Mortgage debt rises in April

The latest Reserve Bank figures suggest the three increases in official interest rates so far this year have done little to dampen our appetite for mortgage debt.

Monday, June 3rd 2002, 7:39PM

by Jenny Ruth

The latest Reserve Bank figures suggest the three increases in official interest rates so far this year have done little to dampen our appetite for mortgage debt.

New Zealanders borrowed an additional $519 million in mortgages in April, bringing the total owed on housing to $70.021 billion, the figures show.

April’s mortgage borrowing was 7.9% higher than the $64.901 billion owing in April last year.

The figures show the year-on-year percentage increases have been steadily accelerating from the 5.6% increase in April last year from April 2000.

The five major home lenders have raised their floating rates from 6.7% to 7.75% this year.

Total household indebtedness in April was $77.18 billion, up from $76.617 billion in March and $71.525 billion in April last year.

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