19:00 GMT

Avoiding property law email scams

As we were browsing through the news the other day an article caught our eye. The story was about an Australian Masterchef finalist getting caught in a conveyancing property law scam. Australia is moving towards an electronic system nationally at the moment, so this sort of story is definitely a concern on that side of the Tasman, but there are a few differences between Australia and New Zealand that should give kiwis a bit of comfort in their next property transaction. Here is a quick overview on why New Zealand has a far more robust system than Australia, and how Conveyonline & Langley Twigg Law operate to keep the transaction scam free:

The title transfer is completed by lawyers only AFTER payment is made.
New Zealand titles are held by the the Land Transfer office and have been digitised for some time now already
All New Zealand's transactions are already completed electronically with multiple password protection
Any money is transferred through solicitor's trust accounts backed by the solicitor's fidelity fund
The net proceeds of the sale are transferred to client accounts only upon receipt of written instructions (an email won't cut it and will always be independently verified, usually by a phone call)

In this digital age it seems like there will always be scammers trying to find situations to take advantage of. It pays to be cautious when it comes to your email account and as Langley Twigg outlined in an earlier blog, there are definitely a few things you can do at your end to avoid being caught in email scam.

Housing: what will Winnie do?

Thu, 28 Sep 2017 11:00:00 GMT

How politics affect NZ's housing market

With the election over and NZ First/Winston Peters looking like the king maker, we thought we'd dig a bit deeper into their policies when it came to the housing market. So what would NZ First do when it comes to housing?

Place to call home

Initiate the New Zealand Housing Plan to revamp the New Zealand housing market covering housing availability and affordability as well as rental homes supply and affordability.

Reduce pressure on housing by slashing 72,400 foreign migrants net, who entered New Zealand over the past year with most settling in Auckland.

Ensure that only New Zealand citizens and Permanent Residents can buy freehold land.

Recognise that there is a housing crisis by establishing a new state agency to acquire and develop land for residential development:

Provide first home buyers with affordable residential sections under long term low interest sale and purchase agreements of up to 25 years.

Purchasers would build their own homes using normal bank financing, with title to the section transferred to them and the amount owing for the section, secured by a second ranking statutory land charge.

Better housing

Provide subsidies to insulate 53,000 houses ever year.

Review building standards to ensure better building quality including earthquake and landslip resistance.

Require compulsory and adequate insurance cover be acquired by all building owners.

Fully monitor and enforce the terms and conditions of existing approvals by the Overseas Investment Commission for the ownership of land by non-residents.

Better Rental Stock

Assist local authorities to develop aged-care housing and public rental housing projects.

Provide accelerated deprecation for landlords to invest in energy efficient housing from insulation to HRV systems.

So - in a nutshell...make sure foreigners don't have as big of a stake in our housing market...and make more land available for first home buyers. If you're a New Zealand citizen or permanent resident, there's not much too much change coming if NZ First have their way.

Of course...with how unpredictable this election has been, there's nothing to say the Green's won't swoop in with National and make Winston irrelevant. As always...watch this space!

Housing: NZ Election Promises

Tue, 08 Aug 2017 12:00:00 GMT

New Zealand political party positions on the housing market

This election season property affordability has been a massive talking point. Naturally, most of the parties have come up with a plan for what they'll do to 'fix the housing crisis'. Below is a bit of a summary in a nutshell of what each party is proposing when it comes to housing and property.

National

In a nutshell, it's a steady as she goes approach. National stress that the work they've started doing should continue and will start to have effect. The approach seems to be based on the premise that housing supply and red tape is the issue.

Build 20,000 new houses for private sale in NZ.

Make it easier to build houses by tweaking the RMA.

Keep using Special Housing Area, lending to local Council's to build infrastructure and selling Crown land for new housing developments.

Labour

Labour seems to be sitting on a fence a bit between the issue being housing supply, versus speculator demand. Their solution combines building more houses and looking into taxation - but without giving firm specifics of what that tax might be.

Build 100,000 houses to sell to first home buyers.

Restrict residential home ownership by non-residents.

Tax capital gains on investment properties sold in the first five years.

Expand programs that support Maori home ownership.

Remove limits on Auckland urban boundaries and density.

Create a tax working group to look at a Capital Gains Tax (that wouldn't include the family home).

The Opportunities Party

Gareth Morgan and TOP seem to have the plan that differs most from other parties. They point out that demand from speculators and a tax loophole when it comes to property is the issue.

TOP want to tax income from all assets (including the family home) at a rate of about 1.5%.

The extra earned from that Wealth Tax will then be redistributed as income tax (about 30%) - making 80% of NZ better off.

For over 65's, the Wealth Tax could be paid off, or accumulated into a loan that became payable upon the sale of the house or death (effectively becoming and estate tax).

Morgan points out that these measures are what the last 2 tax working groups have recommended.

NZ First

NZ First also falls in the housing supply being the issue camp. More houses and easier building is their focus. They don't really identify how they are going to pay for the plan.

Build 140,000 houses for first home buyers.

Restrict land ownership to non-residents.

Change the building process to allow faster approvals for new housing.

Encourage local authorities to provide more affordable housing and land.

Greens

The Greens have a pretty similar approach to Labour with it geared up a little bit more. They want a Capital Gains Tax, but again, it doesn't include the family home.

Build 10,000 homes to sell to low income earners through a rent-to-own scheme.

Introduce a Capital Gains Tax on all assets except family homes.

Restrict residential property ownership by non-residents.

Close negative gearing and combined collateral exemption loopholes.

Allow student loan borrowers to defer student loan repayments to save for a home deposit.

Maori Party

The Maori Party also focus on the supply issue, with their Maori focussed twist to it. They want to build more homes, but also give Maori and Pasifika a bigger voice and more jobs in the construction sector.

Build 90,000 more homes for social housing and private sale.

Establish a Minister for Maori and Pasifika Housing.

Increase financial support for low-income first home buyers.

Subsidise private developers to include affordable houses in new developments.

Add more Maori and Pasifika in the construction sector.

ACT

As you'd expect, ACT takes a less invasive approach - focusing on the tools to let individuals and businesses self correct the market. By cutting down on rules, they also focus on the supply side of the equation.

Replace the Resource Management Act with less rules.

Abolish the rural-urban boundary.

Share GST from housing construction with local councils.

Replace building safety and quality standards with mandatory private insurance.

Overall

When you run through all those approaches to housing, there is a definite trend from the 6 established parties - that supply is the issue and by building more houses, the market will correct itself. While the more left leaning parties like Labour and the Greens do look at the demand side of the equation, TOP is the real outlier with a dramatic tax change proposed.

Hopefully this gives you a bit more insight and understanding into what all the parties want to do when it comes to housing this election!

Buying or Selling? Stay in the loop

Fri, 11 Nov 2016 22:16:48 GMT

Understanding your property law transaction

Buying or selling a home can be one of, if not, the biggest transaction that you might make. At times it's easy to get lost in the blur of legal jargon, or the excitement of making such a big purchase or sale of real estate, but it's hugely important to stay on top of it all and understand what's going on. You'll hear agents telling you one thing, or friends in family maybe saying something else, but at the end of the day the property will be yours, and so you have to be comfortable with the end result. In that regard, knowledge is power in the conveyancing process.

Make sure you know the basics of the transaction process. Really get to understand what happens at the start, middle and end of the experience so you know what's coming next. Do you know what the Property Law Act says?
Take stock of your loan versus your finances. Be responsible and make sure it's a loan you can cover.
Chat to your property lawyer about what you do and don't have to tell the buyer/seller. Do you need to let the buyer know the house is water damaged? Probably...
Be certain you know all the financial implications involved with the transaction. Will there be ongoing costs on the property? If so what are they? The sale price isn't the only dollar figure you need to keep in mind.
Always ask about a Will. When something as large as property is exchanging hands you should be taking the opportunity to check that your affairs are in order in case of the worst.
Consider if there are any other legal mechanisms you should put in place. Should the property be in a Trust? Do you need a power of attorney?
Find out the tax implications of the transaction.
Finally, know what the agent's role will be in the process. If you understand what they should be doing you can get the most out of that potentially valuable resource.

Some words of wisdom from the New Zealand Law Society

Sat, 27 Aug 2016 23:20:02 GMT

NZLS property law tips and advice

Every now and then we come across some words of advice that are too good not to share. To get this blog kicked off we just want to share a few sage words of advice from the New Zealand Law Society. They advocate heading to a lawyer whenever you are undertaking a big transaction like buying or selling property and we tend to agree. The kiwi do it yourself attitude can sometimes get us into tricky situations when corners are cut, and when hundreds of thousands of dollars (or millions for the Aucklanders reading this!) are at stake, even a straight forward contract is worth a quick once over.

So - make sure a lawyer is involved in your transaction. At conveyonline we use a trusted Hawkes Bay law firm - Langley Twigg Law. They're our choice because they've been around for decades, but have a modern approach to getting the job done. It's a mix of reliability and flexibility and that's really important to our customers. You can also rest easy knowing they are part of the Lawlink group of lawyers - meaning they are a provincial firm with national ties, combining the cost effectiveness off the regions, with the knowledge and structure of a big law firm.

Here's a few tips from the Law Society on why you should use a lawyer (from their Buying or Selling Property document from 21 March 2013). "Remember:

You usually can’t change an agreement after you have signed it.
Your agreement might be with your agent (an authority to sell) or with the property buyer
or seller.
You can save money and anxiety by seeing your lawyer first.
Your lawyer can help you prevent small problems turning into big ones.
If you are selling a unit title property it is illegal to enter into an agreement (even a conditional agreement) until you have given the buyer a pre-contract disclosure statement."

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