Mortgage applications surpass pre-recession levels
New Zealanders are applying for mortgages in greater numbers than at any time in the last seven years, says Veda.
New Zealanders are applying for mortgages in greater numbers than at any time in the last seven years.
Veda, the country’s largest credit bureau, released its latest statistics showing for the hot property buying period of December, January and February tat more applications for mortgages were made during these three months than at any time since 2005.
The corresponding three month period saw the lowest amount of mortgage applications in 2009 following the Global Financial Crisis but with the latest release from Veda the trend seems to be reversing, setting new records for applications.
‘We know the Auckland property market is heating up and the rest of the country will follow – but these statistics tell us what is coming down the track – there is a lot more heat in the property market and interest is well above pre-GFC levels,” said Veda managing director John Roberts.
As part of the mortgage application process lenders obtain a credit report, with Veda data showing a 23.05% increase in applications for the three-month period (December, January, February 2012) compared with the same period the previous year.
When the month of February is compared with February 2011 applications are up 29.11%. Generation Y is leading the increase in applicants – up 36.55%, but this is off low numbers. Applications by Generation Y seem to be up 34.58% February on February while Baby Boomer applications increased by 22.04%.
Veda statistics show a slight decrease in interest for hire purchase and personal loans while applications for credit cards are up slightly.
“A home is still king for Kiwis and we can see this in the Veda statistics,” added Mr Roberts.
“New Zealanders will still borrow to get into a home – but they are exercising caution in terms of other borrowing tools.”
NBR Staff
Tue, 06 Mar 2012
Tue, 06 Mar 2012
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Mortgage applications surpass pre-recession levels
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