Bank customers are familiar with home loans and credit cards
People generally have a good understanding of their banking products and services according to data released today by the New Zealand Bankers Association.
“We have been delighted to see people using home loans and credit cards to help get ahead financially,” said New Zealand Bankers Association chief executive Roger Beaumont.
“About 44% of people with a home loan are ahead of their repayments. This is likely because, as interest rates have fallen over the past few years, they may have kept their repayments at the same level. Depending on their loan, others may have increased their repayments even further to move forward and repay their loan faster.This shows good financial capability in people with home loans.It also means that they are fairly well positioned in a rising interest rate environment.
“New Zealanders have a strong fascination with the housing market, so it’s interesting to see that for the 1.2 million customers who have a home loan, the average value of those loans is $296,000. About 56,000 new home loans were taken out from July to December last year, and about a quarter of those loans were for first-time home buyers.
“Credit cardholders also appear financially savvy, with 68.5% of cards being fully redeemed during the interest-free period, without incurring interest charges. This shows that most credit card holders know how they work and how to get the most out of them.
This information, along with other personal and small business banking information, is available here: https://www.nzba.org.nz/wp-content/uploads/2022/05/Retail-and-small-business-banking-insights-July-to-December-2021.pdf.
The information relates to the six months from July to December 2021 and has been collected and aggregated from NZBA’s top 10 member retail banks.
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