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Mortgage lending holds up in May

Mortgage borrowing hit $8.9 billion last month as investors, first home buyers, and other owner-occupiers remained active despite record house prices and new lending restrictions.

Monday, June 28th 2021, 6:07AM

New statistics from the Reserve Bank underline the ongoing strength of the lending market.

The figures show a month-on-month increase in borrowing. In April, home lending reached $8.4 billion.

The near $9 billion in lending dwarfs the $4.3 billion borrowed in May 2020, during Covid-19 lockdown restrictions.

Each type of mortgage borrower remained active over the month, according to the data.

First home buyers borrowed $1.75 billion, up from $1.57 billion in April.

Other owner-occupiers borrowed $5.4 billion, up from $5.1 billion the prior month. 

While investors received $1.57 billion, down from $1.66 billion month-on-month. 

Investors accounted for 17.6% of new mortgage commitments, down from a share of 19.7% the previous month, according to the Reserve Bank.

First home buyers had a share of 19.7%, up from 18.5%, while other owner occupiers rose from 60.9% to 61.6%. 

Mortgage commitments with high LVR to investors were down from 37.6% in April to 32.1%, marking the sixth consecutive month of decline, following the reintroduction and strengthening of LVR speed limits.

High LVR lending to first home buyers grew from 35.9% in April to 37.7%, while other owner-occupiers' high LVR lending grew by 0.2% to 3%.

While high LVR investor lending is on the decline, the monthly figures indicate investors have retained a strong presence in the property market, despite the Government's housing reforms, and reimposed LVR limits.

The $1.57 billion borrowed by investors in May remains higher than pre-Covid levels. Investors borrowed $1.3 billion in March 2020.

Tags: first home buyers investor lending Lending mortgages RBNZ Reserve Bank

« ANZ 1.68% new build rate shakes up market Westpac tips earlier rate hike, house price decline in late 2022 »

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Lender Flt 1yr 2yr 3yr
AIA 4.55 ▲2.85 ▲3.25 3.55
ANZ 4.44 ▲3.20 ▲3.59 ▲4.00
ANZ Blueprint to Build 1.68 - - -
ANZ Special - ▲2.60 ▲2.99 ▲3.40
ASB Back My Build 1.79 - - -
ASB Bank 4.45 ▲2.85 ▲3.25 3.55
Basecorp Finance 5.49 - - -
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - 2.55 2.95 3.25
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 4.55 3.15 3.22 3.85
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
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 Bank - Online 2.25 1.85 2.35 2.65
Heretaunga Building Society 4.99 3.80 3.90 -
Lender Flt 1yr 2yr 3yr
HSBC Premier 4.49 2.19 2.45 2.69
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 3.69 2.35 2.75 3.05
Kainga Ora 4.43 2.88 3.28 3.59
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.75 ▲3.50 ▲3.74 ▲4.34
Kiwibank - Offset 3.75 - - -
Kiwibank Special 3.75 ▲2.65 ▲2.89 ▲3.49
Liberty 5.69 - - -
Nelson Building Society 4.95 2.99 3.24 -
Lender Flt 1yr 2yr 3yr
Pepper Essential 4.79 - - -
Resimac 3.39 2.98 2.79 3.29
SBS Bank 4.54 ▲2.99 ▲3.39 ▲3.59
SBS Bank Special - ▲2.49 ▲2.89 ▲3.09
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - 2.35 - -
The Co-operative Bank - Owner Occ 4.40 2.55 2.95 3.39
The Co-operative Bank - Standard 4.40 3.05 3.45 3.89
TSB Bank 5.34 3.35 ▲3.75 ▲4.05
TSB Special 4.54 2.55 ▲2.95 ▲3.25
Wairarapa Building Society 4.99 3.55 3.49 -
Lender Flt 1yr 2yr 3yr
Westpac 4.59 3.15 3.55 4.09
Westpac - Offset 4.59 - - -
Westpac Special - 2.55 2.95 3.49
Median 4.54 2.92 3.24 3.49

Last updated: 16 September 2021 9:00am

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