Record mortgage lending in November
Mortgage lending jumped to $9.2 billion in November – $1.5 billion more than the previous record monthly total – according to new Reserve Bank data.
Tuesday, January 12th 2021, 9:38AM
Home lending hit record heights in November amid a surge in house prices supported by record low interest rates.
According to the RBNZ's figures, total lending jumped to $9.2 billion in November, from $7.7 billion in October. The October figure was a previous record monthly total.
The data underline the heat in the New Zealand mortgage market, with a shortage of listings and investors clamouring to put money to work in a low-interest rate environment.
Investors borrowed $2.24 billion in November, up on $1.8 billion in October, and close to the record $2.4 billion borrowed in May 2016.
First home buyer lending jumped to $1.6 billion in November, up from $1.39 billion in October.
Investor lending at high LVR levels, above 70%, rose to $844 million in November, up from $745 million the month before. Those levels have not been seen since 2014-2016.
High LVR lending to first home buyers, above 80%, hit $977 million in November, a record, based on data going back to 2014.
The surge in mortgage lending to investors is likely to be recorded continuing into December, as landlords seek to buy before the reintroduction of loan to value ratio restrictions.
The Reserve Bank will reimpose LVR speed limits from March, amid fears a lack of controls have increased risk in the mortgage market.
| « Lowest-ever big bank rate from Westpac | Vincent Capital adds a South Island BDM » |
Special Offers
Comments from our readers
No comments yet
Sign In to add your comment
|
|
Printable version |
|
Email to a friend |
