Credit application growth shows NZ economy picking up – Veda

Mortgage applications rose nearly 20 percent in December from a year ago and people are also taking out more personal loans, in what personal credit rating agency Veda says proves the economy is recovering.

The agency sees 98 percent of all credit applications and says it is evidence of a revitalised credit cycle and indicates New Zealanders are increasingly confident about the economy.

"We can talk ourselves out of feeling good or we can read the numbers, and I say the New Zealand economy is picking up and New Zealanders know it," Veda managing director John Roberts says in a statement.

A 19.71 percent rise in mortgage applications in December from the same month a year ago reflected not only a strong housing market but also strong competition among banks, which have reduced fixed-term rates, in particular.

Credit card applications fell 4.53 percent in December from a year ago but personal loan applications rose 11.83 percent and hire purchase applications rose 8.79 percent.

Mr Roberts attributes the switch to maturity in consumers.

Overall, consumer credit activity increased by 8.07 percent in December from the same month a year ago.


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot


Sym Price Change
USD 0.6619 0.0077 1.18%
AUD 0.9181 0.0044 0.48%
EUR 0.5883 0.0075 1.29%
GBP 0.4321 0.0024 0.56%
HKD 5.1295 0.0589 1.16%
JPY 79.3670 0.6950 0.88%


Commodity Price Change Time
Gold Index 1147.0 11.620 2015-10-06T00:
Oil Brent 52.5 1.520 2015-10-06T00:
Oil Nymex 49.0 2.250 2015-10-06T00:
Silver Index 16.0 0.276 2015-10-06T00:


Symbol Open High Last %
NZX 50 5668.1 5677.9 5668.1 -0.32%
NASDAQ 4775.1 4788.4 4748.4 0.27%
DAX 9968.6 10093.1 9902.8 0.68%
DJI 16805.4 16963.3 16790.2 0.29%
FTSE 6326.2 6396.3 6326.2 0.16%
HKSE 21884.7 22527.8 21831.6 3.13%
NI225 18168.2 18379.2 18186.1 0.75%