Home loans and mortgages

Borrowing Power Calculator

How much could I borrow for my first home?

Borrowing estimate

How much could I borrow for my first home?

Your income, costs and deposit against the three limits a lender applies.

Applicant 1 income

Per year, before tax

Applicant 2 income

Per year, before tax

Incomes are

Dependants

Children or others you support

KiwiSaver members (3.5% of income is deducted)

Monthly living costs

A suggestion for your household - replace it with your own figure. Suggested at $1,600 per adult and $600 per dependant.

Monthly debt repayments

Car loans, cards, buy-now-pay-later, student loan

KiwiSaver balance

Other deposit

Savings, gifts, other funds

First Home Loan (5% deposit instead of 20%)

Target purchase price

Optional

Assessment rate

The rate banks test affordability at - higher than today's advertised rates

The loan is tested at the assessment rate (7%) over 30 years, principal and interest.
Income tax is worked out per applicant with the IRD brackets, plus the ACC earners' levy of 1.75% on earnings up to $156,641.
KiwiSaver of 3.5% of income is deducted only for members.
Living costs are your own figure. The suggestion is $1,600 a month per adult and $600 per dependant.
$100 a month is kept back as a buffer.
The loan is capped at 6 times household income before tax, and by a minimum deposit of 20% (5% with a First Home Loan).
The range runs from 90% of the estimate to the estimate, rounded down to $10,000.

Your estimate

You could borrow

$900,000 – $1,000,000

Purchase budget $1,010,000 – $1,110,000 with your $110,000 deposit.

Repayment at your limit

$6,677 a month

Debt-to-income 5.9× (the Reserve Bank limit is 6×). Estimate only.

Three things cap the loan. The lowest one is your answer.

What you can repay each month sets your limit. Lower costs or debts, or a higher income, raise it.
Your target of $850,000 is within your purchase budget.
Each $100 a month of debt lowers your repayments limit by about $15,031.