Investor slump continues in February
The figure marks a continued decline for investor borrowing, which has failed to hit the $1 billion mark since November. Investors borrowed $1.03 billion in February 2018 and $1.02 billion in February 2017. Last month's investor total is way down on the $1.6 billion borrowed in February 2016.
The data underlines a tougher market for investors operating with continued LVR restrictions, tightened lending from the major banks, and the threat of further regulation to curb investor activity.
In contrast, first home buyers borrowed $810 million last month, more than $727 million in February in 2018 and $591 million in February 2017. The gap between first home buyer and investor activity has narrowed in recent years as FHBs take advantage of record low interest rates and slower price increases in Auckland.
The threat of capital gains tax and the recently-introduced foreign buyer ban are likely to have dampened investor activity in February, and mortgage advisers note continued scrutiny on investor borrowing, and extra scrutiny on investor sale proceeds.
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