Top 5 Ways to Boost Your Borrowing Power in NZ
If you’re planning to buy a home in New Zealand, one of the biggest factors is how much the bank will lend you. Your borrowing power determines your price range — and how competitive you can be in the market.
The good news? There are several proven ways to increase your borrowing power, even if you’re a first-home buyer.
Reduce Short-Term Debt
Credit cards, Buy Now Pay Later, and personal loans all reduce how much you can borrow. Even a $2,000 credit card limit can lower borrowing power by tens of thousands.
Before applying for pre-approval:
Lower credit limits
Pay off small debts
Clear Afterpay/Laybuy balances
Improve Your Spending Behaviour
Banks look closely at the last 3–6 months of your bank statements.
To strengthen your application:
Reduce discretionary spending
Avoid overdrafts
Stop gambling transactions
Keep accounts tidy and in credit
Small changes can significantly improve how lenders view your financial habits.
Increase Your Income
Even a small income boost can raise your borrowing power.
Options include:
Taking extra shifts
Asking for a pay rise
Freelancing or side income
Combining incomes with a partner
All income must be stable and verifiable.
Grow Your Deposit
A larger deposit reduces risk for the lender and may increase the amount you can borrow.
You can grow your deposit through:
KiwiSaver
Family support
Higher savings contributions
Selling assets
More deposit often means better interest rates too.
Use a Mortgage Adviser
Every bank calculates borrowing power differently. A mortgage adviser can match you to the lender most likely to offer the highest approval amount based on your unique situation.
This alone can increase borrowing power by $20,000 to $150,000+, depending on the lender’s criteria.
Final Thoughts
Boosting your borrowing power isn’t about earning a huge salary — it’s about presenting the strongest possible financial position. With smart preparation and the right strategy, you can expand your price range and secure a home sooner.