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Investors back in the market with bigger mortgages

The amount investors borrowed tipped into the billions again in February after dropping back to $812 million in January. The last time investor’ borrowing fell back to the millions was in February 2020.

Friday, April 1st 2022, 11:07AM

by Sally Lindsay

Latest Reserve Bank data show investors borrowed $1.059 billion in February which was 18.6% of the $5,706 billion total lent to all borrowers and $1 billion more than January - the largest increase since February 2018.

Investor borrowing was up from 17.4% in January and 16.6% in December. This continues the trend observed in January, which was the first increase since September 2021. However, it was an annual drop of 42.9% after peaking in the middle of last year.

February’s total lending levels exceeded other February lending months between 2014-2020, but it down $1.9 billion (24.9%) from February last year.

While the value is comparable to 2020, the composition is quite different – the number of new commitments fell 31% compared with two years ago, while the average loan size increased by 48.2%.

In other words, the figures show there are fewer people borrowing but they are taking out bigger mortgages than two years ago. 

The $5.7 billion borrowed in February  was spread across just 14,867 mortgages and the average sized mortgage has risen to $383,300 compared to $258,900 in the same month two years ago.

Across the board, first home buyers February borrowing was $1 billion, up $135 million from the previous month, and a drop of 19.3% from last year. New mortgage commitments to other owner occupiers were up from $3 billion in January to $3.6 billion, but declining 19.5% over the year.

First home buyers made up 16.7% of total borrowing in February, down from 17.5% in January, the second consecutive drop since it peaked in December last year, while other owner occupiers declined slightly from 64% last month to 63.6%.

Tags: investment

« Earning power should stop huge house price falls Market transferring in buyers’ favour »

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Lender Flt 1yr 2yr 3yr
AIA 5.95 4.85 5.35 5.65
ANZ 5.94 5.95 6.40 6.59
ANZ Blueprint to Build - - - -
ANZ Special - 5.35 5.80 5.99
ASB Bank 5.85 5.35 5.80 5.99
Avanti Finance 5.95 - - -
Basecorp Finance 6.95 - - -
Bluestone 5.89 7.49 8.09 8.19
BNZ - Classic - 5.35 5.69 5.99
BNZ - Mortgage One 5.94 - - -
BNZ - Rapid Repay 5.94 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.94 5.95 6.29 6.59
BNZ - TotalMoney 5.94 - - -
CFML Loans 6.45 - - -
China Construction Bank 5.50 5.40 6.14 6.40
China Construction Bank Special - 4.45 5.19 5.45
Co-operative Bank - First Home Special - 4.75 - -
Co-operative Bank - Owner Occ 5.85 4.85 5.35 5.65
Co-operative Bank - Standard 5.85 5.35 5.85 6.15
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 ▲5.35 ▲5.85 -
Heartland Bank - Online 4.10 ▲4.90 ▲5.29 ▲5.59
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 6.10 ▲5.35 ▲5.80 -
HSBC Premier 5.89 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.25 4.39 5.09 5.45
Kainga Ora 5.43 4.57 5.58 5.85
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 5.50 ▲6.19 ▲6.69 ▲6.79
Kiwibank - Offset 5.50 - - -
Kiwibank Special 5.00 ▲5.19 ▲5.69 ▲5.89
Liberty 4.84 - - -
Lender Flt 1yr 2yr 3yr
Nelson Building Society 6.45 5.55 6.15 -
Pepper Money 4.49 - - -
Resimac 6.19 5.60 6.16 6.29
SBS Bank 5.79 ▲5.65 ▲6.09 ▲6.19
SBS Bank Special - ▲5.15 ▲5.59 ▲5.69
Select Home Loans 4.09 4.29 4.86 5.09
TSB Bank ▲6.30 ▲5.65 5.79 ▲6.45
TSB Special ▲5.50 ▲4.85 4.99 ▲5.65
Unity 5.65 4.95 5.55 -
Wairarapa Building Society 5.74 4.95 5.75 -
Westpac 5.94 5.95 6.29 6.59
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.94 - - -
Westpac Special - 5.35 5.69 5.99
Median 5.87 5.35 5.77 5.99

Last updated: 30 June 2022 9:19am

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