The country's total mortgage lending stock is growing at its slowest annual rate since late 2012, according to the latest monthly sector lending figures from the Reserve Bank (RBNZ).
The figures show that total outstanding mortgage monies for both bank and non-bank lenders rose to $348.051 billion in April 2023 from $347.474 billion in March.
That gave a rate of annual growth in the stock of outstanding mortgages of 3.2%, which is the slowest rate recorded since October 2012.
Not much more than a year ago the mortgage stock was growing at an annual rate in excess of 10%.
Housing lending stock increased by $577 million in April 2023, which was down on the $929 million increase reported for March.
If we just look at the figures from the banks alone, which the RBNZ puts in a separate data series, these figures show that in April the pile of bank mortgage debt rose to $342.313 billion from $341.658 billion in March.
The total stock of lending to investors shrank again during April to $90.148 billion from $90.176 billion in March.
After a big surge in investor borrowing between 2020 and 2021 the investor mortgage stock has been almost static. It was just over $90 billion at the end of last year.
Over the last 12 months the bank mortgage stock for investors has grown by 0.9%. This compares with a growth rate of 5% for the 12 months to April 2022 and a growth rate of over 13.5% in the 12 months to April 2021,
Back on the figures highlighting both bank and non-bank lender borrowings, RBNZ hightlighted that personal consumer lending stock increased by $52 million (0.4%) in April 2023. The annual growth rate dropped from 4.1% to 3.8%.
Business lending stock, which has been shrinking, increased again in April by $627 million to $132.074 billion, but the annual growth rate decreased further from 4.9% to 4.4%
Agriculture lending stock decreased by $145 million to $62.178 billion, with the annual growth rate falling from 1.3% to 1.2%, which was the first drop since October 2022.
12 Comments
I see they've added RBNZ C30 data to include "Commitments with investment property collateral".
https://www.rbnz.govt.nz/statistics/series/lending-and-monetary/new-res…
- April 2021. Total mortgage commitments = $8.5b.
- Total commitments with investment property collateral $3.2b. $36b total for 2021.
- 38% of all mortgages had investment property collateral.
What's interesting to note, is that in 2021 there was only $18.5b in Investor mortgages according to RBNZ C31. I wonder if "investment property" means any property including OO used as collateral?
He and his ilk.
My very nice landlord has decided to sell up - numbers not stacking and unaffordable to hold on. A pity as he has given us a good deal for years (perhaps part of the problem). Now I'm looking for a new Auckland rental again. To buy I would need to have the courage of a lion and the resources of Elon Musk, and I have neither.
Have they actually sold? You may be fine for a while yet.
As I understand it, a landlord can't give vacant possession outside an offer (i.e., the request has to come from the purchaser). Even a fixed term tenancy coverts to periodic unless both parties agree to mutually end it/extend it, so can't even use that to kick a tenant out. (there may be corner cases - I was just talking to someone the other day who's landlord told them house required for vacant possession, before it was even advertised).
You understand wrong, the landlord can give 90days notice to end the tenancy if they wish to put it on the market vacant. (Assuming its a periodic tenancy. Nothing they can do if it was a fixed term except negotiate with the tenant to terminate it early by mutual agreement)
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