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Mortgages

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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 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
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 - 7.14 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 7.74 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 - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 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 6.89 6.55 6.35
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 6.69 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 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 ▼7.65 ▼7.25 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.09 7.59 7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.09 8.59 8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.74 7.29 6.59
SBS Bank Special - 7.14 6.69 5.99
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 ▼7.84 7.35 ▼6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - ▼7.24 6.75 ▼6.39
Median 8.64 7.19 7.27 6.65

Last updated: 28 May 2024 11:21am

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