Latest RBNZ figures reveal first time buyer boom

First time buyers took just over a 16% share of the New Zealand mortgage lending market last month, according to RBNZ’s latest figures, which follow on from a strong level of first time buyer activity in March.

First time buyers received $868m last month, according to the data, higher than April 2017 when just $630m was lent to first timers. The figure also surpasses April 2016 when $789m was lent to first time buyers.

The boost follows the slight relaxation of LVR restrictions in January, liberalising lending to customers with less than a 20% deposit. Lending at more than 80% LVR was dominated by first time buyers, who accounted for $275m of the $449m total.

Overall lending figures paint a mixed picture. Mortgage lending hit $5.37bn in April, up from $4.5bn last April, but down on the $6.5bn lent in April 2016.