Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

High LVR lending slips to 6.5% of new mortgages in July

High LVR lending slips to 6.5% of new mortgages in July, RBNZ data shows

By Jonathan Underhill

Aug. 26 (BusinessDesk) - The proportion of home lending with deposits of less than a fifth of a property's value fell in July amid growing evidence mortgage restrictions imposed by the Reserve Bank last year are succeeding in cooling house prices, especially for cheaper properties.

High loan-to-value lending by banks, those at a loan-to-value ratio of 80 percent or more, fell to 6.5 percent of total new mortgages in July from 6.7 percent the previous month. The ratio of high-LVR lending was 25 percent last September, a month before the Reserve Bank imposed a limit of 10 percent of total home loans, though it has rebounded from as low as 3.6 percent in January and March this year.

"The RBNZ has indicated the effects of these restrictions on the housing market have been greater than it initially estimated," said Christina Leung, economist at ASB Bank. "House price inflation peaked late last year, and we expect further moderation over the coming year as new housing supply comes on board and higher interest rates take effect."

Leung said there is potential for the proportion of new high LVR lending to edge higher as banks adjust to the limits and competition increases in the mortgage market.

(BusinessDesk)

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.