We’re officially into the second half of 2026! Hope the new term has gotten off to a positive start for everyone.
The headline news recently was the Reserve Bank increasing the Official Cash Rate (OCR) by 0.25%.
It came as a surprise to some parts of the industry, although personally I expected it—the RBNZ had indicated we were in for at least one increase before the end of the year.
We’re not expecting it to continue climbing over the remainder of 2026.
The good news for borrowers: mortgage rates have remained relatively stable, despite the increase.
In fact, over the past two to three months, we've seen very little movement in interest rates. Some rates have edged up, others have come down slightly, but overall, the lending environment has been steady.
For homeowners coming up to a loan renewal, or buyers considering their next move, that stability is welcome.
There's still plenty of uncertainty globally, and with the election later this year, many people are taking a wait-and-see approach before making major financial decisions.
That's meant the national property market has been relatively flat for the past six months. From what we're seeing on the ground, though, Christchurch continues to run its own race.
First-home buyer activity remains strong, something we saw firsthand at our First Home Buyer Seminar in late June. We had a fantastic turnout, which was a great reminder of how much appetite there still is for home ownership locally.
It speaks to the confidence many Cantabrians have in our region, even when national and international headlines paint a less positive picture.
One of the reasons Christchurch continues to perform well is affordability.
We recently helped a young woman purchase her first home—a three-bedroom place in Wainoni in the mid-$500,000s—on a single income, and without any help from The Bank of Mum & Dad (all on her own savings, including KiwiSaver).
By taking on a couple of flatmates, she'll significantly reduce her mortgage costs and begin building long-term financial security. Stories like that are becoming increasingly difficult to find in larger centres around New Zealand.
We're also seeing strong development activity throughout the region.
Areas such as St Albans, Merivale, Fendalton and Riccarton continue to attract significant interest from developers, particularly sites benefiting from higher-density zoning.
At the same time, Upper Riccarton remains an area I'm keeping a close eye on. Demand is strong, more developments are coming through, and I believe it's one of the city's emerging growth locations.
While the broader market remains cautious, Christchurch continues to show resilience.
Whether it's first-home buyers entering the market, developers investing in new housing, or homeowners reviewing their lending options, there's still plenty of positive activity happening across the city.
As always, everyone's situation is different.
If your loan is coming up for renewal or you're thinking about buying, selling, or investing, get in touch with the team. We're always happy to talk through your options and help you make an informed decision.
About the author: Nathan Miglani, Squirrel Managing Adviser - Christchurch & South Island
Let’s just say Nathan’s not one to do things by halves. Since arriving in NZ over a decade ago, he’s built a Christchurch-based Loan Market franchise from scratch, turned it into an award-winning brokerage, and taken out the title Loan Market’s #1 mortgage adviser in Australasia in 2022. After rebranding to NZ Mortgages in 2023—and doubling down on customer-first service—he teamed up with Squirrel in 2024 to bring even sharper mortgage and funding solutions to clients. Regularly featured in the media, Nathan’s the guy you want in your corner for anything from business lending, property investment to construction finance.