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New Zealand Borrowing Power Calculator

See how much you could borrow for a home in New Zealand, across the three limits that decide it: what you can service at the bank's test rate, the Reserve Bank's debt-to-income cap, and your deposit.

Rates verified Invalid Date against Reserve Bank of New Zealand

Borrower type
$

Combined gross (before-tax) income of all borrowers.

$

Cash plus any KiwiSaver you can withdraw.

%

The higher rate your bank tests you at, usually about 2 to 2.5% above carded rates (roughly 7 to 8.5% in 2026).

years
$

Your household's regular living costs. Banks apply their own minimum, so keep this realistic.

$

Car loans, personal loans, hire purchase, and similar repayments.

$

Total balances of other debts plus your credit-card limits. Used for the debt-to-income cap.

Estimated maximum loan$600,000.00Limited by your deposit (the 80% LVR limit)
Maximum property price$750,000.00Max loan plus your deposit
DTI at this loan4.07xRBNZ cap 6x

The three caps โ€” the lowest one applies

Serviceability cap$1,267,436.50
DTI cap$890,000.00
Deposit (LVR) cap$600,000.00

Right now your borrowing is limited by your deposit (the 80% LVR limit). To lift it, focus on that limit: a larger deposit raises the LVR cap, a higher income or lower other debt raises the DTI cap, and lower expenses or a longer term raise what you can service.

How this calculator works

In New Zealand your maximum loan is set by whichever of three limits is tightest, so this calculator works out all three and reports the binding one:

  • Serviceability. Your gross monthly income, minus living costs and other debt repayments, gives a surplus. That surplus is turned into a loan at the bank's test rate over your term.
  • Debt-to-income (DTI). The Reserve Bank caps total debt at 6× gross income for owner-occupiers and 7× for investors, so the new loan is capped at that multiple of income, less existing debts and card limits.
  • Loan-to-value (LVR). Your deposit caps the loan: at a 20% deposit the loan cannot exceed four times the deposit; at a 35% investor deposit, about 1.9 times.

Worked example

Take a $150,000 household income, a $150,000 deposit, an 8% test rate over 30 years, $3,000 of monthly living costs, and modest other debts. Serviceability alone would support well over a million dollars, and the 6× DTI cap allows about $890,000. But the 20% deposit caps the loan at four times the deposit, or $600,000, so the deposit is the binding limit here, and the estimated maximum property price is about $750,000. Increase the deposit and the ceiling rises; drop the income and DTI or serviceability takes over instead.

How to lift your borrowing power

  • If the deposit is binding โ€” save more, or look at whether a new build (exempt from LVR and DTI) changes your options.
  • If DTI is binding โ€” raise income, or cut other debts and unused credit-card limits, which count in full.
  • If serviceability is binding โ€” reduce regular expenses and other repayments, or consider a longer term, which lowers the required repayment.

A note on accuracy

This calculator uses gross income and your declared expenses for simplicity, and applies the published RBNZ DTI and LVR settings shown in the verified badge above. A real bank assessment uses net income, its own minimum living-cost tables, your credit history, and the specific property, so your actual approved amount can differ. For the current rules, see the Reserve Bank of New Zealand, and our own methodology for the formulas and sources.

Frequently asked questions

How much can I borrow for a home in New Zealand?

Your maximum is the lowest of three separate limits. First, serviceability: can you afford the repayment at the bank's higher test rate, out of your income after living costs and other debts? Second, the Reserve Bank's debt-to-income (DTI) cap: total debt of no more than 6 times gross income for owner-occupiers, or 7 times for investors. Third, the deposit (LVR) rules, which cap the loan relative to the property value. This calculator works out all three and tells you which one is holding you back.

What is the DTI limit, and does it apply to me?

Since 1 July 2024 the Reserve Bank has limited most new lending to a debt-to-income ratio of 6 for owner-occupiers and 7 for investors, where total debt includes the new mortgage plus existing debts and credit-card limits. Banks are allowed to write a small share of new lending above these limits, and newly built homes are exempt from DTI, so the cap is not absolute. For most standard purchases of an existing home, though, it is a real ceiling on how much you can borrow.

What is a bank's servicing test rate?

Banks do not check whether you can afford repayments at today's rate. They test you at a higher rate, so they know you could still cope if rates rose. That test rate is set by each bank under the Responsible Lending Code, and it has commonly sat about 2 to 2.5 percentage points above carded rates, in the region of 7 to 8.5% during 2026. A higher test rate lowers how much you can borrow, which is why the figure you enter here matters.

How much deposit do I need?

Owner-occupiers usually need at least a 20% deposit for an existing home, and investors usually need about 35%. Newly built homes are exempt from the deposit rules, and eligible first-home buyers can sometimes borrow with as little as 5% through the Kฤinga Ora First Home Loan. Your deposit sets the LVR cap in this calculator: at 20% deposit the loan is capped at four times your deposit, so a larger deposit lifts that ceiling directly.

Why is my borrowing power lower than I expected?

Usually because one of the three limits is tighter than your budget feels. A thin monthly surplus caps serviceability; a modest income caps DTI; a small deposit caps LVR. Credit-card limits count in full toward DTI even if you clear them each month, so trimming unused limits can help. The test rate is also deliberately cautious, so the amount a bank will lend is often below what your day-to-day budget suggests you could manage.

Does this replace a bank pre-approval?

No. This is an indicative estimate that applies the same three limits a bank uses, but a real assessment works off your net income, the bank's own living-cost tables, your credit history and account conduct, and the specific property. Treat this as a starting point, then confirm with a mortgage adviser or your bank.

Related calculators

LVR & Deposit CalculatorCheck your loan-to-value ratio and whether you meet the deposit rules.Mortgage Repayment CalculatorOnce you know your loan, see the weekly, fortnightly, or monthly repayment.

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