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

Previous years: Monthly:
Feb 2017 Feb 2018 Oct 2018 Nov 2018 Dec 2018 Jan 2019 Feb 2019
Total new commitments ($m)
Total new commitments 4,379 4,667 5,527 6,224 5,371 4,051 4,798
LVR 80% or below 4,098 4,305 5,033 5,687 4,879 3,623 4,304
LVR above 80% 280 362 494 536 493 428 495
Commitments with investment property collateral ($m)
Commitments with investment property collateral 1,516 1,619 1,936 2,153 1,902 1,407 1,652
LVR 65% or below .. 1,114 1,307 1,474 1,285
LVR above 65% .. 504 629 679 617
Exempt above 65% LVR .. 497 623 672 604
Above 65% LVR share before exemptions (%) .. 31.2 32.5 31.5 32.5
Above 65% LVR share after exemptions (%) .. 0.6 0.4 0.5 1.0
Commitments without investment property collateral ($m)
Commitments without investment property collateral 2,863 3,048 3,591 4,071 3,469 2,644 3,146
LVR 80% or below 2,599 2,696 3,101 3,542 2,984 2,223 2,657
LVR above 80% 264 352 490 529 485 421 489
Exempt above 80% LVR 120 109 135 169 160 116 126
Above 80% LVR share before exemptions (%) 9.2 11.5 13.7 13.0 14.0 15.9 15.5
Above 80% LVR share after exemptions (%) 5.3 8.3 10.3 9.2 9.8 12.1 12.0
New commitments by region (based on compliance data) ($m)
Auckland commitments with investment property collateral 764 842 970 1,091 918 694 739
Auckland commitments without investment property collateral 1,256 1,324 1,570 1,756 1,477 1,094 1,266
Non-Auckland commitments with investment property collateral 753 777 966 1,062 984 713 914
Non-Auckland commitments without investment property collateral 1,606 1,724 2,021 2,315 1,993 1,551 1,880

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 65% 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 65%.

LVR above 65% ($ millions)

Monthly value of committed residential mortgage lending for commitments with investment property collateral where the loan-to-valuation ratio is above 65%.

Exempt above 65% LVR ($ millions)

Monthly value of exempted property-investment lending where the loan-to-valuation ratio is above 65%. 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 65% LVR share before exemptions (%)

The above 65% 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 65%.

Above 65% LVR share after exemptions (%)

The ‘above 65% LVR share after exemptions’ is calculated by subtracting exempt lending (with LVR above 65 percent) from new commitments with LVR above 65 percent then dividing by total new commitments less exempt lending (with LVR above 65 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.

We are making changes to our publication of new residential mortgage lending data in light of the new loan-to-valuation ratio (LVR) restrictions that took effect on 1 January 2019.

Given the change to New Zealand investor LVR restrictions, we have discontinued detailed reporting on the following items in this table:

  • Commitments with investment property collateral

We will make further changes to the suite of published new residential mortgage lending data in mid-2019, upon completion of the initial speed limit measurement period.

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

26 March 2019

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
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