I know from family in NZ that the stress test banks apply is very similar to stress test we apply in Australia. As of the latest rate rise, rates are now above what banks were required to stress test for at the lowest rate loaned in 2021. I imagine New Zealand is reaching that number as well. For 90% of households this won’t matter as they purchased pre 2020/2021 so they were means test for higher rates but for households who took loans on during Covid they could theoretically really struggle when their fixed rates are up.