Mortgage lending peaks in November

Friday 20 December 2019

Mortgage lending soared to its highest level since June 2016 last month, according to new data from the Reserve Bank.

Total lending hit $6.79 billion in November, up from $6.2 billion the same month in 2018, and $5.2 billion in 2017, the data shows. 

Mortgage lending hit its highest level since June 2018 when borrowers received $6.8 billion for home loan purchases. 

The figures back up recent REINZ data and indicators that the housing market is resurgent heading into 2020. 

Both investors and first home buyers recorded the highest borrowing figures for the year in November.

Investor borrowing was strong in November reaching $1.36 billion, up from $1.09 billion in November 2018. 

First home buyers also put in a strong showing in November, they borrowed $1.24 billion, up from $1.02 billion the same month in 2018. 

Renewed confidence among first home buyers and investors, backed by low rates and the absence of a capital gains tax, are said to have boosted the Spring market. The new figures will be welcome news to advisers hoping for another upturn in the housing market next year.

High LVR lending also crept up last month. Lending higher than 80% LVR reached $690 million in November, up from $536 million in the same month last year.

Comments from our readers

No comments yet

Sign In / Register to add your comment

Property News

Why house price growth will continue

House price inflation is unlikely to radically slow this year after a strong end to 2019, according to leading economist Tony Alexander.

House Prices

A decade of property price growth

Recent years have seen some spectacular house price growth around New Zealand but just how much have asking prices gone up in different markets over the last 10 years?


Looking outside the box

The property market is heating up again – and that means more competition for good deals – but there are still options out there for keen property investors.


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.

Site by PHP Developer