Residential mortgage lending by debt-to-income (DTI) purpose use – C40

Released
13 November 2020 03:00 p.m.
Next release
18 February 2021 03:00 p.m.
Source
Reserve Bank of New Zealand
Periodicity
Monthly
Previous years: Monthly:
Sep 2018 Sep 2019 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020
Total new commitments ($m)
Total 4,777 5,516 4,318 5,364 6,586 6,785 7,323
TDTI unknown 141 165 135 184 207 215 322
New commitments to first home buyers ($m)
TDTI <= 3 120 103 66 89 101 102 104
3 < TDTI <= 4 193 209 148 211 253 248 250
4 < TDTI <= 5 249 314 246 347 449 426 445
5 < TDTI <= 6 182 246 225 300 390 384 425
TDTI > 6 81 99 120 146 160 184 185
Auckland new commitments first home buyers ($m)
TDTI <= 3 19 22 13 16 22 22 21
3 < TDTI <=4 52 63 34 47 69 68 62
4 < TDTI <=5 93 133 90 122 163 178 179
5 < TDTI <=6 104 158 130 159 224 223 224
TDTI > 6 63 72 83 102 116 128 130
New commitments to other owner occupiers without investment property collateral ($m)
TDTI <= 3 559 654 339 456 514 486 522
3 < TDTI <= 4 477 518 331 420 497 527 565
4 < TDTI <= 5 511 541 413 526 616 605 614
5 < TDTI <= 6 361 401 332 388 445 460 478
TDTI > 6 354 327 347 396 469 494 551
Auckland new commitments to other owner occupiers without investment property collateral ($m)
TDTI <= 3 164 183 91 105 126 132 128
3 < TDTI <= 4 166 175 99 115 137 154 172
4 < TDTI <= 5 220 207 165 196 221 229 217
5 < TDTI <= 6 205 226 192 205 228 231 210
TDTI > 6 224 206 239 233 259 309 321

The data: coverage, periodicity, and timeliness

Coverage characteristics

The table shows data from the monthly debt-to-income (DTI) 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 DTI. Committed lending in the monthly DTI 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.

Periodicity

Monthly data published quarterly

Timeliness

Data is published 31 working days after the end of the reference quarter.

Access by the public

Statistics release calendar

The Statistics Release Calendar provides a 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 93 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

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.

Debt to Income Series description

Total Debt to Income ratio (TDTI)

Total Debt to Income ratio (i.e. Total Balance of Borrowers’ Debts (to all lenders) / Total Gross Income).

Total balance of loan values is the sum of all loan values (typically the limit of each loan) that the borrower or borrowing parties discloses they are responsible for servicing out of their income. This includes the loan value of the new commitment, and any pre-existing mortgages, although there are some debts that are typically excluded, such as business and student loans.

Unknown DTI

Borrowers and loans classified as “unknown DTI” are extraordinary cases where the information on borrower debts or borrower gross incomes are incomplete, unverified or not recoverable, and no reasonable proxy exists to estimate the DTI. Proxies must reflect information specific to the individual customer.

Unknown DTI's are included where DTI 'bucket' is not specified.

Borrower Gross Income (BGI)

Borrower gross income is the amount a bank is prepared to count in its servicing analysis (i.e. that qualifies (after any applicable haircuts) based on internal policy). It includes wages and salaries, self-employment income, boarder income, rental income, superannuation & other government benefits and investment income.

Loan to valuation ratio (LVR)

Loan-to-valuation ratio = [loan value / property value] x 100.

New commitments ($ millions)

Value of committed residential mortgage loans during a month, 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. Any offer to purchase a home by the customer, that is to be financed by the loan, is typically unconditional at this stage.

First home buyers

A first home buyer is a borrower intending to purchase or build a property for owner occupation in New Zealand for the first time. In the case of more than one borrowing parties to a loan, borrowers are classified as first home buyers only if none of the borrowing parties have previously drawn down on housing finance for owner occupation. If the borrower, or at least one borrowing party, has previously drawn down on housing finance for owner occupation they are classified as "other owner occupier".

Other owner occupier without investment property collateral

Other owner occupiers are borrowers who own or are in the process of buying or building a house or flat they (or a related party) will live in, are borrowing against properties that meet that definition, are not first home buyers, and are not borrowing against any investment properties. An owner can occupy more than one property, e.g. a family home and a holiday home.

Auckland commitments

This includes any loan that has any Auckland investment property as collateral. It also includes any loan that has an Auckland owner occupied property as collateral, unless that loan has also has investment property as collateral and those investment properties are all outside Auckland.

Borrowers (number)

Number 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. Any offer to purchase a home by the customer, that is to be financed by the loan, is typically unconditional at this stage.

In April 2020, a major bank made structural changes to their reporting methodology. This resulted in a reclassification of debt to income (DTI) purpose use breakdown. The series now show a higher amount of “TDTI>6” and a lower amount of “TDTI<=4”.

This reclassification leads to a break in the data series from April 2020 onwards, but it does not impact the upward trend of high DTI data. This impacts the C40 table only.

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

12 August 2020

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.