Data highlights cheapest regions for six-year mortgage freedom
For Kiwi advisers, new analysis of “loan‑killer” towns shows how the right combination of purchase price, income, and structure can help clients reach mortgage‑free status far earlier than the traditional 25–30‑year horizon.
Valocity, OneRoof’s data partner, modelled how quickly buyers could pay off an average new mortgage by putting at least 30% of median weekly income toward repayments, based on a one‑year fixed rate of 4.5%. It highlights regional locations where, with discipline, clients could be debt‑free in around six years.
Where clients can become mortgage-free fastest
The top spot is Murupara in Whakatāne, where an average $206,000 home loan could be repaid in just 5.4 years at $663 a week.
Bower Real Estate sales consultant Tony Baker said more affordable regional markets still make the classic debt‑free Kiwi dream achievable.
“Affordable property means that with some hard work and discipline, people can be mortgage-free a lot faster than they would otherwise, so they have the ability to potentially retire earlier and enjoy the benefits of relative youth and mortgage-free living,” Baker told OneRoof.
Ohai, in Southland, is another standout, with average $217,000 loans able to be cleared in under six years at $655 a week.
Despite the 2021 closure of the town’s coal mine, Bayleys’ Graeme Hegan said it is “definitely” still possible to live mortgage‑free in the region.
“Southland mentality is if you borrow from the bank, you work like hell to pay it off,” Hegan said.
Other “fast payoff” locations include Wairoa, Kaitangata, and Clinton in Clutha, Patea in South Taranaki, Mataura in Gore, Wyndham in Southland, and Middlemarch near Dunedin. At the other end of the spectrum, Wellington’s Karori – with an average value of $1,042,000 – leaves many owners carrying debt out to 2054.
No secret formula – but advisers are key
The Finance Collective wealth and mortgage adviser Stuart Harris said being mortgage‑free is still realistic for most Kiwis, but there is “no secret formula”.
“It doesn’t happen by accident. With early planning, smart structuring, and the right advice, people can reach that goal far earlier than they expect," Harris said.
“When people understand their numbers, including holidays, new cars, school costs, they’re far more likely to stick to a long-term plan.”
The opportunity is also timely. The latest Centrix data shows New Zealand’s mortgage market gaining momentum, with new household lending up 13.2% year-on-year and approved new mortgage lending rising 13.8% over the October quarter, while refinancing now makes up more than 30% of new mortgage lending – up from 22% three years ago – as borrowers respond to rate cuts and chase sharper pricing.
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