According to the latest Reserve Bank’s data, mortgage lending volumes are on the rise with New Zealanders borrowing a total of $4.7 billion in January – the highest figure on record for any January since 2015.
Last month, first-home buyers borrowed $889 million, close to investor levels and nearly double FHB lending in January 2015, 2016 and 2017. At $951 million, investor lending was at its highest level since January 2016. Also, high-LVR lending – owner-occupiers borrowing more than 80 per cent of their home’s value or more than 70 per cent for an investment property – hit its highest level on record at $508 million.
Mortgaged investors are reasserting themselves
In commenting the latest RBNZ’s stats, CoreLogic senior property economist Kelvin Davidson said the upward trend reflects larger average loan sizes rather than a higher number of loans. At the same time, it tells us something about the types of buyers that are active in the market.
“The message from these lending figures is similar to the CoreLogic Buyer Classification series, which has recently shown a solid market share for both FHBs and mortgaged multiple property owners (i.e. investors),” Davidson said. “Indeed, the rebound in purchases for mortgaged investors has been one of the key property stories of the past few months.”
Whether your clients are looking to buy their first home or a rental property, our Mortgage Link advisers are here to help them find the right home loan for their needs. Navigating mortgage options and applications can be complicated, so your clients can benefit from receiving expert guidance throughout the whole process.
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