Key Market
Trends 2026.
OCR at Multi-Year Low
The RBNZ cut the OCR to 3.25% in early 2026 β the lowest since 2022. Fixed rates are responding, with 1-year rates falling below 5.9% at several lenders. Further cuts expected in H2 2026.
How rates workProperty Recovery Underway
NZ house prices have risen 5.1% nationally YTD. Auckland, Tauranga, and Christchurch are leading the recovery. First-home buyer numbers are at their highest since 2021, driven by improved affordability.
First home buyersRefinancing at 4-Year High
Massive waves of high-rate 3-year terms from 2023 are now expiring. Refinancing applications are surging as homeowners refix at significantly lower rates, saving $200β$600/month in many cases.
Explore refinancingDTI Rules Fully Bedded In
Debt-to-income caps introduced in 2024 are now standard. Lenders are applying them consistently, meaning income verification is more important than ever. Finch helps clients present their financials optimally.
Get pre-approvedInvestors Returning in Force
Full interest deductibility restoration plus falling rates are fuelling a strong investor comeback. Rental yields in Wellington and Dunedin now exceed 5%, attracting significant portfolio activity.
Investment loansSelf-Employed Lending Easier
Post-CCCFA reforms have made it significantly easier for self-employed borrowers to demonstrate income. Alternative documentation policies at major banks have opened doors that were previously closed.
Self-employed loansRegional Property
Snapshot β All NZ.
Median house prices and year-on-year movements for all 16 New Zealand regions. Data: REINZ, CoreLogic Q2 2026.
β Major metro. Data: REINZ, CoreLogic Q2 2026. Rates indicative only β contact Finch for live lender rates.
Latest & Past
Weekly Market Updates.
Published every Monday by Finch's advisors β plain-English analysis of NZ mortgage & property news.
Autumn Market Update: Banks Hold Steady
As we move deeper into the autumn season, the New Zealand mortgage market is experiencing a period of cautious stability. Ahead of the anticipated May OCR announcement from the Reserve Bank, major lenders have largely paused their rate-cutting cycles.
While the aggressive drops we saw earlier in April have plateaued, the current environment presents a unique 'wait-and-see' opportunity for borrowers.
"Don't accept the first renewal rate in your app. With banks focusing heavily on retention, significant discounts are available for existing customers if you negotiate or use a broker."
Frequently Asked
Questions.
Your questions about the NZ mortgage market, our reports, and how to use this information β answered by Finch's advisors.
The main Market Report page is updated quarterly (Q1βQ4) with headline stats, key market trends, and the regional property snapshot. Our Weekly Reports are published every Monday and cover breaking news like OCR decisions, bank rate movements, and regional market data. Scroll up to the Weekly Reports section to browse or filter by category.
The Official Cash Rate (OCR) is the interest rate set by the Reserve Bank of New Zealand (RBNZ). It's the rate at which commercial banks borrow money overnight. When the OCR falls, banks can borrow more cheaply β and they typically pass some of those savings on in lower mortgage rates.
The OCR is reviewed 7 times per year. Currently (Q2 2026), the OCR sits at 3.25%, down from a peak of 5.50% in 2023.
In Q2 2026, both 1-year (5.79β5.89%) and 2-year (5.65β5.69%) fixed rates are compelling. Our analysis models four OCR scenarios and finds that in 3 out of 4 cases, fixing for 1 or 2 years outperforms floating.
A split β 50% on 1-year, 50% on 2-year β is the most popular strategy among Finch clients right now, providing both certainty and flexibility. Read the full analysis β
Most reputable forecasters (ASB, ANZ, Westpac, CoreLogic) project national house price growth of 5β8% for 2026, driven by falling mortgage rates, improving affordability, and returning buyer confidence. Canterbury (+6.8%), Bay of Plenty (+6.3%), and Southland (+5.8%) lead. Wellington remains more subdued (+1.8%).
No one can guarantee future prices β but the fundamentals are supportive of modest to moderate growth across most of NZ.
Debt-to-Income (DTI) ratio is your total debt divided by gross annual income. The RBNZ's DTI caps are now fully in force: for owner-occupiers, no more than 20% of new lending above a 6x DTI; investors are capped at 6x across the entire portfolio.
Example: if you earn $150,000/year, the maximum most banks will approve is $900,000 (6Γ). A Finch advisor can structure your application to present your financials in the most favourable way within these limits.
Based on gross rental yield, price growth momentum, and finance accessibility, our advisors currently favour:
- Wellington β 5.2% gross yield, improving demand, government sector employment base
- Canterbury β Strong +6.8% price growth, 4.8% gross yield, infrastructure momentum
- Otago / Dunedin β +7.5% price growth, 5.0% yield, university-driven rental demand
Scroll up to the Regional Snapshot section for a full view of all 16 NZ regions.
Market conditions are one factor β your personal financial situation is the other. The best time to act is when both are aligned: rates are favourable and you have stable income, adequate deposit, and a clear property plan.
Finch offers a free, no-obligation consultation where we'll assess your borrowing power and outline exactly what you can do today. Book your consultation β
All data is sourced from REINZ, CoreLogic NZ, RBNZ, Statistics New Zealand, and direct lender rate sheets. Median prices and YoY figures are from REINZ's monthly HPI report. Rate data is sourced directly from bank websites and updated regularly. Finch does not fabricate data β all figures are cross-referenced with publicly available sources.
What Our Advisors
Are Saying.
"2026 is proving to be the best borrowing environment NZ has seen in half a decade. The OCR is at a multi-year low, banks are competing hard on rates, and property values are on an upward trajectory. Whether you're buying, refinancing, or investing β the window is open right now."
Ready to make your move
in 2026's market?
Our advisors monitor the market daily. Book a free consultation and we'll tell you exactly what today's rates mean for your situation.