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Investors’ mortgage lending share up

New Reserve Bank lending data leaves little doubt that investors are busy in the current market.

Thursday, May 26th 2016, 12:26AM

by Miriam Bell

Investors appear to have adjusted to the Auckland-investor focused LVRs introduced by the Reserve Bank last November.

The Reserve Bank’s latest residential mortgage lending statistics show that investors have shrugged off any lingering wariness and are a dominant force in the market.

Their share of the new lending total increased in April.

Total new bank lending in April was $6,504 billion. This was down on March’s record high of $6,572 billion.

Investors accounted for $2,386 billion of April’s new lending. This was up on the $2,322 billion that went to investors in March.

Owner-occupiers remained the biggest group of borrowers, claiming $3,260 billion of April’s new lending. But this was a decrease from the $3,408 billion they borrowed in March.

The share of the new lending that went to first home buyers also went up.

First home buyers borrowed $789 million in April. This was up on the $753 million they accounted for in March. 

Within April’s new lending, there was a total of $493 million higher than 80% LVR lending. This was down on $517 million of higher than 80% LVR lending borrowed in March.

Investors’ accounted for a lesser share of the higher than 80% LVR lending than either owner-occupiers or first home buyers.

They borrowed $46 million of the higher than 80% LVR lending total, which was up on $42 million they were responsible for in March.

While owner-occupiers ($206 million) and first home buyers ($241) accounted for more of the higher than 80% LVR lending, both groups share of the total dropped in April.

Total lending to investors is divided into two further categories: higher than 70% LVR lending and less than 70% LVR lending.

Higher than 70% LVR lending to investors rose again. It came in at $780 million in April, as compared to $773 million in March.

However, the bulk of April’s lending to investors was less than 70% LVR lending. It came in at $1,606 billion, which was up on March’s $1,549 billion.

The Reserve Bank also now provides data which breaks down total new lending commitments into Auckland investors, Auckland non-investors, and non-Auckland borrowers.

This breakdown shows that, of April’s total commitments, $1,623 billion went to Auckland investors, $1,913 billion went to Auckland non-investors, and $2,968 billion went to non-Auckland borrowers.

Tags: Lending mortgages RBNZ Reserve Bank

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Lender Flt 1yr 2yr 3yr
AIA 4.55 3.55 3.89 3.99
AIA Special - 3.05 3.39 3.69
ANZ 4.44 3.29 3.45 3.85
ANZ Special - 2.79 2.95 3.35
ASB Bank 4.45 3.35 3.19 3.85
ASB Bank Special - 2.85 2.69 3.35
Bluestone 4.44 4.44 4.29 4.34
BNZ - Classic - 2.79 ▼2.69 2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 ▼3.39 ▼3.29 ▼3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 2.80 3.15 3.19
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union North 6.45 - - -
Credit Union South 5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.80 2.89 3.50
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 4.40 2.95 2.95 3.69
Kainga Ora 4.43 ▼3.29 ▼3.39 ▼3.85
Kiwibank 4.40 3.74 4.14 4.40
Kiwibank - Capped - - - -
Kiwibank - Offset 4.40 - - -
Kiwibank Special - 2.65 2.79 3.25
Liberty 5.69 - - -
Lender Flt 1yr 2yr 3yr
Napier Building Society - - - -
Nelson Building Society 4.95 3.75 3.99 -
Pepper Essential 5.18 - 4.98 4.98
Resimac 3.49 3.45 3.39 3.69
RESIMAC Special - - - -
SBS Bank 4.54 4.85 5.05 5.49
SBS Bank Special - 2.99 3.05 3.69
The Co-operative Bank - Owner Occ 4.40 ▼2.79 ▼2.95 ▼3.39
The Co-operative Bank - Standard 4.40 ▼3.29 ▼3.45 ▼3.89
TSB Bank 5.34 3.59 ▼3.59 4.19
TSB Special 4.54 2.79 ▼2.79 3.39
Lender Flt 1yr 2yr 3yr
Wairarapa Building Society 4.99 3.95 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - 2.79 ▼2.69 ▼2.79
Median 4.55 3.32 3.39 3.69

Last updated: 28 May 2020 10:38am

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