Loan approval from your bank, in writing, on terms you can actually deliver.
What happens at this step
For most buyers, the finance condition in the SPA is the biggest single risk. The bank reviews your income, your deposit, your existing debts, and the specific property. They issue a Letter of Offer with conditions. You accept or push back. Some properties (cross leases with defects, units in problem buildings, rural land with specific issues) need extra bank review.
What NZ Legal does
We work alongside your bank or mortgage adviser. If the bank wants a copy of the title or a specific document, we send it. If the bank's loan documents have unusual clauses, we explain them. We coordinate the loan drawdown for settlement.
What you do
Submit your application early. Provide every document the bank asks for, even if it feels redundant. Read the Letter of Offer before signing. Ask your mortgage adviser to push back on any conditions that are unusual or unworkable.
Common pitfalls
- Assuming a pre-approval is the same as final approval. It rarely is.
- Missing the finance deadline in the contract by a day. The seller can cancel.
- Accepting bank conditions that you cannot actually meet, especially around insurance or KiwiSaver timing.
