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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 6.54 4.89 4.95 5.09
ANZ 6.49 5.55 5.55 5.69
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 4.95 4.95 5.09
ASB Bank 6.44 4.89 4.95 5.09
ASB Better Homes Top Up - - - 1.00
Avanti Finance - Near Prime 6.90 - - -
Avanti Finance - Specialised 8.34 - - -
Basecorp Finance ▼7.15 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 5.99 5.69 5.69
BNZ - Mortgage One 6.54 - - -
BNZ - Rapid Repay 6.54 - - -
BNZ - Std 6.44 4.89 4.95 5.09
BNZ - TotalMoney 6.54 - - -
CFML 321 Loans 4.99 - - -
CFML Home Loans 6.70 - - -
CFML Prime Loans 7.20 - - -
CFML Standard Loans 7.99 - - -
China Construction Bank 6.44 4.85 4.95 4.95
China Construction Bank Special 6.44 5.85 5.95 5.95
Lender Flt 1yr 2yr 3yr
Co-operative Bank - First Home Special - 4.85 - -
Co-operative Bank - Owner Occ 5.95 4.95 4.99 5.25
Co-operative Bank - Standard 5.95 5.45 5.49 5.75
Credit Union Auckland 7.70 - - -
First Credit Union Special - 5.29 5.19 -
First Credit Union Standard 6.94 5.79 5.49 -
Heartland Bank - Online 5.99 5.89 - -
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 7.45 5.90 5.80 -
ICBC 6.50 4.85 4.95 5.05
Kainga Ora 6.44 4.89 4.95 5.09
Lender Flt 1yr 2yr 3yr
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 6.35 5.79 5.85 5.95
Kiwibank - Offset 6.35 - - -
Kiwibank Special - 4.89 4.95 5.15
Liberty 6.90 6.80 6.50 6.45
Nelson Building Society 6.94 4.99 4.93 -
Pepper Money Near Prime 6.85 - - -
Pepper Money Prime 6.29 - - -
Pepper Money Specialist 8.30 - - -
SBS Bank 6.49 ▼5.49 5.55 ▼5.69
SBS Bank Special - ▼4.89 4.95 ▼5.09
Lender Flt 1yr 2yr 3yr
SBS Construction lending for FHB 3.94 - - -
SBS FirstHome Combo - 4.29 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 8.64 - - -
TSB Bank 7.19 5.69 5.75 6.09
TSB Special 6.39 4.89 4.95 5.29
Unity First Home Buyer special - 4.29 - -
Unity Special 6.64 4.99 4.99 -
Unity Standard 6.64 5.79 5.79 -
Wairarapa Building Society 6.75 5.09 4.95 -
Westpac 6.59 5.49 5.55 5.59
Lender Flt 1yr 2yr 3yr
Westpac Choices Everyday 6.69 - - -
Westpac Offset 6.59 - - -
Westpac Special - 4.89 4.95 4.99
Median 6.56 4.99 4.99 5.15

Last updated: 10 July 2025 4:59pm

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