Tech founders get keys to home ownership with BNZ’s new home loan solution

Tech founders creating innovative, high growth companies can face a surprising obstacle outside the startup ecosystem – they frequently struggle to secure home loans.

Bank of New Zealand (BNZ) has addressed this challenge with the launch of Founder Housing: a new home loan solution designed specifically for tech entrepreneurs.

The new proposition addresses a common frustration in the tech community: founders of tech companies often have business losses counted against their personal income, which can make them ineligible for home loans, even when their businesses are thriving and backed by significant investment.

“We kept hearing the same story from tech founders and entrepreneurs,” says Tim Wixon, Head of Technology Industries at BNZ.

“They’d built promising companies, secured investment, and were earning good salaries, but couldn’t buy homes because traditional lending criteria didn’t recognise the way high-growth tech startups operate. It just didn’t make sense.”

One founder’s journey

Startup founder Emily Blythe’s experience illustrates this challenge. As CEO of Pyper Vision, an innovative aerospace startup developing AI-powered fog forecasting technology, Blythe has built a company with strong financial backing and major partnerships, including trials with Air New Zealand and British Airways CityFlyer. Yet when she tried to buy her first home, traditional lending criteria worked against her.

“I had a stable salary and a consistent track record of Pyper Vision paying me, but that wasn’t recognised by most banks,” Blythe explains. “What was particularly frustrating was that two of my team had recently secured bank loans easily, but because they were employees rather than the founder, banks viewed their positions as more secure than mine.”

Despite Pyper Vision’s strong fundamentals – including Startmate accelerator backing, government support, and enterprise partnerships – Blythe was rejected by eight different banks over a three-month period.

“I spoke to other founders going through the same struggle who couldn’t find a solution,” she says.

“They were having their partners buy houses instead or setting up complex trust structures – anything to work around the system.”

Blythe’s experience highlights exactly why BNZ developed Founder Housing.

The problem stems from how growth-focused tech companies structure their finances. Early-stage businesses typically prioritise R&D, marketing and expansion over profit, creating accounting losses that appear on founders’ personal financial assessments despite potentially strong business fundamentals.

BNZ’s Founder Housing takes a different approach by evaluating business viability and potential rather than focusing solely on profit and loss statements. The solution recognises institutional investment as a positive indicator and includes specialised assessment criteria tailored to tech companies.

“It’s about applying the right approach and metrics for this type of business model,” Wixon says.

“A founder running an equity-backed company with strong growth metrics is often a very different proposition from what traditional lending criteria might suggest.”

For Blythe, BNZ’s approach proved different.

“It wasn’t the standard black-and-white response of ‘you’re a founder, therefore we can’t approve this.’ BNZ actually evaluated both the company’s financial position as a tech business and my personal circumstances together. It was a much more logical and rational approach.”

Securing her Christchurch home has provided crucial stability for her role leading an international business.

“Having my own home gives me the freedom to travel for work, knowing I have a secure base to return to. It’s the first time I’ve felt properly grounded.”

Her advice to other tech founders facing similar challenges is clear: “I’d strongly recommend working with BNZ’s team. The traditional banking approach to founders is just ridiculous.”

Banking on growth

Founder Housing builds on BNZ’s established commitment to supporting New Zealand’s tech ecosystem.

The bank has pioneered several innovative financing solutions for technology companies, including Revenue Based Financing for SaaS businesses launched in 2021, and Contracted Receivables Financing introduced in 2023 to help high-tech manufacturing, infrastructure, software-enabled hardware and biotech companies access capital based on signed contracts rather than traditional profit measures.

Last month, BNZ also announced fast-approval unsecured business loans up to $50,000 that can be confirmed in just three minutes, recognising that businesses need to move quickly when opportunities arise.

“We’ve been working to rewrite the playbook for how banks can better support tech companies at every stage of their journey,” Wixon says.

“Founder Housing is the natural extension of that work – supporting the founders themselves, not just their businesses.”

The solution’s introduction comes at a time when supporting innovation and competitive business settings are increasingly recognised as vital for economic development.

“We’re proud to be the first major bank to turn this approach into a formal proposition,” Wixon says.

“By understanding the unique challenges these founders face, we can help them build personal assets while they continue growing their businesses here in New Zealand, helping to attract and retain talent in Aotearoa.

*All home loans are subject to BNZ lending criteria (including minimum equity requirements), terms and fees.