PHOTO: Reserve Bank of New Zealand
Key points for August 2020:
Total monthly new mortgage commitments were $6.8b in August – the highest August on
record since the survey began in 2013. This is an increase of $0.2b (3.0%) from July 2020 and
up 26.0% from August 2019.
New mortgage commitments to first home buyers were $1.3b in August and remained
consistent with July while other owner occupiers increased from $3.7b in July to $3.9b in
August.
First home buyers accounted for 19.8% of new mortgage commitments, down from 20.4% in
July while other owner occupiers share of new commitments rose from 56.7% in July to 57.9%
in August.
The nationwide year-on-year growth in value of new mortgage commitments to first home
buyers was 45.6%, while new commitments to investors was up 41.9%.
The year-on-year increase of 26.0% in new mortgage commitments was largely driven by
Auckland region. New mortgage commitments in Auckland increased from 3.9% in July to
24.5% in August, while new commitments outside of Auckland rose from 17.6% to 27.1%.
Monthly new mortgage commitments with high loan-to-valuation ratio[1] increased since the
restrictions were removed in May 2020. High LVR new mortgage commitments to investors
saw an increase of 10.3% in August.
READ MORE VIA RBNZ
