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Interest payments on mortgages soar

Record high interest bills are hitting mortgage borrowers as rising and high interest rates bite.

Friday, October 27th 2023, 10:41AM

by Sally Lindsay

The Reserve Bank’s latest Residential Mortgage Loan Reconciliation shows borrowers will, in this calendar year, probably pay their banks more than $17 billion in mortgage interest.

In the Sept quarter they paid $4,627b – a new record – and a big rise from $3,549b in the Dec quarter last year and  double the $2,323b in the Sept quarter,b2021. The last big quarter for interest payments was in June – $4,219b. 

The amount borrowers owed at the end of the Sept quarter was $348,707b. Just over $9b in loans was fully repaid, with excess payments of just over $4b. The value of drawdowns of new mortgage lending was the same as last quarter at $17.9b.

The RBNZ’s Sept statistics show $5.2b of new mortgages were lent, down 10.2% from $5.8b in Aug, but a rise of 1.2% annually. It is the second month of an annual increase since Aug 2021.

First home buyers dominated the Sept statistics, with borrowing rising by 17.8% compared to Sept last year. Lending to investors also increased by 10.5% over the year, while the value of new mortgages to owner-occupiers fell by 7.5% over 12 months.

The share of new mortgages to first home rose to 24.1% in Sept up from 23.7% in Aug. The share has increased from 20.7% in Sept last year and has exceeded the share to investors every month since April last year. Investors' share of new mortgages has reached 17.2%, up 15.8% a year ago..

Nearly 15,000 new mortgages were written last month, down 6.2% from 15,952 in Aug, but up by 2.7% from 14,578 last year.

New loan average values fell across all borrower types to $347,000 last month, down from $362,500 in Aug, while top-up values have fallen by 13.2% compared to Sept last year. On the other hand, property purchases have risen by 3.7% and changes in loan providers have risen by 17.7% over the same period.

Tags: interest rates

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 ▼5.79 ▼5.49 ▼5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 ▼5.79 ▼5.49 ▼5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance ▼7.90 - - -
Basecorp Finance ▼8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 ▼5.79 ▼5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - ▼5.99 ▼5.89 -
First Credit Union Standard ▼7.69 ▼6.69 ▼6.39 -
Heartland Bank - Online 6.99 ▼5.49 ▼5.39 ▼5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 6.65 6.40 -
ICBC 7.49 ▼5.79 ▼5.59 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 6.89 6.59 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 ▼5.75 ▼5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - 6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.19 6.49 ▼6.39 ▼6.39
TSB Special 7.39 5.69 ▼5.59 ▼5.59
Unity 7.64 ▼5.79 ▼5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society ▼7.70 ▼5.95 ▼5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 5.79 5.49 5.59
Median 7.49 5.97 5.75 5.69

Last updated: 6 December 2024 9:11am

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