Overall residential mortgage borrowing has picked up in the year to August.
Gross new residential mortgage lending volume was $5.402 billion in August, a 6% leap from one year ago, according to the latest mortgage lending figures from the Reserve Bank of New Zealand. There were a total of $4.95 billion in new commitments for loan-to-valuation ratio (LVR) 80% or below, and $452 million worth of new commitments for LVR above 80%.
However, RBNZ’s lending by borrower type figures in August show that amount borrowed dropped sharply across all borrower types compared from the previous month, except for other owner-occupiers. Total lending for first-home buyers sits at $833 million (down 8%), investors at $1.252 billion (down 6%) and business purposes at $72 million (down 24%).
Separately, the lending by LVR figures for August show that in Auckland the new mortgage lending that’s going to investors dropped by 2% from July to $1.028 billion.
The new figures were collected from data provided by registered banks on new residential mortgage lending commitments in July.