Getting a mortgage in New Zealand involves several fees beyond the property purchase price. Understanding what banks charge for setting up a home loan helps you budget accurately and identify where fees are negotiable.
Mortgage Application / Establishment Fees
Most NZ banks charge an establishment fee for setting up a new home loan. This fee covers the bank’s administrative cost of processing, assessing, and setting up the mortgage.
| Bank | Typical establishment fee |
|---|---|
| ANZ | $0–$500 (varies; often waived for new customers) |
| ASB | $0–$500 (varies) |
| BNZ | $0–$500 (varies) |
| Westpac | $0–$500 (varies) |
| Kiwibank | $0–$500 (varies) |
These fees vary by product, borrower circumstances, and negotiation. In competitive market conditions, many banks waive establishment fees entirely — particularly for refinancers.
Are Establishment Fees Negotiable?
Yes — and often waived entirely. Mortgage establishment fees are one of the most commonly negotiated items:
- In competitive lending environments (2025–2026), banks regularly waive establishment fees to win business
- A mortgage broker will often negotiate fee waiver as part of the deal
- Refinancers with strong credit profiles rarely pay establishment fees
Ask explicitly: “Can you waive the establishment fee?” before accepting any mortgage offer.
Valuation Fee
Banks typically require an independent registered valuation for properties above certain prices or with unusual characteristics. This is separate from a real estate agent’s appraisal or the council CV.
| Type | Cost |
|---|---|
| Standard residential valuation | $750–$1,200 |
| Complex/rural/unusual property | $1,200–$2,500 |
| Valuation arranged by bank | Often passed through to borrower |
When is a valuation required?
- High LVR loans (where exact property value matters)
- New builds (pre and post-construction)
- Properties the bank considers unusual or complex
- Rural properties with a residential component
- Some banks require valuations for all loans; others use AVM (Automated Valuation Model) for standard properties
Legal / Solicitor Fees
The bank’s solicitor also charges for preparing your mortgage documentation:
| Service | Cost |
|---|---|
| Bank’s solicitor fee (loan documents) | $300–$600 |
| Your own solicitor (purchase + mortgage) | $1,500–$2,500 |
You pay both sets of legal fees — your solicitor for the purchase, and the bank’s solicitor for preparing mortgage documents. These are typically paid at settlement.
Break Fees
If you exit a fixed rate mortgage early, break fees apply. These are not an upfront fee — they apply only if you break. See Mortgage Break Fees NZ for calculation detail.
Total Upfront Mortgage Costs
Typical range for a standard NZ residential mortgage:
| Fee | Typical range |
|---|---|
| Establishment fee | $0–$500 (often waived) |
| Valuation fee | $0–$1,200 (sometimes waived or absorbed) |
| Bank’s legal fee | $300–$600 |
| Your solicitor fee | $1,500–$2,500 |
| Total mortgage-related costs | $1,800–$4,800 |
These costs are separate from the property-related costs (building inspection, LIM, insurance) — see True Cost of Buying a House NZ for the full picture.
Cashback as Fee Offset
Many NZ banks offer cashback deals — typically $2,000–$5,000 for refinancers — which effectively offset or eliminate the upfront costs. A $3,000 cashback on a refinance more than covers any establishment fee and valuation costs. See Cashback Mortgages NZ.
Ongoing Fees
Some mortgage products carry ongoing fees:
- Annual package fee: e.g., ANZ’s Breakfree package has an annual fee (offset by 0.25% rate discount on qualifying balances)
- Account maintenance fees: Rare for standard home loans; more common for revolving credit facilities
Further Reading
- True Cost of Buying a House NZ — all buying costs
- Mortgage Break Fees NZ — early exit costs
- Cashback Mortgages NZ — offsetting fees with cashback
- How to Get a Better Mortgage Rate NZ — rate and fee negotiation
- Costs and Fees Hub — all cost guides