Mortgage lending

PHOTO: NZ mortgage lending. FILE

Released: 

At propertynoise.co.nz – the key indicator we look at to predict what will happen to the NZ residential real estate market is the below lending statistics. Simply less approvals, mean less sales and less building activity. This will flow on to longer ‘Days on Market’ for house listings as there are less buyers in the market. Less buyers means price pressure comes off and as we are seeing prices are starting to drop across most parts of New Zealand.

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Registered banks provide data on new residential mortgage lending commitments during a reference month with a breakdown by loan-to-valuation ratio (LVR) and borrower type. Borrowers are classified as first home buyers, other owner-occupiers, investors or those borrowing for business purposes.

Nick Goodall

17,000 LESS house sales expected

Fergs Coffee

 

Previous years:Monthly:
May 2020May 2021Jan 2022Feb 2022Mar 2022Apr 2022May 2022
Total lending ($million)
All borrower types4,3188,9214,6675,7067,2735,6646,817
First home buyers8011,7578199541,2001,0461,242
Other owner-occupiers2,5925,5272,9863,6324,7073,5804,377
Investors8891,5408111,0571,2799681,129
Business purposes36985264867170
Higher than 80% LVR lending ($million)
All borrower types515833260311371414584
First home buyers355663190211227279424
Other owner-occupiers1531646995139121147
Investors542561013
Business purposes0100030
Less than or equal to 80% LVR lending ($million)
All borrower types3,8038,0884,4075,3956,9015,2516,233
First home buyers4451,094629743974766818
Other owner-occupiers2,4395,3622,9173,5364,5683,4584,230
Investors8831,5368091,0521,2739581,115
Business purposes36965264866870
MEMO ITEM: Lending to investors ($million)
Total lending8891,5408111,0571,2799681,129
Higher than 70% LVR lending13016093114144124161
Less than or equal to 70% LVR lending7591,3797189441,135844968

Banking system

ANZ “pauses” low-equity lending

SOURCE: RBNZ