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Property Market – 10 things to know about mortgage lending right now – Cotality

Source: Cotality

Analysis from Kelvin Davidson, Cotality NZ Chief Property Economist

As interest rates begin to ease and housing market activity picks up, mortgage lending is following suit. But beyond the headline figures, the Reserve Bank’s detailed monthly lending data reveals a more nuanced picture of how borrowers and lenders are responding to shifting conditions. This Property Pulse explores 10 key insights shaping the mortgage market right now – from the rise in refinancing to the growing appetite for short-term fixed rates.

1. New mortgage lending is gaining momentum
Activity across house purchases, loan top-ups and bank switching (commonly referred to as refinancing) has increased year-on-year in 24 of the past 26 months, highlighting a sustained uplift in borrower confidence and market engagement.

2. The system is growing, too
The total value of outstanding home loans – known in the industry as ‘system growth’ – has climbed to $385 billion, up 5.6% over the past year. That marks the fastest annual increase since August 2022, when growth hit 5.7%. The rise reflects a sustained period where new lending and interest charges have outpaced repayments, contributing to a steady build-up in mortgage debt.
3. Short term rates remain in favour
Nearly 30% of new loans this year have been on floating rates – a notable jump from the more typical 20% seen in previous years. Fixing for six to 12 months has also gained traction, accounting for around half of new lending in recent months. While longer-term fixed rates are more popular than they were in late 2024, their share remains modest at 28% in August, down from around 50% a year earlier. The trend reflects a clear borrower strategy: staying flexible to capitalise on falling interest rates.

4. Looser LVRs could benefit investors the most
In September, just 13% of lending to owner-occupiers was written at a high loan-to-value ratio (less than a 20% deposit), well below the official 20% cap and even the banks’ likely internal limit of 15%. For investors, the figure was even lower – only 0.5% of loans were written with less than a 30% deposit, underscoring the tighter credit conditions this group continues to face. The upcoming loosening of LVR restrictions from 1 December could provide some relief, particularly for investors, while also opening the door wider for first home buyers seeking pre-approvals.

5. First home buyers are leading low-deposit lending
In September, a record 51% of first home buyers secured a mortgage with less than a 20% deposit. This group now accounts for around 75 to 80% of all low-deposit lending to owner-occupiers, underscoring their growing presence in the market. With LVR restrictions set to ease from 1 December, first home buyers could find it even easier to access finance in the months ahead.

6. Interest-only lending remains contained
In September, 16% of new owner-occupier loans and 36% of investor loans were interest-only. While these figures may raise eyebrows, they remain well below previous peaks of 30% and 50% respectively. The data suggests interest-only lending is not being used at scale to manage repayment stress but rather reflects a measured approach by borrowers and lenders alike.

7. DTIs could shape lending policy in 2026
In September, 8% of first home buyers took out loans with a debt-to-income (DTI) ratio above six, while 11% of investor loans exceeded a DTI of seven. Both figures remain well below the Reserve Bank’s 20% cap, but the investor share is now at a near three-year high. As internal serviceability test rates continue to ease, DTIs are likely to become a more prominent consideration for both lenders and borrowers – particularly investors – in the year ahead.

8. Many borrowers are set to benefit from lower rates
Around 12% of existing home loans are currently on floating rates, while a further 33% are fixed but due to reprice by March. While some of these borrowers are already on competitive rates, many are likely to see a meaningful reduction in repayments as they roll onto lower rates – a shift that’s steadily feeding through to household budgets and the broader housing market.

9. Refinancing remains a key driver of activity
Borrowers continue to switch lenders at near-record levels, drawn by competitive cashback offers and the flexibility of today’s short-term loan structures. With nearly one in three new loans on floating rates and many fixed terms nearing expiry, the window for refinancing is likely to stay open – and active – for some time yet.

10. Repayment stress appears to have peaked at low levels
The share of non-performing loans – those more than 90 days overdue or already impaired – has edged down to 0.6%, after peaking at 0.7% earlier this year. That’s still well below the levels seen during the Global Financial Crisis, when the rate was roughly double. Banks have also begun trimming their bad debt provisions, suggesting confidence that the worst of the stress cycle may be behind us.

Looking ahead, the momentum in mortgage lending is likely to continue building. With interest rates easing, housing activity lifting, and policy settings becoming more supportive, conditions are aligning for a further rise in new lending volumes. First home buyers and investors alike are well-positioned to take advantage of the shifting landscape, while lenders prepare for a busier year ahead.

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Energy Sector – Green light for Huntly reserve supports secure energy future

Source: Energy Resources Aotearoa

Energy Resources Aotearoa welcomes the Commerce Commission’s decision to approve an agreement between Genesis Energy, Contact Energy, Meridian Energy and Mercury to keep an essential backup option at Huntly Power Station available for the next decade.
The agreement, known as the Strategic Energy Reserve Huntly Firming Option, will help make sure New Zealand has enough electricity during dry periods or when renewable generation from wind and solar is low. The arrangement runs until the end of 2035 and gives the energy sector confidence to plan ahead for future winters.
Energy Resources Aotearoa Chief Executive John Carnegie says the decision strikes the right balance between competition, reliability and affordability.
“This is a smart and practical outcome for Kiwi homeowners and businesses. The Commerce Commission has formalised what everyone already knew – that keeping Huntly’s backup generation available will make the system more reliable and keep downward pressure on prices relative to its absence, especially when hydro lakes are low, the sun is not shining or the wind is not blowing,” Carnegie says.
“Huntly has long been New Zealand’s electricity security blanket. Its multi-fuel setup, running on natural gas or coal, gives the system resilience and flexibility, with potential to move to lower-carbon fuels like biomass over time. Keeping that capability in place means the grid can call on proven backup.”
“As we move to more renewable energy, we still need backup generation that can step in when needed. This authorisation means the Huntly plant can provide that cover rather than being shut down, which would make the system more vulnerable when support is needed most.”
Carnegie says the approval also reflects a positive, co-operative effort by the generators involved.
“It’s great to see the industry working together to find long-term, practical solutions. When companies work together on issues like this, everyone benefits. This decision shows that collective effort across the sector can keep the lights on.” Carnegie says.
Carnegie says it is also encouraging that Genesis intends to make similar backup options available for smaller retailers, large energy users and other market participants.
“Giving more players access to backup generation will help spread the benefits of reliability more widely and make the electricity market more resilient overall,” Carnegie says.
Energy Resources Aotearoa supports practical policies that encourage investment in both renewable generation and reliable backup sources.
“New Zealand’s energy system needs both renewable generation and firming working together. Keeping options like Huntly available while we build more wind, geothermal and solar, and we look for more natural gas, helps manage risk and ensures reliability as we move toward a lower emissions future,” Carnegie says.
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Renewable Energy – WEL Innovation Hub Unlocks Smarter Solar for Waikato

Source: WEL Networks

WEL Networks has launched a new Innovation Hub designed to fast-track the integration of solar and battery systems into the Waikato network – making renewable connections smarter, faster and more flexible.
The Hub enables real-world testing of inverter and battery technologies under live network conditions, supporting the Common Smart Inverter Profile – Australia (CSIP-AUS) protocol. This standard, based on the IEEE2030.5, allows secure two-way communication between smart devices and the electricity network. This is critical for visibility, control and stability as solar uptake grows.
By partnering with leading inverter manufacturers, WEL is building local capability to test compliance, performance and remote management functions. The Hub’s modular setup allows engineers to quickly switch configurations without rewiring, streamlining the testing process and accelerating innovation.
The goal is to move beyond fixed export limits and unlock dynamic operating envelopes – giving compliant solar and battery systems the ability to export more energy when the network can support it. This approach maximises customer benefits without requiring costly infrastructure upgrades.
“Instead of designing for worst-case scenarios, we’re enabling best-case outcomes,” WEL Networks GM Asset Management Kerry Green says. “Dynamic hosting capacity means more solar, more flexibility and more value for customers.”
The Hub also supports emergency backstop functionality, allowing utilities to temporarily reduce solar exports during periods of grid oversupply. This capability is already mandated in parts of Australia and is key to maintaining grid stability as Distributed Energy Resources (DERs) grow.
WEL is currently testing remote integration and plans to link the platform with its network constraint engine – supporting a range of future use cases, from automated DER management to smarter grid planning.
This initiative builds on WEL’s broader programme to prepare the network for high levels of distributed energy. In recent weeks, WEL launched New Zealand’s first instant solar approval platform, enabling most home-scale systems to be approved within minutes. Alongside community battery trials in Raglan and EV charging pilots, the Innovation Hub reflects WEL’s commitment to enabling choice, encouraging innovation and delivering long-term benefits for Waikato communities.
Innovation in Action:
– Tests 12 inverters and six battery systems under live network conditions
– Supports CSIP-AUS protocol and dynamic export limits
– Enables remote DER management and emergency backstop functions
– Builds local expertise and accelerates renewable integration.
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Energy Sector – Expanded co-investment fund pragmatic response to energy security risks

Source: Energy Resources Aotearoa

Energy Resources Aotearoa welcomes today’s announcement from Resources Minister Shane Jones and Associate Finance Minister Chris Bishop on the implementation of the Government’s $200 co-investment fund for natural gas supply.
The changes mean the Gas Security Fund can now support a broader range of projects that help bring more gas to market sooner, store it for when it’s needed, and rebuild reserves for the future.
Chief Executive John Carnegie says the pragmatic move recognises the real pressures facing New Zealand’s energy system and is a sensible step to help address New Zealand’s gas supply challenges.
“Supporting a wider range of projects, from additional drilling in existing fields and production facility upgrades to exploration and appraisal drilling, can help lift gas supply in the near term and secure longer-term investments like greenfield exploration beyond Taranaki.”
Carnegie says the decision shows the Government understands both the urgency of New Zealand’s gas shortages and the need to restore investor confidence after several difficult years.
“For too long, investors have been wary of committing capital to New Zealand’s petroleum sector because of the lasting impact of the previous exploration ban and the broader set of policy-induced risks.
Energy investors look for stability, clarity, and fairness. This announcement sends a strong signal that New Zealand is once again open for responsible investment in the gas projects that keep our energy reliable and affordable.
With gas reserves rapidly running down, our country faces a growing energy supply crisis, which is driving up electricity prices for households and threatening industries that rely on gas.”
Carnegie says the focus on practical, investment-ready projects is exactly what’s needed.
“New Zealand can’t afford to wait. The proposed administrative arrangements are lean and agile, which should ensure that decisions can be made quickly.”
Carnegie is pleased to see the announcement reflecting another clear example of pragmatic policy for the energy sector, but says cross-party support remains vital for future supply security.
“Secure and affordable energy should not be a partisan issue. Energy Resources Aotearoa will continue to call for durable, evidence-based settings that recognise the ongoing role of natural gas in supporting the electricity sector, and meeting household and industrial needs while emissions fall over time.”
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Weather News – A summery feel to end the week – MetService

Source: MetService

Covering period of Thursday 6 – Monday 10 November – 

  • Warmer temperatures than average for almost everyone for the next few days
  • Possibility of thunderstorms for parts of the North Island over the weekend
  • Rain for the South Island and lower North Island on Monday.

MetService is forecasting warmer temperatures for the rest of the week, as high pressure persists over parts of the country. Most locations will be warmer than average for November, with some notable standouts. MetService meteorologist Alwyn Bakker states, “Christchurch should be the warmest of the main centres today (Thursday), with their high of 28°C soaring over their average November maximum of 19.4°C, while Ashburton and Kaikōura won’t be far behind with 27°C and 26°C maximums respectively.”

That summery feel won’t be all sunshine, however. “Warmer temperatures increase the chance of afternoon showers triggered by daytime heat through a process called convection. In the same way turning the heat up on a saucepan of water starts it bubbling, heating the air close to the surface makes it rise. If there’s moisture in the atmosphere, convection can trigger showers, even thunderstorms if there’s enough warming at the surface,” explains Bakker. As temperatures ramp up and stay high over the weekend, parts of the North Island are likely to see thunderstorms, especially on Sunday.

Conditions are set to be good for the second T20 between the Black Caps and the West Indies at Eden Park tonight. “Northeasterly winds will be dying out, and although there’s the chance of a shower in the region, it’s unlikely the stadium will be affected,” Bakker predicts.

Looking ahead to the start of next week, rain and strong winds are possible as a front is expected to move up the South Island and onto the lower North Island on Monday. “While it’s too early to talk about Watches and Warnings for this event, there is a possibility that some may be issued for the Westland ranges and northern Fiordland,” cautions Bakker.
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Health and Employment – Mental health workers head to mediation with more strike action likely

Source: PSA

The union for 3,500 mental health and public health nurses and mental health assistants will begin mediation tomorrow to try and resolve long standing issues around pay and safe staffing levels.
The mediation, which is provided by MBIE, comes two weeks after these critical frontline workers joined more than 13,000 Allied Health and PAKS (Policy, Advisory, Knowledge and Specialist) PSA members in the nationwide strikes.
“These health workers operate in Emergency Departments, in-patient clinics and in the community 24/7 supporting New Zealanders facing mental health challenges.
“They deserve to be better respected and valued, and staffing levels need to increase so they can do their jobs safely and effectively,” said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.
“These health workers have yet to receive even a meaningful offer for a new collective agreement that addresses safe staffing levels after 29 days of bargaining over the past year. They are also seeking a pay increase that keeps pace with the increased cost of living facing them and their families.
“These are the health workers who help New Zealanders when they're at their most vulnerable. They work in challenging environments, face cost of living pressures like everyone else, and are struggling with inadequate staffing levels that put both workers and patients at risk.
“The threats to their safety are real – they face increasing assaults and the risks are rising due to low staffing.
“Phase 3 of the Police Mental Health Response Change Programme begins on 17 November, which will see police further reduce time spent supporting mental health staff. This makes safe staffing levels even more urgent.
“The workers are also voting for further strike action throughout November which will occur if tomorrow’s mediation does not settle this dispute.
“Now more than ever, the Government needs to properly fund mental health services so these essential workers can continue to support New Zealanders who need them most. We can’t afford more health workers to go offshore to countries like Australia where they are better valued.”
The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand's largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.
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Education – Minister Takes Education Off Track – Principals Fed

Source: NZ Principals Federation

The New Zealand Principals’ Federation (NZPF) President, Leanne Otene, said today she reiterates her concerns that the Minister of Education is taking education in the wrong direction.
“As I reflect on the curriculum changes over the past two years, and especially what has been removed, downgraded or ignored in the curriculum, I conclude that we are now out of step with the world’s leading countries,” she said.
“Research tells us that seven East Asian countries are now looking at incorporating soft skills such as critical thinking, creativity, problem solving, collaborative learning and peer assessment into their curriculum frameworks, acknowledging the need for students to develop a range of competencies beyond academic knowledge,” she says.
“For us to be pursuing a heavily structured ‘knowledge rich’ curriculum dominated by memorising and surface learning, rather than deep understanding and critical thinking, will leave our young people ill-prepared for a future in which they will be required to creatively problem solve and co-exist with Artificial Intelligence,” she said.
“In a recent curriculum focused meeting, our regional presidents reported that their principal members will pause all professional development in the new mathematics curriculum this year, and revisit the subject in March 2026,” said Otene.
“The whole curriculum approach needs a complete rethink. There are many issues to consider in respect of the major curriculum changes being presented. The middle of the most demanding term of the school year is not the time to tackle them,” she said.
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Universities – Who benefits from housing intensification? – UoA

Source: University of Auckland (UoA)

New research will explore who’s affected by New Zealand’s intensification boom, and the potential impact housing reforms are having on inequality.

University of Auckland researchers have received an $853,000 Marsden Fund grant to answer one of New Zealand’s biggest housing questions: who actually benefits from upzoning?

Associate Professor Ryan Greenaway-McGrevy and Distinguished Professor Peter Phillips are leading a team of researchers to investigate the social and economic effects of large-scale zoning reforms, including Auckland’s Unitary Plan. They are working to understand how upzoning (housing intensification) has affected communities and neighbourhoods, and whether it has widened or reduced inequality.

“Where we live and grow up matters for a variety of life outcomes,” says Greenaway-McGrevy, “so it’s important to think about how zoning reform can change the geography of opportunity.”

Auckland’s 2016 reform upzoned about three-quarters of its residential land, allowing medium- and high-density housing in areas previously limited to single-house zones. Earlier Marsden-funded research by Greenaway-McGrevy and co-authors found the move sparked a surge in housing construction and helped ease rental pressures.

But while the reforms succeeded in boosting supply, he’s now interested in uncovering the socio-economic effects.

“On the one hand, the potential for upzoning to exacerbate inequalities within cities raises real concerns. On the other, widespread reforms may also enable housing options in neighbourhoods that were previously inaccessible to many households,” says Greenaway-McGrevy.

“There remains an acute lack of evidence on the effects of widespread zoning reforms on spatial inequality because, until recently, such reforms have been rare. Yet investigating and understanding the outcomes is critical to evaluate the potential impacts of current policy proposals and to inform the ongoing design of zoning changes.”

Using evidence from New Zealand’s groundbreaking zoning reforms, the study will provide the first robust case studies on how large-scale upzoning affects neighbourhood composition, opportunity, and social mobility, offering insights for policymakers in NZ and abroad.

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Health – Vaping threatens smokefree progress, Government must act now, health organisation warns

Source: Asthma and Respiratory Foundation

Policymakers are being urged to confront the harsh reality that vaping is undermining years of smokefree progress – a trend the Asthma and Respiratory Foundation NZ has long warned would happen.
New research – recently published in The Lancet – which looked at trends in smoking prevalence before and after the emergence of vaping in New Zealand among 14-15-year-olds, shows that the rise of vaping has stalled progress in cutting youth smoking rates and deepened inequities for Māori and Pacific teens.
The study analysed the ASH Snapshot Surveys spanning 2003 to 2024, a total of nearly 600,000 Year 10 students, and found that while youth smoking has fallen overall since 2003, progress has stalled since vaping took hold. Māori and Pacific teens – already at greater risk of tobacco-related harm – are disproportionately affected.
Foundation Chief Executive Ms Letitia Harding says the findings prove what public health advocates have long feared: vaping is fuelling nicotine addiction, not ending it.
“This study confirms what we’ve been warning about for years.
“Vaping was promoted as a way out of smoking, but for our rangatahi, it’s become a trap,” she says.
“We’re seeing nicotine dependence take hold earlier and more deeply than before – and it’s reversing progress.”
The Foundation’s nearly decade-long fight against tobacco shows the same industry tactics are now being used to hook a new generation on nicotine, Ms Harding says.
“This isn’t harm reduction – this is harm transfer.”
“It’s time the Government stopped treating it as a less harmful alternative and started treating it as the separate public health threat it is.”
Aotearoa once led the world in tobacco control, Ms Harding says.
“Now, we are watching it slip away.”
The Foundation continues to call for tighter restrictions around vapes.
It wants to see the Government halt the establishment of further Specialist Vape Retailers (SVRs), ban the sale of vapes in general retailer stores, limit the nicotine content of all vape products to 20 mg/mL, and re-look at the prescription model.
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Legal Sector Appointments – David Campbell to be the next Law Society President

Source: Law Society

Auckland lawyer David Campbell has been appointed the 34th President of the New Zealand Law Society Te Kāhui Ture o Aotearoa. His appointment was confirmed at the Law Society’s Council meeting earlier today.
Mr Campbell, a respected leader within the legal community, is a partner at Dentons and has served as Vice President of the Law Society Board since 2022. He also contributes to the wider community as a Trustee of the Spencer Mason Trust and was formerly the Chair of Te Tuhi Contemporary Art Trust. 
He will formally take up the role on 27 March 2026, succeeding current President Frazer Barton, who will complete his three-year term.
Mr Campbell says the aspect of being a lawyer that he most enjoys is solving problems for others. He has been actively involved with the Law Society since 2014 and says he is humbled to take on the presidency.
“This is a pivotal governance role for an organisation that not only regulates over 17,000 lawyers but also advocates for the rule of law and access to justice, supports legal aid reform, and contributes to the health of our democracy,” said Mr Campbell.
“The Law Society is a kaitiaki of an exemplary legal profession – a guardian of standards, ethics, and public trust.”
Mr Campbell says his focus will be on maintaining the Law Society’s core responsibilities while continuing to strengthen its wider contribution to the profession and society. 
“Key is ensuring the Law Society continues to perform its regulatory function well – that’s our obligation under the Lawyers and Conveyancers Act. At the same time, we need to keep building on the areas where we already do strong work, such as law reform and advocacy. These functions provide enormous value to society, and it’s essential we maintain and strengthen that contribution.
“Also important is one of the most significant changes at the Law Society in recent years which is the reform of our Representative division. The introduction of a membership subscription has been a particularly positive step – we represent all of the profession, but our more than 10,000 lawyer members are those who truly value what the Law Society offers.”
Mr Campbell says he will be taking on the presidency at a time when the Law Society is in a strong position, with a clear path forward.
“Everything is moving in the right direction. We’re in a state of steady, incremental improvement – and that’s exactly where we need to be.”