Lending slashed in January as borrowers rushed for new deals in December

The $6 billion total was the lowest since January last year, with most 2025 months hovering in the $8 billion range and hitting  $9 billion in July.

During the cashback offer period a record 41.1% of borrowers changed to new lenders, but this dropped back to 33.8% in January, However, it was the second highest share on record.

The average value of mortgages for home owners switching to a new lender rose by 0.7% between December and January, while the number of new mortgages taken out rose by 66.3% compared to January last year.

A big flurry of mortgage switching is still expected. For the rest of the year 68% of fixed rate mortgage loans will reprice. For all borrowings, including floating, it’s 72%, the BNZ says.