Borrowing Power Calculator

Estimate your borrowing capacity, factoring in stress-test rates and expenses.

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.

Household Details
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Banks typically scale this to 75% for assessment.
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Who is Borrower 1?
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We need this because banks generally require home loans to be paid off by age 75.
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$
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Other Income & Expenses
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Note, this can increase your borrowing power.
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$
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This is calculated on top of standard bank living expenses.
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Debts & Credit Cards
Your Deposit (Optional)

This doesn't change what the bank will lend you, but it gives us the full picture.

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$
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Running the maths...

Applying bank stress rates and expense metrics.

Boom! 🚀
Here's what you could, maybe, might perhaps be able to borrow:

$0
💡
And this doesn't even include your deposit!
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!
Remember, this is a very rough estimate! It looks fantastic based on the raw inputs, but your actual approval will depend heavily on your deposit size, credit rating, scheme eligibility, and the specific policies of the bank you apply to.

Calculated using standard bank stress testing rules.

👋

Let's make this official (well, almost).

Category
First Home Buyers
Property Investors
Next Home Buyers
New Builds
Refinancing
Information

How Much Can You Borrow?

‍Understanding your true borrowing capacity is the first step to buying a home. Our engine models how NZ banks assess your income, expenses, and existing debts to give you a realistic estimate.

It is 100% free to get your results with no mandatory sign-ups, logins, or hidden data capture (But you can send us your results if you want!)

1. The Basics (Income & Outgoings)
  • Your Income: Enter your primary salary or wages (before tax). If you are buying with a partner, add their income to combine your borrowing power.
  • Your Expenses: Add your standard monthly living costs and the number of dependents you have. Banks use this to calculate your Uncommitted Monthly Income (UMI).
  • Existing Debts: Got a car loan, student loan, or credit card? Enter them here. (Note: Banks assess credit cards based on the total limit, not just your current balance).
2. How Test Rates Work (Why this tool is accurate)
  • Stress Testing: When you apply for a mortgage, NZ banks do not calculate your affordability on the advertised 6% or 7% interest rate. They stress-test your application at a higher "servicing rate" (often around 8% to 9%) to ensure you can comfortably manage your payments if interest rates rise in the future.
  • Realistic Limits: This calculator mimics that bank-level stress testing, giving you a much more accurate ceiling than a simple income multiplier.

Next Step: Fast-Track Your Pre-Approval‍

Once you have your estimated borrowing limit on the screen, you have the option to send your results directly to a Home Loan Factory adviser. We will review your numbers and let you know what a formal bank pre-approval might look like—completely free and with no obligation.

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Talk to an expert
FAQS

Frequently Asked Questions

Question 1: How do NZ banks calculate my borrowing power?

Banks calculate your borrowing capacity by looking at your Uncommitted Monthly Income (UMI). They take your total after-tax income and subtract your living expenses, dependents' costs, and existing debt repayments. The remaining money dictates how much mortgage repayment you can comfortably afford.

Question 2: What is a bank servicing test rate?

Even if the current market interest rate is 6%, banks will calculate your affordability using a 'test rate' or 'servicing rate' (often between 1 & 3% higher than today's interest rates). This is a stress test required by the Reserve Bank to ensure you can still afford your mortgage if interest rates rise in the future.

Question 3: How do credit cards affect how much I can borrow?

Credit cards heavily impact your borrowing power. Banks assess your credit card based on its total approved limit, not the current balance. For example, a $10,000 limit with a $0 balance is often still treated as potential debt and will reduce your maximum mortgage amount. Reducing your limits before applying can increase your borrowing power.

Question 4: Can I use flatmate or boarder income to borrow more?

Yes, many New Zealand lenders will allow you to include projected boarder or flatmate income to boost your borrowing capacity. However, banks usually 'shade' this income, meaning they might only count 75% of the expected rent to account for potential vacancy periods.

Question 5: The calculator gave me a borrowing limit—what is my next step?

This calculator provides a realistic estimate, but every bank has slightly different internal rules for assessing income and expenses. To get an exact figure you can rely on at an auction or for an offer, speak with a Home Loan Factory adviser to secure a formal bank pre-approval.

Expert advice for your home loan, KiwiSaver, and beyond.