Consumers back out hunting for good property deals on houses and mortgages

Media Release 24 February 2012

New Zealanders are back buying property or preparing to buy property with a massive hike in the numbers of people inquiring about mortgages last month.

The market is also continuing to move from fixed interest rates on mortgages to floating rates as consumers are more confident major swings in interest rates are not on the horizon.

As part of the mortgage application process lenders obtain a credit report and data from the country’s leading credit bureau Veda. In January there was a 25.64 percent increase in applications compared with January 2011.

Broken down into generation bands, it is clear Gen Y and Gen X have had enough of waiting to enter the property market and are wanting a home of their own. In January there was a 39.49 percent increase in Gen Y applications for a mortgage while Gen X applicants were up by 29.29 percent. Applications by Baby Boomers were up 18.36 percent last month.

Managing Director John Roberts says “after all the talk of recession and the volatility of offshore markets there is a sense that people have accepted that the economic environment we have is the new normal – and they just have to get on with their lives.”

“This is good for New Zealanders and it is good for the economy.”

Veda’s data does show that New Zealanders have adopted a more cautious approach to the use of credit. Applications for hire purchase and personal loans continue to fall. However credit card applications are on the move. In January there was a 13.95 percent increase in credit card applications.

Mr Roberts says New Zealanders are showing they want to ensure they can access credit when they need it. This has been highlighted in just how quickly they have responded to new provisions, which allow outstanding Ministry of Justice fines to be included on credit reports.

This provision came into effect on 13 February and already we are seeing a significant number of credit checks being matched against the overdue fines data. To date, the average overdue fine amount returned alongside a credit check has been $1,506. The inclusion of this data provides businesses with a more accurate view of the risk associated with a potential customer.

About Veda

Veda is Australasia's leading data intelligence and insights company and has been at the forefront of the information services industry for many decades. Veda is built on the largest, most comprehensive and current data source in New Zealand and Australia. We hold more fit for purpose credit data than any other organisation in Australasia including information on 16.5 million credit active people and 4.4 million companies & businesses. The breadth and depth of our data, and the knowledge it delivers help customers take a proactive and informed approach in making decisions.

Veda serves a diverse range of markets including large financial institutions, small to medium sized enterprises, and consumers. We provide services in areas of Consumer credit risk, Commercial credit risk, Credit analytics, Data solutions, Automotive, Customer location services & Commercial Information Brokerage.

veda.co.nz

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