# How much can I borrow?

> What a bank might lend you, the house price your deposit could buy and how the repayments compare with your rent.

Use it in a browser at https://buyingahouse.co.nz/tools/how-much-can-i-borrow, or call it through the site's MCP server at https://buyingahouse.co.nz/mcp.

## How this calculator works

The calculator works out the most you can borrow in two ways and shows you the smaller amount.

The first way is based on what you can afford to repay. The calculator takes your income after tax and the ACC earners' levy, then subtracts your living costs and any repayments on other debts. Whatever is left goes toward your mortgage. Banks check you could afford the repayments at a [test rate](https://buyingahouse.co.nz/glossary/test-rate) higher than the rate you'd actually pay, in case rates go up. The calculator does the same, using a 30-year term, which is the longest most banks offer.

The second way is the Reserve Bank's [debt-to-income](https://buyingahouse.co.nz/glossary/debt-to-income) limit. Banks can only give 20% of their new owner-occupier loans to people who owe more than 6 times their income before tax. This means most buyers can borrow up to 6 times their income, minus any debts they already have.

The calculator starts with figures for a couple. Each person earns $73,800, which is about the median wage. Living costs are set at $1,200 a week, the average household's spending without housing (Stats NZ, year to June 2023). The deposit is $80,000, about 10% of the national median sale price of $784,363 in the 12 months to 8 November 2026. The test rate is 6.95%, which Kiwibank and Westpac use. Repayments are worked out at 4.95%, the average 1-year special rate at the end of October 2026. Rent is set at $595 a week, the national median for new bonds in August 2026. You can change any of these to match your own situation.

This is only an estimate. Banks will also look at your credit history, your job and the property. They have their own minimum living costs, which might be higher than what you enter. Rates, insurance and maintenance aren't included in the repayment, but you'll need to cover them as a homeowner.

## Common questions

### How much can I borrow for a mortgage in NZ?

Most banks will lend up to 6 times your income before tax, minus any other debts, as long as you can afford the repayments at their test rate. For example, a couple who each earn $73,800, have living costs of $1,200 a week and no other debts could borrow about $678,000.

### What is a bank's test rate?

A bank's test rate is the rate it uses to check you could still afford repayments if interest rates went up. In November 2026, ANZ and ASB use 6.85%, Kiwibank and Westpac use 6.95% and BNZ uses 7.10%.

### What is the debt-to-income limit?

Since 1 July 2024, banks can only give 20% of new owner-occupier loans to people borrowing more than 6 times their income before tax. For investors, the limit is 7 times. First Home Loans, new builds and bridging finance aren't included in this rule.

### How can I borrow more?

Pay off other debts and close any credit cards you don't use, since banks count the card limit even if you pay it off every month. Try to spend less for a few months before you apply, as banks will look at your bank statements. A bigger deposit won't change how much a bank will lend, but it does let you buy a more expensive home.

### Is it cheaper to rent or buy?

The answer depends on the house and how long you plan to stay. Compare your weekly mortgage repayment with your rent, and remember to add rates, insurance and maintenance to the cost of owning. Part of each repayment goes toward paying off the loan, so you build up equity over time.