The rise in mortgage borrowing in the second half of 2020 resulted in an annual growth in the total amount of mortgages outstanding in New Zealand of over 11% – the highest since March 2008
Total mortgage outstanding growth was noisy in the 12 months to the end of April. on 11% new month numbers from the reserve bank.
The numbers were somewhat influenced by the fact that April 2020 numbers were so low due to the Level 4 lockdown, but the annual rate of increase had been increasing rapidly anyway.
And in April, that annual rate of increase jumped from 9.7% to 11%, while the total amount of mortgage loans outstanding to both banks and non-banks reached $ 311.7 billion, up from $ 3 billion a month .
The increase last month compares with a record $ 3.7 billion increase in mortgage holdings in March.
The total outstanding of $ 311.7 billion at the end of April compared to $ 280.8 billion in April 2020 – the mortgage portfolio grew by a staggering amount of nearly $ 31 billion per year.
But as mortgage borrowing continues to rise, corporate lending (both banks and non-banks) continues to decline, falling at an annual rate of 5.3%, the largest annual decline since October 2010.
Agricultural loans also decreased by $ 227 million for the month, at an annual rate of 1.5%. This is mainly due to declining dairy lending, which has fallen by $ 1.4 billion (-3.6%) since August 2020.
Annual growth in credit card loans bounced back to 8.4% a year after the nationwide lockdown.