First-home buyers access low-deposit loans as lending surges

New data from the Reserve Bank shows a significant increase in new loans for first-home buyers with low deposits. In July, $1.261 billion was lent to borrowers with less than 20 percent equity.

This figure is about twice the level seen in July 2019, indicating a trend towards more accessible financing options for new homeowners. The rise in low-deposit lending highlights the growing demand among first-time buyers in the current property market.

Many potential homeowners are benefiting from these loans, which allow them to enter the property market without the traditional large deposit. This shift may support efforts to improve homeownership rates among younger Kiwis and those facing financial barriers.

In response to ongoing affordability challenges, lenders are exploring varied options to assist aspiring homeowners. As borrowing conditions evolve, first-home buyers have more opportunities to secure necessary funding.

Originally reported by RNZ New Zealand Headlines.