KEY POINTS:
Growth in mortgage lending has slipped to its lowest level in more than four years, while consumer lending recovered to its highest since May 2006, Reserve Bank figures show.
Home lending growth slowed to 13.3 per cent for the year ended November, totalling $153.6 billion -- the slowest rate of growth since July 2003 when it was 12.8 per cent, or $83.6 billion.
Annual mortgage lending growth peaked at 17 per cent-plus in mid-2004.
The Reserve Bank has increased interest rates four times this year in part to ward off inflation pressures from the housing market.
With inflation expected to remain persistent from other sources such as the tight labour market and high petrol prices, more rate rises are on the cards.
The central bank said in a recent report that mortgage lending was expected to continue moderating, reflecting stretched valuations, continued increases in effective mortgage interest rates and signs of a cooling housing market.
In contrast, consumer lending recovered, with annual growth of 6.3 per cent, to $12.4b, the highest rate in 18 months. Consumer lending is for personal customers for items other than housing, such as a boat or car purchase, travel and all credit card lending.
Consumer lending slumped to an eight-year low in May, with 3.7 per cent growth, just before the collapse of companies in the finance company sector gathered pace.
Total household lending rose 12.7 per cent for the year, the lowest rate of increase since June 2003.
Non-bank institution lending for housing and consumer items rose 8.7 per cent for the year ended November to $13.6b.
- NZPA
