About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, November 20th, 6:13PM
rss
Latest Headlines

The takeover: more mortgages for FHBs

First home buyers have now taken over from investors in the mortgage lending stakes, new Reserve Bank data reveals.

Friday, June 28th 2019, 10:42AM

by Miriam Bell

The Reserve Bank’s May lending figures are out and they show that, for the first time ever, first homes buyers borrowed more than investors did.

A total of $6.47 billion was borrowed for mortgages in May and first home buyers were responsible for $1.15 billion of that.

That’s as compared to the $1.14 billion in mortgage lending that went to investors in May.

These figures mean that first home buyers had a 17.8% share of the market while investors had a 17.6% share. And it represents quite a turnaround in mortgage market share.

Prior to the Reserve Bank’s introduction of its third round of LVRs in mid-2016, investors accounted for around a 35% share of the market while first home buyers share was closer to 10%.

Meanwhile, owner-occupiers took home $4.11 billion in new mortgage lending in May, up on April’s $3.44 billion and last May’s $3.84 billion.

May’s data highlights just how much the market has changed in the wake of the LVRs as well as new Government policy - and how much investors are holding back on borrowing for new rental properties.

While the amount of lending to investors in May was up slightly on the April figure of $988 million, it was down on the $1.56 billion investors borrowed in May last year.

Likewise, the overall amount of mortgage lending in May was up on April, which saw $5.45 billion borrowed, but down on May 2018 when $6.59 billion was borrowed.

This reflects the quieter, more subdued market now being seen in most parts of New Zealand.

CoreLogic senior property economist Kelvin Davidson agrees the strength of mortgage lending has fallen away a bit, with gross new lending in May down by about $120m from May last year.

He says the investor part of the mortgage market is clearly feeling the pinch and owner-occupiers remain the key players in the market, and particularly first home buyers.

“That is consistent with the message from the CoreLogic Buyer Classification data, which also shows something of a divergence between owner-occupiers and investors around the country.

“In Auckland, Hamilton, Christchurch, and Dunedin, first home buyers have recently had higher percentage shares of property purchases than mortgaged investors - something that hasn’t really been seen before, or at least not for several years.”

Davidson says the Reserve Bank data also shows that average loan sizes for investors are fairly stable, at the $340-350k mark.

However, loans to first homes buyers are getting steadily bigger. First homes buyers with less than a 20% deposit borrowed $473,373 on average in May, up by close to $25,000 from a year ago.

“First home buyers with higher deposits had an average loan size in May of about $384,000, pretty much unchanged from a year earlier.”

Tags: banks CoreLogic Lending mortgages property investment RBNZ Reserve Bank

« 10 market predictions for the rest of 2019Banks warn of rising costs from capital rules »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • When is a client really a client?
    “And this subtle upgrade to the understanding of a complaint. Which changes the ISO definition from an expression of dissatisfaction...”
    2 days ago by JPHale
  • When is a client really a client?
    “Just released additional standards from the FMA. Record keeping potentially until 7 years after the death of the life...”
    2 days ago by JPHale
  • When is a client really a client?
    “@ReganT interesting that the two life advisers involved with the code working group discussion are the ones being argued...”
    3 days ago by JPHale
  • When is a client really a client?
    “In a previous reply I responded to the concept of payment as a trigger. I actually agree it’s not. While we don’t often...”
    3 days ago by regant
  • When is a client really a client?
    “Tash are you being deliberately obtuse? I didnt say you have to keep sending/giving disclosure every year, I said you have...”
    3 days ago by regant
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.05 3.95 4.49
ANZ Special - 3.55 3.45 3.99
ASB Bank 5.20 4.05 3.95 4.39
ASB Bank Special - 3.55 3.45 3.89
BNZ - Classic - 3.55 3.45 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
HSBC Premier 5.24 3.35 3.35 3.35
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 4.04 3.95 4.39
Kiwibank 5.80 ▼4.14 ▲4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - ▼3.39 ▲3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Lender Flt 1yr 2yr 3yr
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.86 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.55 3.39 3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
TSB Bank 6.09 4.35 4.25 4.69
Lender Flt 1yr 2yr 3yr
TSB Special 5.29 3.55 3.45 3.89
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.55 3.45 3.99
Median 5.34 4.04 4.09 4.39

Last updated: 15 November 2019 4:16pm

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com