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Where will DTIs have the biggest impact?

The impact also depends on where you live.

In places like Waitomo and Wairoa districts, house prices are relatively low compared with local incomes. The estimated DTI for someone buying the average property is less than 3x.

In Queenstown-Lakes and Thames-Coromandel, it’s a different story. House prices are much higher compared with incomes.

That means there’s more scope for DTIs to constrain buyers in these markets.

Here’s a map of the country, so you can see the estimated DTI in your area:

Give it to me straight: How much do I need to worry about DTIs as an investor?

Investors used to be much more likely to borrow at high DTIs.

At the peak in 2021, almost 40% of investor lending was at a high DTI, compared with around 25% for owner-occupiers.

That gap has almost disappeared.

In July 2026, 12.7% of investor lending was at a high DTI, compared with 10.3% for owner-occupiers.

So, investors are still slightly more likely to borrow at high DTIs, but the difference between investors and homeowners is nowhere near as large as it once was.

Will house prices still go up with DTIs?

Yes, house prices can still go up with DTIs in place. 

That’s because DTIs tie borrowing to incomes.

Let's say, hypothetically, every Kiwi had borrowed right up to their DTI limit.

To borrow more, their incomes would need to rise.

If incomes rise 4%, borrowing capacity can rise too. So house prices could still increase … purely from a lending perspective.

But New Zealand isn’t at that point. Many borrowers are still below the DTI limits, so there’s still capacity for lending to increase.

We can also see this overseas.

Ireland, Latvia and Norway all introduced DTI restrictions years ago. House prices have continued to rise since.

In Ireland, they’ve almost doubled. 

That doesn’t mean DTIs have no impact on house prices.

Even the Reserve Bank says the international evidence is mixed. Some studies find a significant impact, while others find little to no impact.

But DTIs don’t seem to put a ceiling on house prices.

How will DTIs impact me?

DTIs won’t impact every investor the same way.

If you already have a lot of debt compared with your income, they could limit how much more you can borrow. For others, bank servicing rules may still kick in first.

So, run your numbers through Opes+, then talk to your mortgage broker to find out what’s actually limiting you.

And remember, New Build lending is exempt from the DTI restrictions. So if DTIs are holding you back from buying an existing property, a New Build may still be an option.

Ed solo

Ed McKnight

Resident Economist, with a GradDipEcon and over five years at Opes Partners, is a trusted contributor to NZ Property Investor, Informed Investor, Stuff, Business Desk, and OneRoof.

Ed, our Resident Economist, is equipped with a GradDipEcon, a GradCertStratMgmt, BMus, and over five years of experience as Opes Partners' economist. His expertise in economics has led him to contribute articles to reputable publications like NZ Property Investor, Informed Investor, OneRoof, Stuff, and Business Desk. You might have also seen him share his insights on television programs such as The Project and Breakfast.

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Ok, now for the legal bit:

This article is for your general information. It’s not financial advice. See here for details about our Financial Advice Provider Disclosure. So Opes isn’t telling you what to do with your own money. 

We’ve made every effort to make sure the information is accurate. But we occasionally get the odd fact wrong. Make sure you do your own research or talk to a financial adviser before making any investment decisions.

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