Calculate your borrowing power for a home loan in New Zealand
Excludes rent/mortgage payments
Banks count limits, not balances
$119,000
Maximum you can borrow
This calculator provides estimates only. Banks use complex assessments including stress testing at ~8.5% interest rates. Get formal pre-approval for accurate figures.
Your borrowing power depends on your income, expenses, existing debts, and deposit. Banks typically lend 5-6 times your annual income, stress-tested at 8.5% interest. A household earning $120,000 can typically borrow $500,000-$600,000.
To borrow $500,000, you typically need a household income of around $85,000-$100,000 per year, depending on your expenses and other debts. Banks assess affordability at higher 'stress test' rates.
Banks assess your income, subtract living expenses and debt commitments, then calculate how much mortgage you can afford at a stress test rate (typically 8.5%). They also consider your credit history, employment stability, and deposit size.
Yes, if you're applying jointly, both incomes are included. This can significantly increase your borrowing power. A couple each earning $80,000 can typically borrow more than a single person earning $160,000 due to how expenses are calculated.
Most banks require a minimum 20% deposit. First home buyers may qualify for 10% with a First Home Loan, and some buyers can use a family guarantee. A larger deposit increases your borrowing power and reduces interest costs.