Usable equity calculator · The numbers banks use
How much equity could you actually use?
Run one honest calculator, built on the figures NZ banks apply. Then see why no online tool can give you the final number — and who can.
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Usable equity calculator
Most banks lend up to 80% of your home's value. What's left after your mortgage is your usable equity — the deposit for a rental, the budget for a renovation, or a hand up for the kids.
Why we'd rather you talked to us than trusted a calculator
A calculator — ours included — only does the arithmetic. The bank does something else entirely. It decides. Three things change its answer, and no calculator asks about any of them.
The bank's value isn't your value
Lenders work from their own registered valuation, not your council CV, a Homes estimate or what the neighbours sold for. Two banks can put two different numbers on the same house, and that gap alone can swing your usable equity by tens of thousands.
Equity is only half the test
Even with equity to spare, you still have to show you can service the extra lending at the bank's test rate (around 7% today, well above what you'd actually pay), inside the debt-to-income cap, and after the living costs the bank assumes rather than the ones you declare. Plenty of Kiwi have $300k of usable equity and no way to borrow a cent of it.
Structure decides what it costs
Top-up or separate loan. Which property carries the security. Offset, revolving credit, fixed or floating. The same $200k can cost very different amounts depending on how it's set up.
The calculator shows what might be there. A review shows what you can do with it.
Free, no obligation. Your real numbers across 40+ lenders, with a plain-language recommendation. Lenders pay us when a loan settles.
Prefer to do it yourself?
1. Use the spreadsheets our advisers use. The Calculator Stack is eleven Excel sheets, free and in your inbox within minutes. Start with the Usable Equity sheet. It knows an investment property needs 30% left in, and it asks whether your next place will be lived in or rented out.
2. Put our numbers in front of your AI. Paste the figures below into ChatGPT or Claude — or point it at our lending-numbers skill and JSON feed — and ask it to run your situation as a rough guide. It will land in the right ballpark. It still won't know which bank will say yes.
3. If you'd rather use an online calculator, use Sorted's mortgage calculator. It's run by Te Ara Ahunga Ora Retirement Commission, it's independent, and it has nothing to sell you. For today's advertised rates, interest.co.nz keeps them current.
The numbers banks actually use
Indicative figures, each dated with when we last checked it. Every lender differs, so treat these as a guide — not an offer, and not financial advice.
| What the bank checks | Figure estimate | Verified |
|---|---|---|
| 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. | 31 Aug 2026 |
| Debt-to-income (DTI) limitsRBNZ 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 | 7 Oct 2026 |
| Investor cap | 7× gross income | 7 Oct 2026 |
| Speed limit | Banks may exceed the caps for up to 20% of new owner-occupier lending and 20% of new investor lending. | 7 Oct 2026 |
| Loan-to-value ratio (LVR) limitsMinimum deposit rules. LVR is the loan as a percentage of the property value — a 20% deposit is an 80% LVR. Banks can lend past these limits for a capped share of new lending: from 1 December 2025 the RBNZ 'speed limits' allow up to 25% of new owner-occupier lending above 80% LVR and 10% of new investor lending above 70%. | ||
| Owner-occupier max LVR | 80% | 31 Aug 2026 |
| Investor max LVR | 70% | 31 Aug 2026 |
| Low-deposit options | First Home Loan (Kāinga Ora) can allow as little as a 5% deposit for eligible buyers — confirm current eligibility. | 31 Aug 2026 |
More benchmarks — living costs, vehicles, boarders, first-home support, rates and common questions
| What the bank checks | Figure estimate | Verified |
|---|---|---|
| Living cost benchmarksThe 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. | ||
| Single, no dependants | $1250/mo | 22 Jun 2026 |
| Single, 1 dependant | $1650/mo | 22 Jun 2026 |
| Couple, no dependants | $1850/mo | 22 Jun 2026 |
| Couple, 1 dependant | $2250/mo | 22 Jun 2026 |
| Couple, 2 dependants | $2650/mo | 22 Jun 2026 |
| Couple, 3 dependants | $3050/mo | 22 Jun 2026 |
| Vehicle running costs in affordabilityThe 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. | 22 Jun 2026 |
| Boarder incomeHow 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 | 22 Jun 2026 |
| 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. | 22 Jun 2026 |
| First-home buyer supportGovernment 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. | 22 Jun 2026 |
| 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. | 22 Jun 2026 |
| Kāinga Ora regional price caps | Caps vary by region and are set by Kāinga Ora. See Kāinga Ora → | 22 Jun 2026 |
| Current interest ratesWe don't republish live mortgage rates — interest.co.nz and the banks keep those current and comprehensive. For the OCR, see the Reserve Bank. | ||
| Where to look | Compare current mortgage rates (interest.co.nz) · Official Cash Rate — Reserve Bank of NZ | |
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 has capped 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?
Each section shows the date its figures were last checked, so you can judge how current they are. 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.