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Mortgage borrowers switching to new lenders continues at a steady pace

Switching to a new loan provider is still proving popular for mortgage borrowers.

Thursday, March 27th 2025, 8:48AM

by Sally Lindsay

Switching to a new loan provider is still proving popular for mortgage borrowers.

Reserve Bank February figures show a change in loan provider rose by 34.2% compared to a year ago. That number was also up 21% on January.

From the $5.8 billion total lent on mortgages during February, $1.427 billion was for borrowers switching to a new lender.

That is a 24.4% share of the total, up from 22% during January.

Meanwhile the share of mortgages to first home buyers is dropping.

After peaking at 25.2% in December 2023, mortgages to this group of buyers dipped to 19% last month, down from 20.2% in January and 22.6% in February last year. The 19% share is the lowest since July 2022.

First home buyers borrowed $1.113 billion, up on $1.036 in January and $1.109 in February last year.

Investors, on the other hand, remained ahead of first home buyers in terms of market share, although they dropped to 20.6% from 22.5% in January.

In February last year, investors share stood at just 17.3% after they sat on the sidelines during the Labour Government’s assault on landlords through tax and Residential Tenancy Act changes.

They borrowed $1.207 last month compared to $851 million a year ago.

Other owner occupiers took out mortgages for $3.426 billion in February and their share rose to 58.6% - the same as last year. It was also up from 56.4% per cent in January.

The total of new mortgages was up 14% on a monthly basis and up 19% when compared to February last year.

There were 16,286 new mortgage commitments last month, up 15.3% from 14,122 in January and also up by 13.2% from 14,391 at the same time last year.

The average new loan value across all mortgage types declined to $359,048, down 1.2 per cent from $363,319 in January, but they increased by 5.1% from $341,531 in February last year.

For top-ups the average new loan increased by 15.2% from January and the average value for changes in loan provider increased by 4.7% over the same monthly.

The number of new commitments for property purchases rose by 5.7% and that of top ups increased by 16.9% compared to February last year.

The share of the value of new mortgages for property purchases dropped to 59.3% during February, down from 63.9% in January, while for top ups increased to 13.3%, up from 11% in January.

Tags: first home buyers mortgages

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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.44 - - -
AIA - Go Home Loans 6.74 4.99 4.99 5.35
ANZ 6.69 5.59 5.59 5.89
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 4.99 4.99 5.29
ASB Bank 6.64 4.99 4.99 5.35
ASB Better Homes Top Up - - - 1.00
Avanti Finance 7.15 - - -
Basecorp Finance 7.50 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 6.79 - - -
BNZ - Rapid Repay 6.79 - - -
BNZ - Std 6.69 5.55 5.29 5.59
BNZ - TotalMoney 6.79 - - -
CFML 321 Loans 5.25 - - -
CFML Home Loans 6.95 - - -
CFML Prime Loans 7.45 - - -
CFML Standard Loans 8.25 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 4.89 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.20 4.99 4.99 5.39
Co-operative Bank - Standard 6.20 5.49 5.49 5.89
Credit Union Auckland 7.70 - - -
First Credit Union Special - 5.49 5.39 -
First Credit Union Standard 6.94 5.99 5.69 -
Heartland Bank - Online 6.25 5.89 - -
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 7.65 ▼5.95 5.80 -
ICBC ▼6.50 4.99 4.99 5.39
Kainga Ora 6.89 5.29 4.99 5.35
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 6.50 5.89 5.89 6.39
Kiwibank - Offset 6.50 - - -
Kiwibank Special 6.50 4.99 4.99 5.59
Liberty 6.90 6.80 6.50 6.45
Nelson Building Society 7.19 5.24 4.97 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 6.74 ▼5.59 ▼5.59 5.95
SBS Bank Special - ▼4.99 ▼4.99 5.35
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.19 ▼4.29 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 8.89 - - -
TSB Bank 7.44 5.79 5.79 6.19
TSB Special 6.64 4.99 4.99 5.39
Unity 6.64 5.29 4.99 -
Unity First Home Buyer special - 4.69 - -
Wairarapa Building Society 6.95 ▼5.29 4.99 -
Westpac 6.74 5.59 5.59 5.79
Westpac Choices Everyday 6.84 - - -
Westpac Offset 6.74 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 4.99 4.99 5.19
Median 6.79 5.29 5.14 5.49

Last updated: 2 May 2025 9:07am

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