Borrowing power calculator
How much can I borrow for a mortgage in New Zealand?
Banks work backwards from what you can repay, then stress-test it at a rate well above the advertised one — commonly 7 to 9 percent — to check you could still afford it if rates rose. This calculator does that arithmetic on your figures. Only a lender can tell you what you would actually be approved for.
Combined gross income for everyone who would be on the loan.
Lenders differ, and they assess net income and living costs rather than a flat percentage. 30% of gross is a common rule of thumb for a first pass.
Car loans, personal loans, credit card minimums, student loan repayments. Banks count these against you.
Banks stress-test at a rate well above the one you would actually pay — commonly 7–9%. Testing at a higher rate shows how much of your capacity is rate-sensitive.
Loan supported by that repayment
$408,850
- Monthly repayment assumed
- $3,000.00
- Per year
- $36,000
- At test rate
- 8.00% over 30 years
This is a general estimate, not financial advice.
Rates change weekly. interest.co.nz publishes what every New Zealand bank is advertising today, and Sorted is the government’s own calculator if you would like to check these numbers against a second source.
Common questions
- Why do banks test mortgages at a higher rate than I would pay?
- To check you could still afford the loan if rates rose. Banks apply a servicing or test rate well above the advertised rate, commonly in the 7 to 9 percent range, and assess your ability to repay at that level. It is why the amount a bank will lend is often less than the advertised rate suggests.
- How much of my income can go on a mortgage?
- There is no fixed legal limit in New Zealand. Lenders assess net income against living costs, existing debts and the stressed repayment, rather than applying a flat percentage. Around 30 percent of gross income is a common rule of thumb for a first pass, which is what the default above uses.
- Do credit cards and student loans reduce what I can borrow?
- Yes. Banks count committed repayments against your servicing capacity, and they often assess a credit card at a percentage of its limit rather than the balance owing, so an unused card with a high limit can still reduce your borrowing power. A student loan repayment is treated as a fixed commitment.
- Is this the amount I will be approved for?
- No. This is arithmetic on the figures you entered. Approval depends on the lender's own servicing model, your deposit, credit history, income stability and the property itself. Only a lender can tell you what you would be approved for, and a licensed financial adviser can help you prepare an application.