How Much Can I Borrow?

Did you know that the banks make their profits from lending you money?

Sometimes this means that they will let you borrow much more than you would think you could or should borrow. This is especially true for a first home buyer. When it comes to getting your first home loan, it shouldn't be a question of simply how much can I borrow? It really needs to be a question of how big of a mortgage can I afford?

To help start understand this, we recommend you begin by using our home loan calculator to get an idea of how much you may be able to borrow. Then try for a few months setting aside what would be the mortgage interest payments on that loan amount, into another bank account. Over a few months you will quickly get an idea if you really can afford to borrow that amount.

Once you understand how much you can safely afford, it then becomes a matter of having enough deposit for the loan. The more money you can put towards buying a property, the less money you have to borrow. This means that you’ll spend less time in debt.

Learn more about how much deposit you need to buy a house in NZ.