A new era of borrower demand is emerging
IN Partnership with
Borrowers aren’t approaching property the same way they were a few years ago. Pepper Money New Zealand country head Campbell Smith explains what’s changed and how advisers are responding to more varied client scenarios
More
After several years of economic uncertainty, New Zealand’s property market is entering a new phase.
As country head of Pepper Money New Zealand, I’m spending a lot of time talking with advisers about what they’re seeing on the ground. Every market is different, and several themes are consistently emerging across those conversations.
While challenges remain, there are signs of improving sentiment in parts of the market. Borrowers are reassessing their options, and advisers are increasingly helping clients navigate opportunities that look very different to those of just a few years ago.
These opportunities are not confined to traditional owner-occupied purchases in metropolitan markets. The advisers we work with are telling us they’re having a broader range of conversations with clients than they were a few years ago, from bare-land opportunities and lifestyle-focused investments through to lending structures that provide greater flexibility.
Pepper Money is a leading non-bank lender, founded on a mission to help people succeed. For over 25 years, we’ve supported more than half a million customers across Australia and New Zealand with really helpful loan options. We know advisers are key to that success, so we focus on being a genuinely helpful partner – saving you time, expanding our products and policies to help more clients, and delivering strong customer experiences that build trust and growth. Our business development managers work alongside you to navigate scenarios, policy and opportunities. We’re proud to be a trusted, can-do team that puts advisers first.
Find out more
“As interest in these opportunities has grown, lenders have needed to consider whether traditional policy settings still align with how borrowers are approaching property ownership today”
Campbell Smith,
Pepper Money New Zealand
Share
Published 06 Jul 2026
“We’re seeing that play out across the lending market. Advisers are working with a broader range of borrower scenarios, from investors looking to preserve capital to borrowers pursuing opportunities that may sit outside traditional lending pathways”
Campbell Smith,
Pepper Money New Zealand
For advisers, this shift presents an opportunity to have broader conversations with clients about their long-term goals and how they can be achieved in a changing market.
Borrowers are thinking differently One of the clearest shifts in the market is how borrowers are approaching property ownership and investment.
In recent years, affordability pressures, changing market conditions and evolving lifestyle priorities have encouraged many borrowers to think beyond the traditional property purchase.
Rather than focusing solely on buying an established home, some are taking a longer-term view. Others are exploring regional opportunities, while investors are increasingly looking at how they can position themselves for future growth.
One example is the growing interest in residentially zoned bare land.
For some borrowers, securing land today provides an opportunity to plan for future development when the timing is right. For others, it represents a strategic way to enter the property market while maintaining flexibility around future building decisions.
That reflects a broader shift towards long-term planning and flexibility, particularly after several years of economic uncertainty and changing market conditions.
As interest in these opportunities has grown, lenders have needed to consider whether traditional policy settings still align with how borrowers are approaching property ownership today.
At Pepper Money, we’ve responded by expanding our appetite for residentially zoned bare land, with eligible borrowers now able to access funding up to 60% loan-to-value ratio (LVR).
It’s a practical response to a trend we’re seeing more frequently through advisers and their clients.
Looking beyond the main centres At the same time, demand for property in lifestyle-focused locations continues to attract attention.
Markets such as Queenstown, Rodney District and Mount Maunganui continue to appeal to a broad range of borrowers, from owner-occupiers seeking a lifestyle change through to investors attracted by long-term- growth potential and strong underlying demand.
The appeal of these locations is not new, but what has changed is the level of interest we’re seeing from a wider range of borrowers. Part of that demand is being driven by lifestyle considerations, but it’s also being influenced by changing work patterns and evolving ideas about where people want to live and invest. For some borrowers, locations like Queenstown and Mount Maunganui offer a combination of lifestyle appeal and long-term-growth potential. For investors, they continue to benefit from strong demand drivers and limited supply in key markets.
We’re also seeing more enquiries from Australian investors. Some are looking to diversify geographically, while others are exploring opportunities in markets that offer a different dynamic to major Australian cities.
Strong demand has also pushed property values higher in many of these markets.
In some cases, however, lending frameworks have struggled to keep pace with the realities of these higher-value locations.
This is one reason Pepper Money recently increased lending limits in selected regions, including Queenstown and Rodney District, from $1 million to $1.6 million.
The change reflects the simple reality that advisers are increasingly
working with clients purchasing in markets where property values often exceed traditional lending thresholds.
More borrowers, more scenarios What stands out isn’t one trend in isolation. It’s the growing range of borrower scenarios coming through.
Whether that’s bare land, lifestyle markets or higher-LVR lending, borrowers are approaching property ownership in different ways.
That creates both opportunities and challenges for advisers. Clients are looking for solutions that reflect their individual circumstances rather than a one-size-fits-all approach.
We’re seeing that play out across the lending market. Advisers are working with a broader range of borrower scenarios, from investors looking to preserve capital to borrowers pursuing opportunities that may sit outside traditional lending pathways.
That’s one of the reasons Pepper Money has expanded funding availability at higher LVRs. It’s about giving advisers more flexibility when structuring solutions for clients and ensuring strong borrowers aren’t overlooked simply because their circumstances don’t fit a standard mould.
For advisers, having access to a wider range of lending options can make a real difference when helping clients turn an opportunity into a successful outcome.
What this means for advisers The advisers we work with are already seeing changing borrower preferences play out in their day-to-day conversations with clients, from bare-land purchases to regional property markets and more diverse lending scenarios. This creates an opportunity to broaden conversations and explore pathways clients may not have previously considered.
From a lender perspective, our role is to support those conversations with policies and solutions that reflect what’s happening in the market. Borrower needs are changing, and lending solutions need to evolve alongside them.
Policy is only one part of the equation. Advisers are also looking for lenders that can provide responsive service and support when working through more complex scenarios.
As borrower needs become more diverse, the ability to work collaboratively and find practical solutions becomes increasingly important.
The common thread is choice. Borrowers are looking for more ways to achieve their property goals, and advisers are central to helping them navigate those options with confidence.
Pepper Money's recent policy enhancements
Residentially zoned bare-land funding up to 60% LVR
Lending limits increased from $1m to $1.6m in selected high-value regions
Expanded funding availability at higher LVRs
Greater flexibility for advisers supporting diverse borrower scenarios
What’s shaping borrower demand
Growing interest in residentially zoned bare land
Continued demand for lifestyle-focused locations such as Queenstown, Rodney District and Mount Maunganui
Increased enquiry from Australian investors
