How Much Can I Borrow?
Calculate your borrowing power for a home loan in New Zealand
Your Financial Details
Excludes rent/mortgage payments
Banks count limits, not balances
Your Estimated Borrowing Power
$119,000
Maximum you can borrow
Important Note
This calculator provides estimates only. Banks use complex assessments including stress testing at ~8.5% interest rates. Get formal pre-approval for accurate figures.
Want to increase your borrowing power?
- +Close unused credit cards
- +Pay off personal loans
- +Reduce living expenses
- +Save a larger deposit
Borrowing Power FAQs
How much can I borrow for a mortgage in NZ?
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.
What income do I need to borrow $500,000?
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.
How do banks calculate borrowing power?
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.
Does my partner's income count for a mortgage?
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.
How much deposit do I need in NZ?
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.
Important: how to read this information
This website is operated by Evolve Group Limited (FSP711891), a Licensed Financial Advice Provider regulated by the Financial Markets Authority (NZ). The information published here is general in nature and is not personalised financial advice. For personalised advice that takes your circumstances into account, request to be matched with one of our licensed mortgage advisers via the enquiry form.
Rate accuracy. Rates shown across this site were observed at 21 May 2026, 12:27 pm from each lender's published carded-rate page (linked per row). If a lender has updated their rates since that timestamp, the authoritative source is the lender's page, not our derived snapshot. Carded rates are advertised rates — the rate you ultimately receive depends on your application.
Calculator outputs. Any figures produced by calculators on this site are mechanical estimates — they do not factor in establishment, legal, valuation, or break fees, and they assume a constant interest rate over the chosen term. For fixed-rate periods the rate typically resets at the end of the term. Treat calculator outputs as indicative only.
CCCFA + Responsible Lending Code. Final lending decisions are made by the lender under the Credit Contracts and Consumer Finance Act 2003 and the MBIE Responsible Lending Code. Lenders apply servicing-test rates (typically around 8% post-2023), debt-to-income caps (RBNZ DTI 6× owner-occupier / 7× investor from 2024), and Loan-to-Value Ratio limits. Carded rates are not an offer or a pre-approval.
Disputes. If you have a complaint about advice received through this site, contact Financial Services Complaints Limited (FSCL) on 0800 347 257 or info@fscl.org.nz.
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