On a $120,000 gross salary in New Zealand, the RBNZ’s DTI 6x limit sets your theoretical maximum mortgage at $720,000 — assuming no other debts. Here is exactly what that means for your purchasing power, repayments, and the properties you can realistically target.
On a $120,000 gross salary with no existing debt, the DTI 6x maximum mortgage is $720,000. With a 20% deposit of $180,000, you could purchase a property up to $900,000. Monthly repayments on $720,000 at 5.50% over 30 years are approximately $4,088/month. The bank's serviceability stress test at ~7.5-8.5% may reduce this if your living expenses are high.
Your Salary in NZ Context
A $120,000 salary sits in approximately the top 10% of NZ earners. At this income, most NZ property markets (outside premium Auckland suburbs) become accessible with standard deposits.
Your approximate take-home pay at $120,000 gross: around $1,682/week after PAYE income tax and ACC earner levy.
Maximum Borrowing Capacity
Under the RBNZ DTI 6x rule:
| Scenario | Amount |
|---|---|
| DTI maximum mortgage | $720,000 |
| Maximum purchase price (20% deposit) | ~$900,000 |
| 20% deposit required | $180,000 |
| Monthly repayment (5.50%, 30yr) | $4,088 |
| Weekly repayment (5.50%, 30yr) | $943 |
What reduces this? Any existing debt — student loans, car loans, credit card limits — is subtracted from your DTI capacity. A $30,000 car loan reduces your maximum mortgage by $30,000. A $10,000 credit card limit (regardless of balance) reduces it by approximately $10,000.
Repayments on $720,000 at Different Rates
| Rate | Monthly | Fortnightly | Weekly |
|---|---|---|---|
| 5.20% | $3,954 | $1,825 | $912 |
| 5.50% | $4,088 | $1,887 | $943 |
| 5.80% | $4,225 | $1,950 | $975 |
| 6.20% | $4,410 | $2,035 | $1,018 |
| 6.50% | $4,551 | $2,100 | $1,050 |
Serviceability Stress Test
The DTI 6x limit is one constraint. The bank also applies a serviceability test: can your income cover the mortgage repayment at a stress-test rate of approximately 7.5%–8.5%, after all assessed living expenses?
Stress test repayment on $720,000 at 8.0%, 30 years: approximately $5,283/month.
If your gross income is $120,000 and your take-home is ~$1,682/week (~$7,288/month), the stress test repayment of $5,283/month represents approximately 72% of your net monthly income — before other living expenses. Banks benchmark total committed expenses (including mortgage) against income; where expenses are high, the actual offer may be below the DTI maximum.
What Can You Buy on $120,000?
At $900,000, most NZ markets are accessible. In Wellington, you can access most suburbs. In Auckland, $900k buys houses in outer suburbs and townhouses in mid-ring suburbs.
25 vs 30 Year Term
On $720,000 at 5.50%:
- 30-year term: $4,088/month — total interest $751,709
- 25-year term: $4,421/month — total interest $606,429
- Saving with 25-year term: $145,280 in total interest
The 25-year term costs $333/month more but saves $145,280 in total interest. Worth considering if your income comfortably covers the higher payment.
Frequently Asked Questions
How much can I borrow on a $120,000 salary in NZ?
With no existing debt, the DTI 6x maximum is $720,000. With a 20% deposit of $180,000, you can target properties up to $900,000. Existing debts (student loan, car loan, credit card limits) reduce this.
What deposit do I need on a $120,000 salary in NZ?
For the DTI maximum of $720,000, you need a 20% deposit of $180,000 to reach a $900,000 property. The First Home Loan allows 5%–10% for eligible first home buyers — check kaingaora.govt.nz for current income and price caps.
What are the repayments on a $120,000 salary mortgage in NZ?
On the DTI maximum of $720,000 at 5.50% over 30 years: $4,088/month, $1,887/fortnight, $943/week.
Can I borrow more than 6x my income in NZ?
Technically yes — the RBNZ allows banks to lend above 6x for up to 20% of new owner-occupier lending. In practice, banks reserve this for exceptional cases. Plan on 6x as your working maximum.
What is my take-home pay on $120,000 gross in NZ?
Approximately $1,682/week ($87,464/year) after PAYE income tax and ACC earner levy at the 2025–26 rates. This is a guide — your exact take-home depends on your tax code and any other deductions.