After 26 years in property, Wellington investor Peter Ambrose has experienced every market cycle and knows that structure, not just location, is what keeps you in the game.
“Like any business, cash is key,” he says. “Interest-only helps manage that flow, covering expenses like maintenance, rates, insurance and even periods of vacancy.”
Ambrose is applying for ANZ’s new 10-year interest-only repayments option on home loans. He already has lending with ANZ and, like many investors, also works with other banks to keep his options open. But this offer has really caught his attention.
“Interest-only has been a crucial stepping-stone in my investing journey,” he says. “I couldn’t have scaled up without it.”
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He owns a mix of student accommodation and multi-tenanted properties, and values a set-up that lets surplus income hit the principal through revolving credit, but only when it suits.
“With extra income, I can still pay down debt, but I’m not locked into principal repayments every month,” Ambrose says. “In a tight market, you need options. Interest-only gives you one more to work with.”
That flexibility, he adds, also helps with decision-making.
“It’s not just about numbers – it’s about staying clear-headed and adaptable. When investors are stretched thin, having access to interest-only could reduce pressure and help you think straight.”
ANZ is the first of New Zealand’s five biggest banks to let eligible residential investors lock in interest-only repayments for 10 years from day one – double the standard five-year term typically offered in the market.
Emily Mendes Ribeiro, ANZ’s General Manager - Home Owners, says the longer term suits investors with a buy-and-hold mindset.
“We’ve seen that our investor customers are often in it for the long game. Ten years can help give them confidence and a clear horizon to plan ahead,” Mendes Ribeiro says. “For long-term investors, a longer interest-only period offers clarity, especially when they’re also managing other loans or financial goals.”
She stresses ANZ’s focus on support for customers. “This offer isn’t just about getting attention. It’s about providing tools that support a long-term strategy.”
Interest-only loans keep repayments lower in the short term, though the total interest paid over the life of the loan will be higher. “It frees up cash that can be used for renovations, maintenance, or even to help pay down debt elsewhere,” Mendes Ribeiro says. “We take responsible lending seriously. That means ensuring customers understand the implications, including the fact that total interest paid will be higher over time.”
Mortgage adviser Peter Norris, managing director at Opes Mortgages, says the 10-year option has been well received across the country.
“It’s gone down particularly well with investors looking for more certainty in their planning,” he says. “It’s rare to see a mainstream bank offer ten years from the outset. It puts ANZ in a unique space for now.”
Norris’ clients, typically in their mid-30s to late-40s, are buying property as part of a long-term retirement strategy. “For them, it’s about capital growth over time. That stability makes a big difference,” he says. “It’s not about dodging repayments. It’s a strategic pause that lets them focus on longer-term gains.”
Most investors, he says, are pragmatic. “They’re not using interest-only to dodge responsibility. They want a structure that gives them room to breathe and invest wisely. Some use the extra cash-flow to renovate, increase rental yields, or pay down their personal home loans faster. It’s not about splurging – it’s about smart portfolio growth.”
For newer investors, he adds, discipline is key.
“If you’re just starting out, interest-only can help make the numbers work, but you need a plan to pay down the loan eventually.”
Recent regulatory changes have brought welcome relief to property investors. Under current bright-line rules, capital gains may be taxable if a property is sold within two years of purchase. Since April 1, 2025, investors have also been able to claim 100% of their mortgage interest as a tax-deductible expense, easing cash-flow pressure for many.
Reserve Bank figures show residential investment lending rose 5.5% in the year to May 2025.
Ambrose says Wellington’s rental market remains challenging, but the longer interest-only term helps him ride it out.
“This isn’t about using spare cash for holidays. It’s about running your business and getting through tough times.”
He’s quick to add that the option isn’t for everyone.
“Interest-only is better suited to seasoned investors or those with multiple properties. It requires financial discipline, but for the right person, it’s a smart tool. You learn over time that structure matters just as much as location – you need the right financial tools to manage risk.”
Mendes Ribeiro recommends investors seek independent financial and tax advice, which could help guide customers to ensure the structure is right for their situation.
To find out more about ANZ’s 10-year interest-only repayments option for residential property investors, speak with an ANZ Mobile Mortgage Manager or visit anz.co.nz/personal/home-loans-mortgages/investment-property.
ANZ lending criteria, terms, and fees apply. Minimum 30% deposit may apply to property investment lending. This material is for information purposes only and is not financial advice. Please talk to ANZ if you need financial advice about your situation and goals. See ANZ’s financial advice provider disclosure at anz.co.nz/fapdisclosure.
