PremiumAnalysisAnalysis byJenée TibshraenyWellington Business Editor·NZ Herald·1 Sep, 2026 05:00 PM5 mins to readWellington Business Editor, Jenée Tibshraeny, covers business, the economy and public policy for the Business Herald.‌The sluggish property market is having a chilling effect on the economy, but the slowdown is making the country’s mortgage debt profile more sustainable than in the recent past.

New Zealand’s mortgage debt climbed to $397 billion in July – equivalent to 88% of gross domestic product (GDP) –