How Much Can You Borrow in New Zealand?
The actual figures banks use to assess your mortgage — test rates, DTI and LVR limits, living costs and more. Reviewed every Monday.
When you ask "how much can I borrow?", the answer isn't the advertised interest rate — it's a set of behind-the-scenes numbers each bank applies: the test rate they assess you at, debt-to-income (DTI) and loan-to-value (LVR) limits, the living costs they assume, and how they treat boarder income and car costs.
These change often, and most online sources are out of date. We keep the current figures here and review them every Monday — so you, and your AI assistant, can see the real lending landscape at a glance.
How much could you borrow?
A realistic estimate, the way a bank works it out: income after tax, ACC and KiwiSaver, minus living costs and existing debts, tested at a higher 'stress' rate.
Current NZ lending numbers
Indicative figures, reviewed weekly. Every lender differs — treat these as a guide, not an offer or financial advice.
Updated weekly Last updated 22 June 2026 by Madhav Bhandari.
Major bank test rate (stress test rate)
The interest rate a bank uses to check you could still afford the mortgage if rates rose — not the rate you actually pay. A higher test rate means you can borrow less. Typically a couple of percent above advertised rates.
Major bank test rate: 7% p.a.
Figures as at 22 June 2026.
Debt-to-income (DTI) limits
RBNZ caps on how much you can borrow as a multiple of gross income, in force since mid-2024. Banks may lend above the caps for a limited share of new lending (the 'speed limit').
- Owner-occupier cap: 6× gross income
- Investor cap: 7× gross income
- Speed limit: Banks may exceed the caps for up to 20% of new owner-occupier lending and 5% of new investor lending.
As at 22 June 2026.
Loan-to-value ratio (LVR) limits
Minimum deposit rules. LVR is the loan as a percentage of the property value — a 20% deposit is an 80% LVR.
- Owner-occupier max LVR: 80%
- Investor max LVR: 70%
- Low-deposit options: First Home Loan (Kāinga Ora) can allow as little as a 5% deposit for eligible buyers — confirm current eligibility.
As at 22 June 2026.
Living cost benchmarks
The minimum essential living expenses a bank assumes when assessing affordability — used as a floor when your declared expenses are lower. These are the working benchmarks our advisers apply; individual banks use their own expense tables, which vary.
| Household | Assumed minimum |
|---|---|
| Single, no dependents | $1250/mo |
| Single, 1 dependent | $1650/mo |
| Couple, no dependents | $1850/mo |
| Couple, 1 dependent | $2250/mo |
| Couple, 2 dependents | $2650/mo |
| Couple, 3 dependents | $3050/mo |
Figures as at 22 June 2026.
Vehicle running costs in affordability
The ongoing vehicle cost a bank assumes per car when assessing how much you can borrow, on top of any car loan repayments.
Assumed per vehicle: $3000/year — About $250/month per vehicle, on top of any car-loan repayment.
As at 22 June 2026.
Boarder income
How much income from a boarder (e.g. a flatmate) a bank will count toward your mortgage application. Varies by lender and number of boarders.
- Typical per boarder: $250/week
- Max boarders counted: 2
- Counted at about 75% of the rent received. Up to 2 boarders are counted with a 20%+ deposit, or 1 boarder with less than a 20% deposit.
As at 22 June 2026.
First-home buyer support
Government and lender support specific to first-home buyers — deposit requirements, regional price caps, and KiwiSaver access. The First Home Grant was discontinued in 2024 and is deliberately not listed.
- First Home Loan (Kāinga Ora): from 5% deposit — Lets eligible buyers borrow with as little as a 5% deposit through participating lenders. Confirm current income caps and eligibility.
- KiwiSaver first-home withdrawal: Eligible members can withdraw most of their KiwiSaver toward a first home, leaving a minimum balance in the account. Confirm the current minimum-balance and 3-year membership rules.
- Kāinga Ora regional price caps: Caps vary by region and are set by Kāinga Ora. See Kāinga Ora →
As at 22 June 2026.
Current interest rates
We don't republish live mortgage rates — interest.co.nz and the banks keep those current and comprehensive. For the OCR, see the Reserve Bank.
Common questions
What is a bank 'test rate' (stress test rate) in New Zealand?
It's the interest rate a bank uses to check you could still afford your mortgage if rates rose — not the rate you actually pay. It's usually a couple of percent above advertised rates, and a higher test rate means you can borrow less.
What is the debt-to-income (DTI) limit in NZ?
Since mid-2024 the Reserve Bank caps how much most buyers can borrow as a multiple of gross income, with separate caps for owner-occupiers and investors. Banks can still lend above the caps for a small share of their new lending — the 'speed limit'.
How much deposit do I need to buy a home in NZ?
Most owner-occupiers need at least a 20% deposit (an 80% LVR). Banks can do a limited amount of low-deposit lending, and eligible first-home buyers may access lower-deposit options such as the First Home Loan.
Does boarder or flatmate income count towards a mortgage?
Some lenders count a portion of boarder income towards your application — usually up to a set amount per boarder per week and a maximum number of boarders. Policies vary by bank.
What living costs do banks assume when assessing affordability?
Banks apply minimum living-expense benchmarks based on your household type, used as a floor if your declared expenses are lower. They sit on top of your mortgage, rates, insurance and other commitments.
How often is this lending data updated?
We review these figures every Monday, and each section shows the date its figures were last confirmed. They're indicative and vary by lender — always confirm current criteria with a licensed adviser.
Indicative figures only. They vary by lender and change frequently. This is general information, not financial advice — always confirm current criteria with a licensed financial adviser.
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