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