PHOTO: Reserve Bank of New Zealand
Key points for September 2020:
Total monthly new mortgage commitments were $7.3b in September – the highest month on record since the survey began in 2013. This is an increase of $0.5b (7.9%) from August 2020 and 32.8% from September 2019.
New mortgage commitments to first home buyers were $1.4b in September, up from $1.3b in August while other owner occupiers increased from $3.9b in August to $4.2b in September.
First home buyers accounted for 19.1% of new mortgage commitments in September, down from 19.8% in August while share of new commitments to investors rose from 21.4% to 22.7%.
The nationwide year-on-year growth in value of new mortgage commitments to first home buyers was 44.3%, while new commitments to investors was up 54.7%.
The year-on-year increase of 32.8% in new mortgage commitments was largely driven by regions outside of Auckland. The annual growth rate for new mortgage commitments in ‘nonAuckland’ increased from 27.1% in August to 37.2% in September, while rising from 24.5% to 27.0% in Auckland.
Monthly new mortgage commitments with high loan-to-valuation ratio[1] have increased since the restrictions were removed in May 2020. High LVR new mortgage commitments to investors saw an increase of 24.3% in September, up from 10.3% in August.
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