How to get a mortgage in New Zealand in 2026

New Zealand’s mortgage market has shifted considerably in the past couple of years. Interest rates have fallen significantly from their 2023 peak and are now stabilising, lending rules have been reformed, and overseas buyers now have slightly more options than they did before.

If you’re thinking about buying property in New Zealand, here’s what you need to know about securing a mortgage to make it happen.

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How do mortgages work in New Zealand?

New Zealand mortgages work in much the same way as those in the UK. Banks, building societies and specialist home loan companies all offer mortgage products, and several of the major banks employ managers who are specifically trained to work with migrants and overseas buyers.

One route worth considering is using a mortgage broker, who acts as a go-between for you and the lender. Because your eligibility will depend heavily on your financial situation and visa status, having an expert in your corner can save you considerable time and stress. Brokers also often have access to mortgage products that aren’t available directly to the public – and they’ll know which lenders are currently open to borrowers in your specific situation.

Are non-residents eligible for a New Zealand mortgage?

The rules around who can buy property in New Zealand – and therefore who can borrow to do so – have been subject to several changes since 2018, when stricter laws came into force restricting overseas buyers from purchasing existing residential property. The broad picture remains the same: most non-residents cannot buy existing homes in New Zealand, and lending rules reflect that restriction.

The government’s Overseas Investment Office (OIO) tool allows you to enter your residency status and intended use of the property to find out whether you’re eligible to purchase. That’s always worth checking before you go any further.

It’s also worth knowing that smaller, mutually-owned lenders can sometimes apply more flexible criteria for migrants than the larger banks. If you’re finding the major banks unhelpful, a mortgage broker will know which lenders are worth approaching for your specific situation.

From March 2026, holders of an Active Investor Plus, Investor 1 or Investor 2 visa are now able to purchase one residential property valued above NZ$5 million, with OIO consent typically granted within five working days. Note that the property must be classified as “residential” or “lifestyle” zoning – if it falls into a “sensitive” category, such as coastal land or large rural blocks, the streamlined consent process may not apply. This remains a targeted change rather than a wholesale opening of the market.

Australian and Singaporean citizens and permanent residents continue to be exempt from the foreign buyer ban and can purchase on broadly the same terms as New Zealanders, under existing trade agreements.

For everyone else, the key factor is your visa status. Lenders generally assess overseas buyers in one of three broad categories:

Category one: citizens and permanent residents

If you hold New Zealand citizenship or a permanent resident visa, you’ll be treated the same as a local borrower. A 20% deposit is the standard benchmark, though since December 2025 banks have more flexibility to lend with smaller deposits to those with residency, provided they meet strict income tests. First home buyers may be able to put down as little as 5% through the Kāinga Ora First Home Loan scheme.

Category two: work visa holders

If you have a valid New Zealand work visa and are on a pathway to permanent residency, you may still be able to secure a mortgage – but requirements vary significantly between lenders. Some banks will lend with a 20% deposit; others may require up to 50%. Much will depend on the length of your visa, whether your income is earned in New Zealand, and how established your financial history is. Shopping around, or working with a broker, is particularly important in this category.

Category three: non-residents

For non-residents who are eligible to buy (such as Australians, Singaporeans or those who have obtained OIO consent), mortgage access is possible but more limited. Most major banks will lend at no more than 60–70% of the property value, meaning you’d need at least a 30–40% deposit. Some lenders will discount overseas income by 20–30% when calculating affordability, to account for currency risk. Kiwibank does not currently lend to non-residents at all. Specialist non-bank lenders such as Resimac and Pepper may offer more flexibility, though at higher interest rates.

If you fall into categories two or three, we’d strongly recommend speaking to a mortgage broker based in New Zealand before approaching any lender directly. They’ll have up-to-date knowledge of which institutions are actively lending to borrowers in your situation.

What types of mortgage are available in New Zealand?

Much like in the UK, New Zealand lenders offer a range of mortgage structures. Here’s a brief overview of the main options:

1. Table loans (most common)

The standard mortgage in New Zealand. Your monthly repayments are fixed throughout the term, but early payments are weighted towards interest, with more going towards the loan itself over time. These can be taken on a fixed or floating rate, or a combination of both.

2. Revolving credit loans

Similar in principle to a large overdraft secured against your property. Your income is paid into your mortgage account and you make payments out from it. Because interest is calculated daily on the outstanding balance, keeping the balance low reduces the total interest you pay over the life of the loan.

3. Straight line (reducing) loans

You repay the same amount of the principal each month, meaning your total payment reduces over time as less interest accrues. This is less common than table loans but can result in lower total interest paid.

4. Interest-only loans

Your repayments cover only the interest for an agreed period – typically up to five years – before you begin repaying the loan itself. Most commonly used by property investors, and usually requires at least 20% equity.

A popular approach in New Zealand is to split your mortgage across multiple products – for example, fixing part of your loan at a shorter term and keeping a portion on revolving credit. This gives you certainty on the bulk of your repayments while retaining some flexibility.

5. Offset loans

Similar to a revolving credit mortgage, but your mortgage remains a separate account from your day-to-day spending. You link your savings and everyday accounts to it, and pay interest only on the difference between your mortgage balance and the funds in those linked accounts.

What are current mortgage interest rates in New Zealand?

New Zealand mortgage rates have fallen substantially since their 2023 peak, following an aggressive cutting cycle by the Reserve Bank of New Zealand (RBNZ). The Official Cash Rate was cut from 5.50% in mid-2024 down to 2.25% by November 2025 – its lowest level since the pandemic – prompting the major banks to reduce their fixed rates significantly.

As of early 2026, the most competitive one-year fixed rates from major banks sit at around 4.49–4.59% for borrowers with at least 20% equity. Two-year fixed rates are available from approximately 4.89%, while five-year fixed rates range from around 5.59–5.89%. Floating rates remain notably higher, at 5.75–5.89% across the main lenders.

It’s worth noting that the rate environment appears to have stabilised. In early 2026, several major banks raised some fixed rates by a modest amount in response to rising wholesale borrowing costs, suggesting the period of steep falls has passed. Bank economists broadly expect rates to drift upward gradually through 2026.

There are two main types of interest rate to be aware of:

Fixed rate: Your interest rate is locked in for a set period – typically one to five years – giving you certainty over your repayments. At the time of writing, one-year fixed rates at major New Zealand banks start from around 4.49%.

Floating rate: Your rate moves in line with the market and can go up or down. Currently running at around 5.75–5.89% at major banks, floating rates offer more flexibility (such as the ability to make lump-sum repayments without penalty) but less predictability.

Many borrowers in New Zealand opt for a split approach – fixing a portion of their loan for certainty while keeping a smaller amount on a floating or revolving credit rate for flexibility.

What costs are involved in a New Zealand mortgage?

Your deposit requirement will be the most significant upfront cost. For standard owner-occupier borrowing with a 20% deposit on a NZ$500,000 property, you’d need NZ$100,000 upfront. Borrowers with less than 20% equity typically pay a low-equity margin on top of their standard rate – usually 0.25–1.00% extra, depending on the lender and the size of your deposit. Unlike in Australia, standalone lenders mortgage insurance is uncommon in New Zealand; the margin is generally how banks cover that risk instead.

One cost that is non-negotiable: you cannot draw down a New Zealand mortgage without providing proof that the property is insured against fire and natural disasters. Income protection insurance is not usually a formal condition of the loan, but lenders will strongly encourage it during the application process.

One important recent development is the introduction of debt-to-income (DTI) restrictions by the RBNZ, which came into effect in July 2024. Banks are now limited in how much they can lend to borrowers whose total debt exceeds six times their gross annual income (for owner-occupiers). This doesn’t affect most standard borrowers, but it’s worth being aware of – particularly if you have existing loan commitments, credit cards or other liabilities, as credit card limits (not just balances) are included in the calculation.

What documents do you need to apply?

To secure a mortgage in New Zealand, you’ll typically need to provide the following:

Identification: A copy of your passport and your visa.

Proof of income: This may include recent payslips, a letter from your employer confirming your salary and length of employment or – if you’re self-employed – two years of accounts prepared by a chartered accountant. Being self-employed does make the process more involved, but it’s certainly not impossible; you’ll simply need thorough documentation of your income and its stability.

Proof of deposit: Bank statements or deposit certificates showing where your deposit funds are held. If you’re transferring funds from overseas, be aware that New Zealand has strict anti-money laundering laws – banks will not only want to see where the money is held, but how it was accumulated. The documentation required will depend on the source: if your deposit came from a property sale, you’ll need the settlement statement; if it was a gift, you’ll need a signed gift letter and potentially the donor’s bank statements too. Having all of this ready in advance will save time.

Because you’ll be applying for credit in a country where you may not yet have an established credit history, the more supporting documentation you can provide, the better. Useful additions include:

• Bank statements covering at least three months, showing a clear and consistent financial picture
• Loan statements from your home country, demonstrating a reliable repayment track record
• Evidence of all income sources, including any rental income or returns from investments
• Proof of assets, such as property you already own, which can help demonstrate your financial stability

Even if buying in New Zealand is still some way off, it’s worth starting to compile this documentation now. Building a clear paper trail of your financial history gives you the strongest possible foundation when it comes to applying.

A note on currency

If you’re funding your purchase from the UK or another country, currency exchange will be a significant part of the process. The rate at which you convert your pounds into New Zealand dollars can make a substantial difference to your final budget – potentially tens of thousands of pounds on a larger purchase.

Working with a currency specialist, rather than relying on a bank’s standard exchange rate, can help you protect your budget and plan your transfer with greater certainty. A forward contract, for example, allows you to lock in today’s exchange rate for a future transfer date – useful if you’re partway through a purchase and want to guard against the market moving against you.

Our currency partner Smart Currency Exchange can talk you through the options. Getting that conversation started early is one of the most practical steps you can take.

Frequently asked questions