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

This data analyses residential mortgage debt compared to the income of the borrowers, broken down by borrower type.
Released
15 November 2021 03:00 p.m.
Next release
18 February 2022 03:00 p.m.
Source
Reserve Bank of New Zealand
Periodicity
Monthly
Previous years: Monthly:
Sep 2019 Sep 2020 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021
Total new commitments ($m)
Total 5,516 7,323 8,921 8,526 8,818 8,167 6,912
TDTI unknown 165 294 322 281 338 434 269
New commitments to first home buyers ($m)
TDTI <= 3 103 104 87 85 73 63 64
3 < TDTI <= 4 209 250 237 191 200 161 148
4 < TDTI <= 5 314 445 439 427 401 334 277
5 < TDTI <= 6 246 425 549 541 511 480 375
6 < TDTI <= 7 84 145 328 289 290 249 222
TDTI > 7 (excl. unknown) 16 40 111 123 132 107 88
Unknown 3 5 5 4 2 4 2
New commitments to other owner occupiers without investment property collateral ($m)
TDTI <= 3 654 534 588 632 614 603 493
3 < TDTI <= 4 518 567 634 639 643 639 527
4 < TDTI <= 5 541 621 841 839 849 791 656
5 < TDTI <= 6 401 487 814 755 788 729 648
6 < TDTI <= 7 201 286 506 490 535 520 380
7 < TDTI <= 8 56 111 230 230 281 210 180
8 < TDTI <= 9 18 49 132 94 110 117 84
TDTI > 9 (excl. unknown) 52 85 170 151 186 168 151
Unknown 74 122 158 136 165 205 125
New commitments to other owner occupiers with investment property collateral ($m)
TDTI <= 3 112 85 88 87 91 83 63
3 < TDTI <= 4 118 109 116 100 98 104 104
4 < TDTI <= 5 158 168 170 171 191 142 149
5 < TDTI <= 6 194 262 284 253 261 242 209
6 < TDTI <= 7 166 296 325 294 281 268 247
7 < TDTI <= 8 99 211 260 242 281 243 203
8 < TDTI <= 9 42 119 141 137 190 111 110
TDTI > 9 (excl. unknown) 47 99 117 161 131 126 105
Unknown 46 97 88 79 87 129 98
New commitments to investors ($m)
TDTI <= 3 182 149 139 133 131 129 110
3 < TDTI <= 4 129 149 141 123 124 102 120
4 < TDTI <= 5 140 197 183 159 136 176 139
5 < TDTI <= 6 170 276 201 205 192 192 174
6 < TDTI <= 7 171 288 256 215 231 204 183
7 < TDTI <= 8 115 236 224 199 218 205 181
8 < TDTI <= 9 50 126 148 143 168 107 141
TDTI > 9 (excl. unknown) 46 109 142 138 141 128 113
Unknown 42 71 72 61 84 96 45

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-occupiers without investment property collateral

Other owner-occupiers are borrowers who own or are in the process of buying or building a dwelling 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.

Other owner-occupiers with investment property collateral

Other owner-occupiers with investment collateral are borrowing for the purpose of purchasing or building a dwelling they (or a related party) will live in, and are securing that loan at least partly against investment property collateral. An owner occupier with investment property collateral can occupy more than one property e.g. a family home and a holiday home.

Investors

Investors are entities or persons borrowing for the purpose of building or purchasing residential property to rent. The borrower is securing the loan at least partly on a non-owner occupied property and the borrower does not intend to live in the property (if any) they are seeking to build or purchase.

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.

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.