How Much Can I Borrow? NZ Borrowing Power Calculator
Estimate your safe loan limit based on income and expenses, aligned with CCCFA responsible lending principles.
Your Financial Details
Enter your details for a CCCFA-aligned estimate
Include groceries, utilities, insurance, transport, and other regular expenses
Include credit card minimums, car loans, personal loans, and BNPL payments
Estimated Borrowing Capacity
Based on a 9% stress test rate (CCCFA requirement)
~$305,000
estimated range
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Send my numbers to an adviserWhat's a Stress Test?
Under the CCCFA, lenders must assess your ability to repay at a higher "stress test" interest rate (typically 2-3% above current rates). This ensures you can still afford repayments if rates increase.
Important Information
This calculator uses an 8-9% stress test rate as required under responsible lending guidelines. It does not constitute a full credit or affordability assessment required by the Credit Contracts and Consumer Finance Act (CCCFA). Your actual borrowing limit will depend on a full review of your financial situation, credit history, and lender-specific criteria.
Quick answer
This calculator estimates your maximum home loan size by applying an 8–9% stress test rate to your income, then deducting living expenses and existing debt repayments — the same affordability test NZ lenders use under CCCFA responsible lending rules.
About this calculator
Under the Credit Contracts and Consumer Finance Act (CCCFA), every NZ lender must confirm you can comfortably repay your mortgage if interest rates rise. Rather than testing affordability at today's rate, banks 'stress test' your loan at roughly 8–9% — a buffer of around 2–3% above current advertised rates.
We work backwards from there. Your gross income is converted to net (after PAYE, ACC, KiwiSaver and Student Loan), then your declared monthly expenses, dependants' costs and existing debt commitments are deducted. The surplus that remains is the maximum monthly repayment a lender is likely to accept. That repayment is then converted into a loan amount over a 30-year term at the stress test rate.
Treat the figure as a planning range, not a pre-approval. Bank policies differ on overtime, bonus, rental income, debt-to-income (DTI) caps and KiwiSaver employer contributions — and a sharp adviser can often unlock 10–20% more capacity by structuring your application correctly.
Worked example
A couple earning $80,000 and $60,000 gross, no dependants, $3,000/month living expenses and a $500/month car loan typically has around $3,200/month available for mortgage repayments after tax and the stress test.
At a 9% test rate over 30 years, that capacity converts to a maximum home loan of roughly $395,000 — though most banks would lend $420,000–$460,000 depending on policy nuances and DTI rules.
