How much can I borrow for a mortgage in NZ?
Use our advanced borrowing power calculator below to see what New Zealand banks could lend you. We factor in current stress-test rates, minimum living expenses, and the same complex tax maths the banks use
Let's figure out what you *might, maybe, possibly* be able to borrow!
Answer a few simple questions to get a surprisingly accurate (but entirely unofficial and totally hypothetical) estimate of what the banks will likely lend you.
This calculator only looks at your raw income and debts. Your deposit size, credit rating, scheme eligibility, and the current mood of the bank assessor will all need to be factored in before a formal approval can be given.
I completely get that this is a rough estimate only, and I know nothing is for certain until the bank's approval is in hand.
Note: This calculator does not save any of your personal data unless you specifically request an adviser to get in touch at the end.
This doesn't change what the bank will lend you, but it gives us the full picture.
Running the maths...
Applying bank stress rates and expense metrics.
Boom! 🚀
Here's what you could, maybe, might perhaps be able to borrow:
This number is only what the bank will lend you. Add your saved deposit to this amount, and your final purchase price will be even higher!
Calculated using standard bank stress testing rules.
Let's make this official (well, almost).
Every bank treats incomes slightly differently. Drop your details below and an expert Home Loan Factory adviser will verify your exact borrowing capacity.
Frequently Asked Questions
What is a stress-test rate in NZ?
A stress-test rate (sometimes called a servicing sensitivity rate) is a hypothetical, higher interest rate that New Zealand banks use to check if you can truly afford your mortgage.
Even if the advertised fixed rate you are applying for is 6.5%, the bank might run your application through their system at a test rate of 8.5%. They do this to ensure you have enough of a buffer in your budget to keep making payments if interest rates rise in the future. Every NZ bank sets its own "secret" test rate, which is why the amount you can borrow can vary wildly depending on which lender you apply with.
How do credit cards affect my borrowing power?
When assessing your application, banks look at your total credit card limit, not your current balance.
To be safe, some lenders apply the "3% Rule". They assume you will need to commit 3% of your total combined credit limits to repayments every single month—even if you pay your card off in full every month and currently owe nothing.
For example, if you have a credit card with a $10,000 limit, the bank deducts $300 from your usable monthly income. Over the course of a 30-year mortgage, losing that $300 a month can reduce your overall borrowing power by roughly $40,000 to $50,000. Pro tip: You may be able to increase your borrowing power by closing or reducing limits on your credit card(s).
Why does my age matter for a home loan?
Under responsible lending rules, banks need to be confident that you can fully pay off your mortgage before you retire and your income drops.
Most NZ banks set a maximum age limit for the end of a loan term, typically around 70 to 75 years old for an owner occupied property.. If you are 30 years old, you can easily get a standard 30-year loan term. However, if you are 55 years old, the bank may restrict your loan term to just 15 or 20 years so it is paid off by the time you hit 75.
Because you have fewer years to pay off the debt, your required monthly repayments will be much higher. This means you need a higher income to pass the bank's affordability test, which naturally lowers the total amount you can borrow.