How NZ Banks Calculate Servicing for Investor Loans

Investor servicing tests are tighter than owner-occupier — banks discount rental income (typically 75% recognised), apply DTI caps (7×), and use higher test rates. This page explains the calculation and how the new interest-deductibility rules (from 1 April 2025) feed in.

The question

How much can I borrow against an investment property in NZ?

Factors that matter

› Rental income recognition (typically 75% of gross rent)
› Existing portfolio debt — banks aggregate all your loans into the DTI calc
› DTI cap (7× for investors; 6× for owner-occupiers)
› Test rate (typically ~3% above carded)
› Interest deductibility from 1 April 2025 — restores after-tax economic
› LVR cap (typically 70% for investor lending)

Talk it through with an adviser

Your numbers matter — an adviser from Evolve Group Limited (FSP711891) can model this scenario against current carded rates and your servicing position.

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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.

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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