More borrowers take out ever bigger mortgages
More than 18,000 borrowers have mortgages of more than $2 million, a number that has grown rapidly – up from 5,000 in 2017, 6,000 in 2019 and 13,000 in 2022.
Thursday, June 4th 2026, 10:28AM
by Sally Lindsay
Credit bureau Centrix April data shows higher value lending is growing at the top end as the number of borrowers with a seven figure mortgage has ballooned.
The number of borrowers with mortgages of more than $1 million has risen 15% year-on-year, with more than 134,000 homeowners now in this category following a plateau during the softer property market of 2023–2024. Joint borrowers who own a house together could be counted twice.
At the end of 2019, nearly 51,000 borrowers had a mortgage of more than $1 million. That number had lifted to 100,000 by 2022 and is rising rapidly.
Even if the number of house sales falls, the number of mortgages in the top range doesn’t, although a 30-year mortgage of that size means repayments of more than $5,700 a month at an interest rate of 5.62%. For a $2 million mortgage repayments are $11,500 a month on the same terms.
Buyers appear to be taking out bigger mortgages at times when interest rates a low, such as 2022 and in the last quarter of last year.
There is also renewed momentum among first home buyers, who now make up 25% of new mortgage lending as easing rules and lower interest rates open the door.
For first-home buyers, the average loan size is down slightly from the $560,000 of January this year.
Centrix chief operating officer Monika Lacey says affordability pressures persist. The typical buyer is now 37, and while that trend has stabilised, those entering the market tend to have relatively strong credit profiles.
Arrears dampen down
Residential mortgage arrears continued to improve in April, declining to 1.29% from 1.39% the previous month, with 21,100 accounts past due.
This marks a 13% year-on-year improvement, reflecting the impact of lower interest rates in easing repayment pressure and stabilising household finances after a period of strain.
Additionally, seasonally adjusted mortgage delinquencies continue to improve, with 90+ day arrears down 13% from a year ago.
Hardship declines
Financial hardship cases have declined 9.3% year-on-year, with 13,450 accounts reported in hardship – up slightly by 50 month-on-month, but reversing the upward trend seen since late 2022.
Mortgage-related hardship remains the largest category at 36% and is easing, followed by credit cards at 35%.
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