Lower rates and cooling prices make owning cheaper than renting.

This article was produced by Loan Market and is being published by the New Zealand Herald as advertorial.

At the end of 2025, first-home buyers set a new record. They accounted for 28.8% of property purchases in December, according to data from Cotality. We saw particular movement for first-home buyers in Auckland, Wellington and Hamilton as they look for stability in our major cities.

Despite the challenges of increased costs of living and higher thresholds for deposits required after years of rapid growth, this cohort is still showing up in a big way.

There are a number of reasons we believe 2026 will be the year for first-home buyers to get into the market:

• Buying can be cheaper than renting. As interest rates come down and property prices have plateaued, in many parts of the country it has become about the same or cheaper to pay off a mortgage than to pay rent.
• Property prices have cooled. Nationally, prices actually decreased in December (by 0.2%). This is particularly helpful for people who do not already own property as they are not chasing an ever-increasing deposit.
• Access to support. Schemes such as KiwiSaver can help first-home buyers save for a deposit and get into the market sooner. KiwiSaver enables eligible Kiwis to withdraw funds from their savings balance toward their home deposit.
• Low-deposit accessibility. Lenders are allowed to offer 20% of their loans to applicants with low deposits. They are currently using around 12-13% of that allowance, meaning there is plenty of capacity for more applicants with smaller deposits.
• Stock levels remain high. Although new listings are down 18% compared to a year ago, the total ‘pool’ of available homes remains high by historical standards. This can give buyers more selection and less pressure to rush.

And first-home buyers aren’t the only ones benefiting from our current climate. With over 61% of mortgages due to reprice over the next 12 months, many existing homeowners will find they can move to a lower interest rate soon.

How can you take advantage of today’s financial tailwinds?

Whether you’re looking to buy your first home, next home or refinance, it’s a good idea to talk to a mortgage adviser. Loan Market advisers have a panel of over 25 banks and lenders to compare to find a competitive loan that is right for you. They can also help you understand schemes and incentives that you may be eligible for to help you make your next move.

Talking to an adviser is free for you, meaning you get customised advice without the jargon and can feel confident in the loans that are recommended to you – with no impact on your wallet.

Take advantage of the favourable market conditions and make 2026 the year you make it happen. Visit loanmarket.co.nz to find the right loan for you.