How much can I borrow?
An estimate set out the way a bank assesses you: your income, costs and debts at the bank’s test rate, the Reserve Bank’s debt-to-income and deposit limits, and which one holds you back.
The short answer
A household earning $130,000 a year before tax ($8,300 a month take-home), with living costs of $3,200 a month, a $15,000 car loan ($400 a month), $10,000 of card limits and a $200,000 deposit, could expect banks to lend about $710,745. The three limits are $710,745 for serviceability (at the 6.94% average test rate), $755,000 for DTI and $800,000 for the deposit, so the serviceability limit binds. That points to a price of about $899,372 to $917,273, and a repayment of $3,841.54 a month at the average 1-year rate of 5.06%. Banks decide; this is an estimate.
| Household income a year, before tax | $130,000 |
| Take-home pay a month | $8,300 |
| Living costs a month (your figure) | -$3,200 |
| Other debt repayments a month | -$400 |
| Left for a home loan, a month | $4,700 |
| Test rate (Average of the five banks, over 30 years) | 6.94% |
| Serviceability limit | $710,745 |
| DTI limit (6 x $130,000, less $25,000 of debts and limits) | $755,000 |
| Deposit (LVR) limit ($200,000 deposit, 20% of the price, standard lending) | $800,000 |
| Lowest of the three: Serviceability limit | $710,745 |
| Price this points to (loan plus deposit, from the toughest to the easiest bank test rate) | $899,372 to $917,273 |
| Repayment at the average 1-year rate, 5.06% | $3,841.54 a month |
| Repayment at the test rate, 6.94% | $4,700.00 a month |
Serviceability limit binds. After living costs of $3,200 and other repayments of $400, $4,700 a month is left. At the 6.94% test rate over 30 years, that repays $710,745. More income, lower costs or fewer debts would raise it.
Your three limits
The brick bar is the limit that binds; the dashed line marks the estimate. A dashed box means that limit does not apply.
At each bank’s test rate
| Bank | Test rate | Serviceability limit | Estimate | Price |
|---|---|---|---|---|
| ANZ | 6.85% | $717,273 | $717,273 | $917,273 |
| ASB | 6.85% | $717,273 | $717,273 | $917,273 |
| BNZ | 7.10% | $699,372 | $699,372 | $899,372 |
| Kiwibank | 6.95% | $710,026 | $710,026 | $910,026 |
| Westpac | 6.95% | $710,026 | $710,026 | $910,026 |
An estimate, not an approval. Banks use their own living-cost benchmarks, which they do not publish, so our floor is our own assumption. Test rates were confirmed in July 2026. A bank may lend less, or more within its speed limits.
How banks assess you
Three limits, and the lowest wins.
Serviceability
The bank takes your take-home pay, adds part of any rent, and subtracts your living costs and other debt repayments. It then asks what loan the money left over could repay at its test rate, not today’s rate, usually over 30 years.
Debt-to-income (DTI)
Since 1 July 2024 the Reserve Bank limits most lending to a total debt of 6 times gross income for owner-occupiers and 7 times for investors. Banks may go above it for up to 20% of their new lending of each type.
Deposit (LVR)
Since 1 December 2025 most owner-occupier loans need a 20% deposit and most investor loans 30%. Banks may lend with less for up to 25% of new owner-occupier lending and 10% of investor lending. First Home Loans need 5%.
Kiwibank, DTI guide · interest.co.nz, 14 Aug 2026 · Reserve Bank, 14 Oct 2025 (Scoop)
Bank test rates
Each bank sets its own test rate. These were confirmed on 13 July 2026; banks may have moved since.
| Bank | Test rate |
|---|---|
| ANZ | 6.85% |
| ASB | 6.85% |
| BNZ | 7.10% |
| Kiwibank | 6.95% |
| Westpac | 6.95% |
| Average of the five banks | 6.94% |
More calculators
Other borrowing questions
Deposit calculator
Deposit at 5%, 10%, 20% and 30%, with KiwiSaver.
Open →Debt-to-income
Your DTI ratio and the largest loan under the limit.
Open →First home buyer
Deposit, KiwiSaver and First Home Loan in one plan.
Open →Buying costs
Lawyer, LIM, inspection, valuation and premiums.
Open →Investor borrowing
Rent counted at 75%, a 30% deposit and a DTI of 7.
Open →Test rates
Each bank’s test rate, dated, and what it means.
Open →Questions people ask
How much can I borrow on $130,000?
In our example, a household on $130,000 with $3,200 of living costs, a small car loan and a $200,000 deposit could expect about $710,745 at the average test rate. Your own costs and debts change this a lot: try the calculator.
Why can I borrow less than the repayments suggest?
Banks check you could afford the loan at a test rate, about 6.85% to 7.10% in July 2026, well above most advertised rates. They also apply the Reserve Bank’s DTI and deposit limits.
Does my credit card limit count?
Yes. Banks count the full limit of every credit card and overdraft as debt for the debt-to-income ratio, even if the balance is zero. A lower limit can raise what you can borrow.
Can I borrow with a 5% deposit?
Yes, through a Kāinga Ora First Home Loan if you qualify (income caps of $95,000 for one buyer or $150,000 for two or more, or one with dependants), or within a bank’s low-deposit allowance.