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)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news