House prices are still lower than they were a few years back, but the latest stats show things are beginning to pick up. Whether you are new to the property ladder or an experienced investor with a property portfolio, the dedicated team at Moneybox can help you build wealth through property in 2026. We can help you optimise your home lending strategy and get the most from your investment. Let us show you how.
1. Optimise your mortgage
What you may not realise when it comes to mortgages, is that there are options available to help you cut years off the life of your loan. The faster you pay down your mortgage, the less interest you’ll pay in the long-run, meaning more money in your pocket and stronger equity in your home. Some of the options include:
Review your mortgage structure:
If you currently have a fixed term home loan, check when your fixed term period expires and what your current interest rate is. If it’s set to expire in the next 3-6 months, start exploring refixing or refinancing options that will allow you to secure a lower rate and/or better terms. Rates can move quickly, and securing early may save you thousands.
If you have a variable rate/floating home loan, you have more flexibility, allowing you to benefit from lower interest rates as soon as they become available.
Increase your repayments if you can afford to:
Consider upping your repayments on your home loan if you can afford to. Even increasing your repayments by a small amount can make a big difference in reducing the overall interest cost and shortening the life of your loan. For example, increasing your repayments by just $50 per week on a $700,000 mortgage at 5% can save over $87,000 in interest and shave 3.5 years off your loan. Try our mortgage calculator to see what upping your repayments could do for you.
To give you the ability to make extra repayments whenever you like, consider opting for a floating or flexible loan. Having all or part of your loan floating gives flexibility to pay lump sums when bonuses or savings allow.
Did you know that you can make extra repayments on a fixed loan too? Most NZ banks allow you to make one lump sum payment per year on your fixed rate home loan, in addition to your standard repayments, with no penalty.
If you can’t afford to up your repayments, keep them the same when rates drop.
Capitalise on lower interest rates (and recovering house prices):
Whether you’re a first time home-buyer or investor, taking advantage of lower interest rates in NZ right now will allow you to take on more debt while keeping your repayments affordable. House prices in New Zealand are currently much lower than their January 2022 peak, and interest rates are lower too, so borrowers are in a stronger position than they were a few years ago.
Even if you’re not buying or selling, reviewing your lending structure yearly can help you save on interest and position you to act fast when opportunities arise. Talk to our mortgage specialists about what type of mortgage strategy is best for you. Unlike banks, we work with multiple lenders, so we can negotiate sharper rates, structure your loan to suit your lifestyle, and help you avoid costly mistakes.
2. Leverage equity
A big advantage of owning property is the leverage it gives you. Even if you are just starting out with the home you are living in, that home has value and that equity can be used to fund a deposit on a second home or rental property. Equity can also fund renovations or upgrades that generate extra income, like converting a basement to a self-contained flat.
For most investment properties, banks require a 30% deposit so $210,000 in equity could support a purchase of around $700,000. With new builds, some lenders may accept a 20% deposit, though this depends on your financial position. A 5% gain on a $700k property = $35,000 in growth – on a deposit you only partly funded.
Leverage can grow your returns faster, but it also increases risk, so speak to one of our mortgage advisors to understand your borrowing strength. Before taking on your next property, we can calculate your usable equity, assess how much you could borrow safely, and model repayment scenarios based on current vs projected rates.
3. Rental properties
One of the best sources of additional or passive income in New Zealand is by investing in rental property. While being a landlord might not be for everyone — due to the upkeep, finding good tenants, and managing the property — there are many reasons why owning a rental is still a smart investment. Rental properties are long term investments which can continue to bring in consistent income, year on year.
To help spread risk and protect your investment(s):
– Consider including a rental property as part of your wider financial plan, so your investments are diversified and you’re not putting all your eggs in one basket.
– Buy a rental in a different town to your main home. While having a geographic spread makes it harder to manage your rental(s), price slumps don’t necessarily happen in all markets at once.
– Spread your purchases over time, so you don’t end up buying everything at what turns out to be a price peak.
– Secure the right insurance package for you and your properties — this could include house insurance, landlord insurance or personal insurance. Knowing you have the right kind of protection against unforeseen events can help you feel relaxed and secure so you can enjoy watching your money grow.
4. Take advantage of easing LVR restrictions
From 1 December 2025, the Reserve Bank will ease loan-to-value ratio (LVR) settings. That means that some borrowers may be able to secure lending with smaller deposits. Debt-to-income (DTI) rules still apply and remain the main guardrail on risk, which is why LVRs can loosen a bit without lifting overall risk.
For people buying a home to live in, banks will soon be able to lend a bit more to customers with less than a 20% deposit. Up to one in four loans (25%) can now go to higher-LVR borrowers, instead of one in five (20%).
For property investors, banks will be able to lend more to those with less than a 30% deposit. Up to one in ten loans (10%) can now go to higher-LVR borrowers, instead of one in twenty (5%).
So if you’re close to a 20% deposit on your first home, this could open doors. If you’re investing, there’s more room at higher LVRs, but cashflow and DTI still need to stack up.
Banks are updating their policies to reflect the change. Talk to us about timing your application so your approval aligns with the December settings. We’ll translate the new rules into a plan that fits your goals, whether that’s structuring your first purchase, leveraging equity for an investment, or refinancing to reduce interest and risk.
5. Timing is everything
It’s currently a buyer’s market in New Zealand, making now a smart time to explore how you could build wealth through property. With the Official Cash Rate (OCR) trending down and forecast to ease further into 2026, lower interest rates are starting to improve affordability and confidence among buyers.
The national average property value now sits at $906,977. This is a slight 0.2% lift on this time last year, but still 13.4% below the January 2022 peak. While prices remain relatively flat overall, early signs of recovery are emerging in several regions.
As rates soften and lenders compete more aggressively for quality borrowers, there’s an opportunity to get ahead. Now is the time to review your lending structure, explore refinancing options, or position yourself for your next investment.
At Moneybox, our mortgage specialists can help you identify the smartest ways to grow your portfolio, balancing opportunity with cashflow and risk management, so you’re ready to make your next move with confidence. Talk to a Moneybox mortgage adviser today.