Collection: Borrowing Power & LVR Calculator NZ — How Much Can I Borrow?
Two checks every NZ bank runs: is your deposit enough under the Reserve Bank's LVR rules, and can you service the loan at the bank's test rate? Enter the price, deposit, income and expenses to see how much you could borrow and where the gap is.
Banks usually count 70–80% of rent.
Banks assess you at a rate 1.5–3% above the advertised rate.
Loan needed—
LVR—
Max loan under LVR rule—
Indicative serviceable loan—
Shortfall / headroom—
Repayment at test rate (per month)—
General information only — not financial, tax or legal advice. Figures are estimates from the inputs you enter. Confirm with your adviser, accountant, lender or insurer.
Buying to rent? Set the records up before settlement. The NZ Landlord Pack — rental tracker + Healthy Homes checklist for up to 10 properties (Excel & Google Sheets). NZ$39. Get the Landlord Pack — NZ$39
Prices exclude GST. Illustrative tools only — not legal, tax or financial advice.
LVR rules in plain English
The Reserve Bank limits how much of a bank's new lending can go to high-LVR borrowers. Since 1 July 2024 the settings are: owner-occupiers need a 20% deposit (80% LVR) with banks allowed 20% of their lending above that; investors buying existing homes need a 30% deposit (70% LVR) with only 5% of bank lending allowed above it. New builds are exempt. Banks can be stricter than the rule.
Servicing — the test that usually bites
Banks don't assess you at today's rate. They add a buffer (a "test rate" typically 1.5–3% higher) and check the repayments fit after tax, living costs, other debts and a haircut on rental income (usually counted at 70–80%). This calculator uses a simple version of that: after-tax income plus 75% of rent, less monthly expenses, amortised at your test rate. The Reserve Bank's debt-to-income (DTI) limits — 6× for owner-occupiers, 7× for investors — also apply since July 2024.
Assumptions and sources
LVR caps
80% owner-occupier / 70% investor on existing homes; new builds exempt — RBNZ LVR restrictions from 1 July 2024, rbnz.govt.nz
After-tax income approximated at 72% of gross; rent counted at 75%.
Servicing
Monthly surplus amortised at the test rate over the term; banks add their own buffers and minimum living-cost tables.
Last reviewed 6 September 2026. Rates and thresholds change — check the linked sources before relying on a figure.
Frequently asked questions
How much deposit do I need to buy an investment property in NZ?
Generally 30% of the purchase price for an existing home, because the Reserve Bank's LVR restrictions cap most investor lending at 70% LVR. New builds are exempt from the LVR rules, so lower deposits are possible for them.
What is LVR?
Loan-to-value ratio: the loan divided by the property's value. A $525,000 loan on a $750,000 property is 70% LVR. Higher LVR means more risk for the bank and, in NZ, runs into the Reserve Bank's lending restrictions.
What is a bank test rate?
The interest rate a bank uses to check you can afford repayments — deliberately higher than the rate you'd actually pay, so you can cope with rises. In 2026 test rates are commonly around 7–8.5%.
How much can I borrow on my income in NZ?
As a rough guide, banks lend around 5–6 times household income for owner-occupiers and up to 7 times for investors under the debt-to-income limits, subject to the servicing test. Your actual figure depends on expenses, other debts, dependants and the bank's policy.
