By Gareth Vaughan
The big four banks' latest General Disclosure Statements show, as with the March quarter, ANZ recorded the highest volume of residential mortgage growth and ASB the highest percentage growth in the three months to June 30.
And with Reserve Bank restrictions on high loan-to-value ratio (LVR) home loans just weeks away, ASB again posted the highest net growth in low equity mortgage lending.
With those restrictions set to come into force on October 1, three of the big four banks - ANZ, ASB and Westpac all have high LVR lending, as a percentage of their overall home loan books, at remarkably similar levels with BNZ significantly lower.
| Bank | June quarter volume growth | June quarter percentage growth | June quarter net increase in high LVR loans | Percentage of mortgage book in high LVR loans |
| ANZ | $903m | 1.6% | 3% | 23.78% |
| ASB | $852m | 2.2% | 73% | 23.23% |
| BNZ | $371m | 1.3% | 47% | 15.16% |
| Westpac | $518m | 1.4% | 1% | 23.24% |
Kiwibank's yet to release its disclosure statement covering the June quarter. However, as of March 31, 19.07%, or $2.334 billion, of Kiwibank's $12.236 billion worth of home loans were at high LVRs.
Reserve Bank sector credit data shows home loans rose $2.978 billion, or 1.7%, in the June quarter to $183.396 billion.
The Reserve Bank announced this week banks must restrict new residential mortgage lending at LVRs of over 80% to no more than 10% of the dollar value of their new housing lending flows from October 1. Allowing for exemptions, the Reserve Bank estimates this 10% "speed limit" will effectively restrict the banks’ high-LVR lending flows to about 15% of their new residential lending.
See our stories on BNZ's June quarter here, on Westpac's June quarter here, on ASB's June quarter here, and ANZ's June quarter here.
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