Mar 13 2025 4 mins
Navigating the path to homeownership involves more financial considerations than many Kiwis realize. While you're busy saving for a deposit and checking interest rates, something as seemingly innocent as your Afterpay account could be silently working against you.
We dive deep into the world of Buy Now, Pay Later services – those convenient, interest-free payment options that have revolutionized how we shop. From Afterpay and Laybuy to ZipPay and newer entrants like Genopay and Klarna, these services have become ubiquitous in our daily spending. But here's the kicker: banks and mortgage lenders don't see these services as benign conveniences; they view them as debt commitments that directly impact your borrowing capacity.
The reality might surprise you – even if you're diligently making payments and never incurring late fees, those regular BNPL transactions appearing on your bank statements tell lenders a story about your financial management. When these services are being used for essentials like groceries (yes, that's happening now!), it raises serious red flags about budgeting habits. We share practical advice on how to manage these accounts when applying for a mortgage, dispel some common myths about timing, and explain exactly what mortgage advisers can do to help present your application in the best light. Whether you're a devoted Afterpay user or occasionally dip into BNPL options, understanding their impact on your homeownership journey is essential knowledge for any aspiring property owner. Ready to make sure your shopping habits aren't derailing your property dreams?