New NZBA data shows rising lending, resilient first‑home buyers, and cautious savers
New Zealand’s home loan market ended 2025 on a stronger footing, with first‑home buyers firmly in the mix and many borrowers getting ahead on their mortgages, according to the New Zealand Banking Association’s latest retail banking insights.
Total new home lending in the six months to December rose 17.5% compared with the first half of the year, with 70,811 new home loans written, up from 60,249. Almost a quarter of these – 24.4% – went to first‑home buyers, a similar share to the previous six months, even as the average first‑home buyer loan size climbed 3.4% to $524,850.
NZBA chief executive Roger Beaumont said the figures challenge the idea that new entrants are locked out.
“A few years ago, first-home buyers were widely reported as being locked out of the housing market. It’s encouraging to see first-home buyers taking advantage of the current housing market and cheaper loans compared to the post‑COVID highs,” Beaumont said.
The average value of all new home loans edged down 3% to $392,519, suggesting some buyers are targeting more affordable stock or trimming borrowing capacity as mortgage rates sit higher than pre‑COVID levels.
More borrowers ahead on repayments, arrears contained
The NZBA data also point to improving household buffers. By the end of 2025, 42.9% of home loan customers were paying more than the minimum required, up from 40.3% in the prior period, while just 1.4% were behind on repayments, broadly unchanged.
Beaumont said this illustrates a solid level of money management.
“The fact that over 40% of people with a home loan are ahead on their repayments shows a high level of financial capability among New Zealand homeowners. Managing your money well, especially during a time of economic challenges, is a great skill to have,” he said.
Banks granted hardship status to 6,158 customers over the half, an 8.3% decline, even as applications rose modestly. That suggests proactive support and refinancing options are still in play for stressed borrowers.
Fixed‑rate tilt and digital shift reshape broker conversations
Rate‑mix data underline a clear preference for certainty. At December, 60.7% of home loans were on fixed rates only, 17.7% on variable and 21.6% on a mix. Nearly 18% of loans moved from variable to fixed over the half, a shift Beaumont said “may reflect a recognition that interest rates were becoming less likely to fall further as economic conditions changed.”
At the same time, nearly 80% of bank customers are now registered for online or mobile banking, with just 1.7% of all transactions going through ATMs.
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