Finance & business New Zealand
Borrowing Power Calculator New Zealand
How much a bank will lend depends on what is left of your income after tax, living costs and existing debts, tested at a rate higher than the one you will pay. This calculator estimates that figure, applies a debt-to-income cap and adds your deposit to show a rough price range.
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Lenders also compare this with their own benchmark for your household.
Lenders assume a small percentage of each limit, even if the card is clear.
Banks add a buffer to the real rate. Ask your lender for theirs.
Lender policy; many cap new lending at a multiple of income.
You could borrow about
—Limit from your budget
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Limit from the debt-to-income cap
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Repayment at your expected rate
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Price range with your deposit
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Deposit as a share of that price
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The working
Working with a different rate? Edit the rates this calculator uses
These are the figures we verified on 2026-10-26. Change them to work with a historic period, or with a new rate that has been announced but which we have not published yet.
ACC, from 1 April 2026
ACC, 2026/27
A guide only, not an approval. Only a lender can say how much it will lend. This tool gives a rough guide using your inputs, and the test rate and limits are your assumptions, not any bank's actual policy.
How much can I borrow for a home loan in New Zealand?
Start from after-tax income, subtract living costs and debt commitments, and see what loan that surplus can service at a test rate above your real rate. A $110,000 income with $3,800 monthly expenses and $10,000 of card limits could borrow about $330,459, and with a $120,000 deposit buy a home around $450,459.
How lenders think
A lender looks at the money left over after your essential costs and existing commitments, and checks that it could cover repayments at a higher test rate. It also looks at your deposit, your credit history, your job security and the property. A larger deposit, fewer debts and lower card limits all raise what you can borrow.
Card limits count even if you never use them, which is why closing unused cards often helps.
Loan-to-value and deposits
In New Zealand lenders limit how much they lend to buyers with small deposits, so borrowing power is not the only limit: a deposit of 20% of the price opens the best rates. Compare your deposit with the price range shown, and use the LVR calculator to see where you land.
Remember to budget for legal fees, valuations and moving costs on top of the deposit.
To check the repayment, use the mortgage calculator.
How this is calculated
The rule, step by step, so you can check any figure by hand.
after-tax income = income − income tax − ACC earners' levy, for each earnersurplus = after-tax monthly income − expenses − loan repayments − card limits × assumed %budget limit = the loan a surplus can pay at the test rate over the termdebt-to-income limit = limit × gross income − existing loans − card limitsyou could borrow about the lower of the two limits
Lenders test whether you could still afford the loan if rates rose, so the test rate is higher than the rate you will actually pay. That cuts the borrowing figure well below what the repayment at today's rate would suggest. They also check expenses against their own benchmark and cap lending to a multiple of income.
KiwiSaver deductions, student loan repayments, dependants and variable income change the outcome, so use the result as a starting point and speak to a mortgage adviser or your bank for a proper assessment.
A worked example
Income $110,000, expenses $3,800 a month, loans $300 a month, card limits $10,000, test rate 8.0%, 30 years, deposit $120,000.
- After-tax income a month$6,824.79
- Surplus a month$2,424.79
- Budget limit$330,459
- Debt-to-income limit$635,000
- You could borrow about$330,459
About $330,459, so a price near $450,459.
Cancelling an unused card limit raises the figure.
Improving your position
Pay off small debts, reduce or close unused credit cards, build a larger deposit and keep a stable savings record. Speak to a mortgage adviser, who can compare lenders' policies, since each assesses expenses and income differently.
What it leaves out
KiwiSaver withdrawals for a first home, bonuses, rental income, student loan repayments and dependants are not modelled.
What this calculator does not do
- Your assumptions, not a lender's policy
- Resident tax, one tax year
- No student loan or KiwiSaver
- Not an approval
Common questions
How much can I borrow on my income?
It depends on your expenses, debts and the lender's test rate. This tool estimates it.
Why is the test rate higher than my rate?
To check you could cope if rates rose.
Do unused credit cards matter?
Yes. Lenders assess the limit, not the balance.
Is this a pre-approval?
No. Only a lender can approve a loan.
What deposit do I need?
Often 20% of the price for the best rates, though some lenders accept less.
Where these numbers come from
- Sorted — Retirement Commission money guidance Independent guidance on saving, work and borrowing
- Inland Revenue — income tax for individuals The income tax bands used to find after-tax income
Rates last verified 2026-10-26 Every figure Inland Revenue sets is re-checked against the source at least once a year, and again whenever a change is announced. Out of date? Tell us and we will fix it.
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