New residential mortgage lending by borrower type - C31

Released
24 May 2017 03:00 p.m.
Next release
27 June 2017 03:00 p.m.
Source
Reserve Bank of New Zealand
Periodicity
Monthly
Previous years: Monthly:
Apr 2015 Apr 2016 Dec 2016 Jan 2017 Feb 2017 Mar 2017 Apr 2017
Total lending ($million)
All borrower types 5,657 6,504 5,855 3,533 4,379 5,985 4,558
First home buyer 561 789 809 462 591 818 630
Other owner occupier 3,193 3,464 3,617 2,184 2,720 3,655 2,738
Investor 1,841 2,182 1,379 844 1,024 1,426 1,143
Business purposes 62 69 49 42 43 87 47
Higher than 80% LVR lending ($million)
All borrower types 390 493 329 209 280 359 263
First home buyer 141 241 179 107 140 214 149
Other owner occupier 201 214 145 93 131 137 109
Investor 47 38 5 7 9 8 5
Business purposes 1 0 1 2 0 0 -
Less than or equal to 80% LVR lending ($million)
All borrower types 5,267 6,010 5,526 3,323 4,098 5,626 4,295
First home buyer 421 548 630 355 451 604 481
Other owner occupier 2,992 3,250 3,472 2,091 2,589 3,518 2,629
Investor 1,793 2,144 1,374 837 1,015 1,418 1,138
Business purposes 62 69 49 40 43 86 47
MEMO ITEM: Lending to investors ($million)
Total lending 1,841 2,182 1,379 844 1,024 1,426 1,143
Higher than 70% LVR lending 947 690 157 100 120 155 116
Less than or equal to 70% LVR lending 893 1,492 1,222 744 905 1,272 1,027

The Data: Coverage, Periodicity, and Timeliness

Coverage characteristics

Registered banks provide data on new residential mortgage lending commitments during a reference month with a breakdown by loan-to-valuation ratio (LVR) and borrower type. Borrowers are classified as first home buyers, other owner-occupiers, investor or those borrowing for business purposes.

Periodicity

Monthly

Timeliness

Data is published 18 working days after the end of the reference month.

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 statistics that support statistical cross-check and provide assurance of reasonableness

Data on new residential mortgage lending commitments by loan-to-valuation ratio (LVR) is published in C30.

Lending ($ millions)

Total lending

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.

Higher than 80% LVR lending

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

Less than or equal to 80% LVR lending

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

Higher than 70% LVR lending

Monthly value of committed residential mortgage lending, where the loan-to-valuation ratio (LVR) is above 70%. This data is published for investors only.

Less than or equal to 70% LVR lending

Monthly value of committed residential mortgage lending, where the loan-to-valuation ratio (LVR) is 70% or below. This data is published for investors only.

Borrowers (number)

Total borrowers

Total number 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.

Higher than 80% LVR borrowers

Monthly number of committed residential mortgage loans, where the loan-to-valuation ratio (LVR) is above 80%.

Less than or equal to 80% LVR borrowers

Monthly number of committed residential mortgage loans, where the loan-to-valuation ratio (LVR) is 80% or below.

Higher than 70% LVR borrowers

Monthly number of committed residential mortgage loans, where the loan-to-valuation ratio (LVR) is above 70%. This data is published for investors only.

Less than or equal to 70% LVR borrowers

Monthly number of committed residential mortgage loans, where the loan-to-valuation ratio (LVR) is 70% or below. This data is published for investors only.

Borrower type

First home buyer

A first home buyer is a borrower entering the home ownership market in New Zealand for the first time. In the case of more than one borrowing parties to a loan, borrowers are classified as first home buyers only if none of the borrowing parties have previously drawn down on housing finance for owner occupation. If the borrower, or at least one borrowing party, has previously drawn down on housing finance for owner occupation they are classified as "other Owner Occupier".

Other owner occupier

Other owner occupiers are borrowers (other than first home buyers) who own or are in the process of buying or building the house or flat they will live in. An owner can occupy more than one property e.g. a family home and a holiday home.

Investor

Investors are entities or persons borrowing for the purpose of building or purchasing residential property to rent. The borrower is securing the loan on a non owner occupied property i.e. the borrower does not intend to live in the property for which they are seeking finance.

Business purposes

These commitments are made to borrowers in the form of a residential mortgage loan but are intended for business purposes.

Today the Reserve Bank published revised “Borrower Type” data for the period November 2015 to March 2016 as a result of a change in methodology of borrower type/loan purpose classification by a major bank. This impacts both the C31 and C32 tables. The revision dates back to November 2015, when a new LVR policy was put in place. The revised methodology applied by the major bank more accurately reflects the Reserve Bank’s November 2015 guidance. The revised data shows a lower amount of “investor” purpose loans starting in November 2015, as many of the loans previously classified as “investor” have now been reclassified “other owner-occupier.”

Please note that this data forms part of statistical reporting to the Reserve Bank and does not relate to LVR compliance, which uses a different, collateral –based definition of investment property (see BS19 and BS2A/B). Therefore, this revision does not impact compliance with the Reserve Bank’s LVR speed limits.

24 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.