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Credit firm Equifax says the surge in mortgage activity by the big banks has driven a more than 100% rise in credit inquiries

Credit firm Equifax says the surge in mortgage activity by the big banks has driven a more than 100% rise in credit inquiries

Mortgage-related credit inquiries have risen over 100% in the past year as the big banks cater for the rush in mortgage demand due to the hot housing market.

Credit firm Equifax in its review of the market for March said mortgage issuance by the big four banks had driven the increase in consumer credit enquiry volume in the mortgages space, "up a whopping 103% on March 2020".

Equifax says commercial enquiry volumes are at their highest level in two years, with strong activity witnessed across all monitored industrial sectors.

"The Information Media and Telecommunications sector saw 107% growth in volume compared to March 2020.

"All commercial finance types showed growth over both recent months as well as year on year," the company said.

The company noted that March 31 saw the end of the RBNZ’s payment deferral programme, aiding those mortgage holders impacted by Covid-19.

It said mortgage accounts continued to "roll through and exit" the mortgage deferral scheme.

March’s new deferrals granted came from a range of prior repayment statuses, with very low volume of new deferrals reported.

"Those consumers exiting deferral at the end of the programme, who have been in deferral for the longest period, have the highest level of risk," Equifax said.

It said that arrears overall have stabilised, after the traditional post-Xmas increase.

"Overall arrears remain stable and well down on pre Covid-19."

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3 Comments

Bandwagon and FOMO. Sounds like we're close to the peak in the mania. This will end well.

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Up 103% in a year. Wow. New Debtland.

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You cannot compare current economic conditions to a period where the entire country was under lockdown. How many people were applying for mortgages back in March last year, when the borders were closed, public gatherings were banned, and lockdowns were imminent? Expect another 6-12 months of these rubbish statistics. Any comparison to the 2020 Covid period is completely meaningless.

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