First home buyer market share has reached its highest level in recorded history, according to the most recent data from the Reserve Bank of New Zealand.
First home buyers were responsible for 20.8% of the $5.4 billion in new residential mortgage lending activity that occurred in August.
That is their biggest market share since the RBNZ began compiling this data in 2014.
The rest of the borrowing was done by a mixture of other owner-occupiers (61.3%), investors (16.7%) and businesses that took out residential mortgages (1.2%).
The $5.4 billion of new home loan activity in August was about half the record $10.5 billion in March 2021. It was also below the average monthly figure of $6.0 billion
It’s possible to enter the market with a small deposit
The record first home buyer result is encouraging news for younger New Zealanders who want to enter the property market.
Traditionally, lenders encourage borrowers to save a 20% deposit. However, 6.3% of the first home buyer loans in August were for borrowers who had a smaller deposit, according to the RBNZ data.
That shows it’s possible to enter the market ahead of schedule – although it does depend on your personal circumstances and your choice of lender.
I love helping first home buyers. Reach out if you’d like me to hold your hand through the process of buying your first property.