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.

Average floating and two year fixed mortgage rates offered to new customers for residential home loans. Data is available from 1964.

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.

In 2024, the average weekly household expenditure on mortgage repayments in New Zealand came to around *** New Zealand dollars. This marked a signficant rise in average weekly mortgage repayment expenditure from the previous year.

Mortgage credit interest rate, percent in New Zealand, November, 2025 The most recent value is 5.4 percent as of November 2025, a decline compared to the previous value of 5.41 percent. Historically, the average for New Zealand from December 2004 to November 2025 is 6.38 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

This report analyses mortgage affordability in New Zealand, which is presented as the proportion of a household's monthly earnings left over after a mortgage repayment. This is calculated using the average monthly repayment for a standard 30-year loan on the median house price with a 20% deposit. An increase in the percentage indicates the average mortgage becoming more affordable for households. The data for this report is calculated from information sourced from Statistics New Zealand (Tatauranga Aotearoa) and the Reserve Bank of New Zealand (Te Putea Matua) and is presented as a percentage of average household earnings.

Key information about New Zealand Long Term Interest Rate

• New Zealand Government Bond Yield: 10 Years was reported at 4.33 % pa in Feb 2026, compared with 4.61 % pa in the previous month.
• New Zealand Long Term Interest Rate data is updated monthly, available from Jan 1985 to Feb 2026.
• The data reached an all-time high of 18.90 % pa in Mar 1986 and a record low of 0.51 % 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 2.45 % pa in Nov 2025.
• The cash rate (Policy Rate: Month End: New Zealand: Official Cash Rate) was set at 2.25 % pa in Nov 2025.
• New Zealand Exchange Rate against USD averaged 1.73 (USD/NZD) in Oct 2025.

Mortgage credit, billion currency units in New Zealand, December, 2025 The most recent value is 284.9 billion New Zealand Dollar as of December 2025, an increase compared to the previous value of 283.49 billion New Zealand Dollar. Historically, the average for New Zealand from December 2016 to December 2025 is 223.6 billion New Zealand Dollar. The minimum of 162.46 billion New Zealand Dollar was recorded in December 2016, while the maximum of 284.9 billion New Zealand Dollar was reached in December 2025. | TheGlobalEconomy.com

New Zealand Household Economic Survey: Average Weekly Household Expenditure: Others Expenditure: Interest Payment: Mortgage data was reported at 95.000 NZD in 2016. This records an increase from the previous number of 73.200 NZD for 2013. New Zealand Household Economic Survey: Average Weekly Household Expenditure: Others Expenditure: Interest Payment: Mortgage data is updated yearly, averaging 71.150 NZD from Jun 2001 (Median) to 2016, with 6 observations. The data reached an all-time high of 95.000 NZD in 2016 and a record low of 61.400 NZD in 2010. New Zealand Household Economic Survey: Average Weekly Household Expenditure: Others Expenditure: Interest Payment: Mortgage data remains active status in CEIC and is reported by Statistics New Zealand. The data is categorized under Global Database’s New Zealand – Table NZ.H010: Household Economic Survey: Average Weekly Household Expenditure.

The benchmark interest rate in New Zealand was last recorded at 2.25 percent. This dataset provides - New Zealand Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

As of September 2023, the average home deposit for first-time buyers who had to pay a ** percent deposit in Auckland, New Zealand was ****** New Zealand dollars. For buyers who had to pay a ** percent deposit for a house in Auckland, the average was ******* New Zealand dollars.

Driven by mortgage lending as their largest revenue stream, New Zealand’s banks have maintained robust revenues despite cooling property prices between 2022-23 and 2023-24. The RBNZ's rate hikes from 0.25% in 2020-21 to an average of 5.48% in 2023-24 boosted mortgage interest income. While foreign investment and tight inventories keep real estate prices afloat, technology upgrades and regulations add cost pressures for major banks, squeezing profit margins. After falling over the three years through 2021-22, resulting from low interest rates and reduced mortgage revenue, banks found growth through 2024-25, with heightened interest rates raising mortgage revenue. However, a drop-off is expected in 2025-26 as rates fall again. Overall, industry revenue has risen at an annualised 9.3% over the past five years and is expected to total $37.5 billion in 2025-26, when revenue is estimated to drop by 18.4%. Beyond mortgages, banks face challenges from shifting agricultural lending and evolving regulations like the Deposit Takers Act and the CoFI legislation. Dairy price volatility, land-use changes and more rigorous oversight have subdued traditional farm loan activity. In response, major banks – ANZ, ASB, BNZ and Westpac – are modernising their operations with machine learning, enhanced cybersecurity, fintech developments and updated banking apps. These initiatives aim to elevate customer engagement and ensure compliance, but also increase costs and complexity. Looking ahead, reduced capital requirements will increase competition from smaller banks, while open banking regulations are likely to spur data-sharing and fintech collaborations. Institutions are accelerating investments in cloud systems and analytics for greater efficiency and resilience. Simultaneously, sustainability commitments grow, driving innovative loan products and improving public trust. Although margins remain tight and interest-rate volatility persists, banks that balance prudent lending with technological and sustainable strategies are poised for a moderate recovery. Industry revenue is projected to climb at an annualised 2.4% through 2030-31, reaching $42.1 billion.

The price of residential property in New Zealand was the highest in the Auckland region in October 2025, with an average sale price of over *** million New Zealand dollars. The most populated city in the country, Auckland, has consistently reported higher house prices compared to most other regions. Buying property in New Zealand, particularly in its major cities, is expensive. The nation has one of the highest house-price-to-income ratios in the world. Auckland residential market The residential housing market in Auckland is competitive. Prices have been slowly decreasing although the Auckland region experienced an annual increase in the average residential house price in October 2025 compared to the same month in the previous year. The price of residential property in Auckland was the highest in the Auckland City district, with an average sale price of around **** million New Zealand dollars. Home financing Due to the rising cost of real estate, an increasing number of New Zealanders who want to own their own property are taking on mortgages. Most residential mortgage lending in New Zealand went to owner-occupier borrowers, followed by first home buyers. In addition to mortgage lending, previously under the KiwiSaver HomeStart initiative, first-home buyers in New Zealand were able to apply to withdraw all or part of their KiwiSaver retirement savings to assist with purchasing a first home. Nonetheless, the scheme was discontinued in May 2024. Furthermore, even with a large initial deposit, it may take decades for many borrowers to pay off their mortgage.

New Zealand has one of the highest house price-to-income ratios in the world; nonetheless, since the first quarter of 2022, the country's house price-to-income ratio started to trend downward. In the first quarter of 2025, the ratio was *****, a decrease from the same quarter of the previous year. This ratio was calculated by dividing nominal house prices by nominal disposable income per head, and is considered a measure of affordability. Homeownership dream New Zealand has been in what is widely considered a housing bubble. The disproportionately large increases in residential house prices have placed the dream of owning their own home out of reach for many in the country. In 2025, around ** percent of residential properties were sold for over a million New Zealand dollars. The majority of mortgage lending in the country went to owner-occupiers where the property was not their first home, with first-home buyers often struggling to secure a loan. In general, only New Zealand residents and citizens can buy homes in the country to live in, with new regulations tightening investment activity in that market. Rent affordability Due to New Zealand's high property prices, many individuals and families are stuck renting for prolonged periods. However, with rent prices increasing across the country and the share of monthly income spent on rent trending upwards in tandem with a highly competitive rental market, renting is becoming a less appealing prospect for many. The Auckland and Bay of Plenty regions had the highest weekly rent prices across the country as of December 2024, with the Southland region recording the lowest rent prices per week.

Portugal, Canada, and the Netherlands were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 114.8 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.