New Zealand households collectively owe over $370 billion in debt — approximately $70,000 per person or $170,000 per household. Almost all of this is mortgage debt on residential property. This page compiles the key statistics from the RBNZ, Stats NZ, and IRD for 2026.
NZ has one of the highest household debt-to-income ratios in the OECD at around 170%, driven by mortgage debt. Consumer (non-mortgage) debt is more moderate. Student loan debt totals about $10 billion across 700,000+ borrowers. Credit card balances in NZ total around $7 billion, with interest rates averaging 19–22%.
Key Headline Statistics (2026)
| Statistic | Value |
|---|---|
| Total NZ household debt | ~$372 billion |
| Mortgage debt (residential) | ~$348 billion (93% of total) |
| Consumer/personal debt | ~$24 billion (7% of total) |
| Total student loan debt | ~$10.2 billion |
| Number of student loan borrowers | ~738,000 |
| Total credit card balances | ~$7.1 billion |
| Household debt-to-disposable income ratio | ~170% |
| Average mortgage (new borrowers, 2025) | ~$580,000 |
Sources: RBNZ C5 series; IRD student loan data; Stats NZ HES; RBNZ Financial Stability Report 2025.
Mortgage Debt Statistics
Total mortgage lending
| Year | Total residential mortgage lending (NZD) |
|---|---|
| 2020 | $291 billion |
| 2021 | $316 billion |
| 2022 | $335 billion |
| 2023 | $340 billion |
| 2024 | $355 billion |
| 2025 | ~$348 billion |
Mortgage lending peaked in 2023–2024 and has moderated as higher interest rates slowed new lending and some borrowers paid down debt faster.
Mortgage by interest rate type (April 2026)
| Rate type | Share of mortgage book |
|---|---|
| Floating (variable) | ~12% |
| Fixed 6 months | ~8% |
| Fixed 1 year | ~38% |
| Fixed 2 years | ~22% |
| Fixed 3 years | ~11% |
| Fixed 4–5+ years | ~9% |
The majority of NZ mortgages are on short fixed terms (1–2 years), meaning borrowers re-price frequently when rates change — unlike Australia or the UK where longer fixed terms are more common. This makes NZ households particularly sensitive to interest rate movements.
Average mortgage repayments vs income
At current rates (approximately 6.5% fixed 1-year, 2026), a $580,000 mortgage costs approximately:
| Repayment type | Weekly repayment | Annual cost |
|---|---|---|
| Principal + interest (25 years) | $845 | $43,940 |
| Principal + interest (30 years) | $760 | $39,520 |
| Interest-only | $727 | $37,800 |
On NZ’s median household income of approximately $100,000, mortgage repayments on the average new mortgage consume about 44% of gross income — well above the 30% “rule of thumb.”
Student Loan Statistics
NZ’s student loan scheme is interest-free for borrowers living in NZ (IRD applies a base interest rate that exactly offsets for resident borrowers). Overseas-based borrowers pay interest.
| Statistic | Value |
|---|---|
| Total student loan debt | ~$10.2 billion |
| Number of borrowers | ~738,000 |
| Average loan balance per borrower | ~$13,800 |
| Borrowers in repayment | ~540,000 |
| Borrowers overseas (interest-bearing) | ~105,000 |
| Average new loan draw-down per year | ~$6,500 |
| Typical new graduate balance | $20,000 – $25,000 |
| Median time to repay | ~8 years post-study |
Why the average balance ($13,800) is lower than new graduate debt ($20,000–$25,000): Many borrowers have been repaying for years, significantly reducing their balance. The pool includes people who’ve been in repayment for 10–20 years.
Credit Card and Consumer Debt
| Category | Total (NZD) | Average per holder |
|---|---|---|
| Credit card balances | ~$7.1 billion | ~$2,800 (for those who carry a balance) |
| Personal loans | ~$5.2 billion | ~$8,500 per loan |
| Vehicle/car finance | ~$8.6 billion | ~$12,000 per loan |
| Buy now, pay later | ~$1.1 billion | ~$450 per active user |
Credit card interest rates
NZ credit card interest rates are extremely high by international standards:
| Card type | Typical purchase rate |
|---|---|
| Standard bank credit card | 19.95% – 22.95% |
| Rewards credit cards | 19.95% – 22.95% |
| Low-interest cards | 12.95% – 14.95% |
| Store cards | 24% – 30% |
With inflation at around 2–3% and the OCR at 3.25% (April 2026), the spread between the OCR and credit card rates is enormous — one of the largest in the OECD.
Debt-to-Income Ratios — International Comparison
The RBNZ began implementing DTI restrictions in 2024 to limit high-risk lending:
| Country | Household debt / disposable income |
|---|---|
| Australia | ~185% |
| New Zealand | ~170% |
| Netherlands | ~210% |
| Denmark | ~250% |
| United Kingdom | ~130% |
| United States | ~100% |
| Germany | ~100% |
NZ and Australia are both high-debt countries, primarily because of very expensive urban housing. The Netherlands and Denmark are higher due to specific tax and pension structures.
RBNZ DTI limits (from 2024)
| Loan type | DTI limit (most borrowers) | DTI limit (20% speed limit above) |
|---|---|---|
| Owner-occupier | 6× | Up to 20% of lending can be 6–7× |
| Investment property | 7× | Up to 5% of lending can exceed 7× |
Trends — Is NZ Debt Getting Better or Worse?
Mortgage debt: Stabilised in 2023–2025 after the rapid expansion of 2020–2022 (driven by near-zero interest rates and a COVID-era property boom). As rates rose from 2022–2023, new lending slowed and some borrowers paid down debt faster.
Consumer debt: Relatively stable. BNPL growth is the most notable recent trend — uptake grew rapidly from 2019–2023 but has stabilised.
Student loans: Slowly declining as a share of GDP as IRD’s automatic repayment system works through existing balances. The interest-free policy (for residents) means the real value of student debt erodes with inflation.
Offshore borrowers: IRD has improved collection from overseas student loan borrowers since 2016 — the overseas balance has reduced from a peak of ~$1.4 billion.