3 Dec 2014

ANZ mortgage book continues to grow

1:36 pm on 3 December 2014

ANZ Bank's overall mortgage lending continued to grow in the September quarter but its lending to those with less than a 20 percent deposit shrank dramatically.

In total, New Zealand's largest bank's mortgage book grew by $595 million in the three months ended September, somewhat slower growth than the $704 million it added in the June quarter.

The amount ANZ lent to people with small deposits shrank by $1.159 billion in the latest three months, after shrinking by $924 million in the June quarter.

ANZ's mortgages to such people now account for 15.5 percent of its total mortgage book.

That's well down from their near 24 percent level in September last year ahead of the Reserve Bank rules restricting such lending.

The dramatic decline is despite the new rules still allowing banks to lend up to 10 percent of net new lending to those with small deposits.

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