Number of borrowers ahead on repayments dips slightly

The New Zealand Banking Association says it shows that many people with home loans are managing relatively well.

“Those paying more than their minimum repayments have likely built in a cushion in case their circumstances change. It also means they’re paying off their debt faster,” Roger Beaumont, New Zealand Banking Association chief executive says.

The association’s figures in its six monthly retail banking data insights show there were nearly 1.25 million home loans across 1.08 million customers in June. The average value of all home loans was $323,463. Of the 40,438 new home loans opened, 26% were issued to first home buyers.

About 11,090 home loans switched from principal and interest to interest-only repayments. This is slightly down from the previous six months when 12,120 home loans made that switch.