Half the people with home loans in New Zealand are ahead on their repayments the New Zealand Bankers’ Association revealed today.
“Our data shows that 50 per cent of home loan customers are ahead on their repayments. That says a lot about the financial capability of people with a mortgage. They think it’s a good idea to repay your loan faster if you can,” says New Zealand Bankers’ Association chief executive Roger Beaumont.
“The historically low interest rate environment we’ve experienced over the last few years will also have had an impact on borrowers being able to repay their loans faster. Depending on the type of loan, borrowers often choose to maintain the level of their repayments if interest rates go down.
“Many borrowers are in a relatively good position to manage the cost of borrowing, which may rise gradually in response to changing economic conditions.
“Nearly 55 per cent of home loan customers are on fixed interest rates, with the rest split between a mix of fixed and floating interest rates and only floating. That means any interest rates rise won’t have a widespread immediate impact on borrowers.”
Other key home loan data:
- 1 million bank customers have a home loan
- The average value of all home loans is $271,000
- The average value of new home loans is $340,000.
This home loan information is as of 31 December 2020. The information was collected and aggregated from NZBA’s 10 main retail member banks.