Borrowers’ switcheroo reaches new record

The latest RBNZ figures show $2.475 billion of the $8.261 billion taken out in new mortgages last month were by borrowers changing lenders.

In the central bank’s data series, new residential mortgage lending by purpose, which has been running since 2017, it shows switching loan providers has been steadily rising since January this year.

Last month 3,553 of the total of 20,437 new mortgage commitments were for a change in loan provider – also a record. That is more than double the 1,311 borrowers who switched lenders in January 2017.

When compared to June last year, the number of borrowers switching lenders has risen by 58.5% and from May to June this year it has been an increase of 11.6%. And the amount borrowed rose by 1.6% from May.