How is a NZ mortgage repayment calculated?

NZ mortgage repayments use the standard amortisation formula: M = P × r(1+r)^n / ((1+r)^n - 1), where P is the loan amount, r is the monthly interest rate, and n is the number of months.

What is LVR in NZ mortgages?

LVR stands for Loan-to-Value Ratio. It's the loan amount divided by the property value. Most NZ banks require owner-occupiers to have at least a 20% deposit (80% LVR or less), though some first home buyer exceptions apply.

What is the typical NZ mortgage interest rate?

NZ mortgage interest rates vary by lender and loan term. In 2024–25, 1-year fixed rates have ranged from approximately 5.5% to 7.5%. Use this calculator to estimate repayments at different rates.

NZ Mortgage Calculator — Estimate Home Loan Repayments

Property Price

Deposit

Interest Rate

5.75%

2% 10%

Loan Term

Monthly Repayment

NZ$0

Loan Amount

NZ$0

Deposit

NZ$0

LVR (Loan-to-Value Ratio)

Enter values to see LVR

Weekly Repayment NZ$0

Fortnightly Repayment NZ$0

Total Interest NZ$0

Total Repaid NZ$0

This calculator provides estimates for principal-and-interest (P&I) repayments. Actual repayments may vary. For accurate figures, speak to your bank or mortgage adviser.

QUICK ANSWERS

What is LVR and why does it matter?

LVR (Loan-to-Value Ratio) is your loan amount as a percentage of the property value. A 20% deposit = 80% LVR. Most NZ banks have LVR restrictions; owner-occupiers generally need at least 20% deposit. A lower LVR often means lower interest rates.

How is the monthly repayment calculated?

Monthly repayment = P × r(1+r)^n ÷ ((1+r)^n − 1), where P = loan amount, r = monthly interest rate (annual rate ÷ 12), n = total months.