Bank Statement Checklist | Briana McDonagh

What lenders actually look at. When you apply for a mortgage, lenders will typically ask for your last three months of bank statements. They are not looking for perfection — and they are not concerned with how much you spend on coffee, eating out, or general lifestyle spending. What they do look at is account conduct — things like whether your bills are paid on time, whether your account goes into unarranged overdraft, and whether there are patterns that suggest financial stress. An issue here and there is rarely a dealbreaker, and can often be explained. This checklist helps you spot anything worth addressing before you apply.

Bills and regular payments are made on time

This includes rent, power, phone, insurance, and any loan repayments. Late or missed payments show up clearly on your statements.

No unarranged overdrafts in the last three months

An arranged overdraft is one you have set up with your bank in advance — that is fine. An unarranged overdraft is when your account goes below zero without a prior arrangement. That is what lenders are concerned about, as it suggests your income and expenses are not well balanced.

Direct debits and automatic payments go through successfully

A bounced payment means there was not enough money in your account when it was due. This is visible on your statements and lenders will notice a pattern of it.

Credit card balance is kept well under the limit

Maxed out or near-limit credit cards suggest you are relying on available credit. Lenders factor your full credit card limit into your debt calculation regardless of your current balance.

Gambling transactions on my bank statements

Regular gambling — including online betting, TAB, or casino transactions — is something lenders look at carefully. An occasional transaction is unlikely to be an issue, but a regular pattern raises questions about financial stability.

Buy Now Pay Later use (Afterpay, Laybuy, Zip, etc.)

BNPL repayments are visible on your statements. Occasional use is generally not a concern, but frequent use suggests reliance on short-term credit which lenders will notice.

My income arrives regularly and can be clearly seen

Lenders want to see a consistent income pattern. Regular payroll credits are straightforward. Self-employed or variable income is fine too — it just needs to be consistent and explainable.

I can explain any large or unusual deposits

Large deposits that are not regular income — such as transfers from other accounts, cash deposits, or gifts — will need to be explained to the lender with a paper trail showing where the money came from.

I am building savings alongside my KiwiSaver

KiwiSaver alone can make up your entire deposit for your first home — so if you are contributing, you are already building toward it. That said, there are extra costs involved in buying (legal fees, LIM report, building inspection) that sit on top of your deposit, so it is worth starting to build some savings alongside your KiwiSaver if you can.

Overall my statements reflect someone living within their means

Taken as a whole, do your statements show someone in control of their finances? Lenders are not worried about your coffee spend or lifestyle choices — they are looking at the bigger pattern of whether your income comfortably covers your commitments.

This checklist is for general guidance only and does not constitute financial advice. What lenders look for varies between institutions and individual circumstances. For personalised advice, get in touch with Briana.

How does your account conduct look to a lender?