Residential mortgage loan reconciliation - C35

Released
29 January 2018 03:00 p.m.
Next release
27 April 2018 03:00 p.m.
Source
Reserve Bank of New Zealand
Periodicity
Quarterly
Previous years: Quarterly:
Dec 2015 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Dec 2017
Total lending ($ million)
Opening position 206,275 224,697 228,835 232,360 235,825 238,848
+ Drawdowns 19,322 19,160 15,824 17,507 15,933 16,666
+ Interest charged 2,905 2,746 2,767 2,796 2,872 3,097
- Scheduled repayments 3,859 3,935 3,980 4,010 4,035 4,264
- Repayment of loan in full 10,209 9,768 7,626 8,955 8,223 8,445
- Other excess repayments 4,011 4,157 3,546 3,960 3,643 3,910
+ Repayment deficiencies 58 71 79 90 71 77
- Net write-offs 11 3 4 4 4 3
+ Other adjustments -7 24 9 1 51 63
= Closing position 210,466 228,835 232,360 235,825 238,848 242,128

The Data: Coverage, Periodicity, and Timeliness

Coverage characteristics

Registered banks provide data on residential mortgage loan flows to reconcile an opening stock position to a closing stock position during a reference quarter.

Periodicity

Quarterly

Timeliness

18 working days following the end of the reference quarter.

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.

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

Data on residential mortgage lending is also published in:

  • Registered banks' Disclosure Statements
  • Household credit statistics (C5)
  • New residential mortgage lending statistics (C30)

This data may differ from other published data on residential mortgage lending due to variations by some banks in the treatment of business loans secured by residential property and reverse residential mortgage loans.

Lending position

Residential mortgage loans

A loan secured by a first ranking mortgage over a residential property used primarily for residential purposes either by the mortgagor or a tenant of the mortgagor. A loan is not classified as a residential mortgage loan if:

  1. the mortgaged property would be marketed as a farm or a commercial property; or
  2. the mortgaged property is predominately used for farming or commercial activities; or
  3. the principal or interest payments are predominantly serviced from the income generated by the use of the property for farming or commercial activity, except for rental income unless (4) applies; or
  4. the bank has recourse to, or is aware of, more than five properties owned and let by the borrower directly or through a company or any other ownership structure of the borrower, and the loan is predominantly serviced from the rental income those properties generate

Residential mortgage loan is formally defined in BS19 (referring to BS2A/B).

Opening position

Opening value of on balance sheet residential mortgage loans at the start of the quarter. The opening position for this quarter is equal to the closing position of the previous quarter.

Closing position

Closing value of on balance sheet residential mortgage loans at the end of the quarter.

Treatment of revolving credit loans

For revolving credit loans only the drawn amount appears in the opening and closing position.

Differences from other published statistics

The opening and closing value of on balance sheet residential mortgage loans may vary from other published residential mortgage lending statistics due to minor variations by some banks in the treatment of business loans secured by residential property.

Lending flows

Drawdowns

New loan amounts drawn down during the quarter and any increases (e.g. loan top-up amounts) drawn down on existing loans. In the case of revolving credit loans a net increase in the value of the loan during the quarter is reported as a drawdown.

Interest charged

Total interest charged on outstanding loan balances during the current quarter whether or not it is actually received from the borrower.

Scheduled repayments

Total value of expected principal and interest repayments contractually due during the quarter whether or not the repayments were actually received from the borrower.

Repayment of loan in full

Loans that are repaid in full during the quarter. Repayment of loans in full includes house sales and switching between banks.

Other excess repayments

Loans where actual repayments were greater than scheduled repayments. Records the amount that actual repayments exceeded those that were scheduled. In the case of revolving credit loans a net decrease in the value of the loan during the quarter is reported as an excess repayment.

Repayment deficiencies

Loans where actual repayments were less than scheduled repayments. Records the amount that actual repayments were less than scheduled repayments (interest and principal).

Net write-offs

Loans written-off during the period less the amount recovered from any previously written-off loans recovered during the quarter.

Other adjustments

Other adjustments to the outstanding loan balance (e.g. securitisation of loans, exchange rate valuation adjustments, capitalised loan fees and changes in the purpose of the loan). Also included are adjustments for customers migrating between loan-to-valuation ratio bands as a result, for example, of additional lending or paying down their mortgage.

Loan-to-valuation ratio (LVR)

Higher than 80% LVR lending ($ million)

Residential mortgage loans, where the loan-to-valuation ratio is above 80%.

Less than or equal to 80% LVR lending ($ million)

Residential mortgage loans, where the loan-to-valuation ratio is 80% or below.

Revisions to Residential Mortgage Loan Reconciliation data

Today the Reserve Bank published revised “Mortgage Loan reconciliation” data for the period September 2014 to December 2017 as a result of a improvements in reporting. This impacts both the C32 and C35 tables. Further improvements in reporting are expected over the coming months and these will be outlined in a special note.

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.

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

27 February 2018

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.