Owning a home in New Zealand increasingly means carrying a mortgage that would have seemed extraordinary just a few years ago. New figures from credit bureau Centrix show that 134,000 New Zealanders now have home loans exceeding NZ$1 million, highlighting how rising property values and larger borrowing requirements have reshaped the country’s housing market.
The latest data represents a 15% increase from a year earlier and continues a trend that has accelerated since the pandemic-era housing boom. At the end of 2019, fewer than 51,000 people had mortgages above the million-dollar mark. In 2017, the figure stood at roughly 37,000. Today, seven-figure mortgages have become increasingly common, particularly in Auckland, Queenstown and other high-value property markets.
The growth is not limited to the million-dollar bracket. Centrix reported that around 18,000 people are now responsible for mortgages above NZ$2 million. That compares with approximately 5,000 borrowers in 2017 and 13,000 in 2022, illustrating how quickly debt levels have expanded alongside housing costs.
For borrowers, the financial commitment is significant. A NZ$1 million mortgage at an interest rate of 5.62% requires repayments of approximately NZ$5,754 per month over 30 years. A NZ$2 million mortgage would push repayments to roughly NZ$11,500 per month. While incomes have increased over time, housing debt has grown at a much faster pace, leaving many households with less room to absorb unexpected financial shocks.
Yet despite larger mortgages, the latest credit data paints a surprisingly resilient picture of household finances. Consumer arrears fell to 11.25% in April, down from 11.72% a month earlier. The number of people behind on payments dropped to 443,000, representing a 9.5% improvement from the same period last year.
Mortgage repayment performance has also improved. Residential mortgage arrears declined to 1.29%, down from 1.39% in the previous month. There are now approximately 21,100 overdue home loan accounts across the country, a 13% year-on-year improvement. Personal loan arrears fell to 9.2%, while buy now, pay later arrears eased to 8.3%.
These figures suggest that many households have adjusted to higher borrowing costs more successfully than expected. Recent trends in mortgage rates and household living costs in New Zealand also show how borrowers continue to balance easing interest rates against persistent pressure from everyday expenses such as insurance, utilities and groceries.
Economists say the growth in large mortgages reflects more than just rising house prices. Changes in lending rules, population growth, and strong demand in premium property markets have all contributed. The Reserve Bank has increasingly relied on debt-to-income restrictions to reduce excessive borrowing risk while still allowing qualified buyers access to finance. More information about these lending safeguards can be found through the Reserve Bank of New Zealand’s debt-to-income framework.
While households are showing signs of improvement, businesses continue to face a more challenging environment. Centrix reported that company liquidations remain elevated despite improvements in credit default rates. Hospitality business liquidations surged 49% year-on-year, while retail liquidations rose 37%. Construction liquidations increased 7%, and transport businesses recorded an 8% rise.
Small-business owners appear particularly vulnerable. Many entrepreneurs have used equity from their homes to finance business operations, creating a direct link between commercial performance and household finances. Mortgage stress among sole proprietors remains higher than among non-business borrowers, while people operating multiple businesses have stress levels more than double those of traditional homeowners.
Regional differences also remain evident. Wairoa recorded the highest arrears rate at 17.35%, followed by Kawerau at 16.99%, ĹŚpĹŤtiki at 15.94%, and South Waikato at 15.62%. These figures highlight how financial pressure is concentrated in some communities despite broader national improvements.
The latest Centrix report reveals an economy moving in two directions at once. On one side, households are gradually strengthening their repayment position. On the other, businesses in sectors such as hospitality and retail continue to feel the effects of slower spending and higher operating costs. Meanwhile, the rapid growth in million-dollar mortgages underscores how dramatically New Zealand’s housing market has changed over the past decade.
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Whether these larger debt levels remain sustainable will depend on future interest-rate movements, employment conditions and wage growth. For now, the data suggests most homeowners are managing their obligations, but the growing number of seven-figure mortgages means the stakes have never been higher for New Zealand households.
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