Home lending in New Zealand increased almost 18% in the six months through December 2025, with first home buyers receiving nearly a quarter of new residential loans in the period, the New Zealand Banking Association (NZBA) said in a Tuesday report.
The volume of new home loans increased to 70,811 in the second half of 2025 from 60,249 in the first half, although the average value of cumulative new home loans fell 3% from the previous period to NZ$392,519, according to the report.
Almost 43% of home loan borrowers were ahead on their repayments in the second half of 2025, up from about 40% in the first half, which showed "a high level of financial capability among New Zealand homeowners," said NZBA Chief Roger Beaumont.
"Nearly 18% of home loans moved from variable to fixed interest rates, which is relatively significant," Beaumont said. "This may reflect a recognition that interest rates were becoming less likely to fall further as economic conditions changed."
Meanwhile, just over 1% of residential loan customers were behind on repayments in the second half of last year, roughly the same as in the first half, the report showed.