mortgages.co.nz & Tony Alexander Mortgage Advisers Survey – September 2026
Quiet conditions continue
Each month we invite mortgage advisors around the country to give insights into developments in the residential real estate market from their unique perspective. Our latest survey has attracted 63 responses.
The main themes to come through from the statistical and anecdotal responses include the following.
More first home buyers are showing interest in the housing market.
Investment demand however remains on the weak side with no improving trend evident -- perhaps because of uncertainty regarding the November 7 general election.
Borrowers continue to show greatest preference for fixing their mortgage interest rate for two years.
Compared with a month ago, are you seeing more or fewer first home buyers looking for mortgage advice?
Over the past five months there has been an easing in the pullback of first home buyers from the financing market which happened soon after the Middle East war started.
At a net 8% positive the proportion of brokers reporting more young buyers in the market is back to where it was early in March. But this is still well below the net 33% in February who reported more such buyers.
The data tell us that there is a movement of increased first time buyers into the housing market but that the volume is still relatively light.
Comments on bank lending to first home buyers submitted by advisors in this month's survey include the following.
Banks have very low application volumes and are therefore very willing to try to make deals fit
Some of the lenders have shut the doors to over 80% new to bank borrowers. Other than that, not too much change.
The first home buyer's criteria are getting looser day by day.
More appetite to make it work.
No changes. Most prefer no or very small, short term debts.
Much the same as the last few months, there seems to be no change in the criteria as such - we are getting incredibly quick answers from applications submitted which is awesome.
Compared with a month ago, are you seeing more or fewer investors looking for mortgage advice?
A net 27% of mortgage advisors this month have reported seeing fewer investors in the marketplace. This reading is consistent with others in the previous three months and tells us that investor demand for property remains on the weak side.
Of interest is the contrast with readings discussed just above for first home buyers. For young potential purchasers there is an improving trend in demand which has been running now for five months.
But apart from a pullback from the brink for investors which we recorded in June there is no improving trend for the investment part of the demand side in the housing market.
The approaching general election, rising financing costs, static to falling rents, and rising property costs generally are likely to be sidelining a lot of investor demand. Reduced capital gain expectations are also probably at work.
Comments made by advisors regarding bank lending to investors include the following.
Some opening of 80% LVR for investment where there is high surplus income.
No change, just low investor numbers right now.
New assessors are drilling into every dollar the clients have spent. Tightening up on DTI and security values.
More applications for investment properties are coming through.
Going slightly higher LVR.
Based on what we are seeing with our clients, banks are still lending to investors, but they are applying tighter assessment around servicing, total debt levels and the strength of the security. For standard investment properties, lenders are generally comfortable around 65%-70% LVR where the client has stable income, acceptable existing commitments and sufficient equity.
Compared with a month ago, are you finding lenders more or less willing to advance funds?
A net 30% of mortgage brokers this month have reported that they feel banks are more willing to advance funds. This reading is consistent with others over the previous three months and well ahead of perceptions in our April and May surveys.
Bank willingness to lend lifted firmly through 2022 even as house prices were in the process of falling an average 16% nationwide. Since prices largely stabilised in most locations from the early part of 2023 lending availability has been rate by brokers largely as good.
What time period are most people looking at fixing their interest rate?
The two year period once again is the term most favoured by borrowers for fixing their mortgage interest rate. There is little interest in other terms apart from one year.
Over the past two months as interest rates have moved higher there has been a slight rise in borrower preference for the generally cheaper one year fixed rate term. But at 22% this preference is still well below the proportion of brokers saying the two year term is preferred.
For the first time in a few months there has been a reasonable easing in broker observations of borrower preference for the two year fixed mortgage rate term. This may be driven by people shifting to the chapest rate on offer as rates generally increase.
As usual demand for fixing longer than two years is low. Kiwis tend to favour whichever rate is the cheapest.
Are more property owners asking about refinancing?
There has been no noticeable change in broker observations of refinancing requests since the plunge recorded over summer.
