New record for low equity loans

Mortgage lending in May was back to March levels at $8.6 billion after taking a dip in April. Two years ago, that figure was $5.8 billion.

Of the 22,156 new mortgages lent, 2,895 were taken out by first home buyers and 1,213 or 41.9%, were low equity loans – a new record.

RBNZ figures show the average mortgage borrowed was $629,000 by first home buyers taking out a low equity loan. This was down by $56,000, or 8.2%, from the $685,000 peak in May 2022.

It was the highest percentage of low equity borrowing by first home buyers and the biggest number of low equity loans made to first home buyers.