What income do I need to buy a $600,000 house in New Zealand?

Short answer: You need to earn at least $90,000 a year for a $540,000 loan. More is safer.

What this actually means in plain English

To buy a $600,000 house with a 10% deposit ($60,000), you need to borrow $540,000. Most banks want your total debt to be under 6 times your yearly income. So you need to earn at least $90,000 a year. But the bank also checks if you can afford the weekly repayments, so a higher income is safer.

Key Facts

With 10% deposit on a $600,000 house, you borrow $540,000
At 6× DTI, you need $90,000 yearly income ($540,000 / 6)
At 7× DTI (some investors), you need $77,000 ($540,000 / 7)
Weekly repayments on $540,000 at 6.5% are about $750/week
Banks check you can afford this after all other bills
Two incomes are added together — a couple earning $50,000 each qualifies

Example

Setup: Lisa earns $85,000. Her partner earns $55,000. Combined: $140,000.

Deposit: They have $60,000 saved (10% of $600,000).

Loan: They borrow $540,000.

Dti: $540,000 / $140,000 = 3.9×. Well under the 6× cap.

Repayments: $750/week. After tax, they take home $2,100/week combined.

Bills: They pay $400 in other bills.

Leftover: $1,700 - $400 - $750 = $550 buffer. The bank approves easily.

Conclusion: They could actually afford a more expensive house if they wanted.

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