tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Tuesday, October 20th, 6:47PM

Mortgages

rss
Latest Headlines

Borrowing boom in July – before second lockdown

Home lending soared to $6.5 billion in July during New Zealand's Covid-free period, reaching its highest level since November last year.

Wednesday, August 26th 2020, 4:30PM

The "sugar rush" from the first lockdown continued last month as mortgage borrowing outstripped the $5.9 billion recorded in July 2019. 

The property market comeback came during New Zealand's 100+ days free of Covid-19 transmission, as confidence bounced back after the first period of lockdown. 

The Reserve Bank data underlines the strong comeback the housing market made this winter before the second community outbreak in Auckland and second lockdown. 

First home buyers secured $1.3 billion in home loans last month, the highest value on record, dating back to 2014. 

The second highest borrowing figure for first home buyers was $1.24 billion, recorded in November last year. 

Investors continued their comeback in July, borrowing $1.45 billion in the home lending market, their highest figure since May 2018. 

There was also a notable increase in high LVR lending, above 80%. High LVR loans hit $796 million, up from $640 million in July 2019. High LVR loans to first home buyers soared to $577 million, up from $447 million in July last year.

While the figures back up strong anecdotal evidence of a recovery in the property market, August's figures are likely to take a major hit from the level three lockdown in Auckland, due to end this Sunday. 

Low interest rates are expected to prop up the housing market during the rest of this year and into 2021. The Reserve Bank is widely expected to start a term lending facility with banks and introduce a negative official cash rate to lower retail rates.

Analysis from ASB suggests one and two year fixed rates could drop to 1.5% in the next year, with house prices expected to slump by 2.8% – far less than initially forecast. 

Tags: home loans Lending mortgages Reserve Bank

« Sub-2% mortgages to boost house prices: ASBResimac slashes servicing rate »

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
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.55 2.69 2.79
ANZ 4.44 3.15 3.25 3.39
ANZ Special - 2.55 2.69 2.79
ASB Bank 4.45 2.55 2.69 2.79
Bluestone 3.49 3.49 3.49 3.49
BNZ - Classic - 2.55 2.69 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.15 3.29 3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online 2.95 1.99 2.35 2.45
Heretaunga Building Society 4.99 3.50 3.40 -
HSBC Premier 4.49 2.45 2.60 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 3.69 2.45 2.65 2.79
Kainga Ora 4.43 2.93 3.07 3.24
Kiwibank 3.40 3.30 3.54 3.54
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.55 2.79 2.79
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Resimac 3.39 3.35 2.99 3.35
SBS Bank 4.54 3.05 2.99 2.99
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 2.55 2.49 2.49
The Co-operative Bank - Owner Occ 4.40 2.55 2.69 2.79
The Co-operative Bank - Standard 4.40 3.05 3.19 3.29
TSB Bank 5.34 3.29 3.45 3.59
TSB Special 4.54 2.49 2.65 2.79
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 3.15 3.29 3.39
Westpac - Offset 4.59 - - -
Westpac Special - 2.55 2.69 2.79
Median 4.55 2.95 2.99 2.80

Last updated: 16 October 2020 9:35am

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