How much can I borrow for a first home in NZ?

There is no single number, because each lender looks at your income, your debts and your living costs, and the Reserve Bank limits how much banks lend at more than 6 times income. This page explains how those tests work, not what you can borrow.

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How do NZ lenders decide how much you can borrow?

Three things work together and the tightest one sets the limit: the Reserve Bank’s debt-to-income rule, each lender’s own serviceability test, and the size of your deposit.

What is debt-to-income?

DTI compares all your debt with your gross household income. Since 1 July 2024, banks can lend to owner-occupiers at a DTI above 6 for only up to 20% of new lending, across their whole book rather than for any one borrower. Here is how the rule works on three example incomes, as an illustration rather than a loan amount.

Illustration of the 6 times rule: total debt at a DTI of 6
Gross household income	Total debt at DTI 6
$90,000	$540,000
$120,000	$720,000
$160,000	$960,000

“Total debt” includes the home loan, student loan, car loan, other personal loans and credit card limits, so the room left for a home loan is smaller than the table shows. Buy-now-pay-later isn't in the Reserve Bank's total, but lenders may still ask about it.

What is serviceability?

It is each lender’s check that your income covers the repayments, your spending and your other debts, tested at a higher rate than today’s. Each lender has its own method, so two can reach different answers for the same person.

Do student loans affect how much you can borrow?

Yes. A student loan counts in the DTI sum, and its repayments leave less of your pay for a lender to count. The current repayment rate and threshold are on ird.govt.nz.

Do credit card limits matter if you do not use them?

Yes. Lenders count the card limit, not the balance, so a $10,000 limit counts as $10,000 of debt even if you owe nothing on it.

What does a loan cost each week?

Rates change often, so check lenders’ current rates and put your own loan amount, rate and term into the calculator below. Lenders also test your repayments at a higher rate than today’s.

Common questions

Is there a standard multiple, like five times income?

No. The Reserve Bank’s debt-to-income limit uses 6 times income as a line for banks’ lending books, not a target for you, and each lender’s own tests often bite first.

Does rent count against me?

Not in the Reserve Bank’s debt-to-income measure, which counts debts, not rent. Lenders do look at your spending, though.

Does my partner’s income count?

When you apply together, a lender usually looks at both incomes and both sets of debts.

Does the First Home Loan have the same limits?

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. The 5% deposit route also has income caps set by Kāinga Ora. Check the latest with Kāinga Ora or your lender.

Does this page or calculator tell me what I can borrow?

No. It shows how repayments work for a loan amount you type in. A lender decides what is possible for you.

Figures as at 5 October 2026. Sources:

Reviewed against RBNZ, calculate.co.nz, IFAA, Kāinga Ora and mpamag. General information only, not financial advice. Online Mortgages is a referral service, not a lender.