Over the past few years, the mortgage and housing markets in NZ have been on a wild ride. As the Official Cash Rate was slashed to a record low of 0.25%, mortgage interest rates slumped. In the opposite direction, house prices surged as the market became awash with cheap money and, as a result, home loan lending peaked.
But, oh, what a difference inflation can make. The OCR now stands at 5.5% and the average one-year fixed rate for owner-occupiers on Canstar’s mortgage database is 7.2%, whereas three years ago, back in 2021, it was around 2.5%.
→ Related article: Lowest Mortgage Rates in NZ
As mortgage rates have peaked, the housing market has cooled considerably. At the height of the market, in November 2021, according to REINZ, the median national house price was $925k. It’s now $790k, a 15% drop. And although Auckland median prices have risen slightly over the past year, up 6.1% to $1,050,000, they are still down 19% from their peak at the end of 2021: $1.3m.
But, overall, the property market coming off the boil has been a good thing. For despite higher mortgage rates, so far this year total mortgage lending is up 37% on the same time last year. While the total number of new mortgages issued is up 30%, from 12,084 to 15,722.
However, despite mortgage lending rising by around a third, the increase in the size of the average NZ mortgage has been a lot less pronounced. Over the past year, the size of first home buyers’ mortgages has dropped slightly, while owner-occupier home loans have increased by around 5%:
- Average first home buyer mortgage: $554,629
- Average owner-occupier mortgage: $309,266
In this article:
Total Home Loan Borrowing
| Total lending ($million) | April 2022 | April 2023 | April 2024 (YoY%) |
|---|---|---|---|
| All borrower types | $5664 | $4330 | $5927 (37%) |
| First home buyers | $1058 | $1049 | $1264 (20%) |
| Other owner-occupiers | $3551 | $2494 | $3401 (36%) |
| Investors | $983 | $718 | $1182 (65%) |
| Business purposes | $72 | $69 | $80 (16%) |
| Higher than 80% LVR lending ($million) | |||
| All borrower types | $414 | $434 | $569 (31%) |
| First home buyers | $280 | $337 | $452 (34%) |
| Other owner-occupiers | $121 | $91 | $105 (15%) |
| Investors | $10 | $6 | $11 (83%) |
| Business purposes | $3 | $0 | $1 (-%) |
| Less than or equal to 80% LVR lending ($million) | |||
| All borrower types | $5250 | $3896 | $5358 (38%) |
| First home buyers | $778 | $712 | $812 (14%) |
| Other owner-occupiers | $3430 | $2403 | $3295 (37%) |
| Investors | $973 | $712 | $1171 (64%) |
| Business purposes | $69 | $69 | $80 (16%) |
First Home Buyer Loan Rates
If you’re currently considering a home loan, the table below displays some of the 2-year fixed-rate home loans on our database (some may have links to lenders’ websites) that are available for first home buyers. This table is sorted by Star Rating (highest to lowest), followed by company name (alphabetical). Products shown are principal and interest home loans available for a loan amount of $500K in Auckland. Before committing to a particular home loan product, check upfront with your lender and read the applicable loan documentation to confirm whether the terms of the loan meet your needs and repayment capacity. Use Canstar’s home loan selector to view a wider range of home loan products. Canstar may earn a fee for referrals.
Number of Home Loan Borrowers
If you disregard business purposes, the increase in the dollar value of total mortgage lending has moved roughly in step with the number of new mortgages issued. It’s interesting to note the strength of investor lending:
| Total No. Borrowers | April 2022 | April 2023 | April 2024 (YoY%) |
|---|---|---|---|
| All borrower types | 13,939 | 12,084 | 15,722 (30%) |
| First home buyers | 1789 | 1883 | 2279 (21%) |
| Other owner-occupiers | 10,125 | 8488 | 10,997 (30%) |
| Investors | 1817 | 1518 | 2169 (43%) |
| Business purposes | 208 | 195 | 277 (42%) |
| Higher than 80% LVR lending | |||
| All borrower types | 607 | 704 | 936 (33%) |
| First home buyers | 414 | 546 | 710 (30%) |
| Other owner-occupiers | 178 | 147 | 204 (39%) |
| Investors | 13 | 11 | 15 (36%) |
| Business purposes | 2 | 0 | 7 (-%) |
| Less than or equal to 80% LVR lending | |||
| All borrower types | 13,332 | 11,380 | 14,786 (30%) |
| First home buyers | 1375 | 1337 | 1569 (17%) |
| Other owner-occupiers | 9947 | 8341 | 10,793 (29%) |
| Investors | 1804 | 1507 | 2154 (43%) |
| Business purposes | 206 | 195 | 270 (38%) |
Average Home Loan Borrowing
| Average Mortgage | April 2022 | April 2023 | April 2024 (YoY%) |
|---|---|---|---|
| All borrower types | $406,342 | $358,325 | $376,988 (5.2%) |
| First home buyers | $591,392 | $557,090 | $554,629 (-0.4%) |
| Other owner-occupiers | $350,716 | $293,827 | $309,266 (5.3%) |
| Investors | $541,002 | $472,991 | $544,952 (15%) |
| Business Purposes | $346,154 | $353,846 | $288,809 (-18%) |
| Higher than 80% LVR lending ($million) | |||
| All borrower types | $682,043 | $616,477 | $607,906 (-1.4%) |
| First home buyers | $676,329 | $617,216 | $636,620 (3.1%) |
| Other owner-occupiers | $679,775 | $619,048 | $514,706 (-16%) |
| Investors | $769,231 | $545,455 | $733,333 (34.4%) |
| Business Purposes | $1.5m | $- | $142,857 (-%) |
| Less than or equal to 80% LVR lending ($million) | |||
| All borrower types | $393,789 | $342,355 | $362,370 (5.8%) |
| First home buyers | $565,818 | $532,536 | $517,527 (-2.8%) |
| Other owner-occupiers | $344,828 | $288,095 | $305,290 (6%) |
| Investors | $539,357 | $472,462 | $543,640 (15%) |
| Business Purposes | $334,951 | $353,846 | $296,296 (-16%) |
Average Home Loan Repayments
By feeding the above figures into Canstar’s home loan repayment calculator, you can see the monthly repayments needed to service the mortgages.
The following calculations are for a loan repayment on principal and interest, paid monthly over 25 years, using the average 1-year fixed rates on Canstar’s database for residential mortgages (7.2%) and investor lending (7.45%).
Approx monthly repayments on an average new home loans
| Lender | Average mortgage/repayments |
|---|---|
| All borrower types | $376,988 – $2713/m |
| First home buyers | $554,629 – $3991/m |
| Other owner-occupiers | $309,266 – $2225/m |
| Investors | $544,952 – $4009/m |
So, if you’re looking to buy a property, how does your possible mortgage compare with the current averages, and what type of rate is your lender offering?
For example, on Canstar’s comparison tool, 1-year fixed rates start at 6.79% and top out at 8.09%. So for canny consumers who are prepared to do their homework and search out the lowest mortgage rates, there are still savings to be made.
Compare with Canstar for the Cheapest Mortgage Rates
But while the cheapest interest rates are important. When looking for the best mortgage, you do need to look at more than just interest charges. When Canstar compares and rates mortgages and mortgage lenders, our expert researchers look at each home loan and awards points for the array of features it offers and its comparative price, which includes rates and fees.
The best products then receive our 5-Star Ratings for Outstanding Value. We place a lot of importance on our ratings, which is why the comparison grids below are sorted first by Star Rating, highest to lowest. However, if you want to compare by lowest rates instead, just click through to access our full mortgage rate comparison tables.
Best Mortgage Rates for Refinancing
The table below displays some of the 2-year fixed-rate home loans on our database (some may have links to lenders’ websites) that are available for home owners looking to refinance. This table is sorted by Star Rating (highest to lowest), followed by company name (alphabetical). Products shown are principal and interest home loans available for a loan amount of $500K in Auckland. Before committing to a particular home loan product, check upfront with your lender and read the applicable loan documentation to confirm whether the terms of the loan meet your needs and repayment capacity. Use Canstar’s home loan selector to view a wider range of home loan products. Canstar may earn a fee for referrals.
Compare Cheapest Home Loan Rates
About the author of this page
This report was written by Canstar’s Editor, Bruce Pitchers. Bruce has three decades’ experience as a journalist and has worked for major media companies in the UK and Australasia, including ACP, Bauer Media Group, Fairfax, Pacific Magazines, News Corp and TVNZ. Prior to Canstar, he worked as a freelancer, including for The Australian Financial Review, the NZ Financial Markets Authority, and for real estate companies on both sides of the Tasman.
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