Property investment guide
How much deposit
do you need for an
investment property in NZ?
RS
Remy Sandoy
Investment Finance Advisor
Reviewed by: [TBC, confirm after build]
General information, not financial advice
On this page
On a qualifying new build, banks often look for a deposit of around 20%. That’s because new builds are exempt from the Reserve Bank’s investor lending limits. On an existing property, the deposit required is usually around 30%.
The deposit can come from cash, from the equity in a home you already own, or from both. It's one of the first things to sort out when working through how to buy an investment property in NZ. This page explains where the numbers come from, why a bank may ask for more, and what else it checks.
Minimum deposit for an investment property: the Reserve Bank’s rules
LVR stands for loan-to-value ratio. It’s the loan as a share of the property’s value. A $560,000 loan on an $800,000 property is a 70% LVR.
Since 1 December 2025, banks can make up to 10% of their new investor lending above 70% LVR (RBNZ). That’s why the minimum deposit for an existing investment property is usually around 30%.
The limit applies to each bank’s lending as a whole, not to each borrower. Some investor loans above 70% do get approved, and each bank decides which ones.
Owner-occupiers have a higher threshold. Banks can make up to 25% of their new owner-occupier lending above 80% LVR (RBNZ, from 1 December 2025). The Reserve Bank sets a lower threshold for investors because it considers investor lending carries more risk.
Buyer | LVR threshold | Share of new lending allowed above it | Usual deposit |
|---|---|---|---|
Investor, qualifying new build | Exempt | Not limited by RBNZ | Set by each bank, often around 20% |
Investor, existing property | 70% | Up to 10% | Around 30% |
Owner-occupier | 80% | Up to 25% | Around 20% |
RBNZ settings from 1 December 2025.
Why your bank may ask for a bigger deposit
The Reserve Bank's settings are a limit on banks, not a promise to borrowers. Banks apply their own lending criteria. That means the deposit required for an investment property in NZ can end up higher than the RBNZ threshold. A bank looks at three things:
Property type. Small apartments, units below a set floor area, leasehold titles, lifestyle blocks and homes needing major repairs can attract tighter lending.
Location. Banks may lend less against property in smaller towns or areas with fewer sales.
Your overall position. Income, existing debt, other properties and credit history all affect how much a bank is comfortable lending.
Policies differ between banks and change over time, so two banks can ask for different deposits on the same purchase. A bank can also change its answer between pre-approval and purchase, once it has valued the actual property.
If a bank does lend above 70% on an existing property, it usually costs more. Banks often add a low-equity margin to the interest rate, or charge a one-off low-equity fee. Each bank sets its own.
Reality check
The 30% figure is where the conversation starts, not where it ends.
The new build exemption
The LVR restrictions don’t apply to lending to build a new home. They also don’t apply to buying a newly built home from the developer within six months of its completion (RBNZ).
That doesn't mean there's no deposit. Banks set their own requirements for new builds, often around 20%, and these vary by bank, property and borrower.
A home bought more than six months after completion, or not bought from the developer, generally falls under the standard investor rules. Your solicitor and adviser can confirm how a specific property is treated.
Where the deposit can come from
Cash savings. Money in the bank, ready at settlement.
Equity. Equity is the share of a property’s value you own outright. A bank can release part of the equity in your home as a top-up or separate loan, and that becomes the deposit. See how home equity works for the full calculation.
A mix of both. Cash combined with released equity.
KiwiSaver can’t be used. The first-home withdrawal only applies to a home you intend to live in (IRD).
Using equity doesn’t reduce the deposit. It changes where the money comes from, and the borrowing released from your home counts toward your total debt.
Worked example: deposit required for an investment property
Here's how the deposit changes between a qualifying new build and an existing property at the same price.
Price | Qualifying new build | Existing property |
|---|---|---|
Purchase price | $800,000 | $800,000 |
Deposit | $160,000 (20%) | $240,000 (30%) |
Loan | $640,000 | $560,000 |
LVR | 80% | 70% |
The existing property needs $80,000 more deposit. The difference comes from the Reserve Bank's investor threshold. It applies to the existing property but not the qualifying new build (RBNZ, from 1 December 2025). The new build deposit reflects a typical bank requirement.
Illustrative figures only. Individual lenders apply their own criteria.
The deposit is only one part of the picture
Having the deposit doesn't mean a bank will lend. The bank also looks at your income and total debt.
Banks test repayments at a higher interest rate than you'd actually pay. They count only part of the expected rent as income, and they apply the Reserve Bank's debt-to-income limits. Step 1 of our guide to buying an investment property explains how.
Reality check
The deposit gets an application started. Income and existing debt decide how far it goes.
Frequently asked questions
Equity is a common alternative to cash. The deposit required stays the same. Only the source changes.
It can be. The Reserve Bank's investor threshold doesn't apply to a qualifying new build. The deposit comes down to the bank's own policy, often around 20%.
On a qualifying new build, banks often accept around 20%, depending on their policy. On an existing property, a 20% deposit puts the loan above the 70% investor threshold. It would need to fit within the bank's limited allowance for high-LVR investor lending, and it usually costs more.
The Reserve Bank's LVR restrictions apply to New Zealand registered banks (RBNZ). Non-bank lenders set their own lending criteria and pricing.
Disclaimer
This page is general information only. It isn't financial advice, and it doesn't take account of your goals, financial situation or needs. For advice on your own situation, speak with one of our advisers.
We've taken real care to get this right, but lending rules and tax settings change, and the odd detail can slip through. Check the current position, and talk to a financial adviser, solicitor or accountant before making any investment decision. See our disclosure information.
Keep reading
Where this sits in the bigger picture
GUIDE
How to buy an investment property in NZ
The seven steps, from checking the numbers to settlement.
Guide
How home equity works
The full usable equity calculation, and how the lending is arranged.
LVR calculator
CALCULATOR
See how a deposit translates to a loan-to-value ratio.