Kiwi's favourite pastime: Borrowing for property - increases - Property News AU/NZ | propertynoise.co.nz & propertynoise.com.au

PHOTO: NZ mortgages continue to rise. FILE

The surge in mortgage growth continued last month ahead of the mid-August Level 4 lockdown, with the pile of outstanding mortgage debt growing at 12.1% – its highest annual rate since February 2008.

New Reserve Bank sector lending figures show that in July there was a $2.78 billion increase in the amount of mortgage stock outstanding in the country, bringing the grand total to $320.336 billion (including both banks and non-bank lenders).

The pace of growth has slowed a little (but it is winter) and is below the $3 billion-plus a month growth rates seen earlier in the year.

The outstanding mortgage debt pile has grown by $34.683 billion in the past 12 months, remembering that during the same period, new mortgages grew by just on $100 billion.

In terms of bank-only figures, the RBNZ latest bank loans by purpose numbers confirm the recent trend that’s seeing investors fall away with new borrowing, while owner-occupiers are coming on strong.