PHOTO: NZ mortgage lending. FILE
Released:
At propertynoise.co.nz – the key indicator we look at to predict what will happen to the NZ residential real estate market is the below lending statistics. Simply less approvals, mean less sales and less building activity. This will flow on to longer ‘Days on Market’ for house listings as there are less buyers in the market. Less buyers means price pressure comes off and as we are seeing prices are starting to drop across most parts of New Zealand.
Registered banks provide data on new residential mortgage lending commitments during a reference month with a breakdown by loan-to-valuation ratio (LVR) and borrower type. Borrowers are classified as first home buyers, other owner-occupiers, investors or those borrowing for business purposes.
| Previous years: | Monthly: | ||||||
|---|---|---|---|---|---|---|---|
| May 2020 | May 2021 | Jan 2022 | Feb 2022 | Mar 2022 | Apr 2022 | May 2022 | |
| Total lending ($million) | |||||||
| All borrower types | 4,318 | 8,921 | 4,667 | 5,706 | 7,273 | 5,664 | 6,817 |
| First home buyers | 801 | 1,757 | 819 | 954 | 1,200 | 1,046 | 1,242 |
| Other owner-occupiers | 2,592 | 5,527 | 2,986 | 3,632 | 4,707 | 3,580 | 4,377 |
| Investors | 889 | 1,540 | 811 | 1,057 | 1,279 | 968 | 1,129 |
| Business purposes | 36 | 98 | 52 | 64 | 86 | 71 | 70 |
| Higher than 80% LVR lending ($million) | |||||||
| All borrower types | 515 | 833 | 260 | 311 | 371 | 414 | 584 |
| First home buyers | 355 | 663 | 190 | 211 | 227 | 279 | 424 |
| Other owner-occupiers | 153 | 164 | 69 | 95 | 139 | 121 | 147 |
| Investors | 5 | 4 | 2 | 5 | 6 | 10 | 13 |
| Business purposes | 0 | 1 | 0 | 0 | 0 | 3 | 0 |
| Less than or equal to 80% LVR lending ($million) | |||||||
| All borrower types | 3,803 | 8,088 | 4,407 | 5,395 | 6,901 | 5,251 | 6,233 |
| First home buyers | 445 | 1,094 | 629 | 743 | 974 | 766 | 818 |
| Other owner-occupiers | 2,439 | 5,362 | 2,917 | 3,536 | 4,568 | 3,458 | 4,230 |
| Investors | 883 | 1,536 | 809 | 1,052 | 1,273 | 958 | 1,115 |
| Business purposes | 36 | 96 | 52 | 64 | 86 | 68 | 70 |
| MEMO ITEM: Lending to investors ($million) | |||||||
| Total lending | 889 | 1,540 | 811 | 1,057 | 1,279 | 968 | 1,129 |
| Higher than 70% LVR lending | 130 | 160 | 93 | 114 | 144 | 124 | 161 |
| Less than or equal to 70% LVR lending | 759 | 1,379 | 718 | 944 | 1,135 | 844 | 968 |
SOURCE: RBNZ