Low interest rates might not be enough to help squash soaring house prices across New Zealand.
Auckland remains one of the most unaffordable regions for first-home buyers, but things look easier elsewhere in the country.
Whangārei is the most affordable centre for first-home buyers, according to new data from interest.co.nz.
Its latest Home Loan Affordability Reports, released yesterday, found mortgage repayments on a low quartile-priced home in the region will take up around 13.3 per cent of a typical first-home buyers' take-home pay.
In comparison, Queenstown remains the priciest and most unaffordable in the country ; repayments for the bottom quarter cost around 48.7 per cent.
According to the report, the rising prices at the lower end of the market are wiping out any benefits from low interest rates.
New Zealand’s central bank has knocked 0.5 per cent from the previous rate of 1.5 per cent.
The official cash rate was cut from 1.5 per cent to 1 per cent in August , another tumble from its 2.5 per cent three years ago.
But the price of cheaper houses is still rising, with the national lower quartile price up to $437,500 last month from $401,900 in July, according to the Real Estate Institute of New Zealand.
This month, Auckland's lower quartile price has climbed to a record high, up to $689,000 - adding extra pressure on an already heated market.
Mortgage payments would chew up 37.3 per cent of a first-home buyers' take-home pay.
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