The continued growth in mortgage lending has led the country to increase its mortgage debt by more than 12% over the past year.



The spike in mortgage growth continued last month before closing level 4 in mid-August, with outstanding mortgage debt growing 12.1%, the highest annualized rate since February 2008.

New Reserve Bank sectoral lending indicators show that in July, the volume of mortgage loans in the country increased by $ 2.78 billion, bringing the total amount to $ 320.336 billion (including both bank and non-bank lenders).

Growth has slowed slightly (but it’s winter) and is below the $ 3 billion per month growth rate seen earlier this year.

The amount of outstanding mortgage debt in the last 12 months increased by $ 34.683 billion, taking into account the fact that over the same period new mortgages grew by just $ 100 billion

As for the data on banks only, the latest RBNZ report bank loans by appointment the numbers confirm the recent trend of investors leaving for new loans as owner-tenants pick up steam.

In addition to mortgage lending, the latest data showed that business lending has returned to annual growth for the first time since July 2020 – just in time for lending to likely hit again by the latest lockdown.

Business lending rose to $ 118.666 billion in July from $ 118.343 billion in June. Again, these numbers include both bank and non-bank lending. Thus, the annual growth of business lending amounted to 0.6%.

Agricultural lending rose marginally to $ 62.560 billion in July from $ 62.325 billion, but on an annualized basis the amount was still shrinking, down -1.1%.

New RBNZ deposits by industry indicators show that household deposits continued to grow, which resumed in June, although not by much.

A large increase in deposits was seen at the height of the Covid crisis last year, and it will be interesting to see if there is a repeat this time around.

The total volume of household deposits in July increased by $ 380 million (0.2%) to $ 205.814 billion. A year ago, deposits were $ 196.334 billion.

In July, operating and savings balances increased by $ 358 million and $ 376 million, respectively, while time deposits declined (again) by $ 355 million.

The overall growth of annual deposits of the population slightly decreased from 5.5% to 5.1%.


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