How much can an investor borrow?
Borrowing for a rental property: the bank counts only part of the rent, you need a 30% deposit for standard lending, and the debt-to-income limit is 7.
The short answer
An investor earning $180,000 a year, expecting $650 a week in rent and with a $300,000 deposit, could expect banks to lend about $700,000. The bank counts $25,350 of the $33,800 yearly rent. The limits are $1,438,503 for serviceability, $1,486,600 for DTI at 7 times income and $700,000 for the 30% deposit rule, so the deposit (LVR) limit binds. Banks decide; this is an estimate.
| Household income a year, before tax (including $33,800 of rent) | $213,800 |
| Take-home pay a month | $11,200 |
| Rent counted (75% of $33,800 a year), a month | +$2,113 |
| Living costs a month (your figure) | -$3,800 |
| Left for a home loan, a month | $9,513 |
| Test rate (Average of the five banks, over 30 years) | 6.94% |
| Serviceability limit | $1,438,503 |
| DTI limit (7 x $213,800, less $10,000 of debts and limits) | $1,486,600 |
| Deposit (LVR) limit ($300,000 deposit, 30% of the price, standard lending) | $700,000 |
| Lowest of the three: Deposit (LVR) limit | $700,000 |
| Price this points to (loan plus deposit, from the toughest to the easiest bank test rate) | $1,000,000 |
| Repayment at the average 1-year rate, 5.06% | $3,783.47 a month |
| Repayment at the test rate, 6.94% | $4,628.95 a month |
Deposit (LVR) limit binds. Your deposit of $300,000 is 30% of a $1,000,000 home, the least the standard lending rule allows. A bigger deposit, or a low-deposit loan within a bank’s speed limit, would let you borrow more.
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% | $1,451,716 | $700,000 | $1,000,000 |
| ASB | 6.85% | $1,451,716 | $700,000 | $1,000,000 |
| BNZ | 7.10% | $1,415,483 | $700,000 | $1,000,000 |
| Kiwibank | 6.95% | $1,437,047 | $700,000 | $1,000,000 |
| Westpac | 6.95% | $1,437,047 | $700,000 | $1,000,000 |
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 Banks use their own living-cost benchmarks, which they do not publish, so our floor is our own assumption.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 count rent
Banks do not count all of the rent. Sorted says some lenders count 70% to 80% of boarders’ or flatmates’ rent and others none; other sources say rental income is often discounted by 20% to 30%. We count 75% by default; change it under More options.
A 30% deposit
Most investor lending needs a 30% deposit (an LVR of 70% or less). Since 1 December 2025 banks can lend with less for up to 10% of their new investor lending. New builds are exempt (as reported).
A DTI limit of 7
Investors can have total debt of up to 7 times gross income, including the rent, before a loan counts towards the bank’s 20% allowance above the limit.
More calculators
Other borrowing questions
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Lawyer, LIM, inspection, valuation and premiums.
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