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Mortgages

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New mortgage lending still slim

Investors are still sitting on the sidelines of the residential housing market.

Friday, May 6th 2022, 11:31AM

by Sally Lindsay

Although new mortgage lending was up to $1.3 billion in March from $1.1 billion in February, it was an annual drop of 44%, the latest Reserve Bank figures show.

Investors accounted for 17% of new mortgage commitments down from 18.5% in February, making this the first drop since December last year and lending to investors with high loan-to-value ratios (LVRs) of 60% rose from 31.4% in February to 32.1% in March. 

Total monthly new mortgage lending topped $7.3 billion in March, up $1.6 billion, or 27.5%, from February but well down on the all-time high of $10.4 billion advanced in the same month last year, when the market had a huge head of steam.

While new the new mortgages value is 17.7% higher than in March 2020, the Reserve Bank says the composition is quite different. Fewer borrowers took out mortgages, but the average size of loans has risen 44.5%. In March the number of mortgages advanced was down by 18.6% from 22,631 in March 2020 to 18,424.

First home buyers were lent $1.2 billion in mortgages in March, up $247m from February, but a decrease of 32.3% from last year. This group had a 16.5% share of the market in March, down slightly from 16.7% in February, the third consecutive drop since it peaked in December last year.

New mortgage commitments to other owner occupiers were up from $3.6 billion in February to $4.7 billion, but fell 25.6% over the year. The market share for other owner occupiers with high LVRs rose from 2.6% to 2.9%, the highest level recorded since December last year.

Consents up

Meanwhile, a record 5,303 new houses were consented in March - the highest ever for any month of the year, and is up 26% on March last year, Statistics NZ data show.

In the year to the end of March, a record 50,858 new houses were consented, up 24% compared to the previous 12 months. This is the first time the number of homes consented had passed 50,000 in any 12-month period.

Also for the first time more multi-unit homes than stand-alone houses have been consented in any 12 month period.

Over the year to March, 25,475 multi-unit homes such as townhouses, apartments, home units and retirement village units were consented, overtaking the 25,383 stand-alone houses that were consented in the same period.

Tags: mortgages

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Full Rates Table | Compare Rates

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 4.95 5.45 -
Heartland Bank - Online 4.10 ▲4.40 ▲4.90 ▲5.10
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 6.10 5.00 5.75 -
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 5.05 5.69 5.89
SBS Bank Special - 4.55 5.19 5.39
Select Home Loans 4.09 4.29 4.86 5.09
TSB Bank - ▲5.65 5.79 ▲6.45
TSB Special ▲4.89 ▲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 5.85 5.05 5.69 5.99

Last updated: 27 June 2022 8:43am

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