Big increase in home loans made by banks

Despite a recession, the number and value of home loans were up by 21% in the second half of last year, compared to the first half.

Analysis of retail banking data by the New Zealand Banking Association shows there were 56,938 new home loans made between July to December and the overall value of those loans increased rose by 24.7% to $23 billion.

Of the 56,938 new home loans, 26.7% were issued to first time home buyers at an average of a home $493,000, up 4.4% from the previous six months.

In total 1.4 million home loans across 1.1 million customers were done at the country’s retail banks at an average value of  $323,082, an increase of 1.6%.