Lending Tools
Estimate how much you may be able to borrow — using two methods banks actually use: servicing capacity and debt-to-income ratio.
Total household income before tax
Food, transport, utilities, childcare, insurance — exclude rent
Car loans, personal loans, hire purchase — monthly payment amounts (used for servicing)
Outstanding balances on all loans — reduces your DTI borrowing room
Servicing-based maximum
Based on $3,797/month available after tax and expenses
Stress-tested at 8.5% p.a. — banks apply ~8–9% regardless of the current market rate.
DTI-based maximum
At 5× total debt
$600,000
At 6× total debt (bank max)
$720,000
The RBNZ restricts most bank lending above 6× gross income across all debt combined.
Your likely maximum borrowing
Servicing is the binding constraint — your income after expenses limits you before the DTI does.
Estimated repayments on likely maximum
This is a general estimate only. Actual lending decisions depend on your full financial picture, lender policies, credit history, and the specific property. Talk to our team for a proper assessment.
How it works
Banks in New Zealand assess your borrowing capacity using two independent calculations. Most people get a different result from each — and the lower one is what limits you.
This calculates the maximum loan your income can service after tax, expenses, and existing debts. Banks apply a stress test rate — typically 8–9% — rather than the current market rate. This ensures you could still afford repayments if rates rise significantly.
Why higher than the market rate? If you took out a mortgage at 6.5% today and rates rose to 8.5% at your next refix, could you still afford it? The stress test proves you can.
This measures your total debt exposure — new mortgage plus any existing debt balances — as a multiple of gross annual household income. The RBNZ restricts banks from lending so that total debt exceeds 6× gross income for most borrowers.
Example: A household earning $130,000/year with a $30,000 car loan has a DTI mortgage ceiling of $750,000 — not $780,000 — because the existing debt counts toward the 6× limit.
Whichever gives the lower number is your real ceiling — both constraints apply simultaneously. For most buyers, servicing is the binding constraint at typical income and expense levels. For higher-income earners with low expenses, DTI sometimes bites first.
Remember: what you can borrow and what you should borrow are different questions. See our budgeting guide →
Banks also assess your credit history, employment type and stability, number of dependants, credit card limits (not just balances), and the specific property. A full lender assessment will give a more accurate number — and we do that at no cost to you.
Self-employed borrowers, those with non-standard income, or applicants with existing investment properties should speak to us directly — calculators like this aren't built for complex income structures.
Results are indicative only. Lending decisions involve assessment criteria beyond what this calculator can model. Book a free chat with our team for a proper borrowing assessment.
