Mortgage Calculator
🇳🇿 New Zealand version
New Zealand banks can only lend a limited share of their new loans at high loan-to-value ratios, so the deposit you need depends on the bank as much as on the law. This calculator gives the monthly repayment, interest and schedule for any price, deposit, rate and term, and shows extra repayments and body corporate levies.
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Advanced Mortgage & Home Buying Calculator
Comprehensive mortgage analysis, affordability planning, and home buying decisions
Loan Details
Payment Breakdown
Down payment, insurance and buying costs
Minimum down payment: Banks may lend above 80% LVR on up to 25% of new owner-occupier lending, and above 70% LVR on up to 10% of new investor lending.
Not included: No New Zealand mortgage insurance rule was checked, so none is modelled.
Loan Balance Over Time
Principal vs Interest
Figures used
- Default term: 30 years (a tool default, not a legal figure). Interest is normally worked out monthly or daily. No national compounding rule was checked.
- Banks may lend above 80% LVR on up to 25% of new owner-occupier lending, and above 70% LVR on up to 10% of new investor lending.
- Not included: No New Zealand mortgage insurance rule was checked, so none is modelled.
- The Reserve Bank LVR limits cap each bank's share of high-LVR lending; they are not a fixed deposit for each buyer.
- The Financial Policy Committee kept these settings in August 2026. They took effect in December 2025 (up from 20% and 5%).
- Exempt: refinancing where the loan does not grow, bridging finance, construction loans and First Home Loans.
- Banks can apply tighter rules of their own.
- Reserve Bank of New Zealand: Loan-to-value ratio restrictions (checked 2026-11-08)
- Reserve Bank of New Zealand: Reserve Bank maintains LVR settings (Aug 2026) (checked 2026-11-08)
New Zealand rules and figures
- Banks may lend above 80% loan-to-value on up to 25% of new owner-occupier lending, and above 70% on up to 10% of new investor lending.
- The Financial Policy Committee kept these settings in August 2026. They took effect in December 2025, up from 20% for owner-occupiers and 5% for investors.
- The limits cap each bank's share of high-LVR lending. They are not a fixed deposit that every buyer must have.
- Exempt from the limits: refinancing where the loan does not grow, bridging finance, construction loans and First Home Loans.
- Banks can apply tighter rules of their own, so a bank may ask for more than the Reserve Bank's settings require.
- Interest is normally worked out monthly or daily. No national compounding rule was checked, so a plain monthly rate is used.
Sources: Reserve Bank of New Zealand: Loan-to-value ratio restrictions (checked 2026-11-08); Reserve Bank of New Zealand: Reserve Bank maintains LVR settings (Aug 2026) (checked 2026-11-08)
How the mortgage calculator works
Your loan is the price less the deposit. Each month the bank's interest is one twelfth of the annual rate times the remaining balance, and the repayment is fixed so the loan reaches zero at the end of the term. Extra repayments are taken off the balance directly, which brings the end date forward.
repayment = loan × k × (1 + k)^months ÷ ((1 + k)^months − 1), where k is the yearly rate divided by 12
- The term starts at 30 years, which is a tool default and not a legal figure.
- The Reserve Bank limits a bank's share of lending above 80% loan-to-value, so the deposit asked of you is not a fixed national percentage.
- No mortgage insurance is modelled for New Zealand, because no rule for it was checked.
- Council rates and body corporate levies are entered as running costs and included in the total monthly figure.
- A single rate is used for the whole term; New Zealand loans often have fixed periods, and the repayment after a rate change is not modelled.
How to use the mortgage calculator
- Enter price and deposit. Type the purchase price and your deposit. The percentage shown helps you judge which loan-to-value band a bank will put you in.
- Set term and rate. Enter the term in years and the rate on your offer. The term starts at 30 years.
- Add ongoing costs. Include council rates, insurance and body corporate levies if you are buying an apartment or a unit title.
- Test a bigger repayment. Add an extra monthly amount to see how many payments you save and how much interest disappears.
- Check a refinance. Use the Refinance tab to compare your current loan with a new rate and see when the switching costs pay back.
Example: An $800,000 New Zealand home with 20% down at 5.5% over 30 years
A $160,000 deposit leaves a $640,000 loan, so the repayment is $3,633.85 a month and interest over 30 years is $668,185.86. Choosing 25 years raises the repayment to $3,930.16 and lowers interest to $539,047.99. Staying on 30 years but adding $300 a month ends the loan after 300 payments instead of 360, and interest falls to $537,785.98, which is $130,399.88 less.
When to use the mortgage calculator
- Seeing how deposit size changes repayments. Compare a 20% deposit with a smaller one to see how much the monthly repayment moves.
- Choosing a loan term. Compare 25 and 30 years to weigh a higher repayment against less total interest.
- Budgeting for a unit title. Add body corporate levies and council rates to see the full monthly cost of an apartment.
- Working out a repayment boost. Try a fixed extra amount each month to see the earlier finish and the interest saved.
What the mortgage calculator does not do
- The Reserve Bank limits apply to each bank's lending book, so the tool cannot tell you the deposit your own bank will require.
- No mortgage insurance is modelled, and legal fees, valuation and building reports are not part of the payment.
- One rate applies to the whole term, so a fixed period followed by a different rate is not calculated.
- Only repayments of principal and interest are calculated; interest-only periods are not supported.
- Treat the Affordability tab as a loose guide built on a 28/36 rule from the US; banks assess you with their own tests.
When something else is a better fit
- When you already have a loan and want to pay it off sooner, use the Early Payoff Calculator.
- When you want to compare loans side by side, use the Loan Comparison Tool.
- When you need the deposit your bank will accept, use your bank or mortgage adviser, because banks apply the Reserve Bank settings and their own rules.
Questions about the mortgage calculator
What is the repayment on a $640,000 mortgage?
At 5.5% over 30 years it is $3,633.85 a month, with $668,185.86 of interest. Over 25 years it is $3,930.16 a month and the interest falls to $539,047.99.
Is there a fixed minimum deposit in New Zealand?
Not for each buyer. The Reserve Bank lets banks lend above 80% loan-to-value on up to 25% of new owner-occupier lending, so how many high-LVR loans a bank approves is limited.
Do the limits apply to investors?
Yes, with a tighter band: banks may lend above 70% loan-to-value on up to 10% of new investor lending.
Which loans are exempt from the limits?
Refinancing where the loan does not grow, bridging finance, construction loans and First Home Loans are exempt from the Reserve Bank's settings.
What difference does paying $300 more each month make?
On the $640,000 loan at 5.5% it brings the end date to 300 payments instead of 360 and saves $130,399.88 of interest. Check whether your fixed term allows extra repayments without a fee.