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Investors dominating market

New Reserve Bank data leaves little doubt investors are a dominating force in the market.

Thursday, May 26th 2016, 12:00AM 1 Comment

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 $2322 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.

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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 6.05 6.15
TSB Special 4.79 ▼4.34 5.25 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: 17 May 2022 10:54am

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