It's a new monthly high
Total monthly new mortgage commitments in New Zealand reached $8.8 billion in July 2021, up 3.4% from last month and a new high for the month of July, according to the Reserve Bank of New Zealand (RBNZ).
The latest RBNZ loan-to-value ratio (LVR) – new commitments summary revealed that new mortgage commitments to investors hit $1.5 billion in July 2021, up from $1.4 billion last month and an annual increase of 19.4%.
Meanwhile, new mortgage commitments to other owner-occupiers rose from $5.4 billion in June to $5.7 billion in July, increasing 51.5% over the year.
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Regarding the types of borrowers, RBNZ’s data found that investors accounted for 16.7% of new mortgage commitments, down from a share of 16.8% in the previous month.
First-home buyers (FHBs) had a share of 18.2% in July 2021, down from 19.3% in the previous month. Meanwhile, other owner-occupiers rose from 62.9% to 64.1% during the same period.
The report also showed that the share of new mortgage commitments with high LVR to investors increased from 28.2% in June to 31.3% last month.
The share of new mortgage commitments with high LVR to FHBs increased from 37.7% in June to 38.3% last month, while other owner-occupiers were down from 3.5% to 3.3% during the same period.
