Mortgage News You May Have Missed
Mortgage News You May Have Missed: What Kiwi Homeowners & Buyers Need to Know
It’s been a big first half of the year in the world of home lending, with a heap of updates that could affect your wallet, your loan terms, and even your wait time at the bank.
Whether you’re locking in a new rate, applying for your first mortgage, or trying to keep up with the financial tide, here’s a quick recap of May’s most important mortgage news and what it means for you.
Mortgage Stress Hits a 9-Year High
According to a new report from The Post, over 24,000 home loans in New Zealand are now behind on repayments, the highest level of mortgage arrears since 2016. That’s roughly 1.4% of all loans.
What this means for you:
If you’re feeling the pinch, you’re not alone. Rising interest rates over the past two years have caused many fixed-term mortgages to roll over into much higher repayments. If you’re struggling, talk to your lender early. Most banks have hardship teams and may be able to offer interest-only payments or restructure your loan.
BNZ: Positive Cashflow Households Are Falling Fast
BNZ’s Chief Economist Mike Jones revealed that the number of mortgage-holding households in positive cashflow, i.e., those not spending more than they earn, has dropped significantly. As many as 60% of borrowers may now be in cashflow-negative territory, meaning the cost of living and rising mortgage payments are outpacing household income.
What this means for you:
Now’s a great time to review your budget, especially if your fixed rate is due to expire. Use online mortgage calculators to stress-test your repayments, and consider switching to a lower-rate lender or negotiating with your current one.
ASB Hires 80 New Staff to Speed Up Mortgage Processing
ASB is hiring 80 new employees in a bid to reduce frustrating wait times for mortgage approvals. With loan application volumes climbing and complexity increasing, processing times have exceeded acceptable levels.
What this means for you:
Don’t expect your bank to drop its rates dramatically just because the OCR does. Banks are pricing conservatively, and real relief might take months to reach borrowers. It’s worth shopping around. Some smaller lenders may offer sharper rates sooner than the big banks.
Green Homes Could Save You Up to $98K in Interest
New data shows that owners of energy-efficient homes could save as much as $98,000 in interest payments over the life of their mortgage, thanks to lower running costs and special “green loan” rates.
What this means for you:
If you’re building or buying, look for energy-efficient features or certifications like Homestar. Some banks offer discounted interest rates for qualifying properties, which can seriously boost affordability in the long run.
A Trade War Might Lower Your Mortgage Payments... But There's a Catch
In an unexpected twist, a potential global trade war could lead to lower inflation, which might in turn pressure the RBNZ to cut interest rates more quickly. But economists warn it could also hurt investment returns, particularly on KiwiSaver and term deposits.
What this means for you:
Lower rates could ease mortgage stress, but don’t bank on it just yet. If you’re nearing refix time, weigh the pros and cons of fixing short vs. long. A sharp global downturn could bring rates down fast, but volatility is the name of the game.
e war could lead to lower inflation, which might in turn pressure the RBNZ to cut interest rates more quickly. But economists warn it could also hurt investment returns, particularly on KiwiSaver and term deposits.
Refixing in 2025: Should You Wait or Lock In Now?
What this means for you:
If you can tolerate some uncertainty, a short-term fix (6 months or 1 year) might allow you to ride the wave down if rates fall later in 2025. But if certainty matters more, locking in for 2–3 years at a decent rate could offer peace of mind.
The Bottom Line
Whether you’re applying for your first home loan, coming up for refix, or just trying to ride out the pressure, knowledge is power.
Chat with a Rapson mortgage adviser today, we’ll help you weigh the pros and cons, navigate the volatility, and choose the strategy that’s right for you.