How to use this tool
1
Enter your income and select how often you’re paid — weekly, fortnightly, monthly, or yearly. Add a partner’s income if applying jointly.
2
Add your monthly expenses — living costs, existing debt repayments, and credit card limits. Banks use limits, not balances, in their assessment.
3
Enter the property price and your deposit to check your LVR and see whether the loan is within your estimated borrowing capacity.
4
Select a bank and fixed term to see your repayment using today’s live rate. You can also enter a rate manually to model different scenarios.
Income
$
$
Monthly Expenses
$
$
$
Property Details
$
$
Loan Amount
$600,000
LVR
75.0%
✓ LVR ≤ 80% — you may qualify for special rates
Loan Term & Rate
1 yr30 yrs
%
Maximum Borrowing
—
Enter your income and expenses to estimate your borrowing power
Repayment
—
select a bank & term
Stress-test
—
at 8.5% p.a.
DTI Ratio
—
RBNZ limit: 6×
Loan-to-Value Ratio
DTI vs RBNZ Limit
Your borrowing position
Fill in your income, expenses, and property details to see your borrowing position.
Understanding your results
Maximum borrowing: Estimated from your net income after NZ PAYE tax and ACC levy, less your declared expenses and a 3% monthly allowance on credit card limits. The result is stress-tested at 8.5% and capped at the RBNZ’s 6× DTI limit — whichever is lower wins.
Comparison rate repayment: What you would pay per period at your selected bank’s current published rate for that fixed term. Rates are sourced from interest.co.nz and updated daily. You can also enter a rate manually to model different scenarios.
Stress-test repayment: What your repayment would be if your rate were 8.5% p.a. NZ banks apply a similar internal buffer to ensure borrowers can handle future rate rises. If the stress-test repayment is unaffordable based on your income, your bank will reduce the approved loan amount accordingly.
DTI (Debt-to-Income) ratio: Your total debt divided by your gross annual income. The RBNZ requires banks to keep 80% of new owner-occupier lending at ≤6×. A DTI above 6× doesn’t mean automatic decline — up to 20% of lending can exceed this limit for strong applications. The investor cap is 7×.
LVR (Loan-to-Value Ratio): Your loan as a percentage of the property’s purchase price. At or below 80% means a 20%+ deposit — the standard threshold where most banks’ better rates and lower-equity premium exemptions apply. Above 90% LVR, most NZ lenders will not approve without specialist lending.
Disclaimer: This calculator is a guide only and does not constitute financial advice. Rates are sourced from interest.co.nz and updated daily. The stress-test rate of 8.5% is an estimate — individual banks typically apply rates between 8–9%. Tax calculations use standard NZ PAYE rates and may not reflect all income scenarios. Always speak with a registered mortgage adviser before making financial decisions.
