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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.

Special note

Updates to Debt-to-Income data reporting definitions

Read more
Previous years: Monthly:
Dec 2021 Dec 2022 Aug 2023 Sep 2023 Oct 2023 Nov 2023 Dec 2023
Total new commitments ($m)
Total 7,931 5,121 5,782 5,194 5,778 6,539 5,304
TDTI unknown 241 140 129 94 147 169 103
New commitments to first home buyers ($m)
TDTI <= 3 65 88 115 107 120 146 121
3 < TDTI <= 4 168 239 352 308 323 380 372
4 < TDTI <= 5 420 390 516 466 524 616 519
5 < TDTI <= 6 504 273 299 293 294 304 237
6 < TDTI <= 7 266 93 65 62 83 85 59
TDTI > 7 (excl. unknown) 144 24 17 15 21 24 22
Unknown 1 1 2 2 1 2 2
New commitments to other owner-occupiers without investment property collateral ($m)
TDTI <= 3 533 506 626 586 612 697 554
3 < TDTI <= 4 571 532 664 627 658 761 619
4 < TDTI <= 5 746 586 654 604 629 735 593
5 < TDTI <= 6 725 368 349 306 344 353 293
6 < TDTI <= 7 456 123 101 86 116 134 88
7 < TDTI <= 8 218 43 27 20 32 40 30
8 < TDTI <= 9 118 11 11 9 9 20 12
TDTI > 9 (excl. unknown) 218 40 28 26 19 54 44
Unknown 107 61 50 39 86 82 44
New commitments to other owner-occupiers with investment property collateral ($m)
TDTI <= 3 84 66 105 90 99 113 92
3 < TDTI <= 4 106 120 129 136 122 133 135
4 < TDTI <= 5 154 196 223 176 246 268 210
5 < TDTI <= 6 267 207 257 198 257 233 207
6 < TDTI <= 7 259 145 108 72 91 103 64
7 < TDTI <= 8 226 16 35 17 21 26 28
8 < TDTI <= 9 99 13 7 6 3 8 11
TDTI > 9 (excl. unknown) 123 37 16 20 31 45 23
Unknown 85 37 24 24 24 42 27
New commitments to investors ($m)
TDTI <= 3 105 124 148 145 188 189 154
3 < TDTI <= 4 103 125 153 144 184 187 154
4 < TDTI <= 5 166 164 220 189 243 257 208
5 < TDTI <= 6 184 188 233 230 216 250 201
6 < TDTI <= 7 230 163 124 99 96 125 99
7 < TDTI <= 8 211 62 25 27 31 45 22
8 < TDTI <= 9 121 17 5 12 8 7 7
TDTI > 9 (excl. unknown) 101 22 42 27 12 33 22
Unknown 48 42 52 29 36 43 30

Updates to Debt-to-Income data reporting definitions

16 February 2024

We have been working with banks to ensure data reporting will fully align with the definitions specified in the Debt-to-Income (DTI) framework when it becomes operational. In parallel with the current data collection, we have been testing new reporting templates and definitions with banks. We will switch to the revised definitions in upcoming releases once we have undertaken analysis to understand the magnitude of any material differences.

The publication of Debt-To-Income (DTI) tables C40 and C41 on 16 Feb 2024 includes updated reporting for one bank covering the period Oct 2023 to Dec 2023. This bank changed the basis of their reporting in October, ahead of other banks, as they were unable to test forthcoming definition changes in parallel. Our investigations to date have found no material impact on our published aggregate timeseries. We will continue to investigate and analyse the impact on timeseries using the parallel test data received. We will update future publication plans once the impact of definitional changes can be determined.

For more information on the recent DTI Framework changes.

The data: coverage, periodicity and timeliness

Coverage characteristics

The table shows data from the monthly debt-to-income (DTI) survey that registered banks in New Zealand complete.

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

We publish monthly data quarterly.

Timeliness

We publish data 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. We update and release it 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

We collect data under Section 93 of the Reserve Bank of New Zealand Act 1989 (the Act).

Read the Reserve Bank of New Zealand Act 1989

We only publish 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. We generally publish revisions when we update and release the next table. Should we need to make revisions more promptly, we will post a special note on the website. We will also post any major changes in methodology as a special note.

Total Debt to Income ratio (TDTI)

Total Debt to Income ratio (that is, 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 disclose 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 DTIs 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 (that is, that qualifies (after any applicable haircuts) based on internal policy). It includes wages and salaries, self-employment income, boarder income, rental income, superannuation and 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 party 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; for example, 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 had 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

Symbol or convention Definition
0 Zero or value rounded to zero
- Not applicable
.. Not available
bold Revised/new
italics Provisional
Light grey 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.