A. Primary Housing Finance Market
A.1 Industry Structure and Performance
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| Types of originating lenders/market share: | A.1.2 | ||||
| Universal/ commercial banks | 99% of total | 99% of total | 99% of total | RBNZ | A.1.2.1 |
| Non-depository financial institutions specialized in housing finance | 1% of total | 1% of total | 1% of total | RBNZ | A.1.2.3 |
| Identify the 3 largest loan originating lenders | ANZ, ABS, BNZ | A.1.3 | |||
| Are there (quasi) public mortgage lenders: | Yes | Yes | Yes | Kiwibank | A.1.4 |
| Universal/ commercial banks | Yes | Yes | Yes | KiwiBank | A.1.4.1 |
| Level of Non-Performing Mortgage Loans (90 days or more past due): | A.1.6 | ||||
| Average 1997-2007 | A.1.7 | ||||
A.2 Size of Mortgage Finance Sector
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| Total amount of home mortgage loans outstanding at the end of year in millions of USD: | 114,579 USD (millions) | 103,224.7 USD (millions) | 109,761.01 USD (millions) | Reserve Bank of New Zealand | A.2.1 |
| Total amount of home mortgage loans outstanding at the end of year as % of GDP (current) | 62.96% | 59.58% | 55.15% | RBNZ | A.2.1.1 |
| and as % of all credits outstanding | 57% | 56% | 56% | RBNZ | A.2.1.2 |
| Total # of home mortgage loans outstanding at the end of year | 1,541 thousand | 1,500.81 thousand | 1,470.99 thousand | RBNZ | A.2.2 |
| Total amount of home mortgages made in calendar year in millions of USD | 50,299.16 USD (millions) | 47,971.55 USD (millions) | 43,359.62 USD (millions) | RBNZ | A.2.3 |
| and as % of GDP (current) | 28% | 28% | 23% | A.2.3.1 | |
| and as % of all credits originated in calender year | 18% | 18% | 16% | RBNZ | A.2.3.2 |
A.3 Housing Finance Products
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| Mortgage products as % of all mortgages (approx.) in local currency: | A.3.1 | ||||
| Most prevalent type of foreign currency mortgage used: | A.3.3 | ||||
| Most frequent interest rates on fully amortizing: | A.3.4 | ||||
| Typical lender fees associated with mortgage origination: | A.3.6 | ||||
| Typical third party fees associated with mortgage origination: | A.3.7 | ||||
| Loan-to-Value (LTV) on first mortgage: | A.3.8 | ||||
| Maximum LTV | 80% | 80% | 80% | RBNZ | A.3.8.1 |
| Typical LTV at origination | 55 | 55% | 60% | IMF | A.3.8.2 |
| Maximum term over which pmt is calculated? | 30 years | 30 years | A.3.9 | ||
| Mortgage pmt-to-income ratio | A.3.10 | ||||
| Typical pmt-to-income ratio (HH income) | 15.3% | Statistics New Zealand | A.3.10.3 | ||
| Typical pmt-to-income ratio (Individual income) | 50% | Researve Bank of New Zealand Bulletin | A.3.10.4 | ||
A.4 Lending and Servicing Process
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| Does the mortgage industry use standard principles/guidelines for underwriting? | Yes | Yes | Yes | Professional Advisers Association | A.4.1 |
| Which institutions define underwriting rules? | A.4.2 | ||||
| Other | Yes | Yes | Yes | Public Advisers Association | A.4.2.4 |
A.5 Credit Risk Assessment
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| Do credit bureaus exist? | Yes | Yes | A.5.2 | ||
| What percentage of mortgage originations use credit scoring? | 100% | 100% | 100% | RBNZ | A.5.1 |
| Is mortgage default insurance available? | Yes | Yes | Yes | Genworth | A.5.3 |
| When did it begin operating? | 1965 | 1965 | 1965 | Genworth | A.5.3.1 |
| What is the typical MI product? | Unlike traditional insurance products, there is a one-off premium payable for Lenders Mortgage Insurance. This premium is charged by the Lenders Mortgage Insurance provider to the lender, who typically passes this cost on to the borrower. The premium is payable when the loan funds are advanced and it provides cover for the full term of the loan. | Genworth | A.5.3.2 | ||
| Are credit guarantee systems used? | No | No | No | New Zealand Treasury | A.5.4 |
B. Funding Sources for Mortgages and the Secondary Mortgage Market
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| What are the main funding sources for mortgages? | B.1 | ||||
| Retail funding (deposits/other) | Primary | Primary | Primary | RBNZ | B.1.1 |
| Funding through mortgage bonds | tertiary | Tertiary | Tertiary | Westpac | B.1.3 |
| Funding through securitization of mortgages | Secondary | Secondary | Secondary | Westpac | B.1.4 |
C. Housing Microfinance
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| Are non-collateralized housing micro-finance loans offered? | Yes | SBN New Zealand | C.1 | ||
| Types of lenders operating in the housing micro-finance (HMF) sector: | C.2 | ||||
| Commercial banks | Yes | SBN New Zealand | C.2.1 | ||
| NGOs | Yes | SBN New Zealand | C.2.3 | ||
| Level of NPLs (>90 days past due) in HMF | C.4 | ||||