How Much Could You Borrow — and How Ready Are You to Buy Your First Home?
Stop guessing. Get clear on your real numbers.
Use the free Home Ready Calculator to estimate your potential borrowing power, see what purchase price may be within reach, and get your personalised Home Readiness Score.
You’ll discover:
- ✓ How much you could potentially borrow
- ✓ Your estimated maximum purchase price
- ✓ How your deposit compares with your target
- ✓ Your Home Readiness Score out of 100
- ✓ Your recommended next step
This is Step 1 of the Home Ready Method: Discover Your Position.
Free to use • Takes a few minutes • No obligation
More Than a Standard Mortgage Calculator
Most mortgage calculators answer one question: “What would my repayments be?” But if you are trying to buy your first home, you probably have bigger questions.
- How much could I potentially borrow?
- Is my deposit enough?
- What price range might be realistic?
- Are my debts holding me back?
- Am I ready to apply for a home loan?
- What should I focus on next?
Buying your first home does not start with scrolling property listings. It starts with knowing where you stand. Your result might show that you are ready to take the next step — or that you need more time. Either way, clarity gives you something practical to work with.
Enter Your Details
Start with the property price you would like to buy at. Your score compares that target with your estimated borrowing position, deposit and monthly affordability.
This calculator provides an estimate and general information only. It is not financial advice, a home loan approval, or a guarantee that a lender will approve your application. Your actual borrowing position can be affected by lender policies, income type and evidence, tax obligations, student loans, child support, credit history, existing debts and limits, dependants, living expenses, property type, deposit source, interest rates, and changes to lending criteria. Before making an offer on a property, speak with a mortgage adviser about your actual position. While every care has been taken to supply accurate information, errors and omissions may occur. LookAhead accepts no responsibility for loss caused by reliance on this estimate.
How Much Can I Borrow for a Home Loan in NZ?
There is no single answer based on income alone. Two first-home buyers earning the same amount can have very different borrowing positions because lenders also consider their deposit, debts, expenses, dependants, loan term and the property they want to buy.
The Home Ready Calculator brings several parts of your financial position together to provide an estimate of how much you may potentially be able to borrow and the purchase price that may be within reach.
What Is Borrowing Power?
Your borrowing power is an estimate of how much a lender may be prepared to lend based on your overall financial position. It is not simply your income multiplied by a fixed number. Banks assess whether you could manage the proposed mortgage while still meeting your other financial commitments.
How Much Deposit Do I Need to Buy My First Home?
The deposit you need depends on your circumstances and the lending options available. Some eligible first-home buyers may be able to purchase with a deposit as low as 5%, while others may need 10% or 20%. A larger deposit can provide advantages, but waiting for 20% is not automatically the best decision for every buyer.
Does Debt Affect How Much I Can Borrow?
Yes. Car loans and personal loans reduce the income available to service a mortgage. Even an unused credit card limit may affect a lender’s assessment because the lender may need to allow for the possibility that you could use that credit.
This is why the answer to “Should I pay off debt or keep saving my deposit?” is different for every buyer. For some people, reducing debt may improve their position more than adding the same amount to their deposit. For others, continuing to build the deposit may be the better strategy.
What Is a Home Readiness Score?
Your Home Readiness Score is designed to show how your current financial position compares with the property price you want to buy at. It considers whether your estimated borrowing position can support the loan required, your monthly servicing position, your deposit percentage, and pressure from debts and expenses.
What Happens After I Get My Score?
Your score is the starting point, not the end of the journey. Depending on your result, your next step may be to explore mortgage pre-approval, build your deposit, reduce debt, review your target price, improve cash flow, review your KiwiSaver strategy, or create a longer-term first-home plan.
Your Numbers Are Personal. Your Next Step Should Be Too.
I have worked in banking and finance for many years and have spoken with thousands of people about their financial position. One thing I have learned is that many people believe their finances are too complicated, too messy, or too far from where they need to be.
Often, that is not the case. Sometimes you are ready now. Sometimes you are closer than you think. And sometimes there is work to do — but a clear plan can turn “I don’t know if I’ll ever be able to buy” into “I know exactly what I need to do next.”
That is why I created the Home Ready Calculator.
Andre Botha
Mortgage & Investment Adviser
LookAhead
Frequently Asked Questions
Is the Home Ready Calculator free?
Yes. The calculator is free to use and there is no obligation to proceed with LookAhead.
Is my result a home loan pre-approval?
No. Your result is an estimate and general guide only. Formal pre-approval requires an application and assessment by a lender.
How accurate is the borrowing estimate?
The result depends on the information you enter and the assumptions used. Actual lender assessments vary and may consider additional information.
Can I use the calculator if I am buying on my own?
Yes. Leave the Applicant 2 fields at zero.
Can I use KiwiSaver as part of my deposit?
Eligible first-home buyers may be able to use qualifying KiwiSaver funds towards a first-home purchase. Eligibility and withdrawal requirements apply.
What if my Home Readiness Score is low?
A lower score does not mean you will never be able to buy. It can help identify the areas that need attention so you can build a clearer plan.
Should I speak to a mortgage adviser before making an offer?
Yes. A calculator is not a substitute for assessing your actual financial position and the specific property you want to buy.
Stop Guessing. Get Clear on Your Real Numbers.
Get your Home Readiness Score and find out what your next step could be.
Get My Home Readiness Score