Buying a first home with a student loan in NZ
A student loan does not rule anyone out of buying a first home in New Zealand. Lenders count the repayments and the balance when they work out how much they may lend, so how that works is worth knowing before applying.
Your next step
A home loan specialist can look at how your student loan sits next to your income and deposit. There is no credit check to enquire.
It takes about 90 seconds, then we put you in touch with someone who can talk through your options, and there's no credit check to enquire.
Does a student loan affect getting a mortgage?
Yes, in a small and predictable way. A lender treats it as a regular debt, like a car loan, not a black mark. Two things matter: the repayment that comes out of each pay, and the balance, because some lender rules add up all your debts and compare them with your income.
How much does a student loan repayment take from your pay?
IRD sets the rule: you repay 12% of every dollar over the repayment threshold, which for the 2026 tax year is $24,128 a year, or $464 a week. It comes straight out of your pay through the SL tax code. On $80,000 a year that is $6,705, and on a weekly pay of $1,200 before tax it is $88 a week. Because it is a regular outgoing, it can shrink the home loan on offer even when the balance looks small.
How does a student loan count towards debt-to-income?
Since 1 July 2024 the Reserve Bank has allowed only about 20% of a bank's new owner-occupier lending to go to borrowers whose total debt is more than 6 times household income. The Reserve Bank counts student loans, car loans, personal loans and the full limit on credit cards in that total. Buy-now-pay-later isn't counted, but lenders may still look at it in their own checks. On a household income of $120,000 the line sits at $720,000, so a $30,000 student loan leaves about $690,000 under it for a home loan, before a lender's own tests.
Is paying off a student loan before buying the usual route?
There is no single answer, and this website does not give one. People often weigh how a lower balance changes the debt-to-income picture, what the same money would do as deposit instead, what the loan costs each year and what the lender's own rules say.
Does a student loan change the First Home Loan?
The First Home Loan is reported to be exempt from the Reserve Bank's deposit and debt-to-income limits, but the lender still checks the repayments, and your student loan repayment is part of that. The First Home Loan page has the 5% deposit and income caps.
Can you still use KiwiSaver while repaying a student loan?
Yes. After 3 years of membership you may withdraw for a first home, and the average withdrawal in the year to 30 June 2026 was about $45,600. See the KiwiSaver withdrawal page and the deposit page.
What buyers usually gather before talking to anyone
- The student loan balance and repayments, from myIR.
- Recent payslips.
- Statements for other debts, and card limits, even unused ones.
- The KiwiSaver balance and when you joined.
Common questions
Does a student loan stop me getting a first home loan?
No. It is one more debt for a lender to weigh, so it can change the size of loan on offer, but it is not a rule that stops a purchase.
Do I have to pay off my student loan before I buy?
No rule says you must. Whether to pay it down first is a personal money decision with trade-offs, and a home loan specialist can look at your own numbers.
Will my student loan repayments come out of my KiwiSaver deposit?
No. Student loan repayments come from your pay under the IRD rules, and a KiwiSaver first-home withdrawal is a separate process with your scheme provider.
Figures as at 5 October 2026
Sources: IRD: repaying a student loan from salary or wages; IFAA: buying your first home in 2026; RBNZ: understanding debt-to-income restrictions; RBNZ: framework for debt-to-income restrictions (what counts as debt); Kāinga Ora: First Home Loan; Calculate.co.nz: NZ mortgage lending rules.
Reviewed against IRD, IFAA, RBNZ, Kāinga Ora and Calculate.co.nz. This page is general information, not advice, and Online Mortgages is a referral service, not a lender.