Buying guide
Mortgage interest rate history NZ: How do today’s rates compare?
Spoiler: The boomers had the highest rates of all
AI summary
Understanding New Zealand's mortgage rate history provides valuable context for current homeowners. Rates have seen dramatic fluctuations, from a staggering peak of 20.5% in 1987 to record lows during the COVID-19 pandemic. Major events like the 2008 Global Financial Crisis have consistently caused significant shifts.
The key lesson from history is that interest rates are temporary and unpredictable. Homeowners should prioritise their ability to service their mortgage through economic cycles, making conservative choices and seeking professional advice.
But first, where are interest rates now? (April 2026 averages)
NZ Mortgage rates over time – 2005 to 2026
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Mortgage interest rates from 2004 to 2025 (average EOM)
Why NZ mortgage rates moved – 2005 to 2026
1. The 2008 financial crisis.
2. The COVID-19 pandemic and lockdowns
Could we be looking at the next major event right now?
Let’s go even further back – 1965 to 2005 interest rates
Source - Te Ara The Encyclopedia of New Zealand
1965 – 1972 – Artificially capped rates
1973 – 1981 – Inflation caused by oil shock number one & two
1981 – 1984 – Muldoon’s controls & freezes
1984 – 1987 - Rogernomics and deregulation
1987 – 1989 — The long recession
Interest rates soared to more than 20% in the 80s.
1989 –1997 – The recovery
1998 – 2000 – The Asian financial crisis and more high mortgage rates
2000 – 2008 – Calm before the storm (with a little inflation)
What can we learn about interest rates from all this?
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