Despite rising interest rates, over 42.9% of home loan customers in New Zealand have managed to stay ahead on their mortgage repayments. This trend reflects a growing financial capability among Kiwis as they navigate economic challenges.
In the last six months of 2025, only 1.4% of home loans fell behind on repayments. Roger Beaumont from the New Zealand Banking Association noted, “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.”
During this period, total home lending rose by an impressive 17.5%, with 70,811 new home loans issued. The average value of these new loans was $392,519—down by 3% from the previous period.
Interestingly, a significant portion of borrowers is opting for fixed interest rates. Currently, around 60% of loans are fixed, while about 17.7% are on variable rates. This choice may provide stability for homeowners as they face fluctuating market conditions.
However, challenges remain. Mortgage stress has increased to 26.8% among mortgage holders as of March 2026. The Reserve Bank’s decision to raise interest rates twice earlier in the year contributed to this rise in stress levels.
Beaumont emphasized the importance of managing finances well during such challenging times: “Managing your money well, especially during a time of economic challenges, is a great skill to have.” This sentiment resonates with many first-home buyers who feel the pressure but continue to strive for financial stability.
The financial landscape continues to evolve, and while many Kiwis demonstrate resilience in their mortgage repayments, economic uncertainties persist. Observers note that household income and employment stability will play crucial roles in determining how borrowers fare in the coming months.
