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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.
We'll quickly work out how much you could borrow towards purchasing a home, just tell us a little about your financial situation.
*Based on an interest rate of 7% p.a.
Actual borrow amount may differ, depending on your full financial position.
Complete our online application to get your mortgage pre-approval underway.
Work out your regular repayments and how quickly you could pay off your home loan.
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.
We arrange around $1billion of loans per year which gives us negotiating power and access to better rates.
Our online application takes less than 10 minutes, and will help us focus on what's most important to you.
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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.
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.
The more you understand about borrowing for a house, the more likely you will be to make more informed decisions that work for you. We've written a few articles that we think you'll find helpful.All articles
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.
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.
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.
Whanganui, New Zealand
Tim was amazing he was happy polite very friendly and super helpful and kept in touch the whole time and we knew what was going on and no worries. He went above and beyond for us, we will be back in two years!C
Tauranga , New Zealand
Anna was an absolute star - we cannot thank her enough for her unwavering support and guidance to make a stressful experience that much easier.S
Brad was able to re-fix our mortgage quickly and easily and got us a really great deal. Very happy with the process and result!K
Squirrel has been easy to work with, the staff have been really clear and quick working. As well as enjoyable to work withA
Auckland, New Zealand
Emma Wallace is an absolute superstar, she kept us informed, responded in a timely manner, and was super clear about what she needed from us and what we could expect from her. The most painless part of buying the house was dealing with SquirrelC
Christchurch, New Zealand
Thanks Eleanor for the help with our mortgage for new property down in CHCH. Eleanor was great when we secured our first home in Auckland, and had another great result when we sold up and moved to Christchurch using Squirrel again.S
Christchurch, New Zealand
I was referred from my partner who saw an ad for squirrel, the best advice ever. Absolutely no hassle from Jess and she also got me a better Rate!!D
Auckland, New Zealand
Brad was fantastic, really responsive and answered all of our many questions despite our situation changing regularly. Thanks for all your help!B