PHOTO: Residential Mortgage Lending

“Wonder why the residential property market is out of control? The reason is simply more ‘CHEAP’ money is being thrown at it – with demand to buy out stripping supply.” – Property Noise Group, January, 2021

Key points for November 2020:

 Total monthly new mortgage commitments were $9.3b in November, up $1.5b (19.4%) from
October – surpassing the all-time high from last month.

 New mortgage commitments to other owner occupiers were $5.4b in November, up from
$4.4b in October while new commitments to investors increased from $1.9b to $2.2b.

 Other owner occupiers accounted for 57.8% of new mortgage commitments in November, up
from 56.6% in October while the share of new mortgage commitments to first home buyers
declined from 17.9% to 17.3%. Investors recorded a share of 24.2%, marginally down from
24.4% in October.

 The nationwide year-on-year growth in value of new mortgage commitments to first home
buyers was 29.1%, while the annual growth in new commitments to investors was 64.8%.

 New mortgage commitments increased 36.7% year on year. The annual growth rate for new
mortgage commitments in Auckland was 38.2% while areas outside of Auckland grew by

 High loan-to-valuation (LVR)[1] new mortgage commitments to investors saw a monthly
increase of 13.3% in November. However as a proportion of all investor lending, high LVR loans
were marginally down to 37.6% in November from 39.2% in October.



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