How much a NZ bank will lend you depends on your income, existing debts, living expenses, and the Reserve Bank’s debt-to-income rule, which keeps most owner-occupier lending within 6× gross income (banks can lend 20% of new owner-occupier lending above that). The table below shows the borrowing figure at that threshold for incomes from $50,000 to $200,000, single or joint, before you speak to a bank.
How Borrowing Capacity Works in NZ
Banks in New Zealand assess your maximum loan using two main tests:
- Debt-to-income (DTI): Since 1 July 2024, each bank can make only 20% of its new owner-occupier lending to borrowers whose total debt is more than 6 times their gross income, and 20% of new investor lending above 7 times, so most borrowers are held to those multiples but a bank can go higher for some.
- Serviceability test: banks check you could still afford the repayments at a “stress” interest rate above today’s rates, after your living expenses.
The lower of the two is your effective ceiling. Your other debts count towards the debt-to-income ratio, so they reduce how much mortgage fits under the threshold.
How Much Can You Borrow on Your Income?
Borrowing at the 6× threshold with no other debt, and the price you could pay with a 20% deposit (the deposit most owner-occupiers need to avoid low-deposit restrictions):
| Gross income (single or combined) | Mortgage at 6× income | Price with 20% deposit | Monthly repayment at 5.5% | Monthly repayment at an 8% stress rate | Take-home pay per month (one earner) |
|---|---|---|---|---|---|
| $50,000 | $300,000 | $375,000 | $1,703 | $2,201 | $3,456 |
| $60,000 | $360,000 | $450,000 | $2,044 | $2,642 | $4,061 |
| $70,000 | $420,000 | $525,000 | $2,385 | $3,082 | $4,630 |
| $80,000 | $480,000 | $600,000 | $2,725 | $3,522 | $5,194 |
| $90,000 | $540,000 | $675,000 | $3,066 | $3,962 | $5,737 |
| $100,000 | $600,000 | $750,000 | $3,407 | $4,403 | $6,281 |
| $120,000 | $720,000 | $900,000 | $4,088 | $5,283 | $7,369 |
| $150,000 | $900,000 | $1,125,000 | $5,110 | $6,604 | $9,000 |
| $200,000 | $1,200,000 | $1,500,000 | $6,813 | $8,805 | $11,682 |
Repayments are for a 30-year loan with monthly payments, at an example rate of 5.5% and at 8% as an illustration of a bank stress test; check current mortgage rates before you apply. Take-home pay is for one person earning the whole income, after PAYE and the ACC levy at 2026–27 rates (before KiwiSaver and student loan).
The last two columns show why the DTI figure is a ceiling rather than a target: at every income in the table, the stress-test repayment on the full amount would take roughly two-thirds to three-quarters of one earner’s take-home pay before any living costs, so for a single earner the serviceability test, not the DTI rule, often decides how much the bank will lend.
Borrowing on a Joint Income
For a joint application, banks add both borrowers’ gross incomes and both borrowers’ existing debts, so the table applies to your combined income. Two things to know before borrowing together:
- Joint and several liability: each borrower is responsible for the whole loan, not just their share. If one stops paying, the bank can pursue the other for the full balance.
- Plan for separation: decide how ownership and the mortgage would be handled if the relationship ends. See the joint mortgage guide.
The Deposit You Need
Since 1 December 2025, up to 25% of each bank's new owner-occupier lending can go to borrowers with less than a 20% deposit, and up to 10% of new investor lending to investors with less than a 30% deposit. With less than 20% deposit you’ll usually pay a higher rate, if a bank will lend at all. Eligible first home buyers can borrow with a 5% deposit through the First Home Loan.
Frequently Asked Questions
Can I borrow above the debt-to-income threshold in NZ?
Sometimes. Banks can make up to 20% of their new owner-occupier lending to borrowers above the 6× threshold, but they reserve that for a minority of applications, and you still have to pass the serviceability test.
Do student loans and credit cards count?
Your existing debts count towards the debt-to-income ratio, and banks also look at the repayments and credit limits you already have when they assess serviceability. Paying down or closing debts before you apply can increase what you can borrow.
How long a loan term should I choose?
Most NZ home loans are for 25 or 30 years. A longer term lowers each repayment but adds interest over the life of the loan; use the mortgage repayment calculator to compare.
Also in Mortgages
- Borrowing Calculator NZ: estimate your capacity with your own debts and expenses
- DTI Restrictions NZ: the 6× threshold explained
- Income Needed to Afford a Home NZ: reverse lookup by property price
- Mortgage Repayments by Loan Amount