How much can you borrow? | MortgageRates.co.nz

Mortgage Calculators

Use our mortgage calculators to make smarter decisions that save you money in the long-run, work out how much you can borrow, what repayments you'd be looking at and whether or not you should refinance.

How much can I borrow for a house?

We'll quickly work out how much you could borrow towards purchasing a home, just tell us a little about your financial situation.

Joint or individual application?

Income

Annual Income (before tax)*

Dependants

Number of children under 18
Monthly school/childcare costs

Vehicles

Number of vehicles

Keen to talk to a mortgage expert?

How Lenders assess your affordability

Lenders test your ability to afford a mortgage by looking at your repayments over a 30 year term, based on a test mortgage rate of around 7.00%.

Lenders will include 100% of your PAYE income, or the average of the past two year's business income if you're self-employed. For investment properties, lenders will include 75% of the rental income. For owner-occupied properties, lenders have varying boarder income policies however you can typically count on up to two boarders at $150 each per week.

The other big factor when it comes to affordability is disclosure of expenses, which get assessed on a more granular level. Living expenses are assumed around $800 per adult per month and $400 per child along with allowances for insurance, rates, utilities and cars.

Lenders are looking for affordability to be evident in account conduct and bank behaviour. For a first home buyer, the amount you save plus your rent plus discretionary expenses is a good indication of how much you can afford.

Tips to increase how much you can borrow