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 benchmark interest rate in New Zealand was last recorded at 3.25 percent. This dataset provides - New Zealand Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

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.

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.

Kiwi Property reported NZD250K in Interest Income for its fiscal semester ending in September of 2024. Data for Kiwi Property | KPG - Interest Income including historical, tables and charts were last updated by Trading Economics this last June in 2025.

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.

Non-banks and other financial institutions’ assets have grown relatively steadily over the past few years, but revenue has fluctuated considerably. Despite the Reserve Bank of New Zealand (RBNZ), or Te Putea Matua, easing loan-to-value ratio (LVR) lending restrictions from June 2023, major banks still grappled with high LVR lending restrictions and tight lending standards. As a result, households are turning to non-bank lenders for finance. Previously, official cash rates (OCR) were kept low, which curbed non-banks’ expansion. However, to combat inflation, the RBNZ raised the OCR to a rate not seen since October 2008. Consequently, non-bank lenders were able to expand their loan portfolios by increasing their interest expenses and capitalising on higher net interest margins. Revenue is expected to rise at an annualised 6.7% to $1.26 billion over the five years through 2023-24. In the current high-interest rate environment, non-bank lenders have been able to flourish by augmenting their spreads, bolstering their revenue and profit margins. Consequently, revenue is expected to climb by 4.4% in 2023-24 alone. However, additional competition in the industry, brought on by the arrival of fintech powerhouses like Revolut, has constrained further increases in profit margins. Larger non-banks and financiers have used acquisitions as a means to grow their market shares. For example, UDC Finance agreed to purchase the Bank of Queensland's New Zealand assets and loan book in February 2024, and MTF acquired Lending People in January 2023. As interest rates decline, technology will become increasingly vital in maintaining non-bank financial institutions' profitability and competitive edge. Integrating advanced technologies can streamline services, enhance efficiency, increase scalability and improve the precision of financial procedures, proving essential in preserving robust profit margins. Heightened regulatory capital requirements, which are set to continue, will impact registered banks and will provide non-bank lenders with more opportunities to garner a larger slice of the mortgage market. Overall, revenue is forecast to rise at an annualised 0.3% over the five years through 2028-29 to $1.28 billion.

Wide cyclical fluctuation has characterised the performance of the Multi-Unit Apartment and Townhouse Construction industry over the five years through 2024-25. Despite these ups and downs, overall revenue has remained stagnant over the period, at a total of $2.7 billion. Industry revenue peaked at a record $3.7 billion in 2021-22 and has plummeted in recent years, corresponding with the sharp correction in the number of multi-unit dwelling consents issued. The anticipated decline in industry revenue by 6.5% in 2024-25 reflects the recent hike in mortgage interest rates and the winding back of government first-home buyer stimulus. Industry profitability has climbed marginally despite contracting from the 2021-22 peak, while industry participation has maintained an upwards trend as new entrants strike out in business. The shift in dwelling construction away from traditional single-unit houses and towards higher-density apartments and townhouses has underpinned the industry’s long-term performance. This partly stems from the escalation in land prices pushing investors into medium-to-high-density alternatives but also reflects the growing preferences for urban lifestyles in close proximity to transport, nightlife and other inner-city amenities. Prior to the current slump in multi-unit dwelling construction, builders enjoyed robust growth across the residential building market, corresponding with historically low interest rates, strong population growth and generous first-home buyer subsidies. The escalation in residential property prices encouraged buyers to opt for lower-cost alternatives, and the number of multi-unit dwelling consents surged to 58.1% of all consents issued in 2022-23, double the level in 2015-16 and representing accelerated long-term growth. The higher housing costs forced many New Zealanders to rent rather than buy, encouraging property developers to invest in apartments and townhouses. The Multi-Unit Apartment and Townhouse Construction industry’s performance is set to recover solidly through 2029-30, underpinned by mounting population pressures and some easing in mortgage interest rates. Investment in multi-unit dwelling construction will also be supported by the reinstatement of property tax deductions, the relaxation of tenancy laws and growing opportunities under the build-to-rent (BTR) funding model. The winding back of first-home buyer subsidies will be partly offset by the Central Government’s (Te Kawanatanga o Aotearoa) direct funding of social housing projects. Still, more households may be forced to remain in the rental market. Industry revenue is forecast to climb at an annualised 5.6 % through 2029-30 to $3.6 billion, driving higher profitability and attracting increased participation.

The Land Development and Subdivision industry plays a crucial role in the building process. Developers subdivide land into sections (blocks of land) in preparation for building construction. Developers oversee streetscape installation on residential subdivisions, including roads, street lighting and footpaths, arranging appropriate zoning permits and ensuring access to utilities like water, sewerage, gas and electricity. Industry revenue is expected to climb at an annualised 1.4% through 2023-24 to reach $4.3 billion. The bulk of this growth came from residential land development to meet an unprecedented level of investment in new housing and multi-unit dwelling construction. Land development and subdivision revenue surged with record numbers of dwelling consents, particularly for single-unit houses. During the pandemic, historically low mortgage interest rates and favourable bank lending practices encouraged New Zealanders to invest in new housing. Land development for non-residential applications also surged following a 2020-21 COVID-19 dip, with robust growth in industrial land development for warehousing projects. The industry's performance peaked in 2020-21, which preceded a slump in residential building activity in response to a mortgage interest rate hike and tighter bank lending practices. Favourable investment in the industrial and commercial property markets is still driving land development for non-residential applications. Still, a slump in development activity in the residential building market during 2023-24 will see revenue plummet by an anticipated 7.7%, accompanied by deteriorating profitability and weaker employment. Going forwards, the need to develop residential land for new housing construction will continue deteriorating, but conditions will stabilise in the market for high-density apartments and townhouses. Developers will combat the rising price of serviced land by developing smaller sections. Some larger companies will benefit from solid investment trends in non-residential building activity as the economy recovers from the pandemic. Increased development of high-density commercial and industrial land will be insufficient to offset a slump in the development of residential land and subdivisions, and industry revenue is projected to decrease at an annualised 0.3% through 2028-29 to $4.2 billion.

Demand for financial asset broking services has been mixed over the past few years. Merger and acquisition (M&A) activity peaked in 2021, spurred by digitisation trends and low interest rates. More recently, inflationary pressures and subdued business sentiment have curtailed M&A plans. Still, demand in the technology and telecommunications sectors, driven by rising interest in AI, continues to offer respite within the broader M&A landscape. Meanwhile, mortgage broking plunged along with new residential mortgage lending over the two years through 2023-24 as dwindling housing affordability weighed on mortgage uptake. However, mortgage activity has since rebounded, as successive cash rate cuts from August 2024 have improved housing affordability and stimulated property transactions. New Zealand’s small market size and strong competition from foreign exchanges, notably the ASX, constrain industry revenue and profitability expansion. Despite rocky market conditions, some segments, like capital raising, have outperformed other investment banking services. Companies seeking to fortify their balance sheets amid a harsh trading environment have bolstered capital-raising activity. Amendments to the NZX’s listing rules in January 2024 to allow accelerated non-renounceable entitlement offers (ANREOs) have provided issuers more flexibility in their fundraising activities, further stimulating capital-raising activity. This shift and mounting appetite for capital-raising activity have partly offset other segments' decline. Overall, industry revenue is expected to nosedive at an annualised 5.8% to $556.4 million over the five years through 2025-26. Nevertheless, improved mortgage uptake and a widespread recovery in the housing market are anticipated to contribute to a 2.2% revenue rise in 2025-26. Stabilising macroeconomic conditions and easing inflation are forecast to improve economic and monetary policy certainty. This environment is likely to narrow valuation gaps between targets and acquirers, supporting a moderate uptick in M&A activity. Nonetheless, heightened recession concerns fuelled by recent US reciprocal tariffs are tempering investor sentiment, limiting the overall momentum for deals. New Zealand’s smaller market size and fewer opportunities on the NZX will continue driving domestic companies to list on larger exchanges like the ASX. While upcoming reforms – like the removal of the requirement to publish prospective financial information for NZX IPOs – may help stimulate the exchange's IPO pipeline, it's unlikely to match foreign markets’ capital appeal. Meanwhile, housing market policies like partially restoring interest deductibility for residential investment loans, shortening the bright-line test and increasing land availability are poised to reignite property transactions. That’s why revenue is projected to rise at an annualised 2.9% to $643.0 million through the end of 2030-31.

Property For Industry reported NZD5.5M in Interest Expense on Debt for its fiscal semester ending in June of 2024. Data for Property For Industry | PFI - Interest Expense On Debt including historical, tables and charts were last updated by Trading Economics this last June in 2025.

The Painting and Decorating Services industry derives most of its revenue from applying paint products to interiors and exteriors of dwellings and non-residential buildings for decoration and protection. Contractors may provide niche services like wallpaper hanging and signwriting, while industrial coating specialists deliver essential services for protecting infrastructure and industrial equipment. The industry’s long-term performance is also influenced by the threat of competition from do-it-yourself (DIY) homeowners in the home renovation market. Incremental advancements making paints easier to apply may heighten the danger of DIY substitution. In recent years, the deteriorating trends in residential building construction and household spending have severely dampened the performance of many of the industry’s small-scale domestic painting contractors. Still, the robust demand conditions in the non-residential building, infrastructure and industrial markets have contributed to the upwards trend in industry revenue and profitability. Over the five years through 2025-26, industry revenue is expected to climb at an annualised 1.7% to $2.0 billion, including growth of 2.8% in the current year. The industry’s profit margin has edged upwards through 2025-26 despite the narrowing in response to the slump in the housing market and the escalation in input prices resulting from supply chain disruptions. Much of the impetus for industry expansion has come from the accelerated growth in the non-residential building market, which is a vital source of work for the larger commercial painting contractors, like J.R. Webb & Son, Carus Group Limited and Prima Painters. Demand for the internal painting of non-residential buildings has climbed solidly from the COVID-19 dip in 2020-21, reflecting investment in the construction of offices, hotels, convention centres, transport terminals, prisons and hospitals. Specialist industrial painting contractors have also generated solid growth from applying industrial coating on new and existing infrastructure projects. Many small-scale domestic painting and decorating contractors will continue encountering difficult trading conditions and fierce competition in the residential construction market through 2030-31. Still, the modest recovery in household discretionary income may generate opportunities for contractors in the home renovation markets, although the threat of DIY substitution remains. Favourable trends in the non-residential building and infrastructure markets will continue generating opportunities for some larger or specialist painting companies. Industry revenue is forecast to increase at an annualised 1.1% over the five years through 2030-31 to reach $2.0 billion.

The Plumbing Services industry has generated solid revenue growth from the robust installation and maintenance demand in the non-residential building, infrastructure and industrial markets. These markets have helped offset the slump in plumbing installation of domestic fixtures and fittings in the new housing and home renovation markets. Still, domestic plumbers continue to generate solid revenue by delivering time-sensitive emergency repairs for burst pipes, damaged roofs and blocked drains. Favourable conditions in non-residential building and infrastructure construction have boosted the performance of prominent plumbing companies like A G Foley Ltd (Foleys), Bassett Plumbing and Peter Diver Plumbing. These contractors have the scale and skilled employment base to win the lion’s share of significant commercial plumbing projects. Opportunities have also emerged for smaller specialist contractors in the non-residential markets, including installing hygienic plumbing systems in hospitals, centralised hot water plants and complex waste drainage systems for high-rise commercial developments. Growth in the non-housing markets is expected to lift industry revenue at an annualised 2.7% through 2025-26, to $4.0 billion, with the 2.3% growth in the current year supported by the buoyant construction trends. Most domestic plumbing contractors have endured deteriorating installation demand following the slump in new dwelling construction in response to the 2023-24 hike in mortgage interest rates. Plumbing work in the housing market had skyrocketed to a peak in 2022-23 on the back of historically low mortgage interest rates and government stimulus to counter the economic fallout from the COVID-19 pandemic. The subsequent slump in installation work on new housing pushed more small-scale local contractors to chase work in home repair and commercial building markets, intensifying price competition industry-wide. The industry’s profit performance has improved through 2025-26 despite intense competition among domestic plumbers and the higher prices for material, capital and skilled inputs since the outbreak of the COVID-19 pandemic. The industry’s larger and specialist plumbing contractors will continue to enjoy buoyant demand in the non-residential building and maintenance markets through 2030-31. Industry revenue is forecast to climb at an annualised 1.7% through 2030-31 to reach $4.3 billion. Still, the prospects are poor for many small-scale domestic plumbers chasing installation work on new residential building projects. Emergency plumbing repairs will continue to provide a solid revenue stream for many small-scale local contractors. The return to modest growth in household disposable income will support demand for installing plumbing fixtures and fittings in existing dwellings.

Argosy Property reported NZD158K in Interest Income for its fiscal semester ending in September of 2024. Data for Argosy Property | ARG - Interest Income including historical, tables and charts were last updated by Trading Economics this last July in 2025.

Kiwi Property reported NZD15.8M in Interest Expense on Debt for its fiscal semester ending in March of 2024. Data for Kiwi Property | KPG - Interest Expense On Debt including historical, tables and charts were last updated by Trading Economics this last June in 2025.

Goodman Property reported NZD400K in Interest Income for its fiscal semester ending in September of 2024. Data for Goodman Property | GMT - Interest Income including historical, tables and charts were last updated by Trading Economics this last July in 2025.

Goodman Property reported NZD27.1M in Interest Expense on Debt for its fiscal semester ending in September of 2024. Data for Goodman Property | GMT - Interest Expense On Debt including historical, tables and charts were last updated by Trading Economics this last June in 2025.

Investore Property reported NZD4.74M in Interest Expense on Debt for its fiscal semester ending in March of 2024. Data for Investore Property | IPL - Interest Expense On Debt including historical, tables and charts were last updated by Trading Economics this last July in 2025.