February 2024 Sees 4% Rise in Mortgage Advances and Record First Home Buyer Activity, According to Reserve Bank

Date Published: 27 March 2024

Key Facts

• The Reserve Bank of New Zealand reports a 4% increase in the monthly mortgage figures for February 2024, adjusted for seasonal patterns.
• $4.915 billion worth of mortgage money was advanced in February 2024, which is $1.5 billion more than was advanced in January 2024.
• Compared to February 2023, the latest mortgage figures show a significant rise of 28%.
• Even during market slump, first home buyers’ (FHBs) borrowing amounts have remained stable; their share of borrowing peaked at 25.2% in December 2023.
• The share of FHBs fell from 24.1% in January 2024 to 22.6% in February 2024.
• Investor borrowing accounted for 17.3% of total mortgage money advanced in February 2024; down from 17.8% in January 2024.
• New mortgage commitments to other owner occupiers increased to 58.6% in February from 56.6% in January.
• There were 14,391 new mortgage commitments in February 2024, marking a 39.3% increase from January and 25.5% from February 2023.
• The average new loan value across all borrower types increased to $341,533 in February 2024, up 3.4% from January 2024.

Article Summary

The most recent mortgage data provided by the Reserve Bank of New Zealand (RBNZ) indicates a 4% seasonally adjusted increase in February 2024. The advance worth $4.915 billion in mortgage money is notable, as this amount represents a rise from $1.5 billion when compared to January’s figure. Even more impressive, the latest data shows a 28% surge on the $3.836 billion reported for February of the previous year.

Of note has been the resilience of first home buyers (FHBs), who despite the market dip, have maintained a steady borrowing pattern. However, the FHB grouping observed a share decline in their overall borrowing from 24.1% in January 2024 to 22.6% in the subsequent month. Simultaneously, borrowing among investors showed a downward trend, with a decrease from 17.8% in January 2024 to 17.3% in February 2024.

Conversely, new mortgage commitments to other owner occupiers saw an increase from 56.6% in January to 58.6% in February. February witnessed a total of 14,391 new mortgage commitments, a significant rise from both January and February of the previous year. The same month also saw an increase in the average new loan value to $341,533 across all types of borrowers, a 3.4% boost from the previous month.

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