Loan-to-value ratio (LVR) is your loan divided by the property's value. Borrow $640,000 on an $800,000 home and your LVR is 80%, meaning a 20% deposit.
Debt-to-income ratio (DTI) is your total debt divided by your gross annual income. Earn $150,000 with $900,000 of debt and your DTI is 6.
The Reserve Bank limits how much of each bank's new lending can go above these levels. Banks can still lend above them, but only for a limited share of their loans, so approval above the limits is harder to get.
| Buying | Deposit usually needed | Share of a bank’s new lending allowed with less |
|---|---|---|
| Home to live in | 20% | Up to 25% |
| Rental property | 30% | Up to 10% |
| New build to live in | 10% | Exempt from these limits |
| New build to rent out | 20% | Exempt from these limits |
| First Home Loan (Kāinga Ora) | 5% | Income caps apply: $95,000 single, $150,000 combined. Borrowers pay the mortgage insurance cost. |
| Debt-to-income limit | Total debt up to |
|---|---|
| Home to live in | 6 × gross income |
| Rental property | 7 × gross income |
As at October 2026.
Settings change from time to time. Check the Reserve Bank's website for the latest before relying on them.