Mortgage lending falls in June

According to figures released today, lending volumes hit $5.3 billion last month, roughly comparable with the $5.09 billion lent in June last year, but significantly lower than the $6.5 billion borrowed in May.

The data suggests the market comeback kick-started by the relaxation of LVR rules in January has calmed.

First time buyers cooled their interest in the New Zealand property market after a strong showing so far this year. According to RBNZ, they borrowed $803 million, compared to over $1.1 billion in May.

Government restrictions on property investors, including tough LVR limits, kept investor borrowing subdued in June. Fears over further government measures have put the brakes on investor activity in New Zealand’s major cities in recent months.