Finsure NZ's Jenny Campbell on why now is the moment advisers must act
New Zealand's rental market is tightening again, and mortgage advisers may have a compelling conversation to start with prospective buyers.
Jenny Campbell (pictured), country manager at Finsure NZ, says the trend reinforces the cost of sitting on the fence.
"Renters have had little relief in recent years, and the latest increase is a reminder that waiting on the sidelines to buy can be costly," Campbell said.
The comments follow the Reserve Bank's decision to hold the official cash rate at 2.25% at its May meeting. The hold follows an extended easing cycle that has brought borrowing costs down sharply over the past 18 months, with the RBNZ cutting the OCR multiple times since August 2024, bringing it down from 5.5% to its current 2.25%.
Buyer conditions remain favourable despite April dip
On the property side, conditions continue to favour purchasers in much of the country.
Borrower behaviour reflects a market in transition. The two-year fixed rate is now the most popular term at 29% of new lending, with more than 50% of new loans fixed for longer than 12 months — up from around 20% late last year.
Campbell, however, urges advisers not to mistake activity for affordability.
"Falling or flat prices do not automatically make a home affordable, but they can give buyers more time, more choice and more room to negotiate," she said. "That is where advisers can add enormous value — by helping customers understand borrowing capacity, deposit pathways, loan structure and the trade-offs between continuing to rent and buying sooner."
Existing borrowers need attention too
Campbell is equally focused on the pressure building among current homeowners. With global uncertainty and cost-of-living stress continuing to weigh on household finances, she is urging advisers not to wait for clients to raise concerns.
Recent Centrix data underscores the point. Consumer arrears have eased to 11.72% from 12.09% in February, but 95,000 consumers remain more than 90 days overdue and mortgage-related hardship cases still account for the largest share at 37%.
"With global uncertainty, cost-of-living pressures and changing interest rate expectations, advisers should be contacting customers now — not waiting for them to ask for help," Campbell said.
Others may feel locked into arrangements that no longer suit their circumstances — particularly where income, property value or serviceability has shifted since the loan was first taken out. A proactive review of rates, repayment structures, refixing options and refinancing prospects could be the difference between a client staying on top of their finances and falling behind.
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