RARE MOMENT OF BALANCE
Roughly half of New Zealand’ s mortgages will roll onto new rates over the next six months, freeing up cash flow and lowering debt servicing costs for many households. Meanwhile, fixed mortgage lending rates in new lending have dropped below five per cent, creating an impetus to transact.
Coulson says this is evidenced by new RBNZ data showing mortgage refinancing activity in June reached its highest level since records began in 2017, with more than 3,500 borrowers switching lenders and refinancing nearly $ 2.5bn in loans.
“ For the first time in years, sellers aren’ t chasing falling prices, and buyers aren’ t priced out by soaring debt. This balance creates opportunity, especially for homeowners who have outgrown their space, and investors eager to recycle capital.”
POLICY AND POLITICS
This new steadiness reflects broader forces at play. Dwelling completions are levelling off, indicating that the worst construction downturn may be behind us.
“ The RBNZ noted this was a record share, and the incentive to switch providers continues to intensify competition across New Zealand’ s lending landscape.”
The switching surge also reflects shorter loan terms, maturing fixed rates, and rising borrower awareness, trends that are expected to persist through 2025, supporting housing market activity.
According to Coulson, this provides house hunters with a rare momentum of balance.
“ So far, the number of house sales has climbed 17 per cent over the past year, with stronger participation from firsthome buyers and investors. Yet, prices have barely budged, lifting just one per cent over the first half of 2025.
Source: SNZ, interest. co. nz
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