House mortgage market drying up

The number of people who received mortgages in the first quarter of this year was 30 per cent down on 2009, as house sales stalled and investors worried about possible tax changes in the Budget.

One-third fewer mortgages were approved in the 13 weeks to April 9, compared with the same period last year, while the overall value of loan approvals dropped 25.2 per cent to $578.2 million.

The major banks granted 4438 loans in New Zealand in the first quarter of the year - the biggest 13-week drop since the Reserve Bank began recording percentage changes in 2005.

The biggest increases, of about 30 per cent, were recorded between October and November 2005 and then about 25 per cent at the height of the property boom in June 2006.

The figures are compiled by the Reserve Bank from about 95 per cent of home loan lenders.

Wellington mortgage broker Peter Bozinoff said "just about every second client" he had was having trouble getting a mortgage approved by a bank.

To read the full NZ Herald article, click here

Posted: 16 Apr 2010

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