As of December 2024, the average interest rate for a new standard 1-year residential mortgage in New Zealand was *** percent. In comparison, the average 5-year interest rate for a residential mortgage was **** percent. Average interest rates for new standard residential mortgages in the country started to trend upward from mid-2021. Rates peaked toward the end of 2023 and have begun trending downward.

In June 2025, the value of mortgage lending to owner-occupier borrowers (excluding first-home buyers) in New Zealand amounted to around **** billion New Zealand dollars. Residential lending to investors was approximately *** billion New Zealand dollars in comparison. Housing affordability in New Zealand Many people across New Zealand have discarded the homeownership dream due to the country’s unaffordable housing supply. While average residential house prices fell across some of New Zealand’s regions in 2024, first-home buyers are still largely priced out of the market due to high mortgage repayments, interest rates, and average home deposit values. The monthly residential mortgage lending value to first-home buyers in New Zealand in December 2024 came to around *** billion New Zealand dollars, marking a slight rise from the previous month. The highest monthly value of mortgage lending to first-home buyers across the country was recorded in March 2021, during a year when average residential mortgage rates were at their lowest. Where are residential mortgage interest rates heading? According to a survey conducted in May 2023, rising interest rates were the leading property market concern among New Zealanders, with over 54 percent of respondents expressing their concern. New Zealand’s average new residential mortgage interest rates were at their lowest in 2021 but have inflated greatly over the past few years. In June 2021, the average 1-year fixed interest rate for a new standard residential mortgage in New Zealand was at **** percent, with this rate rising to over *** percent by December 2023. Nonetheless, mortgage rates showed signs of leveling out at the end of 2023, and began declining in 2024.

Mortgage credit interest rate, percent in New Zealand, June, 2025 The most recent value is 5.84 percent as of June 2025, a decline compared to the previous value of 5.94 percent. Historically, the average for New Zealand from December 2004 to June 2025 is 6.39 percent. The minimum of 3.64 percent was recorded in February 2021, while the maximum of 9.81 percent was reached in April 2008. | TheGlobalEconomy.com

Key information about New Zealand Long Term Interest Rate

• New Zealand Government Bond Yield: 10 Years was reported at 4.58 % pa in Feb 2025, compared with 4.55 % pa in the previous month.
• New Zealand Long Term Interest Rate data is updated monthly, available from Jan 1985 to Feb 2025.
• The data reached an all-time high of 18.90 % pa in Mar 1986 and a record low of 0.46 % pa in Sep 2020.
• Long Term Interest Rate is reported by reported by Reserve Bank of New Zealand.

CEIC calculates monthly Long Term Interest Rate from daily 10 year Government Bond Yield. The Reserve Bank of New Zealand provides 10 year Treasury Bond Yield. Long Term Interest Rate prior to March 1985 is sourced directly from Reserve Bank of New Zealand.. The ten-year benchmark for New Zealand Government bonds with a fixed interest coupon paid semi-annually in arrears. The bonds are redeemable at par on maturity.


Related information about New Zealand Long Term Interest Rate

• In the latest reports, New Zealand Short Term Interest Rate: Month End: New Zealand: Bank Accepted Bills: 90 Days was reported at 5.71 % pa in Jun 2023.
• The cash rate (Policy Rate: Month End: New Zealand: Official Cash Rate) was set at 5.50 % pa in Jun 2023.
• New Zealand Exchange Rate against USD averaged 1.63 (USD/NZD) in Jun 2023.

In 2018, the real interest rate in New Zealand stood at ***** percent. Between 1998 and 2018, the figure dropped by **** percentage points, though the decline followed an uneven course rather than a steady trajectory.

Mortgage Interest Rate: Flexible data was reported at 6.800 % pa in 18 May 2025. This stayed constant from the previous number of 6.800 % pa for 17 May 2025. Mortgage Interest Rate: Flexible data is updated daily, averaging 8.600 % pa from Feb 2023 (Median) to 18 May 2025, with 837 observations. The data reached an all-time high of 8.750 % pa in 31 Jul 2024 and a record low of 6.800 % pa in 18 May 2025. Mortgage Interest Rate: Flexible data remains active status in CEIC and is reported by ANZ Bank New Zealand. The data is categorized under High Frequency Database’s Lending Rates – Table NZ.DL001: Mortgage Interest Rate.

This report analyses the average standard residential mortgage interest rates from registered banks for new borrowers and excludes special rates. The data is collected monthly and is the average of the standard, advertised and offered interest rate. Actual interest rates on loans can vary based on the loan-to-value ratio and the borrower's ability to service the loan. The data for this report is sourced from the Reserve Bank of New Zealand (Te Putea Matua) (RBNZ) and is presented as the average interest rate for each financial year.

The benchmark interest rate in New Zealand was last recorded at 3 percent. This dataset provides - New Zealand Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The House Construction industry plays a vital role in New Zealand's economy, meeting a need for home ownership and rental accommodation while stimulating economic growth. A shift in housing preferences towards medium-to-high-density apartments and townhouses, reflecting an escalation in house and land prices and modern lifestyle choices, is constraining the industry’s long-term performance. Changing government policies on first-home buyer grants, mortgage payment taxation and the promotion of social housing also profoundly affect the industry's performance. During the COVID-19 pandemic, the industry benefited from strong population growth, higher household savings and record-low mortgage rates. Government measures like first-home buyer stimulus, easing loan-to-value (LTV) restrictions and Housing Acceleration Fund (HAF) investments further supported growth. Still, a hike in mortgage interest rates as the Reserve Bank of New Zealand attempted to rein in inflation has choked off housing investment in recent years and slashed new dwelling consents. Given the rollercoaster that homebuilders have been on over the past five years, industry revenue is only expected to edge up at an annualised 0.3%, to $21.0 billion, over the past five years despite contracting by an estimated 2.5% in 2024-25. While some builders thrived during a 2022-23 housing boom, industry profit margins have plummeted in recent years with slumping housing investment. Many builders saw their profit shrink amid climbing input prices and supply chain disruptions, and some builders on fixed-price contracts struggled to absorb the higher input costs. Looking ahead, homebuilders face harsh conditions over the next few years, losing ground to the Multi-Unit Apartment and Townhouse Construction industry. Mounting population pressures support constructing new accommodation, and easing mortgage interest rates will encourage investment in residential building construction and are projected to drive total dwelling consents up by an annualised 2.3%. However, continued growth in house and land prices will drive investment towards medium-to-high-density dwelling options, like duplexes, townhouses, flats and apartments. In light of this, industry revenue is forecast to fall marginally at an annualised 0.2% to $20.9 billion through the end of 2029-30.