| | |
Homepage | login or create an account

Massive increase in mortgage demand - Veda

Read More:
Fuseworks Media
Fuseworks Media

Latest data from leading credit bureau Veda shows renewed
confidence amongst New Zealanders to borrow for homes and their

For the first time in five years Veda’s bureau statistics
show an increase in commercial enquiries, which Veda’s
Managing Director John Roberts says is enormously positive for the

Businesses owners require a level of confidence in future growth to
borrow funds to invest in their operations and expand.

"Business has hung in through a slow economic recovery. An increase
in enquiries is a welcome sign of emerging stimulation in the
commercial sector."

Commercial credit enquiries, relating to business lending,
increased by nearly seven percent for the May-July 2012 quarter
compared with the same period last year. Parallel to this, credit
defaults listed on commercial credit files fell significantly in
the same quarter revealing the sector is moving on from the
pressures related to the global financial crisis. Mortgage
enquiries increased a massive 44.36 percent for July 2012 compared
to the same period last year. Generation X (28-43 years age group)
has shown the greatest shift with mortgage enquiries increasing
49.40 percent for July this year compared with July 2011.

Mr Roberts believes a highly competitive housing market both in
terms of consumer demand and access to stable interest rates has
driven this increase to relatively low cost funds. "With the
Reserve Bank’s Official Cash Rate remaining at 2.50 percent
since March 2011 the banking industry has fiercely competed to
attract new customers with very competitive interest rates - this
is causing consumers to shop around to get the best home loan deal
they can."

Mr Roberts also observes that a battle between banks in fixed home
loan interest rates appears to be driving a slow shift from
floating interest rates to fixed interest rates.

Veda data highlights growing consumer demand for credit with
inquiries up by 8.75 percent for the quarter May to July 2012 on
the same period last year. This is the second consecutive quarter
showing an increase in enquiries indicating a slow return to growth
in the consumer credit market. The month of July saw credit
inquiries increase by 9.14 percent on July 2011.

About : money

Find the latest money news and 'how to' guides on Guide2Money.

Ask our researchers your personal finance questions.

Your Questions. Independent Answers.