As of December 2024, the average interest rate for a new standard 1-year residential mortgage in New Zealand was 6.3 percent. In comparison, the average 5-year interest rate for a residential mortgage was 6.15 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.

The real interest rate in New Zealand decreased by 2.8 percentage points (-254.55 percent) in 2018 in comparison to the previous year. As a result, the real interest rate in New Zealand saw its lowest number in 2018 with -1.72 percent. Real interest rate is the lending interest rate adjusted for inflation as measured by the GDP deflator.Find more statistics on other topics about New Zealand with key insights such as market capitalization of listed domestic companies.

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 December 2024, the value of mortgage lending to owner-occupier borrowers (excluding first-home buyers) in New Zealand amounted to around 4.73 billion New Zealand dollars. Residential lending to investors was approximately 1.69 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 1.6 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 3.17 percent, with this rate rising to over 7.7 percent by December 2023. Nonetheless, mortgage rates showed signs of leveling out at the end of 2023, and began declining in 2024.

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.

New Zealand SME Overdraft Rate data was reported at 9.420 % pa in Nov 2018. This records an increase from the previous number of 9.340 % pa for Oct 2018. New Zealand SME Overdraft Rate data is updated monthly, averaging 10.020 % pa from Jul 1988 (Median) to Nov 2018, with 365 observations. The data reached an all-time high of 16.020 % pa in Jul 1988 and a record low of 7.500 % pa in Sep 1999. New Zealand SME Overdraft Rate data remains active status in CEIC and is reported by Reserve Bank of New Zealand. The data is categorized under Global Database’s New Zealand – Table NZ.M004: Mortgage, Lending and Deposit Rates. Previously known as Business Base Lending Rate (BBLR). This interest rate series is for overdrafts to non-farm SME businesses, and the relabeling better reflects the loan products being surveyed. The underlying data for the SME overdraft rate is unchanged from that collected for the BBLR.

The Real Estate Services industry has faced mixed conditions over recent years. Despite the recent improvement in housing supply and the piling up of inventory, prices remain elevated relative to pre-pandemic levels, offsetting revenue declines for real estate agents. A demand-supply imbalance led to historically high housing prices in 2021-22, though tighter loan-to-value ratio (LVR) regulations and heightened interest rates curbed real estate activity and weakened prices over the two years through 2023-24. The bright-line test extension in 2021 cooled speculative investment, diminishing property investors' interest. Residential property transactions plunged in 2022-23 as cost-of-living pressures and soaring borrowing expenses weighed on mortgage affordability. As inflation moderates and the official cash rate has come down since August 2024, sales volumes and demand will pick up. That's why revenue is forecast to climb 2.8% in 2024-25. However, a plunge in property transactions is why revenue is expected to have dipped at an annualised 0.4% over the five years through 2024-25 to $6.2 billion. The commercial market has faced shifting tenant preferences, particularly around remote work arrangements, contributing to elevated office vacancy rates. Nonetheless, booming demand for industrial space and interest in green buildings has yielded new opportunities. Concurrently, the widespread adoption of artificial intelligence has boosted operational efficiency for many real estate agencies, underpinning growth in their profit margins and alleviating some wage pressures. The Coalition government’s reinstatement of 80% interest deductibility for residential investment properties in April 2024, with a plan to reach 100% by April 2025, alongside the rollback of the bright-line test from 10 to 2 years, will spur investor activity and escalate property prices. These policy changes will entice property investors, expanding this market's revenue share over the coming years and benefiting real estate agencies. Consecutive cuts to the official cash rate to counter subdued economic activity will strengthen mortgage affordability and promote a resurgence in the residential property market. However, an expanding housing supply – aided by funding for social housing units and relaxed planning restrictions – will temper price escalation and slow agencies' commission growth over the coming years. Rising competition among real estate agencies and the continued adoption of digital tools, from big data analytics to advanced customer management solutions, will intensify market dynamics, creating opportunities and challenges for prospective and existing agents. Overall, revenue is forecast to climb at an annualised 2.2% over the five years through 2029-30 to $6.9 billion.