What income do I need to buy an $800,000 house in New Zealand?

Short answer: You need to earn at least $103,000–$120,000 a year for a $720,000 loan.

What this actually means in plain English

To buy an $800,000 house with a 10% deposit ($80,000), you need to borrow $720,000. At 6 times your income, you need to earn $120,000 a year. At 7 times, you need $103,000. The bank also checks you can afford the weekly repayments, which are about $1,000/week on $720,000.

Key Facts

With 10% deposit on $800,000, you borrow $720,000
At 6× DTI: need $120,000 income ($720,000 / 6)
At 7× DTI: need $103,000 income ($720,000 / 7)
Weekly repayments on $720,000 at 6.5% are about $1,000/week
You need $80,000 saved for the deposit plus $8,000–$10,000 for fees
This is a stretch for most single-income first-home buyers

Example

Setup: James and Priya want to buy an $800,000 house in Auckland.

Incomes: James earns $75,000. Priya earns $65,000. Combined: $140,000.

Deposit: They have $90,000 saved (just over 10%).

Loan: They borrow $720,000.

Dti: $720,000 / $140,000 = 5.1×. Under the 6× cap.

Repayments: $1,000/week. After tax: $2,100/week combined.

Bills: They pay $500 in other bills (cars, insurance, food).

Leftover: $2,100 - $500 - $1,000 = $600 buffer. Bank approves.

Conclusion: They can afford it, but they will be tight for the first few years.

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