Yields on loans - B6

Released
07 March 2019 03:00 p.m.
Next release
05 April 2019 03:00 p.m.
Source
Reserve Bank of New Zealand
Periodicity
Monthly
Housing lending Business lending
Date Yield on residential mortgage loans (Total)1 Yield on residential mortgage loans (Floating)2 Yield on residential mortgage loans (Fixed)3 Yield on total business loans4
Previous years:
Jan 2017 4.76 5.09 4.67 4.54
Jan 2018 4.70 5.17 4.57 4.57
Monthly:
Feb 2018 4.70 5.18 4.57 4.59
Mar 2018 4.71 5.20 4.58 4.61
Apr 2018 4.68 5.19 4.54 4.65
May 2018 4.68 5.17 4.56 4.67
Jun 2018 4.65 5.13 4.53 4.67
Jul 2018 4.67 5.20 4.54 4.68
Aug 2018 4.65 5.17 4.52 4.62
Sep 2018 4.64 5.18 4.51 4.60
Oct 2018 4.65 5.22 4.52 4.57
Nov 2018 4.62 5.20 4.48 4.60
Dec 2018 4.60 5.18 4.47 4.64
Jan 2019 4.56 5.20 4.43 4.62
  1. The monthly yield on residential mortgage loans (Total) is a weighted average yield on the total of all types of loans (floating and fixed) for registered banks fully secured on residential property.
  2. The monthly yield on residential mortgage loans (Floating) is a weighted average yield on the total of all floating rate loans for registered banks fully secured on residential property.
  3. The monthly yield on residential mortgage loans (Fixed) is a weighted average yield on the total of all fixed rate loans for registered banks fully secured on residential property.
  4. The monthly yield on total business loans is a weighted average yield on the total of all business loans for registered banks (not fully secured by residential property).

Coverage, Periodicity, and Timeliness of Data

Coverage

Yields on loans at the end of month for registered banks.

Periodicity

Monthly

Timeliness

Data is published approximately five weeks after the end of the reference month.

Access by the public

Data Release

Data is released on the Reserve Bank’s website.

Statistics release calendar

The Statistics Release Calendar provides a long-term plan of scheduled releases. It is updated and released on the first working day of the month.

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

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

A copy of the Income Statement survey template and definitions is available here.

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

Interest.co.nz publishes mortgage interest rates for a range of terms.

Yield on residential mortgage loans (Total)

The monthly yield on residential mortgage loans (Total) is a weighted average yield on the total of all types of loans (floating and fixed) for registered banks fully secured on residential property. It is calculated using the sum of each bank’s interest income received for both floating and fixed residential mortgage loans compared to the sum of a two period moving average of the value of these loans. Using a two period moving average for the value of loans takes into account that not all loans at the end of the reporting period would have contributed to the interest income over the reported month.

The yield takes into account the number of days within each month and is annualised. Each yield is calculated as follows:

The sum of each bank’s interest income received on loans

X

365

X

100

The sum of a two period moving average of the value of loans

number of days in a month

 

Yield on residential mortgage loans (Floating)

The monthly yield on residential mortgage loans (Floating) is a weighted average yield on the total of all floating rate loans for registered banks fully secured on residential property.

It is calculated using the sum of each bank’s interest income received for floating residential mortgage loans compared to the sum of a two period moving average of the value of these loans. Using a two period moving average for the value of loans takes into account that not all loans at the end of the reporting period would have contributed to the interest income over the reported month.

The yield takes into account the number of days within each month and is annualised.

See Yield on residential mortgage loans (Total) above for the calculation formula.

Yield on residential mortgage loans (Fixed)

The monthly yield on residential mortgage loans (Fixed) is a weighted average yield on the total of all fixed rate loans for registered banks fully secured on residential property.

It is calculated using the sum of each bank’s interest income received for fixed residential mortgage loans compared to the sum of a two period moving average of the value of these loans. Using a two period moving average for the value of loans takes into account that not all loans at the end of the reporting period would have contributed to the interest income over the reported month.

The yield takes into account the number of days within each month and is annualised.

See Yield on residential mortgage loans (Total) above for the calculation formula.

Yield on total business loans

The monthly yield on total business loans is a weighted average yield on the total of all business loans for registered banks (not fully secured by residential property).

It is calculated using the sum of each bank’s interest income received for total business loans compared to the sum of a two period moving average of the value of these loans. Using a two period moving average for the value of loans takes into account that not all loans at the end of the reporting period would have contributed to the interest income over the reported month.

The yield takes into account the number of days within each month and is annualised.

See Yield on residential mortgage loans (Total) above for the calculation formula.

New business and mortgage yields published

The Reserve Bank has now completed an update to our Bank Income Statement Survey, in collaboration with banks. The revised survey captures the interest income flows for loans fully secured by residential mortgage (both fixed and floating) and the interest income flows for loans for business, to enable the calculation of actual yields for these loans.

Until 2017, the Reserve Bank published monthly yield estimates - also known as “Effective” interest rates - for mortgages and business lending in web table B3. We have not updated these series since February 2017. We have also not added or “stitched” the series together due to construction and underlying quality differences between the series.

In future, we plan to release yields for deposits. The interest expenses paid by banks for deposits have also been captured in the updated survey.

This new table, published on Tuesday 6 November, contains the following series:

New series Start date Source
A1: Yield on residential mortgage loans (Total) January 2017 ISS
A2: Yield on residential mortgage loans (Floating) January 2017 ISS
A3: Yield on residential mortgage loans (Fixed) January 2017 ISS
B1: Yield on total business loans January 2017 ISS

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

Symbols and conventions for summary table

0 Zero or value rounded to zero
- Not applicable
.. Not available
bold Revised/new
italics Provisional
light red background Historical

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.