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Guide

Guide to debt-to-income rules in New Zealand.

Debt-to-income (DTI) rules are one of the fastest ways a property plan can move from “looks fine” to “bank says no.” This guide explains the basics and links through to Stackhold’s free DTI calculator.

What DTI means

Debt-to-income compares total lending against qualifying income. A 6x DTI means the borrower has six dollars of debt for every dollar of annual income the lender accepts.

Why investors feel it first

Investors often carry multiple loans, rental income haircuts, vacancies, and higher test rates. That makes DTI headroom disappear before cashflow looks uncomfortable.

What to model before applying

  • Total debt across owner-occupied and investment lending.
  • Household income, rental income, and lender haircuts.
  • Stress-tested repayments, not just today’s advertised rate.
  • Deposit and LVR bands, because DTI is only one approval constraint.

Use the free DTI calculator to check a scenario, then model the full portfolio in Stackhold when you want the cashflow, LVR and 10-year forecast connected.

Important limitation

Stackhold is planning software, not financial advice. Banks apply policy differently, so confirm your situation with a broker or lender before acting.