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Mortgage applications top pre-GFC/recession levels
Mortgage applications top pre-GFC/recession levels
Media Release
07 March 2012
New Zealanders are applying
for mortgages in greater numbers than at any time in the
last seven years.
Latest statistics from the country’s largest credit bureau show for the hot property buying period of December, January and February more applications for mortgages were made during these three months than at any time since 2005.
Applications for this three month period reached their lowest in 2009 in the wake of the Global Finance Crisis but the trend is now reversed and setting new records.
Veda Managing Director John Roberts says “we know the Auckland property market is heating up and the rest of the country will follow – but these statistics tell us what is coming down the track – there is a lot more heat in the property market and interest is well above pre-GFC levels.”
As part of the mortgage application process lenders obtain a credit report and Veda data shows a 23.05 percent increase in applications for the three month period (December, January and February 2012) compared with the same period the previous year.
When the month of February is compared with February 2011 applications are up 29.11 percent. Generation Y is leading the increase in applicants – up 36.55 percent but this is off low numbers. Applications by Generation X are up 34.58 percent February on February while Baby Boomer applications increased by 22.04 percent.
Veda statistics show a cooling in interest for hire purchase and personal loans while applications for credit cards are up slightly.
Mr Roberts says “A home is still king for Kiwis and we can see this in the Veda statistics. New Zealanders will still borrow to get into a home – but they are exercising caution in terms of other borrowing tools.”
Details follow:
Mortgage inquiries: Age bands for three months
December, January and February
| Year | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
| BB | -8.31% | -10.56% | -10.77% | -14.15% | 61.93% | 0.00% | 16.56% |
| Gen X | -13.83% | -12.46% | -19.09% | -22.24% | 58.12% | 1.04% | 27.22% |
| Gen Y | 3.99% | 4.07% | -15.90% | -36.48% | 47.09% | -3.05% | 34.75% |
| Total | -9.94% | -10.51% | -14.87% | -19.29% | 60.45% | 0.07% | 23.05% |
Mortgage inquiries: Age bands for the month of February, year on year comparison
| Year | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
| BB | -4.57% | -16.08% | -10.51% | -6.13% | 49.74% | 1.02% | 22.04% |
| Gen X | -12.19% | -15.63% | -19.42% | -14.38% | 47.05% | 1.56% | 34.58% |
| Gen Y | 7.39% | -7.15% | -17.15% | -26.50% | 32.04% | 7.42% | 36.55% |
| Total | -7.46% | -15.36% | -14.92% | -10.73% | 48.27% | 1.26% | 29.11% |
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