Two-year fixes now dominate as borrowers sense urgency
New survey results point to a “healthy start to the year” for mortgage advisers, with first-home buyers (FHBs) firmly in the driver’s seat and investors stepping back.
The latest mortgages.co.nz & Tony Alexander Mortgage Advisers Survey – February 2026 attracted 54 adviser responses and shows young buyers are still taking advantage of plentiful listings and limited price growth.
The findings land as residential values are edging higher but not overheating, with QV and Cotality data showing a flat start to 2026 and prices still well below 2022 peaks.
First-home buyers dominate enquiry
Alexander (pictured) said, “A net 33% of mortgage advisors report that they are seeing more first-home buyers in the market looking for advice.” That’s only slightly below November’s spike but confirms FHB demand remains robust.
On the ground, advisers report that “Young buyers continue to take advantage of a real estate market replete with listings and with minimal upward price movement.”
Bank behaviour is helping too. Comments include “Clean credit is a must.” and “Preapprovals are back and turn around times are shortened which is awesome.” Another adviser notes it is “Far easier to obtain lending, and banks want to workshop applications.”
Investors cautious despite easing credit
Investor appetite has softened.
“For the first time since August 2023, our survey shows more mortgage advisors saying they are seeing fewer investors than say they are seeing more,” Alexander said.
The net −6% result contrasts with a positive net 22% two months ago.
Advisers cite “growing realisation that average capital gains in the long- term will not be what they were in the past” alongside rising costs and tighter rules. Yet there are still pockets of opportunity, with one respondent noting “Banks have increased lending to investors with > 70% LVR.” and another that “One major lender now (limited time) lending up to 85% on investment property.”
Lenders more willing, two-year fixes now king
Alexander said, “A net 26% of mortgage brokers have indicated that lenders are becoming more willing to advance funds for home purchases,” consistent with a more relaxed credit environment since early 2023.
Fixing preferences have flipped.
“In our first survey for 2026 75% of mortgage advisors have reported that borrowers primarily favour fixing their interest rate for two years,” Alexander said.
One-year fixes, which dominated as recently as October, have largely fallen out of favour.
Advisers also highlight rising urgency: “Way more enquiry, particularly from first-home buyers and some refinancing. There is definitely some urgency in the market.”
For advisers, that means sharpening advice on optimal fixed terms, pre-approval readiness and helping both FHBs and investors move decisively while credit conditions remain relatively friendly.
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