October update | Finally signs of life in the housing market
It’s been encouraging to hear consistent feedback from builders this month that the market is showing signs of picking up. Confidence is slowly returning, and activity levels are also lifting.
The banks are well and truly open for business again, with test rates dropping substantially over the past year and a much more pragmatic approach being taken to applications. Deals that would have been declined in 2023 are now getting sensible approvals.
In the non-bank space, there’s also plenty of appetite for lending. Non-banks have strong funding lines and investors to keep happy, so they’re offering sharp rates and flexible structures. They’re now competing directly with the banks again, particularly on development funding.
One of the main bank property finance teams I deal with is now considering development projects with as little as 30 percent pre-sales, and in some cases accepting pre-sales where only 5 percent deposits have been paid by buyers. That’s a big shift from a year ago and a great sign for developers planning projects for 2026.
Recent deals and success stories
It’s been another rewarding month helping clients with some interesting scenarios:
First-home buyers who thought they’d missed their chance – an older working couple who never expected to get into the property market were approved to build their new home. Their retirement exit was well mitigated, and two banks were happy to support.
A large rural lifestyle block build – approval was secured for a relocatable home with an 80 percent LVR. These deals can be tricky because banks usually won’t include the house value until it’s connected to services, but with some creative structuring we got it across the line!
TurnKey Pro gaining momentum
More builders are asking me about TurnKey Pro, Colab’s unique funding solution for builders, as confidence grows and talk of new spec builds increases. The product was designed to make new-build and construction finance simpler for builders and developers, and it’s been great to see the strong response as the market picks up again.
If you’d like to learn more, you can find details here.
Industry highlight – The Home Inspo & Design Centre launch
It was great to attend the launch of The Home Inspo & Design Centre in Pukekohe this month. For anyone planning to build or renovate, it’s well worth a visit. The centre brings together leading brands and local experts across kitchens, bathrooms, flooring, cladding, and more. It’s the perfect place to compare products, get inspired, and make confident decisions about your project.
On the horizon
All eyes are now on the RBNZ’s next OCR (Official Cash Rate) announcement on 26 November, which is the final one for 2025. Most economists are forecasting at least a 0.25 percent cut, and a few are hinting at the possibility of another 0.5 percent. The next review after that isn’t until February, so this one will be closely watched.
One year of Colab
And lastly, it’s hard to believe Colab Mortgages has just turned one! What began as an idea on paper has become something I’m genuinely proud of. I recently wrote a wrap-up of how the year has been and what Colab has achieved, which you can read here.
As always, if there’s anything I can help with: whether you’re thinking about buying property or want to chat about your existing mortgage, feel free to get in touch. I’d love to help.