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Mortgage lending boom continues through June

The home lending market remains red hot months on from the Government's housing market reforms, with June lending surpassing $8.5 billion.

Monday, July 26th 2021, 3:26PM

by Daniel Dunkley

The market held steady last month with total home loans reaching $8.5 billion, down from the $8.9 billion recorded in May, but up from the $8.4 billion recorded in April.

Latest statistics from the Reserve Bank underline the resilience of the home lending market as prices continue to soar. 

The $8.5 billion lent last month dwarfs the $5.3 billion borrowed in June 2020.

Yet it marks a decline on the peak of the market, in March, before the Government announced its reforms to cool activity. More than $10.4 billion was lent in March.

First home buyer lending in June outstripped investor activity for the first time in several months. 

First time buyers borrowed $1.64 billion, while investors were lent $1.4 billion last month.

Other owner-occupiers borrowed $5.3 billion, down from $5.5 billion the month before.

The data offer more evidence of the market's resilience in the wake of the Government's housing market reforms, such as the extended bright-line test and phased removal of interest deductibility. 

However, a breakdown of LVR ratios reveals new speed limits to curb investor lending are having an impact.

According to the Reserve Bank, the share of new mortgage commitments with high LVR to investors was down from 32.1% in May to 28.2% in June, the seventh consecutive month of declines.

Higher LVR lending to investors has fallen dramatically in recent months.

Just $132 million was lent to investors above 70% LVR last month, down from $844 million in November, before speed limits were reintroduced.

Tags: home loans Lending mortgages

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Lender Flt 1yr 2yr 3yr
AIA 4.55 2.85 3.25 3.55
ANZ 4.44 ▲3.39 ▲3.85 ▲4.09
ANZ Blueprint to Build 1.68 - - -
ANZ Special - ▲2.79 ▲3.25 ▲3.49
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 - 2.85 3.25 3.55
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 4.55 3.45 3.85 4.15
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 ▲2.45 ▲2.85 ▲3.15
Kainga Ora 4.43 2.88 3.28 3.59
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.75 ▲3.80 ▲4.00 4.34
Kiwibank - Offset 3.75 - - -
Kiwibank Special 3.75 ▲2.95 ▲3.15 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 - ▲2.65 - -
The Co-operative Bank - Owner Occ 4.40 ▲2.85 ▲3.25 ▲3.49
The Co-operative Bank - Standard 4.40 ▲3.35 ▲3.75 ▲3.99
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 3.45 3.85 4.09
Westpac - Offset 4.59 - - -
Westpac Special - 2.85 3.25 3.49
Median 4.54 2.95 3.25 3.49

Last updated: 29 September 2021 8:51am

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