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Mortgages

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New mortgage lending still slim

Investors are still sitting on the sidelines of the residential housing market.

Friday, May 6th 2022, 11:31AM

by Sally Lindsay

Although new mortgage lending was up to $1.3 billion in March from $1.1 billion in February, it was an annual drop of 44%, the latest Reserve Bank figures show.

Investors accounted for 17% of new mortgage commitments down from 18.5% in February, making this the first drop since December last year and lending to investors with high loan-to-value ratios (LVRs) of 60% rose from 31.4% in February to 32.1% in March. 

Total monthly new mortgage lending topped $7.3 billion in March, up $1.6 billion, or 27.5%, from February but well down on the all-time high of $10.4 billion advanced in the same month last year, when the market had a huge head of steam.

While new the new mortgages value is 17.7% higher than in March 2020, the Reserve Bank says the composition is quite different. Fewer borrowers took out mortgages, but the average size of loans has risen 44.5%. In March the number of mortgages advanced was down by 18.6% from 22,631 in March 2020 to 18,424.

First home buyers were lent $1.2 billion in mortgages in March, up $247m from February, but a decrease of 32.3% from last year. This group had a 16.5% share of the market in March, down slightly from 16.7% in February, the third consecutive drop since it peaked in December last year.

New mortgage commitments to other owner occupiers were up from $3.6 billion in February to $4.7 billion, but fell 25.6% over the year. The market share for other owner occupiers with high LVRs rose from 2.6% to 2.9%, the highest level recorded since December last year.

Consents up

Meanwhile, a record 5,303 new houses were consented in March - the highest ever for any month of the year, and is up 26% on March last year, Statistics NZ data show.

In the year to the end of March, a record 50,858 new houses were consented, up 24% compared to the previous 12 months. This is the first time the number of homes consented had passed 50,000 in any 12-month period.

Also for the first time more multi-unit homes than stand-alone houses have been consented in any 12 month period.

Over the year to March, 25,475 multi-unit homes such as townhouses, apartments, home units and retirement village units were consented, overtaking the 25,383 stand-alone houses that were consented in the same period.

Tags: mortgages

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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.44 - - -
AIA - Go Home Loans 6.54 4.89 4.95 5.09
ANZ 6.49 5.55 5.55 5.69
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 4.95 4.95 5.09
ASB Bank 6.44 4.89 4.95 5.09
ASB Better Homes Top Up - - - 1.00
Avanti Finance - Near Prime 6.90 - - -
Avanti Finance - Specialised 8.34 - - -
Basecorp Finance ▼7.15 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 5.99 5.69 5.69
BNZ - Mortgage One 6.54 - - -
BNZ - Rapid Repay 6.54 - - -
BNZ - Std 6.44 4.89 4.95 5.09
BNZ - TotalMoney 6.54 - - -
CFML 321 Loans 4.99 - - -
CFML Home Loans 6.70 - - -
CFML Prime Loans 7.20 - - -
CFML Standard Loans 7.99 - - -
China Construction Bank 6.44 4.85 4.95 4.95
China Construction Bank Special 6.44 5.85 5.95 5.95
Lender Flt 1yr 2yr 3yr
Co-operative Bank - First Home Special - 4.85 - -
Co-operative Bank - Owner Occ 5.95 4.95 4.99 5.25
Co-operative Bank - Standard 5.95 5.45 5.49 5.75
Credit Union Auckland 7.70 - - -
First Credit Union Special - 5.29 5.19 -
First Credit Union Standard 6.94 5.79 5.49 -
Heartland Bank - Online 5.99 5.89 - -
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 7.45 5.90 5.80 -
ICBC 6.50 4.85 4.95 5.05
Kainga Ora 6.44 4.89 4.95 5.09
Lender Flt 1yr 2yr 3yr
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 6.35 5.79 5.85 5.95
Kiwibank - Offset 6.35 - - -
Kiwibank Special - 4.89 4.95 5.15
Liberty 6.90 6.80 6.50 6.45
Nelson Building Society 6.94 4.99 4.93 -
Pepper Money Near Prime 6.85 - - -
Pepper Money Prime 6.29 - - -
Pepper Money Specialist 8.30 - - -
SBS Bank 6.49 ▼5.49 5.55 ▼5.69
SBS Bank Special - ▼4.89 4.95 ▼5.09
Lender Flt 1yr 2yr 3yr
SBS Construction lending for FHB 3.94 - - -
SBS FirstHome Combo - 4.29 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 8.64 - - -
TSB Bank 7.19 5.69 5.75 6.09
TSB Special 6.39 4.89 4.95 5.29
Unity First Home Buyer special - 4.29 - -
Unity Special 6.64 4.99 4.99 -
Unity Standard 6.64 5.79 5.79 -
Wairarapa Building Society 6.75 5.09 4.95 -
Westpac 6.59 5.49 5.55 5.59
Lender Flt 1yr 2yr 3yr
Westpac Choices Everyday 6.69 - - -
Westpac Offset 6.59 - - -
Westpac Special - 4.89 4.95 4.99
Median 6.56 4.99 4.99 5.15

Last updated: 10 July 2025 4:59pm

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