## 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.

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_**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._

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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.





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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. 

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Reflections on Recession: Lessons from the Long Grind

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).