How much can I borrow?
An estimate set out the way a bank assesses you: your income, costs and debts at the bank’s test rate, the Reserve Bank’s debt-to-income and deposit limits, and which one holds you back.
The short answer
A household earning $130,000 a year before tax ($8,300 a month take-home), with living costs of $3,200 a month, a $15,000 car loan ($400 a month), $10,000 of card limits and a $200,000 deposit, could expect banks to lend about $710,745. The three limits are $710,745 for serviceability (at the 6.94% average test rate), $755,000 for DTI and $800,000 for the deposit, so the serviceability limit binds. That points to a price of about $899,372 to $917,273, and a repayment of $3,841.54 a month at the average 1-year rate of 5.06%. Banks decide; this is an estimate.
| Household income a year, before tax | $130,000 |
| Take-home pay a month | $8,300 |
| Living costs a month (your figure) | -$3,200 |
| Other debt repayments a month | -$400 |
| Left for a home loan, a month | $4,700 |
| Test rate (Average of the five banks, over 30 years) | 6.94% |
| Serviceability limit | $710,745 |
| DTI limit (6 x $130,000, less $25,000 of debts and limits) | $755,000 |
| Deposit (LVR) limit ($200,000 deposit, 20% of the price, standard lending) | $800,000 |
| Lowest of the three: Serviceability limit | $710,745 |
| Price this points to (loan plus deposit, from the toughest to the easiest bank test rate) | $899,372 to $917,273 |
| Repayment at the average 1-year rate, 5.06% | $3,841.54 a month |
| Repayment at the test rate, 6.94% | $4,700.00 a month |
Serviceability limit binds. After living costs of $3,200 and other repayments of $400, $4,700 a month is left. At the 6.94% test rate over 30 years, that repays $710,745. More income, lower costs or fewer debts would raise it.
Your three limits
The brick bar is the limit that binds; the dashed line marks the estimate. A dashed box means that limit does not apply.
At each bank’s test rate
| Bank | Test rate | Serviceability limit | Estimate | Price |
|---|---|---|---|---|
| ANZ | 6.85% | $717,273 | $717,273 | $917,273 |
| ASB | 6.85% | $717,273 | $717,273 | $917,273 |
| BNZ | 7.10% | $699,372 | $699,372 | $899,372 |
| Kiwibank | 6.95% | $710,026 | $710,026 | $910,026 |
| Westpac | 6.95% | $710,026 | $710,026 | $910,026 |
An estimate, not an approval. Banks use their own living-cost benchmarks, which they do not publish, so our floor is our own assumption. Test rates were confirmed in July 2026. A bank may lend less, or more within its speed limits.
How banks assess you
Three limits, and the lowest wins.
Serviceability
The bank takes your take-home pay, adds part of any rent, and subtracts your living costs and other debt repayments. It then asks what loan the money left over could repay at its test rate, not today’s rate, usually over 30 years.
Debt-to-income (DTI)
Since 1 July 2024 the Reserve Bank limits most lending to a total debt of 6 times gross income for owner-occupiers and 7 times for investors. Banks may go above it for up to 20% of their new lending of each type.
Deposit (LVR)
Since 1 December 2025 most owner-occupier loans need a 20% deposit and most investor loans 30%. Banks may lend with less for up to 25% of new owner-occupier lending and 10% of investor lending. First Home Loans need 5%.
Kiwibank, DTI guide · interest.co.nz, 14 Aug 2026 · Reserve Bank, 14 Oct 2025 (Scoop)
Bank test rates
Each bank sets its own test rate. These were confirmed on 13 July 2026; banks may have moved since.
| Bank | Test rate |
|---|---|
| ANZ | 6.85% |
| ASB | 6.85% |
| BNZ | 7.10% |
| Kiwibank | 6.95% |
| Westpac | 6.95% |
| Average of the five banks | 6.94% |
More calculators
Other borrowing questions
Deposit calculator
Deposit at 5%, 10%, 20% and 30%, with KiwiSaver.
Open →Debt-to-income
Your DTI ratio and the largest loan under the limit.
Open →First home buyer
Deposit, KiwiSaver and First Home Loan in one plan.
Open →Buying costs
Lawyer, LIM, inspection, valuation and premiums.
Open →Investor borrowing
Rent counted at 75%, a 30% deposit and a DTI of 7.
Open →Test rates
Each bank’s test rate, dated, and what it means.
Open →Guides to borrowing for a home
Bank test rates in NZ: what they are and why they matter
A test rate is the higher interest rate a bank uses to check you could still afford your loan if rates rose. Test rates confirmed in July 2026 were 6.85% to 7.10%, well above most advertised fixed rates.
Read the guide →Home buying costs in NZ: legal fees, LIM, reports and more
Expect roughly $2,863 to $5,525 for conveyancing, a LIM, a building report and a valuation (single-source ranges), plus insurance, moving and any low-deposit charges. Every dollar comes out of your deposit.
Read the guide →Buying a home with family or friends: gifts, loans, guarantees
A gift adds straight to your deposit; a family loan may add repayments and debt that cut what you can borrow; a guarantee puts the guarantor’s property at risk. Two buyers pooling deposits can reach much further than one.
Read the guide →Credit cards and borrowing: how card limits cut your home loan
Under the debt-to-income rule, your whole card and overdraft limits count as debt, even with a zero balance. For a buyer on $100,000, $25,000 of limits cuts the DTI limit from $600,000 to $575,000.
Read the guide →Debt-to-income (DTI) ratio rules in NZ, explained
Since 1 July 2024 most owner-occupier lending must keep total debt at or below 6 times gross income, and most investor lending at or below 7 times. Banks may go above it for up to 20% of new lending. Card limits count as debt.
Read the guide →Buying your first home in NZ: the steps, saving to settlement
Work out what you can borrow, save a deposit (with KiwiSaver), check the First Home Loan, get pre-approval, then make an offer with conditions, go unconditional and settle. Each step has a tool on this site.
Read the guide →Kāinga Ora First Home Loan: 5% deposit, income caps and costs
A First Home Loan lets eligible first home buyers borrow with a 5% deposit through participating lenders. Income caps are $95,000 for one buyer and $150,000 for two or more (or one with dependants). The premium is 1.2% of the loan.
Read the guide →How NZ banks assess your home loan application
Banks take your take-home pay, subtract living costs (theirs or yours, whichever is higher) and other debt repayments, and test whether what is left could repay the loan at a test rate. They also apply the DTI and deposit rules.
Read the guide →How much can I borrow for a home in NZ? The three limits
Banks work out three limits: what your spare income could repay at a test rate, 6 times your income (the DTI limit), and what your deposit supports (the LVR limit). You can borrow roughly the lowest of the three.
Read the guide →How much house can I afford in NZ? Borrowing by income
At the 6.94% average test rate, with no debts and modest living costs, we estimate a single buyer on $100,000 could borrow about $600,000 and a couple on $150,000 about $900,000. From about $80,000 up, the 6x DTI rule is usually what binds.
Read the guide →Investor lending rules in NZ: 30% deposit, DTI 7 and rent
Most investor lending needs a 30% deposit and total debt no more than 7 times gross income. Banks count part of the rent when testing affordability, and IRD lets you claim 100% of rental interest from 1 April 2025.
Read the guide →Using KiwiSaver for your first home deposit in NZ
After at least 3 years in KiwiSaver you can usually withdraw everything except $1,000 to buy your first home to live in. It is once only and is paid to your lawyer or conveyancer, not to you.
Read the guide →Low deposit home loans in NZ: borrowing with under 20%
With under 20%, a bank can lend only within its speed limit (25% of new owner-occupier lending) and usually adds a low equity premium or a higher rate. A Kāinga Ora First Home Loan is the other route, with a 5% deposit.
Read the guide →LVR and deposit rules in NZ: how much deposit you need
Since 1 December 2025 banks may make up to 25% of new owner-occupier lending with a deposit under 20%, and up to 10% of investor lending with a deposit under 30%. For most loans, plan on 20% (or 30%).
Read the guide →Mortgage advisers vs banks in NZ: how each works and is paid
Advisers can compare several lenders and are usually paid commission by the lender; banks offer only their own loans. The FMA requires advice providers to be licensed, to disclose how they are paid and to put your interests first.
Read the guide →New-build home loans in NZ: deposits, exemptions and payments
New builds are reported to be exempt from the Reserve Bank’s LVR and DTI limits, so a bank can lend with a smaller deposit outside its speed limits. The bank still decides the deposit and tests affordability, and building loans are paid out in stages.
Read the guide →Home loan pre-approval in NZ: what it is and how long it lasts
Pre-approval (conditional approval) is a bank’s indication of how much it may lend, subject to conditions. ANZ, ASB and Kiwibank say it usually lasts up to about 90 days, and a new debt or a change in income can shrink it.
Read the guide →Rental income and borrowing: how NZ banks count rent
Banks usually count only part of rent in their affordability test (secondary sources say 70% to 80%; some count none from boarders), but rent counts as income for the DTI rule. A $250-a-week boarder can add over $100,000 of borrowing.
Read the guide →Saving a home deposit in NZ: how long it takes
Divide the deposit you need by what you save each month, then take off your KiwiSaver withdrawal. In our examples a couple saving $1,500 a month with $30,000 in KiwiSaver reach 10% of a $750,000 home in 22 months and 20% in 56.
Read the guide →Self-employed home loans in NZ: income, records and borrowing
Self-employed borrowers face the same three limits as everyone else, but must prove income with business records. BNZ asks for the last two years of financial statements and IR3 returns; which income figure a bank uses can move borrowing by tens of thousands.
Read the guide →Questions people ask
How much can I borrow on $130,000?
In our example, a household on $130,000 with $3,200 of living costs, a small car loan and a $200,000 deposit could expect about $710,745 at the average test rate. Your own costs and debts change this a lot: try the calculator.
Why can I borrow less than the repayments suggest?
Banks check you could afford the loan at a test rate, about 6.85% to 7.10% in July 2026, well above most advertised rates. They also apply the Reserve Bank’s DTI and deposit limits.
Does my credit card limit count?
Yes. Banks count the full limit of every credit card and overdraft as debt for the debt-to-income ratio, even if the balance is zero. A lower limit can raise what you can borrow.
Can I borrow with a 5% deposit?
Yes, through a Kāinga Ora First Home Loan if you qualify (income caps of $95,000 for one buyer or $150,000 for two or more, or one with dependants), or within a bank’s low-deposit allowance.