Mortgage Broker NZ

Home Loan Calculator NZ
How Much Could You Borrow?

Get an indicative borrowing estimate in around two minutes — based on your income, deposit, and financial commitments. No credit check, no sign-up required.

Borrowing power calculator

Get an indicative estimate in around two minutes. No credit check, no obligation.

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What are you looking to do?

What does the result mean?

The calculator produces a borrowing range — a lower and an upper figure — rather than a single number. This reflects the fact that different lenders apply different lending criteria, and your application can look different depending on how it's presented.

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Borrowing range

The lower figure uses conservative assumptions (higher assessment rate, tighter DTI). The upper figure uses more generous assumptions. Your actual offer will sit somewhere in this range.

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Property budget

Your property budget is borrowing power plus your deposit. If you can borrow $600k and have $100k saved, you could target properties up to $700k.

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Repayment estimate

The weekly, fortnightly, and monthly figures are based on the mid-point of your borrowing range, using a standard 30-year principal & interest loan at the upper assessment rate.

Key factors that affect your borrowing power

Income

Your gross annual income is the primary driver of how much a bank will lend. Both PAYE and self-employed income count, but self-employed income is assessed differently — typically as an average of the last two years of net profit.

Debt-to-income ratio (DTI)

The Reserve Bank of New Zealand sets high-DTI thresholds that limit the proportion of new lending banks can write above those levels. Many lenders use 6× gross annual income as a working threshold for owner-occupiers. Existing debt (other mortgages, car loans) reduces available headroom.

Existing debt and credit cards

Banks count all your current debt commitments, including credit card limits (not just balances), car loans, and other mortgages. High credit card limits can significantly reduce how much you can borrow, even if you pay them off every month.

Deposit and LVR

A larger deposit reduces the amount you need to borrow and may allow you access to better interest rates. Most borrowers need at least 20% deposit to avoid LVR restrictions, though some lenders can go lower for first-home buyers.

Monthly expenses and dependants

Banks assess your ability to meet mortgage repayments after covering your living costs. Dependants reduce available borrowing capacity through allowances applied to the serviceability assessment.

Calculator assumptions

  • → Assessment rates of 6.5% (upper) and 7.5% (conservative), in line with common NZ bank practice
  • → Standard 30-year principal & interest loan term
  • → DTI modelling thresholds of 6× (owner-occupier) and 7× (investor) — calculator assumptions, not absolute borrowing caps
  • → Credit card limits assessed at 3% per month of total limit
  • → Rental income shaded at 75% for investment properties
  • → NZ PAYE tax estimated using 2024–25 tax bands including ACC levy
  • → These are indicative guidelines, not the policy of any specific lender

Frequently asked questions

How accurate is the borrowing power calculator?
The calculator gives a useful indicative range based on standard NZ lending assessment guidelines, including income, expenses, existing debt, credit card limits, and deposit. It is not a pre-approval or formal lending assessment — actual amounts depend on verified income, your credit history, lender policy, and the specific property. For a more accurate picture, talk to a mortgage adviser who can apply actual lender criteria to your situation.
What is DTI and how does it affect my borrowing?
Debt-to-income (DTI) ratio is a key lending consideration introduced by the Reserve Bank of New Zealand. The RBNZ sets high-DTI thresholds — not absolute borrowing caps — by limiting the proportion of new lending that banks can write above those levels. Many lenders use 6× gross annual income as a working threshold for owner-occupiers and 7× for investors. The calculator applies these as modelling assumptions alongside a serviceability test based on your actual income and expenses; your individual position may differ.
Does using the calculator affect my credit score?
No. This calculator is a completely private estimate tool. It does not perform a credit check, and your details are not sent to any credit bureau or lender. Only if you choose to send your details to Jeremy does anything leave your browser.
What deposit do I need to buy a home in NZ?
Most owner-occupier borrowers need at least a 20% deposit (LVR of 80%) to avoid LVR restrictions. Some lenders can go to 10–15% for first-home buyers, subject to availability and LVR speed limits. For investors, 30–35% is typically required. Your KiwiSaver balance can count toward your first-home deposit after three or more years of contributions.
What is an assessment interest rate and why is it higher than current rates?
Lenders test your ability to repay at a rate higher than today's market rates — typically 1–2% above the current rate — to ensure you can still afford repayments if rates rise. This is called the floor or stress rate. The calculator uses conservative and upper assessment rates in line with common NZ bank practice to generate a borrowing range, not a single point estimate.
How do credit card limits affect borrowing power?
Banks assess credit card limits rather than current balances, because limits represent potential debt. Each dollar of credit card limit typically reduces your borrowing capacity by a multiple of that figure. The calculator applies approximately 3% of total limits as a monthly commitment. If you have unused cards, cancelling them before applying may improve your assessment.
What is the difference between borrowing power and property budget?
Borrowing power is how much the bank may lend you. Property budget is the total purchase price you could aim for — your borrowing power plus your deposit. For example, if you can borrow $600,000 and have a $150,000 deposit, your indicative property budget is $750,000. The calculator shows both figures.
How does self-employed income affect borrowing power?
Self-employed income can be assessed differently by different lenders. Most banks require two years of tax returns or financial statements and use the average or lower of the two years' net profit, with some add-backs. How your income is presented can materially affect how much you can borrow — this is an area where working with an experienced mortgage adviser makes a real difference.

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