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Latest RBNZ figures reveal first time buyer boom

Last month, first time buyers took their highest share of the mortgage lending market in over a decade, according to new figures from the Reserve Bank.

Thursday, May 24th 2018, 4:28PM

by Dan Dunkley

First time buyers took just over a 16% share of the New Zealand mortgage lending market last month, according to RBNZ’s latest figures, which follow on from a strong level of first time buyer activity in March.

First time buyers received $868m last month, according to the data, higher than April 2017 when just $630m was lent to first timers. The figure also surpasses April 2016 when $789m was lent to first time buyers.

The boost follows the slight relaxation of LVR restrictions in January, liberalising lending to customers with less than a 20% deposit. Lending at more than 80% LVR was dominated by first time buyers, who accounted for $275m of the $449m total.

Overall lending figures paint a mixed picture. Mortgage lending hit $5.37bn in April, up from $4.5bn last April, but down on the $6.5bn lent in April 2016.

Owner-occupiers other than first time buyers put in a strong showing in April. They received $3.1bn, compared to $2.7bn in April 2017, but less than the $3.4bn borrowed in April 2016.

Market jitters and the threat of government regulation continue to affect the property investor market. Investor lending hit $1.26 in April, slightly up on the $1.1bn borrowed by investors in April last year, but way down on the $2.1bn borrowed by investors in April 2016.

Information and analytics company CoreLogic says the strong showing from first time buyers indicates growing confidence in the market segment.

The company said younger customer accessing KiwiSaver funds were beginning to leap into the market. “First home buyers are enjoying their highest level of market share in over a decade. They’ve benefited from their willingness to compromise on location/quality and ability to access KiwiSaver funds and potentially even a First Home Grant for their deposit.”

Tags: LVR RBNZ Reserve Bank

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Lender Flt 1yr 2yr 3yr
AIA 5.35 4.49 5.25 5.55
ANZ 5.54 5.15 5.85 6.15
ANZ Blueprint to Build 2.78 - - -
ANZ Special - 4.55 5.25 5.55
ASB Bank 5.35 4.49 5.25 5.55
Avanti Finance 5.45 - - -
Basecorp Finance 6.45 - - -
Bluestone 5.29 7.49 7.59 -
BNZ - Classic - 4.55 5.25 5.45
BNZ - Mortgage One 5.55 - - -
BNZ - Rapid Repay 5.55 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.55 5.35 5.94 5.99
BNZ - TotalMoney 5.55 - - -
CFML Loans 6.45 - - -
China Construction Bank 5.50 5.40 6.14 6.40
China Construction Bank Special - 4.45 5.19 5.45
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 4.70 5.20 -
Heartland Bank - Online 4.00 3.85 4.70 4.84
Heretaunga Building Society 5.95 4.80 5.50 -
HSBC Premier 5.49 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.25 4.29 5.09 5.35
Kainga Ora 5.43 4.57 5.58 5.85
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 5.00 5.55 6.19 6.39
Kiwibank - Offset 5.00 - - -
Kiwibank Special 5.00 4.55 5.19 5.39
Liberty 4.84 - - -
Nelson Building Society 5.95 4.95 5.85 -
Pepper Essential 3.44 - - -
Resimac 4.59 5.60 6.16 6.29
Lender Flt 1yr 2yr 3yr
SBS Bank 5.29 4.69 5.35 5.49
SBS Bank Special - 4.19 4.85 4.99
Select Home Loans 4.09 4.29 4.86 5.09
The Co-operative Bank - First Home Special - 4.19 - -
The Co-operative Bank - Owner Occ 5.45 4.29 5.19 5.45
The Co-operative Bank - Standard 5.45 4.79 5.69 5.95
TSB Bank 5.59 5.14 ▼5.79 6.15
TSB Special 4.79 4.34 ▼4.99 5.35
Unity 5.65 4.80 5.50 -
Wairarapa Building Society 5.24 4.55 5.20 -
Westpac 5.54 5.09 5.79 6.09
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.54 - - -
Westpac Special - 4.49 5.19 5.49
Median 5.45 4.55 5.25 5.52

Last updated: 19 May 2022 10:42am

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