How much can you borrow?

If you're looking to find out how much you can borrow or what your mortgage repayments might be, you've come to the right place. 

Give our mortgage calculators a whirl.

Piggy bank with a calculator

This will take about 30 seconds

Banks want to lend to you. That's how they make their money. This means they'll often let you borrow more money than you can actually afford. We’ll help to give you an idea of how much you can afford to borrow. Simply enter a few basic details into this handy mortgage calculator.

Already know how much you can borrow but keen to know how your repayments will be affected by a change in the total amount of your mortgage, the term or the interest rate? Just pop your details into our quick mortgage repayment calculator below and see how the payment amount is affected.

How much can I borrow for a house?

We'll quickly work out how much you could borrow towards purchasing a home, just tell us a little about your financial situation.

Is this a joint app?
Income
Annual Income (before tax)
$
This field is required*
Dependants
Number of children under 18
Monthly school/childcare costs
$
Vehicles
Number of vehicles

What will my Mortgage repayments be?

Work out your regular repayments and how quickly you could pay off your home loan.

Borrow Amount
$
This field is required*
Interest Rate
%
This field is required*
Term
Frequency

Why choose Squirrel for your mortgage?

Our advisers are paid salaries, not commission

This means our advice is impartial, and you know you won't get pushed into a loan you don't want, or can't afford.

Better mortgage rates

We arrange around $1billion of loans per year which gives us negotiating power and access to better rates.

Better technology

Our online application takes less than 10 minutes, and will help us focus on what's most important to you.

More banks, more choices

Our First Home Buyers Guide has everything you need to know

If you're planning on getting your foot in the door of the property market, everything you need to know is in our digital guide.

Download the guide

Download the Squirrel First Home Buyers Guide

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Wondering about your deposit?

Getting your ducks in a row

Basically, banks won't lend the full amount for a house - you need to be able to put down a deposit, and the more the better. You may be familiar with 20% as the magic number, but the reality is if you're in a strong financial position we can work with as little as 5% deposit. Most people will need around 10% deposit, and if you can fork out a whopping 20%, you'll access the banks' most competitive rates and avoid low equity fees

The banks' appetite for lending more than 80% has been increasing recently which is excellent for first home buyers. In January 2018 the RBNZ (Reserve Bank of New Zealand) loosened their rules, and then again in January 2019 to allow 20% of total lending for owner-occupied houses with less than a 20% deposit.

Bank of mum and dad

If you're eager to put down a 20% deposit but don't have enough, the easiest and cheapest way is to use your parents to guarantee that part of your 20% deposit you don’t have.

Their guaranteed portion will be secured over their property or it can be secured over a term deposit, so you're not asking them to fork out cash, it's more like putting a 'hold' on their existing equity until you've paid that portion back.

In the event they use a term deposit as security, the term deposit stays in your parent’s name and they continue to earn interest on it. Guaranteed home loans are treated the same as loans under 80% so you get great interest rates, there are no fees, and you’ll even get a cash contribution from the bank. On a loan size of $400,000 you will save around $10,000 using this option. Using a guarantor makes strong financial sense, even if you can go it alone.

Calculating your borrowing power

A mortgage calculator is a good place to start when starting to think about how much you can borrow. But there are lots of factors that come into play, and every situation is different. Here are a few things to consider.

Figure out what income you're left with after expenses

When the banks look at your affordability, they factor in your UMI (uncommitted monthly income) to make sure you’re left with enough to live after all your bills go out. The amount they assume varies between lenders and also depends on the loan-to-value-ratio (LVR), but aim for $300 per adult at the very least. You'll also get asked for three months’ worth of bank statements as part of the loan application, to see what your spending habits are like.

Monthly subscriptions affect your borrowing power

You’d be amazed at how much more you can afford to borrow if you reduce your monthly expenses. Things like Netflix, Spotify, gym memberships and consumer finance bills all add up, reducing the amount you can borrow. For example, $100 of subscriptions per month equates to a reduction of about $18,000 in borrowing power. It might be time to kick something to the curb.

Keep an eye on interest rates

Interest rates are at an all-time low at the moment, and they can’t stay there forever. Even though they're mostly under 4%, the banks will test your affordability at a rate of around 7% to make sure you’ll still be able to afford the repayments if rates were to rise that high. It’s hard to imagine that when they’re this low, but make sure you factor this in when doing your calculations. Our calculator above has got your back, and already factors in the 7% test rate.

After a bit more information?

Talk to one of our mortgage experts about your home loan needs today. You can contact us via our website or just give us a call, 7 days a week and we'll be happy to chat. No pressure.

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