Source: Finance and Mortgage Advisers Association of New Zealand
November 18, 2025 – Borrowers are in the box seat to secure better loan deals amid signs of improving credit conditions yet many will still be paying more than they should, according to the Finance and Mortgage Advisers Association of New Zealand (FAMNZ).
FAMNZ managing director Peter White AM said the encouraging credit outlook revealed in credit bureau Centrix’s October Credit Indicator was good reason for borrowers to scale up their ambition.
According to the report, new residential mortgage lending climbed 21.1 per cent year-on-year, with total new household lending up 20.2 per cent.
“Smart borrowers can leverage falling interest rates to help them get a better deal on their loan, provided they have the right plan,” he said.
However Mr White also warned borrowers not to fall into the “loyalty tax” trap, which sees lenders offer new customers lower rates than existing customers.
“Existing borrowers shouldn’t be penalised for years of loyalty by lenders who reward new customers with sweetheart details never offered to them.”
He said that with increased competition in the home loan and personal loan markets, borrowers may be in a stronger position than they realise to secure a better deal.
His advice was to, “regularly review your home loan and personal borrowings and contact your current lender to seek a better rate – and if they don’t deliver, see a mortgage adviser.”
“Don’t just accept what your bank tells you, as mortgage advisers have access to a far wider range of products best suited to your circumstances.”
“There is plenty of competition, and while banks can only sell you their products, a mortgage adviser can tailor a product suited to your unique circumstances.”
