True Cost of Selling
Rental Yield Calculator
Interest Rate Stress Test
Repayment Frequency Comparison
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Common questions about NZ property ownership
What does it cost to sell a house in New Zealand?
The total cost of selling a house in NZ typically includes agent commission (2–3.5% of the sale price plus GST), legal fees ($1,200–$2,000), marketing costs ($2,000–$8,000) and any staging if used. On an $800,000 sale with 2.95% commission, agent fees alone come to approximately $23,600. Total selling costs before mortgage payout commonly range from $25,000 to $45,000.
What is a good rental yield in New Zealand?
A gross rental yield of 4–6% is generally considered reasonable for NZ investment properties. Net yield — after rates, insurance, maintenance and property management — is typically 1–2 percentage points lower. Yields vary significantly by region: provincial towns often return 5–7% gross, while Auckland and Wellington inner suburbs typically return 3–4.5%.
How do I calculate gross rental yield in NZ?
Gross rental yield is annual rental income divided by the property value, multiplied by 100. A property worth $700,000 earning $560 per week generates $29,120 per year, giving a gross yield of 4.16%. Use the Rental Yield Calculator above to factor in operating costs and calculate your net yield after all expenses.
What is a mortgage interest rate stress test?
A stress test calculates your repayments at a higher hypothetical interest rate — typically 2% above your current rate — to check whether you could still afford payments if rates rose. NZ banks apply their own internal stress test rates (often 8–9.5%) when assessing loan applications under CCCFA guidelines, regardless of the rate you will actually pay.
Does paying weekly instead of monthly save money on a NZ mortgage?
Yes. Paying weekly means making 52 payments per year, which is the equivalent of 13 monthly payments rather than 12. On a $500,000 mortgage at 6.5% over 30 years, switching from monthly to weekly payments saves approximately $80,000 in interest and cuts several years off the loan term. Use the Repayment Frequency Comparison calculator above to model your loan.
What is LVR in New Zealand home lending?
LVR (Loan to Value Ratio) is your mortgage balance divided by your property's value, expressed as a percentage. The Reserve Bank of NZ (RBNZ) sets LVR restrictions limiting high-LVR lending. Owner-occupiers generally need a minimum 20% deposit (80% LVR or lower) to qualify for standard NZ bank lending. Higher-LVR loans are available but subject to stricter criteria and lender limitations.
KiwiSaver First Home Withdrawal Estimator
Deposit Progress Tracker
Borrowing Power Calculator
Legal and Due Diligence Cost Estimator
Common questions for first home buyers in New Zealand
How much can I borrow for a mortgage in New Zealand?
Your borrowing capacity depends on gross income, existing debts, number of dependants and the lender's test rate. As a rough guide, NZ banks lend around 4–5 times gross annual income, subject to CCCFA affordability testing. A person earning $100,000 with no debt and no dependants might borrow $500,000–$550,000 at typical test rates. Use the Borrowing Power Calculator above, then confirm with a mortgage adviser.
How much KiwiSaver can I withdraw for a first home?
After contributing for at least 3 years, you can typically withdraw your full KiwiSaver balance minus $1,000. There is no upper cap on the withdrawal amount. Both employee and employer contributions plus investment returns are eligible, but member tax credits must remain in the scheme. You must intend to live in the property as your primary residence.
How long does it take to save a house deposit in NZ?
For a 20% deposit on a $700,000 property ($140,000 target), saving $2,000 per month from $40,000 already saved would take approximately 4.2 years at a 3% annual return. Including KiwiSaver contributions and any investment growth can shorten this timeline. Use the Deposit Progress Tracker above to model your exact situation and see a projected target date.
What are the legal and due diligence costs when buying a house in NZ?
Typical costs include: solicitor/conveyancing fees ($1,500–$2,500), a LIM report ($300–$500), a builder's inspection ($500–$1,000 for existing properties) and mortgage registration ($150–$200). Total due diligence costs for an existing property commonly range from $2,500 to $4,200. New builds generally do not require a builder's report. Use the Legal Cost Estimator above for a detailed breakdown.
What is a LIM report and do I need one when buying a property in NZ?
A LIM (Land Information Memorandum) is issued by the local council and summarises all information held about a property: building consents, drainage, zoning, natural hazard classifications and any notices issued. It is strongly recommended for any purchase in NZ. A LIM costs approximately $300–$500 and takes 5–10 working days from the relevant council.
How does the NZ 20% deposit requirement work?
The RBNZ requires most banks to limit new owner-occupier lending above 80% LVR. In practice, a 20% deposit is the standard requirement for NZ home buyers accessing mainstream bank lending. Some exceptions apply — including certain new build lending and first home buyer programmes through Kainga Ora — but higher-LVR loans carry stricter criteria and limited availability.
Break Fee Estimator
Mortgage Split Calculator
Refix Comparison Tool
| Option | Rate | Term | Monthly Repayment | 2yr Interest |
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Overpayment Impact Calculator
Equity Unlock Calculator
Common questions about NZ mortgage refinancing
How is a mortgage break fee calculated in New Zealand?
NZ break fees are calculated using the difference between the wholesale swap rate when you fixed and the current wholesale rate for the remaining term, multiplied by your outstanding balance and time remaining. If current wholesale rates are lower than when you fixed, you will typically pay a break fee. If rates have risen since you fixed, you may pay nothing. Always get an exact quote from your lender before deciding.
Should I fix or float my NZ mortgage?
Fixed rates offer certainty and are typically lower than floating rates in a normal yield curve environment. Floating rates allow unlimited extra repayments or switching without penalty. Many NZ borrowers split their mortgage — fixing a portion for rate certainty while keeping a smaller floating portion for flexibility. The right structure depends on your financial position and expectations about rate movements.
What is a mortgage split and how does it work in NZ?
A mortgage split divides your home loan into two or more portions with different rate structures. The most common approach is fixing a majority (typically 60–80%) for certainty and keeping a portion floating for repayment flexibility. The blended rate is a weighted average of both. For example, fixing 70% at 5.99% and floating 30% at 7.50% produces a blended rate of approximately 6.44%.
What is a mortgage refix and how does it differ from refinancing in NZ?
A refix means agreeing a new fixed rate with your existing lender at the end of your current term. Refinancing means switching your mortgage to a different lender entirely. Refixing at term expiry incurs no break fee and minimal paperwork. Refinancing can access a better rate but involves legal fees, a new application and possibly a cash contribution from the new lender. Use the Refix Comparison Tool above to model your options.
How much money can overpaying my NZ mortgage save?
Even small regular overpayments deliver compounding savings over time. Paying an extra $100 per week on a $500,000 mortgage at 6.5% over 30 years saves over $130,000 in interest and reduces the loan term by approximately 6 years. The savings grow because extra payments reduce the principal balance faster, lowering the interest charged on every subsequent payment.
How much equity can I unlock from my NZ property?
Usable equity at 80% LVR equals 80% of property value minus your outstanding mortgage. On a property worth $900,000 with a $350,000 mortgage, you could access up to $370,000 at 80% LVR (or $280,000 at a more conservative 70% LVR). Lenders assess income, credit history and intended purpose before approving any equity release. Use the Equity Unlock Calculator above to estimate your position.