Both ANZ and BNZ were strong players in the high loan-to-value ratio (LVR) mortgage space in the December 2012 quarter, new data reveals.
David Tripe, of Massey University’s centre for banking studies, said that showed they were more aggressively seeking out first-time buyers. “It would be interesting to know what insurance arrangements for the loan are tied up with the loans.”
BNZ’s mortgage book grew 1.3% in the quarter, its highest growth of the past six quarters. It had reached $28.49 billion at December 31.
The bank appears to have returned to an aggressive approach to lending at 80% and above, with a 5.4% increase in high LVR loans compared to a 0.6% increase in loans under 80% of a property’s value.
Its loans grew at an annualised pace of 6% in December, compared to 3% or 4% a year earlier.
BNZ’s mortgage book grew by $868 million in the year to the end of December. Loans over 80% grew by 8.2% compared to 2.5% for lower LVR loans.
ANZ issued another $818 million in high LVR mortgages in the December quarter, while the amount out on loans with LVRs under 80% fell by $318 million.
Loans over 80% grew 19% for the year ended December 2012, compared to 2.2% for loans under 80%.
Westpac, meanwhile, has indicated it will retreat from the 80%-plus space and take a more conservative approach.
