DTI (debt-to-income ratio)

DTI compares your total debt to your gross annual income. Since July 2024, NZ banks can lend most borrowers no more than 6–7 times their income — 7x for investors.

If your household earns $150,000 and holds $900,000 of total debt, your DTI is 6. The Reserve Bank's DTI restrictions limit how much of a bank's new lending can go to owner-occupiers above 6x income and investors above 7x income.

Rental income counts toward income for servicing, which matters a lot for investors — a strong-yielding property can effectively expand your borrowing capacity, while a low-yield one consumes it.

Source: RBNZ — DTI restrictions

This page is general information, not financial, legal, or tax advice. Rules change — always confirm current settings with the linked official sources and seek independent professional advice.