Investor lending on the increase
Tuesday 26 November 2019
Latest Reserve Bank data shows Investor lending jumped to its highest level for over a year in October, as overall lending soared last month.
Investors borrowed $1.19 billion in October, up from $1.02 billion the same month last year. The figure was the highest level borrowed by investors since August 2018, according to RBNZ data.
The investor figures also compare favourably to October 2017, when investors borrowed $1.04 billion.
Overall lending was up to $6.07 billion in October, the highest volume since May. Home buyers borrowed more than October last year ($5.52 billion), and October 2017 ($4.6 billion).
The data indicates a resurgence in the housing market following the Reserve Bank's OCR cut in August, and the abandonment of a potential capital gains tax. Mortgage advisers have also reported banks beginning to loosen their serviceability tests for borrowers over the winter months.
The figures come as the Reserve Bank announces its latest Financial Stability Report tomorrow morning. Economists are divided over whether the RBNZ will loosen LVR speed limits from their current levels, amid the house price upturn of recent months.
High LVR lending, of more than 80%, was up to $615 million last month, up from $613 million in September, and $494 million in October 2018. First home buyers took the lion's share of that lending, representing $429 million of high LVR borrowing last month.
Comments from our readers
No comments yet
Sign In / Register to add your comment
Property News
Highest sales in December for three years
New Zealand’s property market ended the decade on a high with new REINZ data putting sales at their highest volume in years and median prices up around the country.
House Prices
Values pick up the pace
There’s a more upbeat feel to the property market and it’s obvious in this month’s QV data which has values firmly on the rise.
Commercial
Proptech the future for commercial investment
Commercial property start-up Jasper is the new kid on the block but some have asked how it differs from traditional property syndicates. Jasper’s founders explain the points of difference for us…
Mortgages
Putting the RBNZ's new capital rules into perspective
There's been a lot written about the Reserve Bank's new capital rules for banks and some of it seems to miss the mark. Here's Tarawera Publishing managing director, Philip Macalister's, take after hearing from the governor yesterday.
