How to Borrow $100k from a Bank: Step-by-Step Guide to Getting a Large Loan

Sitting in a crowded Auckland cafe, you overhear two people whispering: “Can you seriously borrow a hundred grand from a bank these days?” Their voices hint at both doubt and curiosity, and honestly, it’s a question that’s crossed nearly everyone’s mind at some point. Whether you’re thinking resale renovations, epic travel plans, consolidating high-interest debts, backing a business dream, or maybe just seizing a sudden must-have investment, the idea of accessing $100,000 instantly feels both jaw-dropping and a bit… overwhelming. It’s not a small ask. But guess what? Kiwis are doing it. Banks are lending. And it isn’t just lottery winners or suit-wearing CEOs getting approved.

Here’s the reality: Yes, it’s totally possible to borrow 100k from a bank in 2025—even if you’re not on a billboard for success stories. But, banks aren’t throwing that kind of cash at every request. They’ve got rules—some obvious, some hidden—and you need to play smart. That means knowing the facts, sidestepping common traps, and building your story with the numbers and proof bankers want. Let’s break it down: what you absolutely need to know, what actually works, and what might surprise you along the way.

Understanding Your Options for Borrowing $100k

When it comes to getting your hands on $100,000, there’s no one-size-fits-all answer. Most people jump to personal loans, but in New Zealand, banks often suggest different structures depending on your purpose, your assets, and how spicy your financial life looks right now. Banks divide loans into secured and unsecured—the difference? Collateral. If you’ve got a home, investors love to hear “refinance” or “top-up.” If you don’t, they’ll want to see sparkling income, reliable employment, and maybe even savings to show you’re not a risk magnet.

Let’s break down the classic routes:

• Secured Loans: This is borrowing with your house or car as security. Interest rates are lower, limits are higher. Think home equity loans (sometimes called home loan top-ups in NZ).
• Unsecured Personal Loans: No collateral, but you’ll need a really strong credit profile and steady income. Rates are higher, terms are shorter, and approval is stricter.
• Business Loans: If your $100k is business-related, banks may offer dedicated business finance tailored to growth, equipment, or operations.
• Line of Credit or Overdraft: Flexible but involves variable rates and ongoing risk if you’re not disciplined.

In New Zealand, most large loans (especially those north of $100,000) happen through secured lending. Personal unsecured loans above this amount are rare—you’ll run into resistance unless your salary is in the six-figure range or you have pristine credit and low existing debt.

According to the Reserve Bank of New Zealand, 81% of all significant borrowing by individuals is tied to property. This trend hasn’t gone anywhere, even post-pandemic. Banks are risk-averse—they want assets they can grab if things go sideways.

So what does that mean? If you’re a homeowner, you’re off to a good start. If not, you’ll need to get creative or look at joint applications with someone else. That doesn’t mean it’s impossible—just a bit more paperwork and a lot more scrutiny.

What Banks Look For: The Approval Criteria

Banks might advertise “fast applications” and “1-hour approvals,” but don’t let flashy marketing fool you. When it comes to six-figure borrowing, the fine print matters a lot. Each bank has its own systems but here are the basics they’ll almost always check:

• Income and Job Security: Not just your current salary, but proof it’ll keep coming. They’ll check payslips, contracts, and often talk to your employer. Contractors and gig workers? Expect extra hoops.
• Credit Score: In NZ, your credit score (from agencies like Centrix or Equifax) needs to show you pay on time, haven’t defaulted, and aren’t juggling dozens of loans. Score under 650? Time to build it up.
• Existing Debts: They’ll dig into your credit card balances, BNPL totals, car loans, and store cards, then look at your monthly repayments to see if you’re overcommitted.
• Living Expenses: NZ banks pay close attention to your monthly spending. Takeaway coffees, Uber rides, and streaming subs—they all get counted now (thanks to 2022’s tighter lending rules).
• Deposit or Equity: For home-related loans, the more equity you have, the better. Ninety percent of home loan top-ups use existing home equity as the base.
• Loan Purpose: Is the loan for home improvements, investment, consolidating debt, or something riskier like crypto? Different reasons come with different checks and paperwork.

Banks will also stress-test your affordability. That means, if rates shoot up three points, will you still be able to pay the lot back without defaulting? The “test rate” is usually about 2.5% higher than today’s actual rate. They aren’t playing around, and you shouldn’t either.

And if you’re self-employed? Prep your last two years of full tax returns, GST statements, and clear profit-and-loss spreadsheets. If you can’t prove rock-solid business income, approval gets way tougher.

How to Boost Your Chances for Approval

So, what’s the secret sauce that shifts your application from “maybe” to “approved”? You want to look bulletproof on paper—even if your real life is a bit more interesting. Here’s what actually moves the needle for banks (and some tips you’ll thank me for):

• Sort your paperwork early: Gather three months of payslips, six months of bank statements, ID, proof of address, your credit file, and a written reason for your loan. Banks hate delays more than you do.
• Track your spending: Leading up to your application, start living like a lender’s watching. Cut unnecessary costs, close unused credit cards, and ditch BNPL or laybuy spending habits.
• Tidy your debts: Tidy up small debts—clear lingering credit card balances or store cards, and avoid opening new credit lines before you apply.
• Increase your deposit/equity: If you have savings or home equity, show it. The lower your loan-to-value ratio (LVR), the happier the bank.
• Get your credit score in shape: Review your free NZ credit report (Centrix, Equifax, Illion) and dispute any errors. Even a 20-point bump can be the difference between a yes and a hard no.
• Be honest about your situation: If there’s a recent redundancy or unexpected expense, front foot it. Most applications get kicked out because of hidden info, not because life got tough.
• Consider joint applications: If you have a co-applicant with stable income, banks will more likely say yes—even if your own score is ‘meh.’
• Check your chosen bank’s policies: Westpac, ANZ, ASB, BNZ, and Kiwibank all have slightly different risk appetites in 2025. One may be more forgiving on unsecured loans, another may LOVE equity top-ups. Don’t waste an application on the wrong lender.

A fun fact: in 2024, Kiwibank reported that 13% of people borrowing more than $90,000 for personal uses were declined for “missing paperwork,” not bad credit. Paperwork is boring, but it’s the difference between stress and success. Also, when banks say, “temporary unapproved expenses,” they’re talking about things like overseas trips or medical costs—they need to know the money’s for a sound reason, not a short-term splurge.

Different Types of 0k Loans: Finding the Right Fit

Once you decide you want to borrow $100k, it’s not just about picking any old loan. Finding the structure that fits your life is crucial. Here’s what’s actually on the market in New Zealand for 2025, and some traps to watch for:

• Home Loan Top-Up: If you already have a mortgage and equity, this is almost always the cheapest way to borrow. You simply extend your current mortgage or draw down new funds. Typical interest rates hover from 6.99–8.25%, way better than personal loans.
• Secured Personal Loan: Best if you’ve got a car or shares to secure against. Interest rates between 9–13%. Banks take less risk, so you get a better deal.
• Unsecured Personal Loan: Some banks will lend up to $100k this way—but expect short repayment windows (5–7 years), and rates can push 15–18%. Great for debt consolidation but can sting your monthly budget.
• Business/Commercial Loan: These often require business plans, projections, and trading history. Variable rates, and extra fees. Usually, only established businesses get $100k approved.
• Revolving Credit or Overdraft: Flexible and can be used for property or business purposes, but the temptation to overspend is real. Good for trades or people who expect lump-sum inflows.

When comparing, look past the sticker interest rate. Check for application fees, early repayment penalties, monthly service charges, and life insurance add-ons (sometimes snuck in by default). The ‘comparison rate’ or ‘true cost’ over the full term is what matters.

Banks will ask why you want the loan, and sometimes even ask for supporting proof (e.g., builder quotes, business plans, investment documents). If you’re planning renovations, have written quotes; for business upgrades, have invoices and financial forecasts ready to go. The more legit your plan looks, the smoother the approval process.

One more thing: If you’re not sure which way to go, mortgage brokers (fee-based, not via the bank branch) can often spot options you haven’t considered. They have access to non-bank lenders who sometimes approve where big banks won’t—but check those rates and don’t let desperation drive the decision.

Practical Steps to Borrowing $100k in 2025

It starts with being brutally honest about your financial situation, then matching up with the bank or lender who’ll appreciate it rather than punish it. Here’s a straightforward roadmap Kiwi borrowers are following this year:

1. Clarify your purpose: Is this for home renos, launching a business, investment, or something else? Decide, then document.
2. Check eligibility: Head to your bank’s online pre-application checker and use calculators to see what you MAY qualify for based on income, expenses, and assets. Don’t apply cold unless you’re confident—every declined app can drop your credit score.
3. Gather documentation: Pay slips, employer letters, business accounts (if needed), proof of equity, ID, and a clean 90-day bank transaction history. Homeowners hunting a top-up will need their latest mortgage statement and property valuation report.
4. Sort your debts and expenses: Clear any overdue bills, reduce credit card balances, and ‘clean up’ your accounts. Lenders like to see a “pattern” of savings or smart spending for at least three months. Hide wild purchases for at least 90 days before applying.
5. Apply for the right loan type: Don't just tick the biggest personal loan box—apply for the RIGHT product. Home loan top-ups are more likely for big money, but if not, go for the best-fit personal or secured option.
6. Talk to a bank advisor or broker: Not required, but having someone on your side can smooth approval, especially for complex situations or business loans. They annoy banks for a living so you don’t have to, and they understand bank lingo and loopholes.
7. Submit your application: Triple-check all documents. Be ready for follow-up questions. If the bank asks for something odd (“Explain these two $400 ATM withdrawals”), answer quickly and clearly—don’t ghost the banker.
8. Prepare for an appraisal: For property loans, a valuer will check your place. For business loans, banks may request a site visit or extra business plan details. It's all about checking the asset backing the loan.
9. Approval and offer: If approved, your bank will send detailed terms and a loan contract. Don't rush—read every page. Watch out for sneaky add-ons you didn’t ask for!
10. Drawdown: Once all signed, the bank releases funds either to your account or directly to contractors/suppliers depending on the loan purpose.

Applying for a huge loan can feel more like a process than a decision. Don’t take a “she’ll be right” attitude with your numbers or paperwork—being detailed pays off, literally. And if you get declined? Ask the bank why, in writing—they have to tell you, and fixing one weak point (like old defaults or missing documents) can lead to a ‘yes’ on your next attempt.

One key point that trips people up is the visibility of every expense in the age of open banking—banks now have digital tools that crunch your spending in seconds, so honesty is the only policy that works.

Common Pitfalls and Little-Known Pro Tips

Here’s what Kiwis wish they’d known before hitting “submit” on that life-changing $100k application:

• Credit score checks matter more than ever: If a lender checks your file and sees five “hard pulls” in a month, they’ll worry you’re desperate. Space out big applications by a few months unless you want to look risky.
• Small print bites: Some online lenders advertise “instant approvals” for $100k—then bury massive admin fees (up to $3,000!) in the contract. Check the true cost after ALL fees over the whole loan.
• Joint applications: Having a partner or parent co-sign can increase your borrowing limit, but both parties are fully liable if things go wrong. Bankers don't want horror stories—so double-check the responsibilities.
• Credit files update slowly: Paid off a debt? It can take up to a month to show as zero. Apply after all your payments are actually visible in your file.
• Variable rates can double: Don’t borrow at your max assuming rates won’t shift. They absolutely can. Use a calculator to see if you’d still cope if payments jumped 20%.
• Refinancing after approval: If you suddenly switch jobs/banks, it could invalidate your pre-approval. Don’t make big life moves mid-process.
• Banks are obsessed with responsible lending: If you’re borrowing for commercial property or investment, different rules (and maximum LVRs) apply. You may need a bigger deposit or different documents than for a renovation loan.
• Non-bank lenders: These exist and often approve when banks say no, but rates fly up fast. Make sure you’re not just deferring pain with a fast fix—think long-term affordability.

A bizarre Kiwi fact: ASB reported in February 2025 that people borrowing more than $100,000 for home improvements finished renovations an average of seven months sooner than those who first tried to “save up.” Sometimes, speed pays…if your interest rate agrees.

Whatever your reason for chasing $100k, there’s a trail already blazed. But your name, your situation—those make the difference. Banks are in business to lend, not just block you at the door. Show your best side, keep everything tight and honest, and that six-figure sum might be sitting in your account way sooner than you’d expect. Just remember—every dollar you borrow has to be paid back (with interest!), so double-check every number and never be afraid to ask annoying questions before you commit.

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