## Market Snapshot: The Q1 Numbers 
<div style="border: 2px solid black; padding: 20px; margin-bottom: 40px; width: fit-content;">
 <ul style="margin: 0; padding-left: 20px;">
 <li>$720,000 Median Price: That’s the median price FHBs are paying. It’s a slight tick up, but still below the 2022 peaks.</li>
 <li>77% Standalone Homes: Most FHBs are successfully avoiding tiny apartments and securing backyards.</li>
 <li>50%+ Low-Deposit Loans: Over half of all buyers are getting keys with less than a 20% deposit.</li>
 <li>$820 Monthly Savings: Average repayments (outside Auckland) have dropped significantly since 2024.</li>
 <li>35 Years Old: The average FHB age has dropped from 35, as younger Kiwis find their way back to the market.</li>
 <li>37% Wellington Share: The capital is currently the busiest hub for first-time buyers in the country.</li>
 </ul>
</div>


While headlines often focus on the tough road ahead, the ground reality for New Zealand’s first home buyers (FHBs) tells a different story.

According to the recently released [Cotality-Westpac Q1 2026 First Home Buyer Report](https://www.linkedin.com/posts/westpac-new-zealand-limited_cotality-westpac-first-home-buyer-report-activity-7458272727464865792-yUP4/), this demographic is currently the most resilient and active force in the real estate market. 

### 1.	FHBs Leading the Charge
The data shows that first home buyers accounted for **27.5% of all residential property sales** across New Zealand this past quarter. 

This level of dominance suggests that despite broader economic headwinds, those looking to enter the market are finding pathways that didn't exist during the price peaks of previous years. 

### 2.	The Return of the Standalone Home
A few years ago, the common narrative was that first home buyers were being priced into high-density apartments. 

However, current property data insights confirm that **77% of FHBs in Q1 2026 purchased standalone houses.**

The lack of intense competition from multi-property investors has allowed first-timers to secure forever homes with backyards rather than just 'stepping stone' units. 

### 3.	The Mortgage Repayment Shift
Affordability is improving. 

The report indicates that outside of the Auckland region, the average monthly mortgage repayment has dropped by approximately **$820 lower compared to in 2024.**

This shift is attributed to a stabilization in median prices, currently around $720,000 for FHBs, combined with more competitive bank margins. 

**4.	Demolishing the 20% Deposit Myth**
Many prospective buyers stall their search because they believe a 20% deposit is a mandatory gatekeeper. 

Recent figures refutes this: over half of all successful FHB loans in the last quarter were processed with an LVR (Loan-to-Value Ratio) of over 80%. **The average LVR is now hovering at 81%,** proving that low-deposit lending is a standard path for many Kiwis. 

## Navigating the Remainder of 2026
With Westpac economists forecasting potential shifts in the Official Cash Rate (OCR) toward the end of the year, the current buying window is characterized by high stock levels and motivated sellers. 

#### •	Focus on Loan Structure
In a fluctuating rate environment, split-fixing your mortgage across different terms is more important than chasing a single low rate. 

#### •	Leverage Market Choice
With more standalone houses on the market, don't be afraid to negotiate on properties that have been listed for more than 4 weeks. 

#### •	Check Your Borrowing Power
Don't guess your numbers. Use our [useful calculators](https://tella.co.nz/home-loans-mortgages/calculators) to see how your deposit level affects your weekly repayments. 

Don't let market noise dictate your future. Get a clear picture of your [options](https://tella.co.nz/) today.

<hr style="border: none; border-top: 2px solid black; height: 1px; width: 100%; display: block !important; visibility: visible !important; margin-top: 40px;">

_**New to the first-home buying journey?**
Explore our [step-by-step guides](https://tella.co.nz/first-home) to help clear the confusion and find your path forward in the right direction._

small_2. Cotality-Westpac Report Q1 2026.png

thumbnail_2. Cotality-Westpac Report Q1 2026.png

2. Cotality-Westpac Report Q1 2026.png

Key Insights from the Cotality-Westpac Q1 2026 Report

## **The May Rate Shift: What’s Happening?**

The low-rate honeymoon of early 2026 has hit a sudden speed bump. 

Over the last two weeks, New Zealand’s major lenders (ANZ, Westpac, Kiwibank, BNZ and ASB) have all announced nudges to their fixed-term mortgage rates.

While the Reserve Bank of New Zealand (RBNZ) held the [Official Cash Rate (OCR) at 2.25% in April,](https://www.rbnz.govt.nz/monetary-policy/about-monetary-policy/the-official-cash-rate) retail banks are moving early. This pre-loading comes as [Stats NZ reports](https://www.stats.govt.nz/topics/consumers-price-index/) annual inflation holding steady at 3.1%, keeping pressure on wholesale funding costs. 

Global volatility and energy price spikes have made the market nervous, leading economists to forecast potential OCR hikes later this year. 

For Kiwis waiting for the ‘bottom’ to fix their mortgage, the window appears to be closing.

## **Current Bank Rate Comparison (May 2026)**

The market is moving fast. Check out the [comparison](https://tella.co.nz/home-loans-mortgages/rates) of the latest Fixed Rates as of May 13, 2026.


## **How These Hikes Impact Your Borrowing Power**

In the world of mortgages, interest rates and borrowing power are on a seesaw. When rates go up, your borrowing power goes down. 

For every 0.50% increase in interest rates, the average NZ household's maximum loan amount can drop by roughly $30,000 to $50,000. 

Banks stress test your application at a higher servicing rate to ensure you can handle future changes. If market rates rise, your bank may reassess your pre-approval and lower your maximum loan limit.


## **3 Strategies for Kiwis to Beat the Rate Hikes**

#### **1. Lock in Your Rate Early**

Most NZ banks allow you to lock in a new fixed rate up to 60 days before your current term expires.

If your mortgage is up for renewal in June or July, talk to us now. Securing a rate today protects you if the RBNZ takes a hawkish tone at the next announcement.

#### **2. The Ladder Approach**

Don't put all your eggs in one basket. 

By splitting your mortgage into two different fixed terms (e.g., half for 1 year and half for 2 years), you ensure that only a portion of your debt is exposed to market volatility at any one time.

#### **3. Ditch the LEM**

If your home’s value has increased, you might finally have 20% equity. This allows you to remove the Low Equity Margin (LEM) and move to ‘Special’ rates, potentially saving you thousands even as market rates rise.

## **Take Control of Your Rate Before the Next Hike**

Interest rates are moving, but your homeownership goals don't have to stall. Whether you’re trying to calculate your new weekly repayments or seeing how much house you can afford at today's rates, we have the tools to help.

•	**See the Impact:** Use our [Mortgage Repayment Calculator](https://tella.co.nz/home-loans-mortgages/calculators/repayment) to see exactly how much your weekly or fortnightly payments will change with the new rates.

•  **Compare the Market:** Check our live [Interest Rate Comparison Table](https://tella.co.nz/home-loans-mortgages/rates) on our website to see the latest daily movements across all NZ lenders.

•	**Take Action:** [Book a chat](https://calendly.com/tella-adviser) with a Tella mortgage expert today to lock in a rate and maximize your borrowing power before the next market shift.





small_1. Major Banks Rates Hike (May 2026).png

thumbnail_1. Major Banks Rates Hike (May 2026).png

1. Major Banks Rates Hike (May 2026).png

Why the ‘Big Five’ Banks are Hiking Rates (May 2026)

Andrew Chambers, our Tella CEO, recalls a moment from the late 1990s during the onset of the Asian financial crisis. A senior colleague remarked, “You don’t know what recession is—you weren’t in banking in ’87!” That comment stuck with him. Now, having weathered a recession roughly every decade since, Chambers has come to a key realization: while recessions are inevitable, their causes and consequences are never the same.

Drawing on the metaphor of tectonic shifts, he describes the current downturn as a slow-moving quake—less dramatic in the headlines, but deeply disruptive beneath the surface. Here are some of his observations:

- **A Quiet but Deep Impact**: Unlike the sharp shocks of past recessions, this one has unfolded gradually. Its slow burn has made it less newsworthy, yet it has significantly eroded household financial security.

- **A New Banking Ethos**: Today’s banks have evolved into more responsible corporate citizens. The absence of widespread mortgagee sales—a hallmark of past recessions—is a testament to this shift. Chambers commends the industry for this progress.

- **Latecomers Hit Hardest**: Those who entered the property market late are bearing the brunt of the downturn, facing devaluations of 10–20% that have wiped out their equity.

- **Auckland vs. South Island**: Auckland has felt the recession more acutely, due to inflated property prices and higher job losses. In contrast, South Islanders have weathered the storm relatively well.

- **Infrastructure Neglect Exposed**: The recession has highlighted decades of underinvestment in infrastructure. Chambers urges both central and local governments to learn from this and prioritize long-term resilience.

- **Regretful Covid Spending**: Many households spent freely during the pandemic—on renovations, vehicles, and other big-ticket items. Now, those decisions are proving burdensome.

Chambers shared these insights in a brief conversation with Ryan Bridge on *Herald Now* morning TV. His reflections invite readers to consider not just the economic data, but the human and structural stories behind it. 

large_Mortgagee Sales TT (LinkedIn Post).png

medium_Mortgagee Sales TT (LinkedIn Post).png

small_Mortgagee Sales TT (LinkedIn Post).png

thumbnail_Mortgagee Sales TT (LinkedIn Post).png

Mortgagee Sales TT (LinkedIn Post).png

Reflections on Recession: Lessons from the Long Grind

The Official Cash Rate has been reduced again (as widely expected), this time by 0.25% to 3.50%.

While some banks have already reduced their floating rates as a result of this announcement, we're watching closely to see how (and if) fixed interest rates will respond. The impact of global trade uncertainties, like Trump's tariffs, also adds a layer of complexity to where rates might head. We're also seeing movement on the swap curve: 

![Screenshot 2025-04-09 153501.png](https://mydash.blob.core.windows.net/strapi-uploads/assets/Screenshot_2025_04_09_153501_1026f30c78.png)
_1-year swap rates: The downward trend is a key indicator of potential reductions in fixed mortgage rates._

Regardless of how interest rates settle, taking proactive steps towards your financial goals is always a smart move. Even with these wider economic shifts, you can still take charge of your financial situation. This latest OCR move is a good reminder to review your options, whether you're aiming for your first home, considering investment, or just want to ensure you have the best mortgage deal.

[Book a free, no obligations, chat](https://calendly.com/tella-advisors/chat-with-a-mortgage-expert-15min) with one of our home loan specialists today.

We’re here to guide you every step of the way.


thumbnail_Screenshot 2025-04-10 154227.png

Screenshot 2025-04-10 154227.png

small_Screenshot 2025-04-10 154052.png

thumbnail_Screenshot 2025-04-10 154052.png

Screenshot 2025-04-10 154052.png

Reserve bank cuts OCR again

Have you noticed the buzz in the property market lately? There's a sense of change in the air, with agents reporting increased activity and developers starting projects again. This isn't just talk – it's a genuine shift, and we're seeing some interesting trends emerge. Let's delve into what's happening and how you can make the most of it.

### **Here’s what we’re seeing:**
- **Real Estate Optimism:** Agents are reporting a noticeable improvement, with increased activity and faster sales.
- **Developer Confidence:** Property developers are restarting projects after a two-year pause, signalling renewed confidence.
- **Lender Aggression:** Banks are actively competing for business, leading to a more favourable lending environment.
This combination of factors presents exciting opportunities for those looking to buy or refinance.

While we're not seeing the historically low 3% interest rates (and likely won't again), rates below 5% are significantly better than the 40-year average of 7%. Notably, over the past few months, we've seeing banks becoming more flexible with loan approvals, making it easier to get that home loan.

Looking ahead, the global landscape remains uncertain, with events like gold now above USD$3,000/ounce which is a sign of investors rushing to safety. However, within our industry, we expect:
- **Further OCR Cuts:** We align with bank economists who predict the Official Cash Rate will fall to 3-3.25% by year's end.
- **Lower Fixed Rates:** It's possible longer-term fixed interest rates (3-5 years) could drop to or below 5% by the end of the year, driven by both economic factors and banks' need to grow their portfolios.

![Screenshot 2025-04-02 095358.png](https://mydash.blob.core.windows.net/strapi-uploads/assets/Screenshot_2025_04_02_095358_642d0c6d2f.png)
_2-year swap rates: The downward trend is a key indicator of potential reductions in fixed mortgage rates._


### **What This Means for You:**

**Increased Borrowing Potential:**
- The current lending environment can open doors to increased borrowing capacity, allowing you to pursue your property goals.

**Strategic Savings Opportunities:** 
- Potential further interest rate reductions present opportunities to optimise your mortgage and reduce long-term costs.

**Proactive Decision-Making:** 
- Understanding these market dynamics enables you to make informed, timely decisions to maximise your financial position.

### **Your Next Steps:**
- [Book a free chat](https://calendly.com/tella-advisors/chat-with-a-mortgage-expert-15min): Let's discuss your specific situation and develop a tailored plan. 
- **Stay Informed:** Keep an eye out for our updates as the market evolves.
We're here to guide you through these market shifts and help you capitalise on the opportunities. 

Whether you're looking to buy, refinance, or simply understand your options, we're ready to assist. We're committed to providing you with clear, actionable advice to help you achieve your homeownership and financial goals.

thumbnail_Screenshot 2025-04-11 105611.png

Screenshot 2025-04-11 105611.png

small_Screenshot 2025-04-11 105452.png

thumbnail_Screenshot 2025-04-11 105452.png

Screenshot 2025-04-11 105452.png

Maximise your savings: Navigating today's mortgage market

It’s that time of year where our team get out to the beach, or out on the mountain biking tracks spending time with our family and friends.

We'll be soaking up the sun and recharging our batteries, but let's talk about our wins for this year.

Before we dive into holiday mode, we want to thank you for being a part of our journey. This year, we've celebrated countless homeownership victories with you.

### **Here are a few highlights:**
- **Global Homeownership:** We helped a New Zealand family based in Timor-Leste secure a home loan for an investment property in New Zealand to return back too (one day). We’ve helped clients all over the world, but Timor-Leste was the most surprising request. 
- **Age is No Barrier:** Our oldest client to be approved a home loan with a bank was a remarkable 72-year-old. 
- **The Next Generation of Homeowners:** We’ve helped many young individuals and couples into home ownership. It seems 25-years old is the average starting age for our first home buyers embarking on their property journey.
- **Rural NZ has been busy:** Timaru, Tokomaru, Taumarunui, Marton, Mangawhai, Kaiaua, Hikirangi and Renwick to name a few places, we have definitely seen more purchases this year outside the main centres. 
- **Most unlikely approval:**  It started with an email: “Its a proceeds of crime sale, and is selling as is where is by the court appointed lawyer.  It needs ‘some’ work but they are selling quite a bit below CV. All offers must be in tomorrow by 10am”. We got them approved, with 90% lending for first home buyers and they moved in a bit over a month later, ready to start the work.  

### **Let’s make 2025 your best year yet.**
Need help with your home loan? Contact us on 0800 4 TELLA (0800 4 83552) when you’re back into the swing of things or [book a free, no-obligation consultation](https://calendly.com/tella-advisors/chat-with-ben) for the New Year. We're here to help you achieve your homeownership dreams.

Wishing you a Merry Christmas and happy holiday season. Here’s hoping for a sunshine summer, plenty of BBQ’s and a time filled with laughter, love, and relaxation.  

thumbnail_Screenshot 2025-04-10 155314.png

Screenshot 2025-04-10 155314.png

small_Screenshot 2025-04-10 155255.png

thumbnail_Screenshot 2025-04-10 155255.png

Screenshot 2025-04-10 155255.png

That's a Wrap

A new digital portal that allows people to apply for home loans via the OneRoof property website has been launched by New Zealand Media and Entertainment (NZME) and home loan provider Tella.

The portal sees OneRoof broadening its offering, meaning Kiwis can now use the real estate platform to see out their entire property journey from start to finish. Whether it’s reading all the latest real estate industry news, seamlessly search for their new home, finding out what it could be worth, or arranging home loan financing, it will now be available all under the one roof.

Chief of OneRoof, Greg Hornblow, says: “As one of the country’s leading property portals, OneRoof continues to innovate and simplify the property journey for Kiwis. The property industry is constantly evolving and we are proud to be at the forefront of innovation in this space. Since launching just a few weeks ago, we’ve seen a large number of users interacting with the calculator and completing the home loan application process.

“We’re pleased to be offering a new tool that aims to simplify the property buying process for home buyers, homeowners, and investors, providing a quality user experience and opening the door to a new era of property purchase and investment in New Zealand.

“OneRoof empowers consumers by equipping them with the right insights so they can make informed decisions. By combining our company values and goals with that of our home loan partner Tella, we believe we can positively revolutionise the property sector for Kiwis,” says Hornblow.

Tella CEO, Andrew Chambers, says: “Having a strong real estate platform as a partner was always on the cards, and over the last couple of years, it’s been a pleasure building that relationship with OneRoof. The two businesses are both market leaders in tech innovation within their segments and look forward to a successful partnership in bringing the two together for an amazing user experience.”

OneRoof Home Loans, powered by Tella, can be accessed at [OneRoof.co.nz](https://www.oneroof.co.nz/advice/home-loans).

medium_Oneroof&Tella_Logo_Orange_Dark_stacked.png

small_Oneroof&Tella_Logo_Orange_Dark_stacked.png

thumbnail_Oneroof&Tella_Logo_Orange_Dark_stacked.png

Oneroof&Tella_Logo_Orange_Dark_stacked.png

large_OneRoof Hub Image.png

medium_OneRoof Hub Image.png

small_OneRoof Hub Image.png

thumbnail_OneRoof Hub Image.png

OneRoof Hub Image.png

OneRoof and Tella launch new digital home loans portal for Kiwis

Exciting news for homeowners and anyone considering buying a home! We're approaching the **27th of November**, and most experts predict the **OCR will drop to 4.25%**. This could mean lower interest rates and potential savings!!

However, there's a twist: While this is great news, it's important to remember that **fixed mortgage rates are influenced by debt swap rates**, which has been creeping upwards in recent weeks. This means even though the floating rate might drop, fixed rates could go the other way.

![Screenshot 2024-11-20 104741.png](https://mydash.blob.core.windows.net/strapi-uploads/assets/Screenshot_2024_11_20_104741_8f0218357c.png)

**So, what does this mean for you?**

If you've been waiting for mortgage rates to drop further, it might be a good idea to lock in a rate today before they potentially increase. Click [here](https://calendly.com/tella-advisors/chat-with-a-mortgage-expert-15min?) to book in a time to chat with one of our mortgage experts – we can help you find the best option for your situation. 

**Positive Market Trends**

Real estate agents are also reporting a more positive outlook, with buyers and sellers connecting and properties selling faster. While house prices may remain flat, there's a renewed sense of activity in the market. With increased buyer activity and properties selling faster, now is a great time to seize the opportunity and secure your dream home.

**Refer a Friend and Earn $250!**

Know someone who's looking for a mortgage? Refer them to Tella, and if they take out a home loan before 31/01/2025 of over $100,000 directly through Tella, you'll receive a $250 bonus. It’s our way of saying thanks for spreading the word.

**Ready to take the next step?**

Let's unlock your homeownership dreams!  [Book a free, no obligations, chat](https://calendly.com/tella-advisors/chat-with-a-mortgage-expert-15min) with one of our home loan specialists today.

We’re here to guide you every step of the way.



thumbnail_Screenshot 2024-11-20 110102.png

Screenshot 2024-11-20 110102.png

thumbnail_Screenshot 2024-11-20 110111.png

Screenshot 2024-11-20 110111.png

Does an OCR drop automatically mean lower home loan rates?

### Lower Interest Rates

Interest rates are finally heading in the right direction after a period of steady increases. This is largely due to the Reserve Bank’s efforts to manage inflation and global economic factors influencing interest rates.

### Easier to Qualify for a Home Loan

The government has made it easier to qualify for a home loan by relaxing the Credit Contracts and Consumer Finance Act (CCCFA) regulations. This means lenders can take a more holistic view of your financial situation, increasing your chances of approval.

### What this means for you

- Lower Monthly Repayments: Enjoy more financial freedom with reduced mortgage payments.
- Increased Borrowing Power: Qualify for a larger loan to purchase your dream home or invest in your property.
- Potential to Refinance: If you have an existing mortgage, explore refinancing options to take advantage of lower interest rates.
- Faster Approval Process: Streamlined processes can lead to quicker loan approvals, saving you time and hassle.

### Understanding the Bigger Picture

To give you a better understanding of how interest rates work, it's helpful to know that banks fund their loans through a mix of deposits, equity, and wholesale debt. 

The cost of wholesale debt, measured by interest swap rates, has fallen significantly in recent months (see 1 year swap rate graph below). This is the primary driver of the decline in home loan rates.

![Screenshot 2024-08-13 115747.png](https://mydash.blob.core.windows.net/strapi-uploads/assets/Screenshot_2024_08_13_115747_4d67a7ed54.png)

### Next Steps

Ready to take advantage of these positive market conditions? Book a [free, no obligations, chat](https://calendly.com/tella-advisors/chat-with-a-mortgage-expert-15min) with one of our home loan specialists today to explore your options.  

thumbnail_Screenshot 2024-08-15 111314.png

Screenshot 2024-08-15 111314.png

small_Screenshot 2024-08-15 111221.png

thumbnail_Screenshot 2024-08-15 111221.png

Screenshot 2024-08-15 111221.png

Lower Interest Rates & Easier Approvals: Tella's here to help.

We're excited to announce the arrival of our newest member to the Tella family! 

Please join us in warmly welcoming [Jose George](https://www.linkedin.com/in/jkgeorge/) as our newest Mortgage and KiwiSaver Financial Adviser.

**Expanded Services at Tella**

Many of you know Tella as your go-to source for expert home loan advice. We're excited to share that we've expanded our services to include comprehensive KiwiSaver guidance. With Jose on board, we can now help you navigate both your home ownership and long-term savings goals.

**Meet Jose George**

Jose brings a wealth of experience to the table, having served as the General Manager of Canstar New Zealand and with a strong background in banking. His expertise will be invaluable as we continue to provide exceptional service to our customers.

**KiwiSaver Expertise**

Whether you're looking to optimise your existing KiwiSaver plan or just starting your savings journey, Jose can help you:
Choose the right KiwiSaver provider based on your goals and risk tolerance.
Develop a personalised savings strategy to maximise your future financial security.
Understand how KiwiSaver contributions can work alongside your mortgage plans.
Accredited with Milford, Pathfinder, Kernel, and Generate, Jose has the expertise to advise on a wide range of KiwiSaver options.

**Get in Touch**

Looking to discuss your home loan and KiwiSaver goals in one convenient place? Jose is here to help! Reach out to him to schedule a free, no obligations chat [here](https://calendly.com/jose-tella/chat-with-a-homeloan-kiwisaver-expert).

**Jose George**
 Mortgage and KiwiSaver Financial Adviser
 Email: jose@tella.co.nz
 Phone: 021 1405 293

Once again, a warm welcome to Jose! We're excited for him to share his knowledge and expertise with all of you. Please don't hesitate to reach out to Jose with any questions or to [schedule a meeting](https://calendly.com/jose-tella/chat-with-a-homeloan-kiwisaver-expert).

thumbnail_Screenshot 2024-07-23 092816.png

Screenshot 2024-07-23 092816.png

small_Screenshot 2024-07-23 092757.png

thumbnail_Screenshot 2024-07-23 092757.png

Screenshot 2024-07-23 092757.png

Tella gets the Canstar treatment