Investor lending has jumped to its highest level for the year ending October 2019, according to the Reserve Bank of New Zealand (RBNZ)’s latest data.
The data, which was released as the central bank announces its latest Financial Stability Report, revealed that investors borrowed a whopping $1.19 billion in October – up from only $1.02 billion in October 2018, and the highest level borrowed by investors since August 2018.
Overall lending jumped to $6.07 billion in October – the highest since May, while homebuyers borrowed more than October 2018 ($5.52 billion) and October 2017 ($4.6 billion).
RBNZ’s latest data has proven a resurgence in the housing market following the central bank’s official cash rate (OCR) cut in August, as well as the abandonment of a potential capital gains tax. Meanwhile, mortgage advisers noted that banks have started loosening their serviceability tests for borrowers over winter.