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23 minute read
Key Insights from the Cotality-Westpac Q1 2026 Report
Analysis of the Q1 Cotality-Westpac report. Learn why standalone houses and low-deposit loans are dominating the 2026 NZ property market.
Nurain Nadzirah
21 May 2026
Market Snapshot: The Q1 Numbers
- $720,000 Median Price: That’s the median price FHBs are paying. It’s a slight tick up, but still below the 2022 peaks.
- 77% Standalone Homes: Most FHBs are successfully avoiding tiny apartments and securing backyards.
- 50%+ Low-Deposit Loans: Over half of all buyers are getting keys with less than a 20% deposit.
- $820 Monthly Savings: Average repayments (outside Auckland) have dropped significantly since 2024.
- 35 Years Old: The average FHB age has dropped from 35, as younger Kiwis find their way back to the market.
- 37% Wellington Share: The capital is currently the busiest hub for first-time buyers in the country.
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, 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 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 today.
New to the first-home buying journey? Explore our step-by-step guides to help clear the confusion and find your path forward in the right direction.