GLOPRAGlobal Property Radar

New Zealand mortgage lending falls 7.9% in September 2026

New residential mortgage lending in New Zealand was NZD 7,533 million in September 2026, down -7.9% on a year earlier, with investor lending falling fastest.

The facts

  • The Reserve Bank of New Zealand's C31 series, released on 27 October 2026, puts new residential mortgage lending commitments at NZD 7,533 million in September 2026 against NZD 8,181 million in September 2025, a fall of -7.9%.
  • Lending was up on the month, from NZD 7,188 million in August 2026.
  • Investors committed NZD 1,335 million, down from NZD 1,735 million a year earlier, the sharpest drop of any borrower group.
  • First home buyers took NZD 1,530 million against NZD 1,572 million, and other owner-occupiers, the largest group, NZD 4,534 million against NZD 4,786 million.
  • Lending for business purposes rose to NZD 134 million from NZD 87 million, the only group growing on the year.
  • Of the NZD 7,533 million total, NZD 1,264 million was written above 80% of the property value.

What it means for your money

  • Investor lending is down almost a quarter on the year, so there are fewer leveraged rivals at auction.
  • Glopra's figures for New Zealand, an average home at USD 504,654 and an average monthly rent of USD 1,619, work out at a gross yield of 3.9%, which leaves thin cover for the funding costs that are pushing lending down.
  • Residential purchase by non-residents is barred in New Zealand with narrow exemptions, so for most foreign buyers the channel here is price and liquidity rather than entry.
  • For an owner already holding there, a shrinking investor book alongside NZD 1,264 million written above 80% of value points to a market leaning on thin-deposit buyers.

What to watch

  • The October 2026 figures are scheduled for 25 November 2026 and will show whether the month-on-month rise holds.
  • September 2026 building consents from Stats NZ, still unpublished, for the supply side of the same market.

Sources: Reserve Bank of New Zealand https://www.rbnz.govt.nz/statistics/c31

Market data: New Zealand · Wellington · Auckland · Queenstown