The Reserve Bank has released new debt-to-income (DTI) data informing risks for new mortgage applications in New Zealand.
The DTI data, which was developed to better understand the financial risks from mortgage lending activity, informs how total borrower debt compares with borrower income.
Aside from informing financial stability risks, the new DTI data can be used to assess housing affordability for recent homebuyers and identify trends in mortgage lending.
Going forward, the Reserve Bank will publish the statistics quarterly on its website.
To read the full article, please visit the NZ Adviser website.