The impact is clear:
“Approval timelines have improved significantly,” the team explains. “Where decisions previously took 10 to 12 working days, many applications are now being approved within 7 to 8 days.”
What recent changes in lending conditions are having the biggest influence?
Approval timelines are just one part of the story. One of the most significant shifts has been in deposit requirements. One of New Zealand’s main banks’ move to reduce the standard deposit from 40–50% down to 30% has opened the door for buyers with less equity. While their approvals process still takes longer, averaging two to three weeks, the reduced equity barrier is widening the buyer pool.
Falling interest rates are adding further momentum. Lower rates are improving borrowing capacity by reducing test rates, enhancing return on investment through a lower cost of capital, and boosting overall market confidence. Together, these factors are driving increased activity in both the business and property sectors.
What financing challenges are buyers and sellers facing?
One of the most common challenges in FY25 has been a dip in business performance across multiple industries. While not unexpected in the current climate, reduced revenue or profit still raises red flags for lenders and buyers.
“The best way to keep deals on track is transparency.”
For sellers, that means disclosing performance changes early to avoid surprises during due diligence. For buyers, it requires finance applications that provide clear context for any downturns, backed up by realistic forecasts and recovery strategies.
What insurance protections are in demand?
In most transactions, business and asset insurance remains mandatory, typically required by lenders, landlords, or franchisors. Beyond this, there has been a noticeable uptake in key person cover and buy–sell insurance.
“There’s a real shift towards protecting business continuity and long-term value, not just the physical assets.”
How are credit policies and sector performance shaping opportunities?
Several recent credit policy changes are helping more deals reach settlement. Key New Zealand banks’ reduced deposit requirements are lowering equity barriers, standardised 10-year terms improved loan serviceability, and falling interest rates, are increasing affordability.
“These factors are expanding the pool of qualified buyers and improving deal flow.”
Where are the strongest opportunities right now?
Manufacturing is one sector particularly well positioned. The Government’s newly approved tax incentive for purchasing new equipment is expected to drive demand and lift valuations.
There is also strong buyer interest in growth through acquisition, whether by absorbing competitors or adding complementary product lines to diversify and grow market share. Ash advises sellers to proceed carefully: “Sellers should exercise caution when sharing sensitive financial information early in negotiations.” This is especially true when discussions involve potential competitors.
The bottom line:
With lending conditions improving, interest rates falling, and buyer confidence on the rise, ONBOARD’s advice is clear: Prepare well, be transparent, and act decisively; the current market is offering real opportunities for those who are ready..
For more information, get in touch with the ONBOARD team here.
