How Much House Can You Actually Afford on Your NZ Salary?

If you've been staring at property listings wondering how anyone affords a house in 2026, you're not imagining it. The national median house price in New Zealand is now around $775,000, and in Auckland that climbs to roughly $1.02 million. Even with the OCR sitting at 2.50%, buying still feels like it's designed for someone earning more than you.

So the real question isn't what a bank might approve you for on a good day. It's what you can actually buy without turning the next 30 years into a slow-motion panic attack. That's what this breaks down, salary by salary, using real New Zealand numbers.

The short answer: what a bank will lend you and what you should actually borrow are two different numbers, and the gap between them is where most of the stress lives.

This is general information only and doesn't take your personal circumstances into account. If you're considering buying, talk to a qualified mortgage broker who can assess your situation properly.

How do banks actually decide what you can borrow?

Banks don't lend based on vibes. They look at your income, your existing debts, your living costs, your deposit, and whether you could still cope if interest rates rose.

The first concept worth knowing is the debt-to-income (DTI) ratio, which is how much debt you can take on relative to what you earn. Under the Reserve Bank's DTI rules, banks are generally limited so that no more than 20% of new owner-occupier lending can go to borrowers with a DTI above six.

On top of that, banks run their own affordability assessments. They take your income, subtract your expected costs as a homeowner, and check whether you could still safely make the payments, plus a buffer if rates climb.

What's a smarter way to think about affordability than the bank's maximum?

I bought my first home in Auckland's northwest in 2022. At the time I borrowed roughly six times my annual earnings, when the one-year rate was a touch lower than today's. A year later, rates shot up and my mortgage payments swelled to roughly half my take-home pay. I borrowed a large amount, and when rates rose, I felt it.

There's no magic number for how much you should borrow, but one framework worth knowing is keeping housing costs to around 28% of your gross income. It won't suit everyone, and different sources apply it slightly differently, but it's a useful starting point rather than a hard rule.

How much can you afford on a $75,000 or $100,000 salary?

For these examples, assume a one-year mortgage rate of 4.69% and a 30-year term. These are illustrations of the 28% framework, not bank rules.

On a $75,000 salary, the 28% rule points to a mortgage in the ballpark of $340,000. With a 20% deposit on top, that's a property worth around $425,000. In Auckland, you'd be lucky to land an apartment at that price. In rural centres you might find a modest home, but outside the West Coast of the South Island, it's a stretch.

Jump to a $100,000 single income and the comfortable mortgage rises to roughly $450,000, or about $560,000 with a 20% deposit. That's better, but still well below the national median. At this level you're mostly looking at townhouses, apartments, or regional homes rather than the detached house most people picture.

How much more can two incomes buy together?

This is where the picture shifts fast.

A household on $150,000 combined can comfortably support around a $675,000 mortgage, or roughly an $840,000 property with a 20% deposit. That's above the national median, and even in Auckland it can stretch to a new two or three-bedroom townhouse. For a lot of couples, this is the bracket where buying starts to feel possible rather than impossible. The catch is the deposit itself: 20% here is $165,000. Meeting with a mortgage adviser can change that maths. In my case, an adviser found a bank willing to lend at a 15% deposit, though it came with a rate about 0.3% higher.

At $200,000 combined, you're looking at roughly a $900,000 mortgage, or about $1.1 million with a 20% deposit. That's enough to compete seriously in Auckland, where the median sat at $1.04 million in March. This is the point where the question stops being "can we buy anything?" and becomes "how many rooms, which suburb, and how did this get so expensive?"

At $250,000 combined, the comfortable mortgage sits around $1.15 million, pointing to a property value of roughly $1.4 million with a 20% deposit. You have real options in most cities at that level, but plenty of Auckland suburbs would still be out of reach. Even strong household incomes can disappear quickly once housing gets involved, especially in Auckland.

Why shouldn't the bank's maximum be your budget?

A common mistake is treating the bank's maximum approval as the actual budget. They're two different numbers. Banks make more money the more you borrow, for longer, at a higher rate, so their maximum isn't built around your peace of mind.

Many borrowers choose to borrow less than their approved maximum, put down a larger deposit, or repay faster, because it can cut total interest and build a bigger financial buffer. A useful rule of thumb is keeping total housing costs, not just the mortgage, in a zone that still leaves room to save, invest, and handle life when it inevitably gets expensive.

What other costs do you need to budget for beyond the mortgage?

Buying a first home comes with costs beyond the deposit and repayments, and they all eat into what you've saved.

You'll need a lawyer for conveyancing, typically $2,000 to $3,000. If you're putting in less than 20% as a deposit, the bank will likely want a valuation report, usually around $1,000. Most people in the industry would strongly recommend a builder's report too. It isn't cheap, usually a grand or two, but skipping it can cost tens of thousands if something's wrong with the house. Then there's the smaller stuff: a LIM report, moving costs, and sometimes a meth test, depending on the property. It adds up fast, so budget for it rather than being caught out.

Can KiwiSaver help you get there faster?

KiwiSaver is one of the bigger New Zealand-specific levers available to first-home buyers. If you've been a member for at least three years, you may be able to withdraw most of your balance towards a first home, provided you leave at least $1,000 in the account. For a lot of people, that's the difference between buying this year and spending another two years at open homes.

Should you buy now, or wait for the market to move?

That's usually the wrong question. The better one is whether the numbers work for you right now. The latest REINZ data shows the national median is still below its post-pandemic peak, and Auckland remains softer than most other regions. Christchurch, on the other hand, has never been more expensive. New Zealand isn't one market. Waiting might help you in one part of the country and cost you in another.

So, how much house can you actually afford on your salary?

The real wealth-building move isn't stretching to the absolute maximum and hoping future-you sorts it out. It's buying something that leaves a margin. If your mortgage eats every spare dollar, you won't invest, you won't build a buffer, and every rate reset or car repair becomes a crisis. Your house is meant to support your financial life, not consume it.

If you want to try this yourself, take your gross annual income, divide it by 12, and work out what 28% of that looks like. Compare that against what a bank might actually offer you. In 2026 New Zealand, that number will usually give you a far more honest answer than asking a bank how far it's willing to let you stretch.

Frequently Asked Questions

What is the 28% rule for housing affordability?

It's a framework that suggests keeping your total housing costs to around 28% of your gross income. It's not a bank rule and isn't applied consistently across sources, but it's a useful starting point when working out what you can comfortably afford, separate from what a bank might approve.

What is a debt-to-income (DTI) ratio and why does it matter for a mortgage?

It's the ratio of how much debt you're taking on relative to your income. Under the Reserve Bank's rules, banks are generally limited so that no more than 20% of new owner-occupier lending can go to borrowers with a DTI above six, which caps how much some buyers can borrow regardless of what they can technically service.

Can I use KiwiSaver to help buy my first home?

If you've been a KiwiSaver member for at least three years, you may be eligible to withdraw most of your balance towards a first home, as long as you leave at least $1,000 in your account.