First HomeMortgage Experts
How much can you borrow?
It comes down to two limits: your deposit, and what you can afford to repay. One will max out before the other, and that's what caps how much you can borrow. Once you know which, you can move with confidence knowing your number, or understand exactly what you can do to increase it.
- The two limits that set your number
- How to put a rough number on it yourself
- The myths that trip first home buyers up
First HomeMortgage Experts
What your deposit really lets you borrow
Your deposit isn't just your savings. Add up everything you can use, and most people are closer than they think. You should be aiming for at least 10% of the price, or 5% if you qualify for the First Home Loan, which we explain below.
- Your savings
- Your KiwiSaver
- A gift from family
- Equity in a parent's home
With a 10% deposit, $60,000 points to roughly a $600,000 home (the 5% First Home Loan stretches it further).
It's a government-backed scheme that lets eligible first home buyers borrow with just a 5% deposit, instead of the usual 10 to 20%. There's no cap on the house price, but there are income limits, the property has to meet certain conditions, and it's only offered through some lenders. It can be a genuine shortcut into your first home, and we work out whether you qualify and whether it's the right move for you.
Under 20% deposit, banks usually add a low-equity cost (an interest loading or one-off fee). Cross 20% and more opens up: sharper rates, better cashback, and no low-equity cost or extra valuations. You don't have to wait for 20% to buy, and the First Home Loan can often skip the cost, but it's worth knowing what 20% is worth, and we'll tell you when pushing for it pays off.
"Anthony helped us get a grip on our finances and a clear picture of exactly what we needed to do to get our first home."
Your deposit is usually more than you think. Let's add it up.
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What you can really afford to repay
It's not just your salary. What you can afford to repay comes down to your income, the fixed costs you already carry, and where interest rates sit. Here's how each one shapes your number.
- Salary & wages
- Overtime & allowances
- Bonuses & commission
- A partner's income
- Boarder or flatmate income
- Self-employed income
Banks count these differently, some take all your overtime, some none. The right lender for your mix can change your number a lot.
So $100,000 of before-tax household pay points to roughly $500,000, give or take. Your debts, deposit, lender and today's rates all move it, so it's a starting point, not a promise.
- Fixed loan repayments, like a car or personal loan
- Student loan repayments
- Buy-now-pay-later (Afterpay, Laybuy)
- Credit card limits, the limit, not the balance
- Childcare and other dependants
Clearing or cutting these is often the fastest way to lift your number.
Banks don't test you at today's rate. They check you could still pay at a higher "stress test" rate. So when rates are low you can borrow more; when they're high, less.
"Throughout the journey our circumstances changed a few times, but Chris always found a solution and adapted the plan to make everything work out."
First HomeMortgage Experts
A few myths worth busting
"Anthony handled every obstacle quickly, with solutions and feedback. Dealing with banks can be painful, Tanta made it easy."
First HomeMortgage Experts
So, how much can you borrow?
Find out your real number in a 15-minute chat. Nothing to prepare, and you'll leave knowing which limit sets it and the one or two things that lift it.
