Broker-lender offers property-specific approvals before placing borrowers with banks
Squirrel has launched a 24-hour home loan approval service that uses its own funding to back buyers on a specific property before placing them with a bank.
The service is designed as a backstop to traditional bank lending. Borrowers first receive a committed approval for a Squirrel home loan. Once a signed sale and purchase agreement is in hand, Squirrel's advisers move the borrower to the bank lender offering the best terms for their circumstances.
How the approval works
Unlike a pre-approval with a blanket lending limit, each approval is tied to a particular property.
Squirrel, an Auckland-founded mortgage broker and non-bank lender, which facilitates more than $3 billion in mortgages a year, says approvals are typically issued within 24 hours of all paperwork being provided, excluding weekends and public holidays, as long as the borrower and property meet its lending and credit criteria.
Callan Wayne-Bowles (pictured), group head of advisory at Squirrel, said delays in financing could force buyers into conditional offers or keep them out of auctions.
"This is about giving buyers an edge, so they can jump on the right property as soon as it comes along," Wayne-Bowles said.
He said the firm's experience as an adviser, together with in-house technology that runs the same checks a bank would, allowed it to judge early whether a bank approval was likely.
"Then, rather than having to wait for that bank approval to come through, we can back the borrower with our own funding within 24 hours," Wayne-Bowles said.
Who can apply
The service is open to individual and joint borrowers who are New Zealand citizens or permanent residents living in New Zealand and in permanent pay-as-you-earn (PAYE) employment. Applicants need a deposit of at least 20%, with at least 5% in genuine savings. That can include KiwiSaver, savings, shares, or other investments, or equity in an existing property.
Up-front costs remain a hurdle for many buyers. Nearly one in three buyers in Australia and New Zealand are unsure whether they can cover the up-front costs of buying, according to Cotality's latest consumer sentiment survey of homebuyers.
Launch lands in a cooling market
The launch comes as buyers pull back. ANZ found sales have fallen across every region this year, with auction results signalling little near-term price growth, and its economists expect three more official cash rate (OCR) rises to a peak of 3.5%, according to ANZ's September 2026 property and OCR outlook.
Wayne-Bowles said the model would also reduce wasted effort for banks by screening out applications unlikely to proceed.
"The way it works makes the application process more efficient for everyone involved," he said.
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