KPMG's quarterly survey of financial institutions has revealed that mortgage lending in New Zealand has reached a new record of $227.7 billion; a $8.4b increase since December, according to a Fairfax article.
The boom in borrowing has seen the main banks increase their combined profits to $1.2b after tax in the three months to March, up 8% from $1.11b on the December quarter.
The survey showed all the major banks had seen a rise in lending with home lending growing at its fastest yearly rate since June 2008.
reported a profit after tax of $416 million for the quarter up 20 per cent, while BNZ
's profit rose 35 per cent to$259m.
's profit dropped nearly 5% in the March quarter to $239m while ASB
's profit was down 9% to $220m.
Kiwibank made $29m in profit after tax for the quarter, down from $38m in the December quarter.
Figures from the Real Estate Institute reveal the national medial house sale price hit a record high in May of $506,000 and median prices in five regions have also reached all time highs.