Having a disability does not automatically prevent you from getting a mortgage in New Zealand. Lenders are legally required to assess your application on its merits and cannot decline solely because of a disability. However, how lenders treat disability-related income — ACC payments, Supported Living Payment, private insurance — significantly affects your borrowing capacity.
You can apply for a mortgage with a disability in NZ. Lenders cannot legally discriminate based on disability. ACC weekly compensation and some disability income can count toward borrowing capacity, but ongoing stability must be demonstrated. Working with a mortgage broker who has experience with non-standard income situations is strongly recommended.
Your Legal Rights
Human Rights Act 1993
The Human Rights Act prohibits discrimination in the provision of financial services on the grounds of disability. A lender cannot decline your application because you have a disability — only because you don’t meet the lending criteria (income, DTI, LVR, credit).
Credit Contracts and Consumer Finance Act (CCCFA)
The CCCFA requires lenders to make reasonable inquiries into your financial situation and assess whether a loan will be affordable for you. It does not require lenders to lend to everyone — but it does require consistent, non-discriminatory assessment.
If you believe you were declined because of disability rather than financial criteria, you can make a complaint to your lender’s dispute resolution scheme (FSCL, Banking Ombudsman, or similar).
How Lenders Assess Disability Income
ACC weekly compensation
ACC (Accident Compensation Corporation) weekly compensation payments are treated by most NZ banks as acceptable income, subject to:
- Confirmation the payments are ongoing and indefinite (rather than temporary rehabilitation payments)
- Written documentation from ACC confirming payment amount and duration
- The payments being in respect of permanent or long-term incapacity, not temporary injury
Many banks will accept ACC compensation at 80% of the stated amount for borrowing purposes (applying a “shading” for uncertainty). Some will accept 100% if the permanence can be demonstrated.
Supported Living Payment (MSD)
The Supported Living Payment (welfare benefit for people unable to work due to permanent health condition or disability) is assessed differently by different lenders. Some banks will include it as income; others will not count government benefit income beyond a supplementary role. Specialist non-bank lenders are often more flexible.
Private income protection insurance
Income protection insurance payouts (from insurers like Partners Life, AIA, Fidelity Life) are generally treated the same as employment income — they replace salary and are typically accepted in full. Provide your insurer’s payment confirmation and policy schedule.
Employment income with a disability
If you are employed and earn a salary, your disability status is irrelevant to the assessment — your employment income is assessed normally.
Practical Lending Criteria
Regardless of disability, you must meet the same lending requirements as any borrower:
| Requirement | Standard |
|---|---|
| Deposit | 20% standard (5% with First Home Loan) |
| DTI ratio | Maximum 6× gross annual income (owner-occupier) |
| Serviceability | Sufficient income to cover repayments at stress-test rate |
| Credit history | No significant adverse credit events |
The key variable is whether your disability income (ACC, SLP, insurance) counts toward the DTI calculation and at what percentage.
Working With a Broker
Mortgage brokers with experience in non-standard income situations can identify which lenders are most likely to accept your specific income type and amount. This is particularly important if:
- Your income is entirely or partly from ACC or MSD
- Your income fluctuates due to your health condition
- You have had gaps in employment history
A broker can also prepare your application to present ACC letters, insurer confirmations, and other supporting documentation in the way most likely to succeed. See using a mortgage broker NZ.
First Home Loan and Disability
The Kāinga Ora First Home Loan (5% deposit) is available to borrowers with disability income subject to the standard income caps ($95,000 single / $150,000 joint). Kāinga Ora does not have a specific disability policy beyond normal First Home Loan criteria.
Home Accessibility: Can You Modify a Home?
If you need to modify a home for accessibility (ramps, widened doorways, lift), you may be eligible for funding from:
- ACC: Home modification grants if the modification relates to your ACC injury
- Enable NZ / MOH: Disability support services can fund accessibility modifications for people with ongoing disability
- Some modifications can be capitalised into a construction or top-up mortgage
Frequently Asked Questions
Can a bank in NZ refuse a mortgage because I have a disability?
No — declining a mortgage application based on disability would breach the Human Rights Act 1993. Lenders can decline based on income, creditworthiness, or serviceability, but not because of disability itself.
Does ACC income count as income for a mortgage in NZ?
In most cases, yes — particularly if ACC payments are indefinite and well-documented. Most major banks will accept ACC weekly compensation at 80%–100% of the stated amount, with appropriate documentation.
What income documentation do I need for a mortgage with disability income?
For ACC: a letter from ACC confirming payment type, amount, and whether it is indefinite or time-limited. For income protection insurance: policy schedule and payment confirmation from your insurer. For MSD Supported Living Payment: MSD letter confirming payments.
Is there a government scheme to help disabled people buy a house in NZ?
The Kāinga Ora First Home Loan (5% deposit) and KiwiSaver first home withdrawal are available regardless of disability, subject to normal eligibility criteria. There is no specific additional assistance scheme for disabled buyers in 2026.
Can I borrow to make accessibility modifications to my home?
Yes — a top-up mortgage (if you already own property with equity) or a construction-stage draw-down on an existing mortgage can fund accessibility modifications. See top-up mortgage NZ.