THE GENWORTH FINANCIAL
MORTGAGE TRENDS REPORT
NEW ZEALAND

Following on from the success of our annual Mortgage Trends Report launched in 2007, this year our report focuses on the key emerging trend, mortgage stress in the New Zealand market.

The 2008 report seeks to understand how borrowers are coping with their mortgage repayments, the causes of stress and levels of consumer indebtedness. Based on a survey of over 1,000 New Zealand adults, it also examines the issues facing those outside the property market, including the ‘rental trap,’ and looks at solutions available to facilitate homeownership.

• The percentage of borrowers anticipating difficulty with mortgage repayments during some or all months of the coming year has increased from 23% in 2007 to 34% in 2008.

• 40% of non property owners would like to purchase their first property in the next 12 months, only 9% feel they will be in the financial position to do so.

• The average monthly mortgage repayment has increased by 13% in 2008. From $1470 per month in 2007 to $1660 per month in 2008.
  

The 2007 Genworth Financial Mortgage Trends Report provides key insights into the dynamics of the mortgage market, and details the view points of the New Zealand consumer.

The survey results highlights our thoughts as consumers, on housing affordability, first home buyers, and the property market as a whole .

Key highlights from the report include:

• 59% of respondents to the Genworth Financial survey owned property in some form, with 70% of investment property owners seeing their property as a long-term investment to provide income in retirement.
• 25% of respondents sourced their most recent mortgage through a broker, with the primary reason, held by 70%, the belief that they will get a better deal.
• 78% of respondents with a mortgage had a fixed interest rate while 22% had a variable interest rate. Of those with fixed rates, 28% were due to expire over the coming 12 months.