Despite rising interest rates, more Kiwis are managing to stay ahead on their mortgage repayments. 42.9% of home loan customers were paying more than their minimum repayments in the last six months of 2025.
The New Zealand Banking Association reported that 1.4% of home loans were behind on repayments during this period. This indicates a strong financial capability among many homeowners.
In the last six months of 2025, total home lending rose by 17.5%, with 70,811 new home loans issued. The average value of these new loans was $392,519, which is a decrease of 3% from the previous period.
Roger Beaumont from the New Zealand Banking Association stated, “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.” He emphasized the importance of managing finances well during economic challenges.
However, mortgage stress has risen to 26.8% of mortgage holders as of March 2026. This increase correlates with the Reserve Bank’s decision to raise interest rates by +0.25% in February and March.
Key statistics:
- 42.9% of home loan customers paid more than minimum repayments
- 1.4% of home loans were behind on repayments
- Total home lending rose by 17.5%
- Average value of new home loans was $392,519
- Mortgage stress increased to 26.8%
Jeremy Andrews noted that household income is crucial in determining whether borrowers fall into the ‘At Risk’ category. Employment levels directly influence this aspect.
