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

Previous years: Monthly:
Mar 2015 Mar 2016 Nov 2016 Dec 2016 Jan 2017 Feb 2017 Mar 2017
Total new commitments ($m)
Total new commitments 6,314 6,572 6,349 5,855 3,533 4,379 5,985
LVR 80% or below 5,882 6,055 5,984 5,526 3,324 4,098 5,626
LVR above 80% 432 517 365 329 209 280 359
Commitments with investment property collateral ($m)
Commitments with investment property collateral .. .. 2,239 2,054 1,282 1,516 2,107
LVR 60% or below .. .. 1,339 1,173 750 908 1,276
LVR above 60% .. .. 900 881 532 608 831
Exempt above 60% LVR .. .. 876 865 521 590 814
Above 60% LVR share before exemptions (%) .. .. 40.2 42.9 41.5 40.1 39.4
Above 60% LVR share after exemptions (%) .. .. 1.7 1.4 1.5 1.9 1.3
Commitments without investment property collateral ($m)
Commitments without investment property collateral .. .. 4,110 3,800 2,250 2,863 3,878
LVR 80% or below .. .. 3,761 3,484 2,049 2,599 3,531
LVR above 80% .. .. 349 316 201 264 347
Exempt above 80% LVR .. .. 127 120 76 120 123
Above 80% LVR share before exemptions (%) .. .. 8.5 8.3 8.9 9.2 8.9
Above 80% LVR share after exemptions (%) .. .. 5.6 5.3 5.7 5.3 6.0
New commitments by region (based on compliance data) ($m)
Auckland commitments with investment property collateral .. .. 1,265 1,140 682 764 1,125
Auckland commitments without investment property collateral .. .. 2,007 1,823 1,025 1,256 1,773
Non-Auckland commitments with investment property collateral .. .. 974 914 600 753 982
Non-Auckland commitments without investment property collateral .. .. 2,103 1,977 1,226 1,606 2,105

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.

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%.

Commitments with investment property collateral ($ millions)

Commitments with investment property collateral, as per BS19 and BS2A/B (Property-investment residential mortgage loans).  This differs from the “Borrower Type” (Investor) data in tables C31 and C32.  See the C32 Advisory Note for further details. 

LVR 60% or below ($ millions)

Monthly value of committed residential mortgage lending for commitments with investment property collateral where the loan-to-valuation ratio is at or below 60%.

LVR above 60% ($ millions)

Monthly value of committed residential mortgage lending for commitments with investment property collateral where the loan-to-valuation ratio is above 60%.

Exempt above 60% LVR ($ millions)

Monthly value of exempted property-investment lending where the loan-to-valuation ratio is above 60%. Exempted lending categories include 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. The combined collateral exemption allows investors to borrow up to 80% against the value of their owner-occupied property (see BS19 for details).         

Above 60% LVR share before exemptions (%)

The above 60% LVR share before exemptions is the percent of total monthly value of committed residential mortgage lending for commitments with investment property collateral where the loan-to-valuation ratio is above 60%.

Above 60% LVR share after exemptions (%)

The ‘above 60% LVR share after exemptions’ is calculated by subtracting exempt lending (with LVR above 60 percent) from new commitments with LVR above 60 percent then dividing by total new commitments less exempt lending (with LVR above 60 percent).

Though similar, it is not the same as the high LVR “speed limit,” which is based on a rolling average. As of 1 October 2016, banks’ compliance with the “high-LVR” speed limit is 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.

Commitments without investment property collateral ($ millions)

Commitments with investment property collateral, as per BS19 and BS2A/B (non property-investment residential mortgage loans). 

LVR 80% or below ($ millions)

Monthly value of committed residential mortgage lending for commitments without investment property collateral where the loan-to-valuation ratio is at or below 80%.

LVR above 80% ($ millions)

Monthly value of committed residential mortgage lending for commitments without  investment property collateral where the loan-to-valuation ratio is above 80%.

Exempt above 80% LVR ($ millions)

Monthly value of exempted non property-investment 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.

Above 80% LVR share before exemptions (%)

The above 80% share before exemptions is the percent of total monthly value of committed residential mortgage lending for commitments without  investment property collateral where the loan-to-valuation ratio is above 80%.

Above 80% LVR share after exemptions (%)

The ‘Above 80% 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,” which is based on a rolling average.  As of 1 October 2016, banks’ compliance with the “high-LVR” speed limit is 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.

Auckland commitments with investment property collateral ($ millions)

Auckland commitments secured by investment property collateral.   This includes any loan that has any Auckland investment property as collateral.

Auckland commitments without investment property collateral ($ millions)

Auckland commitments not secured by investment property collateral.

Non-Auckland commitments with investment property collateral ($ millions)

Non-Auckland commitments secured by investment property collateral. 

Non-Auckland commitments without investment property collateral ($ millions)

Non-Auckland commitments not secured by investment property collateral. 

We have made a series of 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. The end of March 2017 marks the end of the first compliance period for all banks.

The revised policy removes regional restrictions and applies nationwide high LVR limit categories for loans with investment property collateral and those without investment property collateral. We have therefore discontinued detailed reporting (eg LVR breakdowns) on the following items in this table:

  • Auckland commitments with investment property collateral
  • Auckland commitments without investment property collateral
  • Non-Auckland commitments

While the Auckland vs. Non-Auckland distinction is no longer relevant for our compliance purposes, we have kept the data available for analysts who may wish to see the regional breakdown.

We have also made some minor changes to several data labels and to the title of the table, in order to more clearly highlight the difference between this (compliance) data and that in the C31 and C32 tables. The C31 and C32 tables use borrower type definitions, whereas the C30 table uses the collateral-based definitions in the framework for LVR restrictions (BS19). The main difference is in the treatment of existing investors who are borrowing to buy a house to live in. These are treated as “owner occupiers” in the borrower type data, but as “commitments with investment property collateral” for compliance purposes. This makes the “investment property collateral” proportion in the C30 table greater than the “investor” proportion in the C31 table.

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

1 May 2017

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.