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

Released
12 August 2020 03:00 p.m.
Next release
13 November 2020 03:00 p.m.
Source
Reserve Bank of New Zealand
Periodicity
Monthly
Previous years: Monthly:
Jun 2018 Jun 2019 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020
Total new commitments ($m)
Total 5,305 5,441 5,579 6,150 2,749 4,318 5,364
TDTI unknown 166 200 217 197 95 135 184
New commitments to first home buyers ($m)
TDTI <= 3 101 107 89 101 44 66 89
3 < TDTI <= 4 192 221 208 223 86 148 211
4 < TDTI <= 5 245 294 301 359 145 246 347
5 < TDTI <= 6 189 220 234 290 140 225 300
TDTI > 6 86 86 112 165 68 120 146
Auckland new commitments first home buyers ($m)
TDTI <= 3 20 22 13 18 8 13 16
3 < TDTI <=4 52 67 50 63 22 34 47
4 < TDTI <=5 111 127 99 130 58 90 122
5 < TDTI <=6 121 137 128 163 84 130 159
TDTI > 6 66 67 77 123 53 83 102
New commitments to other owner occupiers without investment property collateral ($m)
TDTI <= 3 574 609 599 603 222 339 456
3 < TDTI <= 4 517 512 515 493 229 331 420
4 < TDTI <= 5 528 533 518 582 257 413 526
5 < TDTI <= 6 401 370 400 416 213 332 388
TDTI > 6 426 345 373 436 255 347 396
Auckland new commitments to other owner occupiers without investment property collateral ($m)
TDTI <= 3 178 171 170 182 74 91 105
3 < TDTI <= 4 199 179 172 142 85 99 115
4 < TDTI <= 5 235 231 207 226 122 165 196
5 < TDTI <= 6 240 211 211 216 113 192 205
TDTI > 6 299 232 246 275 174 239 233

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.