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

Previous years: Monthly:
Oct 2018 Oct 2019 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020
Total new commitments ($m)
Total new commitments 5,527 6,077 5,364 6,586 6,785 7,323 7,782
LVR 80% or below 5,033 5,462 4,714 5,790 6,028 6,534 7,032
LVR above 80% 494 615 651 796 757 789 749
Commitments with investment property collateral ($m)
Commitments with investment property collateral 1,936 2,262 1,981 2,575 2,733 3,028 3,305
LVR 70% or below .. 1,740 1,485 1,733 1,781 1,929 2,045
LVR above 70% .. 522 495 842 952 1,100 1,260
Exempt above 70% LVR .. 507
Above 70% LVR share before exemptions (%) .. 23.1
Above 70% LVR share after exemptions (%) .. 0.8
Commitments without investment property collateral ($m)
Commitments without investment property collateral 3,591 3,815 3,384 4,012 4,052 4,295 4,477
LVR 80% or below 3,101 3,208 2,743 3,226 3,310 3,521 3,744
LVR above 80% 490 607 640 785 742 774 733
Exempt above 80% LVR 135 170
Above 80% LVR share before exemptions (%) 13.7 15.9
Above 80% LVR share after exemptions (%) 10.3 12.0
New commitments by region (based on compliance data) ($m)
Auckland commitments with investment property collateral 970 1,052 939 1,143 1,211 1,347 1,584
Auckland commitments without investment property collateral 1,570 1,627 1,348 1,605 1,732 1,727 1,895
Non-Auckland commitments with investment property collateral 966 1,211 1,042 1,432 1,521 1,681 1,721
Non-Auckland commitments without investment property collateral 2,021 2,188 2,035 2,406 2,321 2,567 2,582

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

View the Statistics Release Calendar

Integrity

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

Data is collected under Section 36 of The Reserve Bank of New Zealand Act 1989 (The Act).

Read the Reserve Bank of New Zealand Act 1989.

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. This applies to the summary table only and not excel files. 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 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 70% 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 70%.

LVR above 70% ($ millions)

Monthly value of committed residential mortgage lending for commitments with investment property collateral where the loan-to-valuation ratio is above 70%.

Exempt above 70% LVR ($ millions)

Monthly value of exempted property-investment lending where the loan-to-valuation ratio is above 70%. 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 70% LVR share before exemptions (%)

The above 70% 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 70%.

Above 70% LVR share after exemptions (%)

The ‘above 70% 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,” which is based on a rolling average. As of 1 January 2018, 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.

Loan-to-valuation ratio restrictions

Temporary limits on high loan-to-valuation ratio (LVR) residential mortgage lending were in place from October 2013 to April 2020. The restrictions have been revised over time and removed in response to the economic impact of the COVID-19 pandemic and will be reviewed by May 2021(refer to Loan-to-valuation ratio restrictions page). An updated C30 data table was introduced with effect from 1 May 2020 to reflect the LVR policy change for ‘exempt above 80% LVR’ and ‘exempt above 70% LVR’ committed residential mortgage lending.

Key points – October 2020

Today’s Loan to Value Ratio release includes an attached PDF file “LVR key points – October 2020”. The file highlights some of the data impacted by COVID-19 and policy responses.

Updated C30 data table

26 August 2020

Today the Reserve Bank introduces an updated data table (C30) to reflect the LVR changes that came into effect on 1 May 2020. A historical file containing data relating to the previous policy will still be available but will no longer be updated.

If you have any questions please contact us at 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.