KiwiSaver leaders hint at stronger long‑term borrower resilience
New Westpac NZ data on savings behaviour by region offers mortgage advisers fresh insight into which clients are best positioned to manage deposits, buffers and future rate shocks.
The standout story is from the South Island. In Canterbury and Otago, 28% of Westpac everyday banking customers are making monthly payments into their savings, supporting the country’s highest median balances of $4,200 and the largest share of customers with $15,000-plus saved.
Auckland’s higher cost base weighs on savers
By contrast, Auckland and Northland lag the field, with only about 20% of customers making monthly savings contributions and median balances below $1,500.
That aligns with the pressure of higher living and housing costs in the country’s biggest city, where “costs are typically higher in Auckland than in other regions and that’s reflected in this savings data,” said Sarah Hearn (pictured), Westpac NZ managing director of product, sustainability, and marketing. From steeper rents and house prices to transport and everyday essentials, Auckland’s higher cost base leaves many households with less discretionary income to put aside each month.
Automatic savings habits still underused
Overall, Westpac notes that 77% of transactional customers have a savings account, but only around a quarter use automatic payments.
Hearn stresses that “good savings habits can make a big difference in the long run. Even if you’re only putting aside a small amount each month, simply establishing the behaviour is a great start.”
Home loan clients building cash buffers
For mortgage advisers working with existing homeowners, a key datapoint is that 81% of Westpac home loan customers also hold a savings account and 36% have a monthly automatic transfer. That suggests many borrowers are actively building buffers alongside debt repayment.
KiwiSaver strength signals longer‑term resilience
KiwiSaver balances are another crucial signal for long-term financial health. In Canterbury and Otago, 41% of customers with Westpac KiwiSaver accounts have more than $40,000 invested, while Wellington and Southland lead the nation at 42%. These pools can be vital for first-home withdrawals and retirement planning strategies.
Hearn acknowledges that “saving more money might feel unrealistic for many people right now,” but urges New Zealanders to review spending and make “small savings commitments” that can compound over time – an approach advisers can reinforce in client conversations.
See the Westpac media release here.
Stay informed with the latest housing market trends and mortgage insights — subscribe to our free daily newsletter.
