New Zealand Home Affordability Calculator
Affordability Calculator
10%: Standard minimum deposit for most lenders
20%: Recommended to avoid LMI (Lenders Mortgage Insurance)
If you make $36,000 a year in New Zealand, you’re not alone in wondering if buying a home is even possible. The housing market feels out of reach for many, especially first-time buyers. But affordability isn’t just about your salary-it’s about your debt, your savings, your location, and how lenders see you. Let’s cut through the noise and show you exactly what’s realistic.
Your Real Budget: It’s Not What You Think
Lenders don’t just look at your $36,000 salary. They look at your take-home pay. After tax, KiwiSaver, and ACC, you’re likely bringing home around $2,600 a month. That’s the number that matters. Now, they’ll let you spend up to 30% of that on housing payments-that’s about $780 a month. But here’s the catch: that $780 has to cover your mortgage, insurance, and rates. No room for extras.
At today’s interest rates (around 7.5% as of early 2026), a $780 monthly payment gets you a loan of roughly $110,000. That means, with a 10% deposit, you’re looking at a home priced around $122,000. In Auckland, that’s not a house. It’s a small studio apartment in a low-demand suburb, or maybe a fixer-upper in Papakura or Manukau. In smaller towns like Whangarei or Gisborne, you might find a modest 2-bedroom home.
The Deposit Challenge
You need a deposit. Lenders usually want at least 10%, but 20% is safer. For a $120,000 home, that’s $12,000. If you’re saving $500 a month, it’ll take you two years just to save the deposit. And that’s if you don’t spend a cent on anything else-not holidays, not new shoes, not even a decent phone plan.
But there’s help. The First Home Loan from Kāinga Ora lets you put down as little as 5% if your income is under $95,000 (single) or $140,000 (couple). That drops your required deposit to $6,000 for a $120,000 home. You still need to pass income and asset tests, but it’s a real option. You’ll also need to buy a home under the regional price cap-in Auckland, that’s $850,000, so you’re well under.
What Can You Actually Buy?
Let’s be specific. At $120,000 in Auckland, here’s what you’re looking at:
- A 1970s-era 1-bedroom bungalow in Papakura with a small yard
- A 2-bedroom townhouse in Manukau with shared walls and no parking
- A rural section with a tiny shed and no utilities-no bank will lend on this
- A section in Ōtāhuhu where you’ll need to build from scratch (but you’d need more savings for that)
Outside Auckland, in places like Hamilton, Tauranga, or Palmerston North, you might stretch to $150,000. That gets you a 2-bedroom home built in the 1990s, with a decent kitchen and a backyard. In Rotorua or Napier, you could find a 3-bedroom home for under $140,000.
What Gets You Rejected
Lenders watch three things: your debt-to-income ratio, your credit history, and your savings discipline.
If you have a car loan, a student loan, or even a $200-a-month phone plan, that eats into your borrowing power. A $100-a-month phone bill? That’s $1,200 a year. That’s $100 a month lenders will subtract from your housing budget.
Bad credit? Even one late payment in the last year can cost you thousands in interest or get you denied. Pay off small debts first. Use a free credit report from Equifax or Centrix to check for errors. Many people find mistakes that drag their score down.
And don’t forget: if you’ve never saved before, lenders worry. They want to see at least six months of consistent savings-even $100 a month proves you can manage money.
How to Stretch Your Dollar
You don’t have to buy a house alone. Shared ownership is growing fast in NZ. Programs like the First Home Partnership let you buy part of a home with Kāinga Ora or a housing trust. You pay a mortgage on your share, and rent the rest. After five years, you can buy more. This opens up homes worth $400,000 for people on $36,000.
Another trick: co-buying with a family member. If your parent or sibling helps you as a co-borrower, your combined income can qualify you for a bigger loan. You still live in the house alone. They just help you get in the door. They don’t have to live there.
And don’t ignore government grants. The First Home Grant gives you up to $5,000 if you’ve saved for three years and buy a home under $500,000 (outside Auckland) or $700,000 (in Auckland). That’s $5,000 you didn’t have to save yourself.
The Hard Truth: It’s Possible-but Not Easy
Yes, you can buy a home on $36,000 a year. But it won’t be the house you pictured. It might be a small, older home in a quiet suburb. It might need a new roof or a rewired kitchen. It might not have a garage. But it’s yours. And that changes everything.
Start by talking to a first-home adviser at Kāinga Ora or a non-profit housing agency. They’ll run your numbers for free. They’ll show you what’s possible. And they’ll help you avoid the traps-like overpaying for a house you can’t maintain, or signing a loan you’ll regret in three years.
You’re not behind. You’re not failing. You’re planning. And that’s how people get ahead.
Can I buy a house on $36,000 a year in Auckland?
Yes, but only if you’re realistic. At $36,000, you can afford a home around $120,000 with a 10% deposit. That means a small 1-bedroom home in Papakura, Manukau, or a fixer-upper in Ōtāhuhu. You’ll need to use the First Home Loan or First Home Grant to make it work. Don’t look for a house in Epsom or Remuera-that’s not possible on this income.
How much deposit do I need?
Lenders usually want 10%, so $12,000 for a $120,000 home. But with the First Home Loan, you can get in with just 5%-$6,000. If you qualify for the First Home Grant, you can get up to $5,000 from the government. That means you might only need to save $1,000 yourself. Saving $100 a month for 10 months gets you there.
What if I have student debt or a car loan?
Debt reduces your borrowing power. Lenders look at your total monthly debt payments. If you pay $200 a month on student loans and $150 on a car, that’s $350 gone before you even think about a mortgage. You’ll need to pay those down first, or find a co-borrower to boost your income. The key is reducing your debt-to-income ratio below 40%.
Can I use KiwiSaver to help buy a home?
Yes. If you’ve been in KiwiSaver for at least three years, you can withdraw your contributions, employer payments, and government kick-start to use as a deposit. You can’t take the investment returns, but that’s still a big help. Many first-time buyers use this to cover half their deposit. Apply through your KiwiSaver provider.
Is shared ownership a good option?
For many on $36,000, shared ownership is the best path. With programs like First Home Partnership, you can buy 25%-75% of a home and pay rent on the rest. Your mortgage is smaller, your deposit is lower, and you’re building equity. After five years, you can buy more. It’s not perfect, but it’s the only way many people get into the market today.
Next Steps: What to Do Today
- Check your credit report for free at Equifax or Centrix
- Calculate your take-home pay after tax and KiwiSaver
- Call Kāinga Ora’s First Home team-no cost, no obligation
- Start saving even $50 a week in a separate account
- Talk to a housing adviser at your local community centre
You don’t need to wait until you’re rich. You just need to start.