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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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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 ▼6.79 ▼6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 ▼7.29 ▼7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 ▼6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 ▼7.39 ▼7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.30 7.89 7.69
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.30 8.89 8.69
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 ▼6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 7.15 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 14 March 2024 9:32am

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