Borrowing on $120k in NZ
Illustrative borrowing range and per-lender breakdown for a NZ household earning $120,000 a year. Built on 2 dependants and no other debt; if your situation differs, run the full calculator on the parent page.
TL;DR
On a gross household income of $120,000, illustrative borrowing across the major NZ lenders sits between $443k and $579k, with the median around $504k. The spread comes from each bank using a different servicing test rate (7.5% to 8% in May 2026).
- This is the most common first-home dual-income range in 2026. Combined Kāinga Ora First Home Loan eligibility ($150k cap) covers this. Borrowing range expanding past $500k comfortably.
- Deposit at 20%: roughly $126k to buy at the median-borrow ceiling.
- Real number requires a lender-specific application. A broker runs all 5+ at once.
Per-lender breakdown (illustrative, May 2026)
Each bank uses a different stress test. Here is roughly how the $120k household lands across the panel.
Most generous: Kiwibank / TSB / ASB
Lower stress-test rates (7.5%–7.6%) and tighter living-cost benchmarks mean borrowing can stretch toward the top of the range.
Mid-pack: Westpac
Sits between the two extremes. Often the practical pick when your situation has nuances either end struggles with.
Most conservative: ANZ / BNZ
Higher stress-test rates (7.85%–7.95%) and richer living-cost assumptions cap the borrow lower. Usually fine if you have other reasons to bank with them.
What $120k looks like in monthly repayments
If you borrowed the median $504k at a 5.89% rate over 30 years, your indicative monthly repayment would be around $2,978. After a 25bp drop to 5.64%, that becomes around $2,898. The OCR direction matters.
Deposit needed
For a standard 20% deposit on a property at $630k, you would need around $126k of cash plus eligible KiwiSaver withdrawal. With the Kāinga Ora First Home Loan, eligible first-home buyers can buy with as little as 5% deposit (~$31k), subject to income and house-price caps.
How to act on this number
This page is a directional estimate. The actual call is: which of the 5+ lenders is the right fit for your specific situation, what is your real lender-specific maximum, and what structure best fits the next 5-10 years. That is a 15-minute conversation with Craig.
How much can I borrow on $120,000 in NZ?
On a gross household income of $120,000 with no significant debt and 2 dependants, you can illustratively expect to borrow between $443k and $579k across the major NZ lenders as of May 2026. The exact number depends on each bank's servicing test rate and living-cost benchmarks.
What deposit do I need?
For a 20% deposit on the median illustrative borrow ($504k), you would need around $126k. The Kāinga Ora First Home Loan scheme can let eligible first-home buyers go to 5% deposit at the same rate.
Does existing debt change this?
Significantly. A $400/month car loan reduces your borrowing capacity by approximately $50,000, because banks treat the repayment as a fixed expense at their stress-test rate. Run the full calculator with your real debt position for a more accurate number.
Want a real, lender-specific number?
15 minutes with Craig. He'll model $120k household income against each lender's actual servicing test, with your specific debt, dependants and deposit.