How much can I borrow on $120,000 a year in New Zealand?
A home up to about
$900,000
On $120,000 a year, you could afford a home up to about $900,000 with a 20% deposit of $180,000. The mortgage payment would be about $3,865 a month.
- Deposit
- $180,000
- Mortgage
- $720,000
- Payment a month
- $3,865
How your deposit changes it
| Saved for a deposit | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $180,000 (20%) | $900,000 | $720,000 | $3,865 |
| $308,572 (30%) | $1,028,572 | $720,000 | $3,865 |
How it’s worked out
Reserve Bank rules limit lending to people borrowing more than 6 times their income, counting all their debts. On $120,000 with no other debts, that's $720,000.
Assumes one buyer with no other debts, borrowing up to 6 times their income, at 5% over 30 years. New 2-year fixed home loans averaged 4.99% in August 2026 (Reserve Bank of New Zealand).
- Reserve Bank rules limit lending to people borrowing more than 6 times their gross income, counting all their debts, so this uses 6 times your income less your other debts.
- Most banks need a 20% deposit; lending with less is limited. First home buyers on lower incomes may get a Kāinga Ora First Home Loan with a 5% deposit.
- Banks also test whether you could afford repayments at a higher rate and after your living costs, so you may be offered less.
Frequently asked questions
How much can I borrow on $120,000 a year in New Zealand?
On $120,000 a year, you could afford a home up to about $900,000 with a 20% deposit of $180,000. The mortgage payment would be about $3,865 a month.
How much deposit do I need on $120,000?
With $180,000 saved, you could buy a home up to about $900,000. With $308,572 saved, you could buy a home up to about $1,028,572.