PHOTO: CoreLogic
After a solid month in April, mortgage lending activity dialed back a little in May, with the investor part of the market feeling the pinch. Indeed, owner-occupiers remain the key players in the mortgage market, and in particular first home buyers. That is consistent with the message from the CoreLogic Buyer Classification data. Meanwhile, lending standards remain high – the LVR speed limits for owner-occupiers are not being tested and mortgage repayment problems are very low.
CoreLogic Senior Property Economist Kelvin Davidson writes:
The strength of mortgage lending in April fell away a bit in May, today’s figures from the Reserve Bank (RBNZ) show. Gross new lending in May was $6.47bn, down by about $120m from the same month last year. Again, owner-occupiers have borrowed more year-on-year (up by about $300m), but investor lending remains much more subdued (see the first chart).
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