Through 2025, the Reserve Bank has shifted decisively toward an easing cycle, cutting the OCR as economic activity softened. The effect rippled through the financial system, with banks gradually trimming their retail and term-deposit rates as the cost of funds declined.
Over the same period, average 12-month bank term-deposit rates drifted lower, offering investors increasingly modest yields. While deposits remain the preferred safe option for many, their returns have not kept pace with inflation or investor expectations.
Against this backdrop, Zagga has continued to stand out. Over the past 12 months, Zagga investors have consistently earned returns that remained a few percentage points higher than the market average for bank term deposits. Even as rates fluctuated month to month, returns stayed comfortably ahead of traditional bank offerings, reflecting the strength and reliability of Zagga’s asset-backed lending model.
The platform’s diversified portfolio – spanning projects from Dunedin to Auckland – has delivered stable performance through a period of global financial volatility. While equity markets and other growth assets have endured sharp swings, Zagga has offered investors steady, predictable income backed by real assets. For many, it has been a more stable alternative for consistent, inflation-beating yields at a time when other options have felt uncertain.
Looking ahead, the same forces that are lowering term-deposit rates are flowing through to property backed lending. As the OCR potentially continues to ease, Zagga’s investment returns are likely to adjust in line with the lower cost of borrowing, yet investors can still expect returns that sit comfortably above traditional bank deposits.
Furthermore, Zagga’s returns have been able to be maintained slightly higher than other property back investment providers. As possibly the only purely peer to peer model in New Zealand, our investor-first approach means we prioritise your preferences first wherever possible.
2025 marked a turning point for New Zealand’s monetary environment. As we move into 2026, returns across the market may soften, but Zagga’s investors are well-placed to continue earning strong returns, supported by sound risk management and the growing appeal of secured, income-based investing.
Ready to see how Zagga can enhance your investment portfolio?
Explore current opportunities at zagga.co.nz or contact our investor relations team to learn more about how secured peer-to-peer lending can work for you.