S8 Banks: Mortgage lending ($m)

Released
28 February 2017 03:00 p.m.
Source
Reserve Bank of New Zealand
Periodicity
Monthly
Data files
S8 (2004-current) (XLS 123 KB)
Previous years: Monthly:
Jan 2015 Jan 2016 Sep 2016 Oct 2016 Nov 2016 Dec 2016 Jan 2017
E3 Residential mortgages - number of loans
E3.1 Floating 653,576 612,430 624,008 628,053 621,282 610,914 612,189
E3.2 Capped - - - - - - -
E3.9 Fixed 823,086 893,857 908,728 910,003 918,946 930,441 936,317
E3.10 Total 1,476,662 1,506,287 1,532,736 1,538,056 1,540,228 1,541,355 1,548,506
E4 Residential mortgage loans ($m)
E4.1 Floating 55,058 50,737 53,492 53,935 52,833 51,164 51,179
E4.2 Capped - - - - - - -
E4.3 < 1 year 57,731 74,872 92,577 93,124 93,163 94,585 96,019
E4.4 1 < 2 year 55,602 67,292 60,846 60,675 61,843 62,810 62,469
E4.5 2 < 3 year 25,154 15,538 14,253 14,813 15,597 15,739 15,799
E4.6 3 < 4 year 4,342 2,419 4,831 4,968 5,142 5,434 5,593
E4.7 4 < 5 year 1,927 4,756 3,111 3,077 3,329 3,539 3,554
E4.8 5 + 30 122 140 143 176 156 143
E4.9 Total fixed 144,786 164,999 175,757 176,799 179,250 182,263 183,577
Unallocated 310 96 152 155 158 157 159
E4.10 Total all 200,154 215,832 229,401 230,889 232,240 233,584 234,914
E5 Monthly yield weighted average % (end of month)
E5.1 Floating 6.57 5.52 5.31 5.31 5.31 5.33 5.36
E5.2 Capped - - - - - - -
E5.3 < 1 year 5.52 5.37 5.00 4.94 4.89 4.84 4.81
E5.4 1 < 2 year 5.87 5.25 4.62 4.58 4.54 4.50 4.49
E5.5 2 < 3 year 6.10 5.31 4.71 4.67 4.64 4.65 4.67
E5.6 3 < 4 year 6.26 6.06 5.40 5.36 5.30 5.26 5.23
E5.7 4 < 5 year 6.57 5.39 4.93 4.91 4.89 4.89 4.91
E5.8 5 + 6.92 5.89 5.59 5.57 5.49 5.50 5.63
Unallocated 6.20 6.20 6.20 6.20 6.20 6.20 6.20
E5.9 Total fixed 5.79 5.33 4.85 4.81 4.76 4.72 4.70
E5.10 Total all 6.01 5.37 4.96 4.93 4.89 4.86 4.85
E6 New customer average rate % (end of month)
E6.1 Floating 6.59 5.80 5.64 5.64 5.70 5.70 5.73
E6.2 Capped - - - - - - -
E6.3 6 months 5.91 5.20 5.08 5.12 5.13 5.14 5.22
E6.4 1 year 5.85 5.00 4.90 4.93 4.94 4.94 5.01
E6.5 2 years 6.14 5.21 5.06 5.06 5.09 5.14 5.22
E6.6 3 years 6.34 5.42 5.22 5.23 5.33 5.40 5.54
E6.7 4 years 6.49 5.42 5.25 5.23 5.37 5.52 5.68
E6.8 5 years 6.74 5.76 5.62 5.61 5.74 5.90 6.08

The Data: Coverage, Periodicity, and Timeliness

Coverage characteristics

Since December 2004, the Bank has conducted a monthly survey of registered banks.

Data is sourced from the Registered Bank Standard Statistical Return (SSR).

Figures are aggregates of each data cell of the actual survey templates. Data are in millions of New Zealand dollars and are collected as at the last business day of the month.

Part E presents information on residential loans, interest rates, and claim origination both for on- and off-balance sheet mortgages.

Balance sheet figures reported by banks conform to generally accepted accounting practice adopted by the institutions. In particular, values may be at book or ‘marked to market' according to appropriate practice for the instruments involved.

Where possible the resident/non-resident distinction in these tables is based on the geographical location of respondents and counterpart transactions. To facilitate statistical reporting however, the New Zealand income tax rules on residency are accepted as an approximation, and are the predominant definition.

Periodicity

Monthly, as at the last business day.

Timeliness

On the last business day of the month after the end of the reference month.

Access by the public

Statistics release calendar

The Statistics Release Calendar is updated and released on the last business 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 36 of The Reserve Bank of New Zealand Act 1989 (The Act).

The Reserve Bank of New Zealand publishes only aggregated data. Individual institutional data is 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 note is posted on the website as a ‘special note'.

Any major changes in methodology are posted on the website as a special note.

Quality

Dissemination of documentation on methodology and sources used in preparing statistics

All registered banks provide data on a monthly basis.

An excel template is completed and returned each month by registered banks

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

Disclosure statements published by registered banks offer checks for reasonableness. Links to registered bank websites can be found in the Banks section of this site.

Part E of the registered bank Standard Statistical Return (SSR) presents summary results on the value of residential housing loans, and the interest rates paid on those loans.

These results are in two parts:

  1. E3 to E6 present results for housing loans that are on the balance sheet of registered banks.
  2. E7 to E10 present results for housing loans that have been initiated by registered banks but are off their balance sheet.

Off-balance sheet

In practice, the results presented as ‘off balance sheet' are loans made (and continue to be managed) by banks, which have been on-sold to their associated funds management operations. These loans are a relatively immaterial part of bank lending for housing; as at March 2015 $202.3b of loans are recorded as ‘on balance sheet' compared to $101m recorded as ‘off balance sheet'.

Note that bank disclosure statements (DS) also refer to ‘off balance sheet loans'. However, in disclosure statements ‘off balance sheet' refers to future lending commitments – loans that have been approved and are awaiting drawdown by the borrower. Summary RBNZ statistics on housing loan approvals are available.

Number of loans (E3 and E7)

These sections record the number (#) of housing loans currently managed by banks. If a borrower chooses to split their loan into separate portions (part fixed, part floating) this will appear twice; once in ‘floating' and once in ‘fixed'. However, if a loan is split into two or more portions that are all fixed for different terms, this loan will only appear once as a ‘fixed' loan.

Residential mortgage loans (E4 and E8)

These sections record the value (in $m) of all residential housing loans currently outstanding to registered banks. The total value of loans reported in these sections are broken down by time remaining to interest rate-reset.

An example of time remaining to interest rate-reset would be as follows: the line "E4.4 1 < 2 year" includes the value of a loan which just last week was fixed for 2 years, and also includes the value of a loan which, three years ago, was fixed for five years.

Monthly yield weighted average (E5 and E9)

These sections record the actual interest rate paid by borrowers for residential home loans, and include the impact of all specials, discounts, and other interest rate charges paid by the borrower.

Each interest rate in section E5 corresponds to the same line reported in section E4 (this is also the case for rates in E9, with values in E8). For example, the value of all residential housing loans on floating interest rates is recorded in ‘E4.1 Floating' and the interest rate paid on those floating loans is recorded in "E5.1 Floating".

Line "E5.10 Total All" is the weighted average interest rate paid on all residential mortgages. It is commonly referred to as the ‘effective mortgage rate'.

New customer average rate (E6 and E10)

The interest rates recorded here are simple averages of the advertised (or ‘carded'), standard, first mortgage interest rates offered by banks to new borrowers for residential property. Any special rates or discounts offered to borrowers with conditions (e.g. 30 percent equity) are excluded from the results presented in sections E6 and E10.

Banks report to the RBNZ their standard rate on offer for each of the required terms (e.g. floating interest rate, six-month fixed rate, and so on to their five-year fixed rate). Some banks offer standard rates at other terms (e.g. 18-month fixed rate, seven-year fixed rate) but these are not requested by the RBNZ in this report.

The Reserve Bank has been working with registered banks since mid-2015 to develop a new registered bank balance sheet collection that will replace the existing Standard Statistical Return (SSR).

In March 2017 the SSR will be retired and the publication of the following tables will be discontinued:

B5

Interest rates on funding and claims

C1

Monetary aggregates

C2

Credit aggregates

C3

Monetary and credit aggregate components

C4

Balance sheet of M3 institutions

C5

Sector credit

C6

Household credit

C17

Household deposits

S1

Banks: Balance Sheet ($m)

S6

Banks: Funding by sector ($m)

S7

Banks: Claims by sector ($m)

S8

Banks: Mortgage lending ($m)

In the first week of April 2017 we will publish data from the new balance sheet collection for the first time. Our first publication is aimed at replacing key data currently published from the SSR. Later in 2017 we plan to publish other more detailed data collected from the new balance sheet collection.

More in depth information on the new balance sheet data can be viewed on our statistics news and updates page www.rbnz.govt.nz/statistics

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

28 February 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.