Tech entrepreneurs in New Zealand just got a rare break from the traditional banking system. The Bank of New Zealand (BNZ) has rolled out a new home loan programme that looks past red ink on paper and instead pays attention to potential — something many startup founders desperately need right now.
Called “Founder Housing,” the initiative is aimed squarely at technology company founders who typically struggle to get a mortgage under standard lending criteria. BNZ is ditching the usual approach to debt-servicing metrics, offering a glimmer of hope to those whose financials don’t look good on paper, but whose companies may be growing fast behind the scenes.
A Structural Disconnect Between Startups and Traditional Lending
It’s no secret that tech founders are often boxed out of the housing market.
Most startup leaders are used to hearing “no” from banks. The reason? Startups often burn through capital early on, operating in the red for months — sometimes years. That negative income often gets reflected directly onto the founder’s personal finances, which plays havoc with loan applications.
Tim Wixon, BNZ’s head of technology industries, said the conventional criteria simply don’t line up with how early-stage startups actually function.
“The core problem,” he explained, “is that companies who have traditionally been in a loss-making phase… the negative earnings would be applied to their [founder’s] personal income.”
Which, let’s face it, makes it almost impossible to qualify for a decent mortgage — even when your company is growing like a weed.
Founders’ Finances: Messy, But Not Without Merit
Traditional banks like consistency. Payslips. Regular income. Predictability.
But if you’re the founder of a startup, what you’ve got instead is:
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Funding rounds
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Deferred salary
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Paper wealth tied up in equity
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Losses racked up from R&D and marketing investments
BNZ’s programme seems to acknowledge that reality. Instead of fixating on past earnings or short-term profit, they’re assessing broader company metrics and growth potential. Wixon said BNZ is considering the nature of early-stage tech businesses, where founders are building long-term value even if their current finances look shaky.
That shift in mindset — from spreadsheets to story — might sound small, but it’s a big deal in practical terms.
How the Founder Housing Programme Works
BNZ hasn’t revealed every detail of the assessment process yet, but here’s what we know.
It’s clear they’re moving away from traditional formulas. Instead of calculating income-to-loan ratios the standard way, BNZ appears to be applying an alternative method that factors in things like:
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Business trajectory and sector strength
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Funding history and investor backing
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Founder’s ownership stake and growth plans
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Company stage (pre-revenue, seed, Series A, etc.)
The bank is essentially putting founders on a different track — not a lower bar, but a smarter one that understands the difference between a loss-maker and a risk.
BNZ also hinted that this programme could act as a case study for a broader rethinking of how banks support entrepreneurship in New Zealand. If it works, it could ripple beyond the tech world.
The Wider Problem: Why This Even Matters
Let’s zoom out.
New Zealand’s startup scene has been quietly building momentum over the last few years. Companies like Halter, Sharesies, and Partly have shown that local startups can scale globally.
But housing is a problem — and not just in the way it’s a problem for everyone else. For founders, the inability to get a mortgage isn’t just a financial hurdle. It’s a psychological one. It feeds into the broader fear that startup life is “all or nothing,” and that personal stability has to take a backseat while you’re building something.
That kind of thinking has consequences. It makes the idea of founding a startup even riskier than it needs to be. And it makes talent — especially experienced professionals with families — more reluctant to leave salaried roles to try something new.
In a country already battling brain drain, that matters.
Banks are Finally Listening — But Will Others Follow?
BNZ’s move is drawing attention not just for what it does, but for what it represents: an institution bending to meet the needs of modern workers.
This isn’t the first time a financial institution has adapted its model to support gig economy or startup professionals. But in New Zealand, it’s rare. And it could signal more to come, especially as digital-first businesses and non-traditional work patterns become increasingly common.
The question is whether other banks — both local and global — will take notice.
There’s also the regulatory angle. How do banks assess risk responsibly while supporting innovation? How far can they stretch traditional lending frameworks before they become unrecognisable — or unstable?
What Founders Are Saying on the Ground
Early reactions from tech entrepreneurs have been cautiously optimistic. One founder based in Wellington, who asked not to be named, said she’d been rejected by three major banks due to “income inconsistency,” despite having just closed a $3 million seed round.
“On paper, I looked broke,” she laughed. “But our company is doing well. We’ve got a solid team and strong backers. The money is just going into product and talent right now.”
She said BNZ’s new offer felt like “someone finally spoke our language.”
Not everyone is convinced yet. Some warn that until the terms are fully transparent, it’s hard to know how accessible the programme really is. Others want to see proof that the process won’t be buried under red tape.
Still, one thing is clear: this is a rare moment where a bank seems to get what it means to build from scratch — and that’s something founders don’t forget.
