New Zealand Mortgage Calculator
This calculator estimates monthly home loan repayments for New Zealand residential properties based on the loan amount, interest rate, and term entered. Calculations apply the standard amortisation formula and reference Official Cash Rate and lending rate data published by the Reserve Bank of New Zealand (RBNZ).
Enter Loan Details
Input the property value, deposit, loan term, and interest rate using the fields provided.
Select Repayment Type
Choose between principal and interest or interest-only repayments and the repayment frequency.
Review the Breakdown
The estimated repayment, total interest, and LVR update automatically based on the inputs entered
NZ Mortgage Calculator
RBNZ & Sorted benchmarks · 2025–26
Loan Summary
PER MONTHLoan summary
A plain-English read of how the loan works at the inputs above — using the standard amortisation formula and current RBNZ benchmarks.
Principal vs Interest split
Repayment schedule
Annual amortisation showing how each year's repayments split between principal and interest. In the first years of a 30-year mortgage, around 60–70% of each repayment is interest at NZ's current rate environment.
Applies to floating-rate loans. Fixed-rate loans usually cap extra repayments — check your loan contract for break costs. Per Sorted.
| Year | Opening Balance | Annual Repayments | Principal Paid | Interest Paid | Closing Balance |
|---|
Interest vs principal over time
How each year's repayment splits between interest and principal. Early in a 30-year mortgage, the majority of every repayment is interest — this gradually shifts as the balance falls.
Annual interest paid
Rate benchmark
How your rate compares to the RBNZ OCR and current New Zealand mortgage rate averages. Always compare across multiple lenders — even a 0.25% difference matters significantly. Per Consumer Protection NZ.
Rate comparison
Compare two mortgages
Loan A mirrors the calculator above. Adjust Loan B's rate and term to see the difference. On a 30-year loan, even a 0.25% rate gap can mean tens of thousands of dollars over the life of the loan.
Both loans use the same loan amount and frequency. Always compare rates across multiple lenders before refixing — and check break costs on existing fixed loans. Per Sorted.
New Zealand Mortgage Rates & Schemes
RBNZ-confirmed OCR, current floating and fixed rate averages, LVR/LEP thresholds, DTI restrictions, and First Home Buyer schemes — sourced from official government data and verified May 2026.
Floating vs Fixed
Floating rates move with the OCR. Most NZ borrowers fix for 1–2 years before refixing or rolling onto floating.
LVR Thresholds
Loan-to-Value Ratio determines whether a Low Equity Premium applies and the rate offered.
First Home Buyer Schemes
Government-backed schemes available to eligible NZ first home buyers in 2026.
Home Loan Types in New Zealand
The right structure depends on your circumstances, risk tolerance, and how long you plan to hold the property. Per Sorted.
| Type | Rate Behaviour | Key Feature | Best For |
|---|---|---|---|
| Fixed Rate Table LoanTypically 1–5 years | Locked | Rate fixed for term; principal reduces each period; certainty of repayment amount | Most NZ borrowers — repayment certainty during the fixed term |
| Floating Rate Table Loan~15% of new loans | Moves with OCR | Rate moves when bank/OCR moves; unlimited extra repayments without break costs | Borrowers wanting flexibility, expecting OCR cuts, or planning to repay early |
| Split LoanPart fixed, part floating | Mixed | Combines certainty on a portion with flexibility on the rest | Borrowers seeking both rate protection and flexibility |
| Interest-Only (IO)1–5 year IO period | Higher | Only interest paid during IO; principal unchanged; higher total interest overall | Investment property cash-flow management |
| Revolving CreditLinked transaction account | Floating | Balance reduces daily interest-charging principal — every dollar in offset = dollar less interest | Borrowers with significant savings who want to reduce interest without losing access |
| Reducing LoanLess common in NZ | Variable | Principal repayment fixed each period; interest decreases as balance falls; total repayment falls over time | Borrowers wanting to repay principal aggressively and see total repayment shrink |
Table Loan (P&I)
- ✓Each repayment reduces the outstanding balance
- ✓Builds equity with every repayment
- ✓Lower total interest over the full loan term
- ✓Lower interest rate than IO loans
- −Higher repayments than IO during early years
Interest Only (IO)
- ✓Lower repayments during the IO period
- ✓Useful for investment property cash flow
- −Loan balance does not reduce during IO period
- −Significantly more total interest paid overall
- −Repayments jump sharply when IO period ends
LVR, Low Equity Premium (LEP) & DTI Restrictions
Loan-to-Value Ratio (LVR) is the loan amount as a percentage of the property's value. Most lenders charge a Low Equity Premium when LVR exceeds 80%. From 1 December 2025, RBNZ relaxed LVR speed limits — owner-occupier banks can now do 25% of new lending above 80% LVR (up from 20%), and investor banks can do 10% above 70% LVR (up from 5%). Per RBNZ.
| Deposit | LVR | LEP Required? | Typical Impact (NZD 640k loan) |
|---|---|---|---|
| ≥ 20% deposit | ≤ 80% | No LEP | Best rates available; no premium |
| 15–19% deposit | 81–85% | LEP likely | Rate margin ~0.25–0.50% above standard |
| 10–14% deposit | 86–90% | LEP required | Rate margin ~0.50–1.00%; banks restricted by RBNZ speed limit |
| 5–9% deposit | 91–95% | Kāinga Ora only | Standard banks rarely lend; Kāinga Ora First Home Loan available with no LEP |
| Investor | ≤ 70% (min 30% dep) | N/A | RBNZ rule: investor banks limited to 10% of new lending above 70% LVR |
DTI Restrictions · Active since 1 July 2024
RBNZ also imposes Debt-to-Income (DTI) caps. Owner-occupier: banks can do 20% of new lending with DTI>6. Investor: 20% of new lending with DTI>7. Currently not binding on most borrowers but designed to limit excessive leverage. Exclusions: bridging finance, refinancing without an increase, new builds, property remediation.
First Home Buyer Schemes & Concessions
New Zealand first home buyers have access to several government schemes in 2026. Note the First Home Grant was discontinued on 22 May 2024 — funds were redirected to social housing. The Kāinga Ora First Home Loan and KiwiSaver First Home Withdrawal remain active. Always verify current eligibility with the relevant authority before purchasing.
| Scheme | Benefit | Key Eligibility | Authority |
|---|---|---|---|
| Kāinga Ora First Home LoanUnderwritten by Kāinga Ora | Buy with 5% deposit — no LEP | First home buyer (or second-chance); income caps (single ~NZD 95k / couple ~NZD 150k); house price caps by region; available via Westpac, Kiwibank, SBS Bank | Kāinga Ora |
| KiwiSaver First Home Withdrawal | Withdraw most KiwiSaver balance for deposit (must leave NZD 1,000 minimum) | Member for at least 3 years; first home or second chance; intend to live in property; apply via your KiwiSaver provider | IRD KiwiSaver |
| First Home GrantDiscontinued 22 May 2024 | Previously up to NZD 10,000 | SCRAPPED — funds redirected to social housing. Not available to new applicants from 22 May 2024 | Discontinued |
| Kāinga Ora First Home Partner | Shared ownership — Kāinga Ora co-purchases up to 25% of the home | Income caps; first home buyer; for moderate income earners who can service a mortgage on most of the property | Kāinga Ora |
| No Stamp Duty | NZ has no stamp duty on residential property purchases | All buyers — owner-occupiers and investors | NZ Government |
Mortgage Repayment Formulas
How table loan, IO, revolving credit, and affordability calculations are performed — these are the same formulas used by all New Zealand lenders.
Table Loan Periodic Repayment (PMT)
Standard annuity formula — fixed periodic repayment that fully repays the loan over the term.
P = loan amount · r = periodic rate · n = total periods
Interest-Only Repayment
During IO period, only interest is paid. Principal unchanged.
After IO ends, table repayments restart on original principal over the remaining term
Revolving Credit Saving
Revolving credit balance reduces the principal on which daily interest is charged. Long-term effect compounds significantly.
A NZD 50k revolving credit on a NZD 640k loan @ 5.66% saves ~NZD 130k in interest over 30 years
Maximum Loan (Affordability)
Reverse PMT — solves for the largest loan you can service at a given budget, rate, and term.
Add your deposit to PV to get total property budget
New Zealand Mortgage Market Snapshot
RBNZ OCR, average lending rates, and loan composition in New Zealand
RBNZ & Stats NZ · Updated April 2026Rate Analysis
OCR, lending rates, and rate type comparison
Mortgage Spread vs OCR
Owner-occ floating rate minus RBNZ OCR (last 8 months)
New Lending Mix
Share of new owner-occupier loans by rate type (2025–26)
Median House Prices
Regional median sale prices (REINZ March 2026)
| Loan Type | Avg Rate (p.a.) | vs OCR | Share of New Lending |
|---|---|---|---|
| Owner-Occ Floating | ~5.66% | +3.41 pp | ~15% |
| Owner-Occ 1-Year Fixed | ~4.91% | +2.66 pp | ~45% |
| Owner-Occ 2-Year Fixed | ~5.29% | +3.04 pp | ~25% |
| Owner-Occ 3-Year Fixed | ~5.49% | +3.24 pp | ~10% |
| Owner-Occ 5-Year Fixed | ~5.79% | +3.54 pp | ~3% |
| Investor Floating | ~6.16% | +3.91 pp | ~2% |
| RBNZ OCR (benchmark) | 2.25% | — | — |
New Zealand Mortgage News & Updates
RBNZ OCR decisions, lending policy changes, and government scheme updates affecting NZ mortgage borrowers — sourced from official channels.
RBNZ Holds OCR at 2.25% on 8 April 2026
The Reserve Bank of New Zealand held the Official Cash Rate steady at 2.25% at its April 2026 meeting, citing CPI returning to within the target band and steady labour market conditions. This is the second consecutive hold after the November 2025 cut concluded the easing cycle.
Impact on Borrowers
- Floating rates stable: average owner-occupier floating ~5.66%, investor ~6.16%
- 1-year fixed: averages ~4.91%, with best buys from ~4.39% (TSB)
- 2-year fixed: averages ~5.29%, with best buys from ~4.69%
- Refixing wave: many borrowers who fixed in 2023–24 at 6.5%+ are now refixing at sub-5% rates
RBNZ Reasoning
The Monetary Policy Committee noted Q1 CPI of 3.1% — within the 1–3% target band — and saw inflation pressures broadly balanced.
Next Meeting
The next RBNZ MPC decision is scheduled for 27 May 2026. Markets are pricing in a continued hold at 2.25% through 2026.
Q1 2026 CPI Lifts to 3.1% — Top of RBNZ Target Band
The Stats NZ Consumer Price Index rose 3.1% over the year to March 2026 — sitting at the upper bound of the RBNZ 1–3% target band. While within target, the print suggests limited room for further OCR cuts in the near term.
Top Contributors
- Housing & utilities: +4.5% (rents, rates, electricity)
- Food: +3.8% (groceries, dining)
- Transport: +2.9% (fuel, vehicles)
Implication for Rates
Markets now expect the OCR to remain at 2.25% through most of 2026. A 0.50% rate change on a NZD 640k loan over 30 years adds or saves ~NZD 195/month and ~NZD 70,000 in total interest.
RBNZ Eases LVR Speed Limits — Owner-Occ 25%, Investor 10%
From 1 December 2025, RBNZ relaxed Loan-to-Value Ratio speed limits in response to improving financial stability. Owner-occupier banks can now do 25% of new lending above 80% LVR (up from 20%), and investor banks can do 10% above 70% LVR (up from 5%).
What Changed (effective 1 December 2025)
- Owner-occupiers: banks may originate up to 25% of new commitments at LVR > 80% (was 20%)
- Investors: banks may originate up to 10% of new commitments at LVR > 70% (was 5%)
- Investor minimum deposit: remains 30% (LVR ≤70%)
- DTI restrictions: remain unchanged (owner-occ 20% above DTI 6, investor 20% above DTI 7)
- Exemptions: Kāinga Ora First Home Loan, new builds, refinancing without an increase remain exempt
RBNZ Cuts OCR to 2.25% — Final Cut of Easing Cycle
The RBNZ cut the OCR by 25 basis points to 2.25% in November 2025, marking the final cut of an easing cycle that began in August 2024 and totalled 325 basis points of cuts. The Monetary Policy Committee signalled the OCR was now at neutral.
2024–25 Easing Cycle Summary
- Aug 2024: 5.50% → 5.25% (first cut)
- Oct 2024: 5.25% → 4.75% (50 bp)
- Nov 2024: 4.75% → 4.25% (50 bp)
- 2025: Cumulative cuts to 2.50% across Feb / Apr / May / Jul / Aug / Oct meetings
- Nov 2025: 2.50% → 2.25% (final cut)
- Net easing: 325 basis points across 15 months
- Avg floating rate dropped from ~8.65% (Apr 2024) to ~5.66% (Apr 2026)
RBNZ DTI Restrictions Now Binding for High-Leverage Borrowers
Twelve months after activation on 1 July 2024, RBNZ Debt-to-Income restrictions began to bite for some segments by mid-2025. The 6× DTI cap (owner-occ) and 7× DTI cap (investor) — applied to 80% of new lending — limit how much banks can lend relative to a borrower's gross income.
How DTI Caps Work
- Owner-occ: banks may do 20% of new commitments at DTI>6
- Investor: banks may do 20% of new commitments at DTI>7
- DTI = total household debt ÷ total gross income
Practical Effect
A couple earning NZD 200k gross can typically borrow up to NZD 1.2m (DTI 6) without falling into the speed-limit bucket. Most first home buyers are below the cap; high-end Auckland borrowers can be affected.
Mortgage Interest Deductibility Fully Restored to 100%
From 1 April 2025, residential rental property owners can once again deduct 100% of mortgage interest against rental income — completing the reversal of the 2021 phase-out. The change applies to all residential investment properties regardless of when acquired.
Phase-Back Timeline
- Pre-March 2021: 100% deductibility (existing rule)
- 1 Apr 2024: 80% deductibility restored
- 1 Apr 2025: 100% deductibility fully restored
- Ring-fencing rules remain: rental losses can only offset future rental income, not other income
- Effect: a NZD 600k investment loan at 5.66% generates NZD 33,960 in deductible interest annually
Anna Breman Appointed RBNZ Governor
Anna Breman, formerly Deputy Governor of Sweden's Riksbank, was appointed Governor of the Reserve Bank of New Zealand in late 2024 — replacing Adrian Orr who resigned in March 2025. Breman took office in time for the 2025 easing cycle.
Key Points
- First non-New Zealand-born RBNZ Governor in modern times
- Background in monetary policy, central banking, and inflation targeting
- Continuity in policy framework — RBNZ retains 1–3% inflation target band
- Oversaw the second half of the 2024–25 easing cycle (4.25% → 2.25%)
Bright-Line Test Cut to 2 Years
From 1 July 2024, the bright-line test for residential property — which taxes capital gains on sales within a defined period — was reduced from 10 years (5 years for new builds) to a flat 2 years for all residential properties. This was a major rollback of Labour's 2021 extension.
What the New Rule Means
- 2-year bright-line: any residential property sold within 2 years of purchase triggers income tax on the capital gain
- Effective date: applies to properties sold on or after 1 July 2024 (regardless of purchase date)
- Main home exclusion: generally exempt if used predominantly as the main home
- Investor implications: shorter hold periods now safer; renovate-and-flip strategies recover
NZ Has No CGT Outside Bright-Line
Unlike Australia, New Zealand has no general capital gains tax on residential property. The bright-line test is the only mechanism that taxes residential property gains, and only within 2 years of purchase.
Stamp Duty: None
NZ has no stamp duty on residential property — buyers face no transaction tax beyond legal and conveyancing fees.
Frequently Asked Questions
Common questions about New Zealand mortgages, repayments, LVR, government schemes, and investment properties — verified against Sorted, IRD, RBNZ and Kāinga Ora.
Important Disclaimer
For educational and informational purposes only. This calculator produces estimates based on the inputs provided and the standard amortisation formula, assuming a fixed interest rate, on-time repayments, and no additional fees over the loan term. Actual repayments will differ based on lender, advertised rate, fee structure, and rate changes at refix. The RBNZ Official Cash Rate is 2.25% (held 8 April 2026, last cut November 2025) and the average owner-occupier floating rate is approximately 5.66% p.a. per RBNZ B20 lending statistics — investor floating rates average ~6.16% p.a. and best 1-year fixed buys start from ~4.39%.
The calculator does not include legal/conveyancing fees, registered valuation costs, LIM reports, builder's reports, or Low Equity Premium (LEP) rate margins. New Zealand has no stamp duty on property purchases. LVR is calculated on the property purchase price; RBNZ rules limit lending above 80% LVR (owner-occ) and require a 30% deposit minimum for investors. DTI restrictions (active since 1 July 2024) cap most owner-occupier lending at DTI 6 and investor at DTI 7. Kāinga Ora First Home Loan details reflect current rules — 5% deposit, no LEP, available via Westpac/Kiwibank/SBS. The previous First Home Grant was discontinued on 22 May 2024. For investment properties, mortgage interest is now 100% deductible (from 1 April 2025) per the IRD; rental losses are ring-fenced. The bright-line test taxes capital gains on properties sold within 2 years of purchase. Results do not constitute financial, tax, or legal advice. Rates, thresholds, and policies are subject to change. Refer to the relevant lender disclosure document and seek independent professional advice for personal circumstances.
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