C30 New residential mortgage lending by loan-to-valuation ratio (LVR)

Released
24 November 2016 03:00 p.m.
Next release
21 December 2016 03:00 p.m.
Source
Reserve Bank of New Zealand
Periodicity
Monthly
Data files
Previous years: Monthly:
Oct 2014 Oct 2015 Jun 2016 Jul 2016 Aug 2016 Sep 2016 Oct 2016
Total new commitments
Total new commitments ($millions) 4,884 5,853 6,803 6,305 6,107 5,831 5,369
LVR 80% or below ($millions) 4,467 5,377 6,348 5,873 5,688 5,453 5,030
LVR above 80% ($millions) 418 476 455 431 419 378 338
Above 80% LVR share before exemptions (%)1 8.5 8.1 6.7 6.8 6.9 6.5 6.3
Auckland investor commitments
Auckland investor commitments ($millions) .. .. 1,761 1,589 1,309 1,233 1,101
LVR 70% or below ($millions) .. .. 1,469 1,308 1,130 1,087
LVR above 70% ($millions) .. .. 292 281 179 146
Exempt above 70% LVR ($millions) .. .. 284 277 174 142
Above 70% LVR share before exemptions (%)1 .. .. 16.6 17.7 13.7 11.9
Above 70% LVR share after exemptions (%)2 .. .. 0.5 0.3 0.4 0.4
Auckland non-investor commitments
Auckland non-investor commitments ($millions) .. .. 1,916 1,877 1,862 1,841 1,672
LVR 80% or below ($millions) .. .. 1,797 1,747 1,740 1,721
LVR above 80% ($millions) .. .. 119 130 122 120
Exempt above 80% LVR ($millions) .. .. 13 19 27 22
Above 80% LVR share before exemptions (%)1 .. .. 6.2 6.9 6.5 6.5
Above 80% LVR share after exemptions (%)2 .. .. 5.6 6.0 5.1 5.4
Non-Auckland commitments
Non-Auckland commitments ($millions) .. .. 3,126 2,839 2,936 2,757 2,596
LVR 80% or below ($millions) .. .. 2,796 2,542 2,643 2,503
LVR above 80% ($millions) .. .. 330 297 293 254
Exempt above 80% ($millions) .. .. 58 63 64 63
Above 80% LVR share before exemptions (%)1 .. .. 10.5 10.5 10.0 9.2
Above 80% LVR share after exemptions (%)2 .. .. 8.8 8.4 8.0 7.1
  1. Percentages are calculated from non-rounded figures.
  2. Though similar, this is not the same as the high LVR “speed limit”. Banks’ compliance with the “high-LVR” speed limit will initially be measured against the average ‘high-LVR share after exemptions’, for 1 November 2015 to 30 April 2016. Thereafter, it will be measured against the 3-month rolling average for the larger banks (ANZ, ASB, BNZ, Kiwibank and Westpac) and the 6-month rolling average for the smaller banks. Speed limits currently in effect are as follows: Auckland investor: no more than 5% of lending above 70% LVR. Auckland non-investor: no more than 10% of lending above 80% LVR. Non-Auckland: no more than 15% of lending above 80% LVR. Percentages are calculated from non-rounded figures.

The Data: Coverage, Periodicity, and Timeliness

Coverage characteristics

The table shows data from the monthly loan-to-valuation ratio (LVR) survey that is completed by registered banks in New Zealand.

Registered banks provide data on new residential mortgage lending commitments during a reference month with a breakdown by LVR. Committed lending in the monthly LVR survey are finalised offers to customers to provide mortgage loans or to increase the loan value of an existing mortgage loan, as evidenced by the loan documents provided to the borrower.

Registered banks also report residential mortgage commitments that are exempted when calculating compliance with speed limits when LVR restrictions are in place.

Exempted lending categories include lending made under Housing New Zealand’s Welcome Home Loans scheme, refinancing of an existing high-LVR loan, bridging finance or the ‘porting’ of a high-LVR loan between properties. Starting 1 October 2013, qualifying construction loans became an exempted lending category. Starting 1 November 2015, property remediation loans, loans granted in error and loans that qualify for the combined collateral exemption became exempted lending categories. Note the combined collateral exemption only applies to Auckland property investor lending.

Periodicity

Monthly

Timeliness

Data is published eighteen working days after the end of the reference period.

Access by the public

Statistics release calendar

The "Statistics Release Calendar" is updated monthly and released on the last working day of the month. This is a long-term plan of scheduled releases.

Integrity

Dissemination of terms and conditions under which official statistics are produced, including confidentiality of individual responses

Data are collected under Section 93 of The Reserve Bank of New Zealand Act 1989.

The Reserve Bank of New Zealand publishes only aggregated data. Individual institutional data remains confidential.

Provision of information about revisions and advance notice of major changes in methodology

Provisional data are italicised. Data are deemed provisional when a series is under review. New data, or revised data, are in bold font. Revisions are generally published when the table is next due to be updated and released. Should revisions need to be made more promptly, a special note is posted on the website.

Any major changes in methodology will be posted as a special note.

Quality

Dissemination of documentation on methodology and sources used in preparing statistics

A list of registered banks is available.

Series Name

Series Description

Total new commitments
($ millions)

Total value of monthly committed residential mortgage loans, which are finalised offers to customers to provide mortgage loans or to increase the loan value of an existing mortgage loan, as evidenced by the loan documents provided to the borrower.

Auckland investor commitments ($ millions)

Total value of monthly committed residential mortgage loans that are secured over at least one Auckland investment property.

Auckland non-investor commitments ($ millions)

Total value of monthly committed residential mortgage loans that are secured over at least one Auckland property but not secured over any Auckland investment property.

Non-Auckland commitments ($ millions)

Total value of monthly committed residential mortgage loans that are not secured by any Auckland property.

LVR 80% or below
($ millions)

Monthly value of committed residential mortgage lending, where the loan-to-valuation ratio is 80% or below.

LVR above  80%
($ millions)

Monthly value of committed residential mortgage lending, where the loan-to-valuation ratio is above 80%.

LVR 70% or below
($ millions)

Monthly value of committed residential mortgage lending, where the loan-to-valuation ratio is 70% or below.

LVR above  70%
($ millions)

Monthly value of committed residential mortgage lending, where the loan-to-valuation ratio is above 70%.

Above 80% LVR share before exemptions
(%)

The high-LVR share before exemptions is the percent of total monthly value of committed residential mortgage lending where the loan-to-valuation ratio is above 80%.

Above 70% LVR share before exemptions
(%)

The high-LVR share before exemptions is the percent of total monthly value of committed residential mortgage lending where the loan-to-valuation ratio is above 70%.

Exempt above 80% LVR
($ millions)  

Monthly value of exempted lending where the loan-to-valuation ratio is above 80%. Exempted lending categories include lending made under Housing New Zealand’s Welcome Home Loans scheme, refinancing of an existing high-LVR loan, bridging finance,  the ‘porting’ of a high-LVR loan between properties,  qualifying construction loans, property remediation loans and loans granted in error.

Exempt above 70% LVR
($ millions)  

Monthly value of exempted lending where the loan-to-valuation ratio is above 70%. Exempted lending categories include lending made under Housing New Zealand’s Welcome Home Loans scheme, refinancing of an existing high-LVR loan, bridging finance, the ‘porting’ of a high-LVR loan between properties,  qualifying construction loans, property remediation loans, loans granted in error and loans that qualify for the combined collateral exemption. Note the combined collateral exemption only applies to Auckland property investor lending.    

Above 80% LVR share after exemptions
(%)

The high-LVR share after exemptions is the percent of total monthly value of exempted lending where the loan-to-valuation ratio is above 80%.

The ‘high-LVR share after exemptions’ is calculated by subtracting exempt lending (with LVR above 80 percent) from new commitments with LVR above 80 percent then dividing by total new commitments less exempt lending (with LVR above 80 percent).

Though similar, it is not the same as the high LVR “speed limit”. Banks’ compliance with the “high-LVR” speed limit will initially be measured against the average ‘high-LVR share after exemptions’, from 1 November 2015 to 30 April 2016.  Thereafter, it will be measured against the 3-month rolling average for the larger banks (ANZ, ASB, BNZ, Kiwibank and Westpac) and the 6-month rolling average for the smaller banks.

Above 70%  LVR share after exemptions
(%)

The high-LVR share after exemptions is the percent of total monthly value of exempted lending where the loan-to-valuation ratio is above 70%.

The ‘high-LVR share after exemptions’ is calculated by subtracting exempt lending (with LVR above 70 percent) from new commitments with LVR above 70 percent then dividing by total new commitments less exempt lending (with LVR above 70 percent).

Though similar, it is not the same as the high LVR “speed limit”. Banks’ compliance with the “high-LVR” speed limit will initially be measured against the average ‘high-LVR share after exemptions’, from 1 November 2015 to 30 April 2016.  Thereafter, it will be measured against the 3-month rolling average for the larger banks (ANZ, ASB, BNZ, Kiwibank and Westpac) and the 6-month rolling average for the smaller banks.

We are making changes to our publication of new residential mortgage lending data in light of the new loan-to-valuation ratio restrictions that took effect on 1 October 2016.

Given the change to New Zealand investor and New Zealand non-investor LVR restrictions we have discontinued detailed reporting on the following items in this table:

  • Auckland investor commitments
  • Auckland non-investor commitments and
  • Non-Auckland commitments

We will make further changes to the suite of published new residential mortgage lending data in early 2017, upon completion of the initial speed limit measurement period.

If you have any questions, please contact us at stats-info@rbnz.govt.nz.

24 November 2016

Symbols and conventions

0 Value rounded to zero
- Zero or not applicable
.. Not available
bold Revised/new
italics Provisional

General notes

  • Individual figures may not sum to the totals due to rounding
  • Percentage changes are calculated on unrounded numbers
  • You are free to copy, distribute and adapt these statistics subject to the conditions listed on our copyright page.