mortgage stress

PHOTO: New Zealand’s real estate dream is cracking — and for many Kiwis, it’s becoming a nightmare. FILE

📉 Mortgage stress is surging. Non-performing loans are rising. And one bold YouTuber is calling out the ticking time bomb in Aotearoa’s housing market.

According to a recent YouTube exposé by Pigeon Post, the number of non-performing loans is climbing rapidly, spelling serious trouble for homeowners who can no longer meet their mortgage repayments. This is more than just market fluctuation — it’s the fallout from years of short-sighted policy.

🏦 It all started in 2020 when the Reserve Bank of New Zealand (RBNZ) removed loan-to-value ratio (LVR) restrictions — a move designed to stimulate the economy during COVID-19. But instead of providing relief, it ignited a frenzy of unsustainable lending. The banks were green-lighted to hand out massive mortgages, and Kiwis rushed to lock in rock-bottom interest rates.

Now those fixed rates are resetting. And people are drowning in debt.

Want Better Leads? Smarter Prospecting Starts Here

🔥 “It Was Inevitable”: The Policy That Doomed a Generation

“Lots of young couples purchased homes in the $700K–850K range when interest rates were as low as 1.99%… now they’re having to refix at 6–8% and are in huge trouble.” – @ma61king

The cracks are now impossible to ignore. With interest rates more than tripling, monthly repayments have exploded. Families who were just scraping by in 2021 now face massive financial strain.

Meanwhile, property values are not keeping up, listings are hitting record highs, and mortgagee sales — once rare — are creeping into the spotlight again.

💰 “How Did We Not See This Coming?”

“This is what happened in Ireland when John Key left.” – @robertsmith-lv4fm
“Ponzi is about to crater.” – @MixupWorking-bc3lq

Even as house prices stagnate or dip, real estate agents are clinging to inflated valuations — and collecting hefty 4% commissions.

“Real estate agents have talked the market up for years! If a big number of people withdrew their properties from the market for just 3 months, you’d see a radical change.” – @Phil-oj5nr

Kiwis are questioning why they’re paying sky-high prices for properties with no listed price tags, and councils are being accused of overvaluing properties just to charge higher rates.

📊 The Bigger Picture: It’s Not Just Housing. It’s the System.

  • 💸 $4.3 billion in non-performing home loans

  • 🏘️ Auckland property listings at 16-year highs

  • 📈 Rental listings up 55% year-over-year

  • 🇳🇿 NZ MPs hold more property investments than any other country

  • 🏛️ Government still subsidising rent at a cost of $5–6 billion/year

“How can you sell a $1M asset and not list the price? That’s insane.” – @radekr6852
“The government is running a 6% GDP deficit while the private sector is loaded with $370B in housing debt.” – @ninaforrester8552

🚨 Is This 2008 All Over Again?

Many Kiwis are comparing this to the Global Financial Crisis. The data shows clear warning signs — yet banks remain profitable, and the housing machine rolls on.

“We’re heading for a reset, whether we like it or not.” – @PigeonPostChannel
“Force the banks to sell houses at auction, not sit on them for a decade.” – @joefarrow487

🛑 What Can You Do?

  • Don’t buy into inflated valuations — negotiate and question agent tactics

  • If you’re in debt stress, seek mortgage advice early

  • Watch property listings closely — the tide is turning

  • Push for transparency in pricing and commissions

“Great news for first home buyers.” – @garymalone547
“Make them go back to the old way: a photo and the price.” – @nzbrotrev9028