Two simple examples
A $800,000 loan against a $1 million property has an 80% LVR. If the relevant total debt is $900,000 and gross household income is $150,000, the DTI is 6.
These figures help banks manage overall risk. They do not replace a lender’s assessment of income stability, living costs, credit history, property type and affordability.
The RBNZ framework at July 2026
- From 1 December 2025, banks may make up to 25% of new owner-occupier lending above 80% LVR.
- Up to 10% of new investor lending may be above 70% LVR.
- Up to 20% of relevant new lending may be above DTI 6 for owner-occupiers and DTI 7 for investors.
Speed limits, not entitlements
A bank can still decline an application inside the limits. It can also approve a suitable application within its permitted high-LVR or high-DTI allowance.
A lender’s own criteria still matter
Banks use test rates, minimum-expense models, income treatment and property policy. A low deposit or higher DTI may also mean stricter evidence, different pricing or additional costs.
General information only, not personalised financial or legal advice. Rules and lender criteria can change. Check current official information and seek advice for your circumstances.
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