First home buyers capitalising on stable conditions

New home loan activity in New Zealand is showing a clear trend: first home buyers are taking advantage of current conditions, even as the broader loan market remains steady. According to the New Zealand Banking Association’s (NZBA) latest figures, a quarter of all new home loans issued between January and June went to first home buyers.

At the end of June 2025 there were 1.4 million home loans across 1.2 million customers, with the average loan value sitting at $329,656 – up 2% from the previous six months. For first home buyers, the average new loan value was $507,690, marking a 3% increase.

“It’s great to see first home buyers taking advantage of the current property market and getting into their first home,” NZBA Chief Executive Roger Beaumont said.

Repayments and loan behaviour hold up

Another notable finding was how existing borrowers were managing their loans.

The NZBA reported that about 40% of home loan customers were paying more than their minimum repayments, while only 1.5% were behind on payments. Additionally, there was a 28% decrease in the number of home loans that were switched from principal-and-interest to interest-only repayment terms in the first half of 2025.

These data points suggest financial discipline and resilience among borrowers at a time when economic pressures remain. 

“Despite the challenging economic conditions, we’re seeing most customers continuing to manage their money well,” Mr Beaumont said.

What this means for borrowers 

With interest rates falling and property prices stagnating, conditions look favourable if you’re thinking about buying your first home.

Alternatively, if you’re an existing home owner and have a strong repayment history, you might find yourself in a strong position to refinance to a better loan.

Reach out to discuss your unique scenario or to explore how today’s lending conditions could work in your favour.