How much can I borrow on $40,000 a year in New Zealand?
A home up to about
$300,000
On $40,000 a year, you could afford a home up to about $300,000 with a 20% deposit of $60,000. The mortgage payment would be about $1,288 a month.
- Deposit
- $60,000
- Mortgage
- $240,000
- Payment a month
- $1,288
How your deposit changes it
| Saved for a deposit | Home up to | Mortgage | Payment a month |
|---|---|---|---|
| $60,000 (20%) | $300,000 | $240,000 | $1,288 |
| $102,858 (30%) | $342,858 | $240,000 | $1,288 |
How it’s worked out
Reserve Bank rules limit lending to people borrowing more than 6 times their income, counting all their debts. On $40,000 with no other debts, that's $240,000.
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 $40,000 a year in New Zealand?
On $40,000 a year, you could afford a home up to about $300,000 with a 20% deposit of $60,000. The mortgage payment would be about $1,288 a month.
How much deposit do I need on $40,000?
With $60,000 saved, you could buy a home up to about $300,000. With $102,858 saved, you could buy a home up to about $342,858.