NZ home loan topics
Cross-lender comparisons + the structural rules behind NZ mortgage lending.
LVR Rules for NZ Home Loans (Speed Limits + Exemptions)
Loan-to-Value Ratio (LVR) rules in NZ are set by the Reserve Bank as speed limits — registered banks must keep most new lending below a threshold (80% for owner-occupiers, 70% for investors). New builds, Kāinga Ora First Home Loans, and bridging finance are exempt. This page summarises the current rules + how each bank applies them.
DTI Rules for NZ Home Loans (Debt-to-Income Caps)
Debt-to-Income (DTI) restrictions were activated by the RBNZ in mid-2024. The current cap is 6× household income for owner-occupiers and 7× for investors, with first-home-buyer and new-build exemptions. Banks have a 20% allocation for lending above the DTI cap. This page explains how DTI is calculated + which lenders apply it most tightly.
Mortgage Break Fees in NZ — How They Are Calculated
Breaking a fixed-rate mortgage early triggers a break fee. The calculation is the difference between your locked rate and the bank's current wholesale rate for the remaining term, multiplied by the remaining balance and remaining months. This page walks through the formula + shows the indicative ranges typical at each major bank.
Fixed vs Floating Mortgage Rates in NZ
Choosing between fixed and floating depends on three things: where rates are in the OCR cycle, how long you want certainty, and whether you need flexibility to make lump-sum repayments. This page lays out the current carded floating + fixed rates from every major lender + the structural differences.
Bank Cashback Offers for NZ Home Loans
Most big-5 banks pay cashback to switchers and new borrowers — typically $3,000–$10,000 depending on loan size. The cashback is clawed back if you exit within 3–4 years. This page summarises the headline cashback terms from each bank + how the clawback works.
How Banks Calculate Servicing for NZ Home Loans
Every bank runs a servicing test using a stress-test rate (typically ~3% above carded), assumed living expenses (HEM-style benchmarks), and your declared income. The test is what most home-loan applications fail — not LVR. This page explains the inputs banks use + how brokers improve borderline cases.
Non-Bank Home Loan Lenders in NZ
Non-bank lenders (Resimac, Liberty, Avanti, Pepper, Bluestone, Basecorp, ASAP) operate outside the RBNZ Registered Banks framework. They serve borrowers who don't fit big-5 servicing tests — self-employed without 2-year accounts, prior credit issues, or complex income streams. Rates are typically 0.5%-2% above big-5 carded; faster approval is the trade-off.