Hot competition for higher-equity borrowers
Reserve Bank statistics show that the value of new home loan approvals in the first week of November slumped to $932 million, from almost $1.3 billion a year earlier and $1.2 billion as recently as August.
The number of approvals in the 13 weeks to November 1 was more than 4% down on the same period the year before.
Loan-to-value restrictions introduced at the beginning of October mean banks must keep their new low-deposit lending to no more than 10% of their new loans.
New Zealand Home Loans chief executive Mark Collins saidHmost banks were lending only up to 4% of their loans to low-equity customers, because they wanted a significant buffer to keep them on the right side of the rules.
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