Bank test rates in NZ: what they are and why they matter

A test rate (or serviceability rate) is the interest rate a bank uses to check whether you could afford a home loan, set well above the rate you would actually pay. Test rates confirmed in July 2026 were ANZ 6.85%, ASB 6.85%, BNZ 7.10%, Kiwibank 6.95% and Westpac 6.95%, against an average advertised one-year fixed rate of 5.06% (rates as at 10 November 2026). The gap matters: a monthly surplus of $3,000 supports a loan of about $457,834 at 6.85% but $446,407 at 7.10%, over 30 years. Banks decide; this is general information, not financial advice.

What a test rate is

When a bank decides how much to lend, it works out what you have left each month after tax, living costs and other debts. It then asks: could that surplus repay the loan if the interest rate were higher than today's? The higher rate it uses for that question is its test rate.

Three points are worth knowing:

• There is no regulated test rate. Each bank sets its own and can change it at any time. The Reserve Bank's rules (the DTI and LVR limits) are separate.
• The test rate is not your rate. You will pay the advertised rate you fix at (or a negotiated one). The test rate is used only to size the loan.
• The test term is usually 30 years. Secondary sources say banks test over 30 years; we could not confirm it on a bank page, so treat it as likely rather than certain. Our calculator uses 30 years.

ANZ calls its test rate the "Servicing Sensitivity Rate". Other banks use terms such as serviceability rate or test rate.

Test rates by bank (confirmed July 2026)

Test rates confirmed July 2026. interest.co.nz and MPA reported on 13 July 2026 that the five largest banks held their test rates steady after the first OCR rise in three years. The interest.co.nz test rate table still showed the same figures when we checked on 10 November 2026, after the Reserve Bank raised the OCR again on 2 September 2026 (to 2.75%) and held it on 28 October 2026. Banks may have moved since, so check with the bank before relying on a figure.

Sources: interest.co.nz home loan test rates table; interest.co.nz and MPA, 13 July 2026. Where the source shows no effective date we say "not shown". Our test rates page carries the same table and works out what your own surplus supports at each rate.

Why test rates sit above advertised rates

A fixed rate lasts one to five years; a home loan lasts up to 30. A borrower who just manages the repayments at today's rate could struggle if rates rise when they refix. Testing at a higher rate builds in that margin before the loan is made, and it is part of a bank's duty to lend responsibly.

The margin is wide. Using the average advertised rates as at 10 November 2026:

In other words, the bank checks that you could pay about $570 to $660 a month more than the repayment at today's average one-year rate. It does not mean you will pay that much. To see repayments at the rate you would actually pay, use our sister site, mortgagerepaymentcalculator.co.nz.

We do not forecast rates. The five banks held their test rates when the OCR first rose in 2026 (reported 13 July 2026); whether and when they move in future is up to each bank.

Worked example: one surplus, five test rates

Take a household with $3,000 a month left after tax, living costs and other debts. Here is the loan that surplus repays over 30 years at each bank's test rate, and at an advertised rate for comparison.

The spread between the lowest and highest test rate is $11,427 on this surplus. With a $4,000 surplus it is about $15,000 ($610,445 at 6.85% against $595,210 at 7.10%). That is real, but it is small next to the effect of living costs, debts and the Reserve Bank limits. If a bank's lower test rate is offset by a higher living-cost benchmark for your household, it may still lend less.

The last row shows why the test matters: sizing the loan at the advertised rate would suggest about $97,000 to $109,000 more than the banks' tests allow.

Working out your own surplus

The test rate only means something once you know your surplus: what is left each month after tax, living costs and other debt repayments. A worked case: two buyers on $65,000 each take home $8,311.26 a month (2026/27 PAYE, ACC levy and KiwiSaver at 3.5%). They spend $3,200 a month and repay a car loan at $400 a month, leaving $4,711.26.

Two cautions. First, banks do not take your spending figure at face value: they compare it with internal benchmarks they do not publish and use the higher. Our calculator uses a stated floor instead ($1,600 a month for the first adult, $800 for each other adult, $500 for each dependant), which is our assumption, not a bank figure. Second, some lenders also want money left over after the test; Sorted gives $750 to $1,000 a month as an example for 95% lending (one undated source). Our guide to how banks assess you goes through each step.

How the test rate fits with DTI and deposit rules

The test rate only drives the serviceability limit. Two Reserve Bank limits apply as well:

• DTI: most owner-occupier lending must keep total debt at or below 6 times gross income (7 times for investors), since 1 July 2024. See our DTI guide.
• LVR: most owner-occupier lending needs a 20% deposit (30% for investors), under settings in force since 1 December 2025. See our LVR guide.

The lowest of the three sets your borrowing. For a household with low living costs, the DTI rule often binds before the test rate does; for one with high costs or children, serviceability usually binds first. Our calculator shows which limit binds for you and lets you pick a bank's test rate or enter your own.

Using test rates sensibly

• Do not shop on test rate alone. Banks differ by a quarter of a point on test rate, but also on living-cost benchmarks, how they treat rent and bonuses, and their appetite for low-deposit or high-DTI loans within their speed limits.
• Check the date. A test rate without a date is not much use. Ours are confirmed July 2026, and we check the table when we update the site.
• Ask. A bank or mortgage adviser can tell you the test rate it applies today, and a pre-approval tells you what it would lend.

Banks decide; this is general information, not financial advice.

Questions people ask

What test rate do NZ banks use?

Test rates confirmed in July 2026 were ANZ 6.85%, ASB 6.85%, BNZ 7.10%, Kiwibank 6.95% and Westpac 6.95%. The interest.co.nz table still showed these figures on 10 November 2026, but banks can change them at any time.

Is the test rate set by the Reserve Bank?

No. There is no regulated test rate. Each bank sets its own. The Reserve Bank sets the separate debt-to-income and loan-to-value rules.

Will I pay the test rate?

No. The test rate is only used to work out how much the bank will lend. You pay the rate you fix or float at. As at 10 November 2026 the average advertised one-year fixed rate was 5.06%.

Why did my bank's calculator give a different answer?

Banks use their own living-cost benchmarks, which they do not publish, and may count income differently. Our calculator uses published test rates and a stated living-cost floor, so it gives an estimate, not an offer.