Characteristics of Mortgage Lending in NZ Report

Percentage of Interest-Only Payment vs Principal-and-Interest Payment

Task:
Open “Characteristics of Mortgage Lending in NZ.xls” on Blackboard/Assessment. Using the guideline below, write a report on the mortgage market in NZ.

1. Discuss the percentage of all new interest-only payment and principal-and-interest payment in the latest month and discuss on the trend of these statistics. Support your discussions with a line graph in the report and put the data in the appendix.

2. Compare the percentage of new and existing lending and discuss how the existing interestonly payment mortgage loans are likely to convert to principal-and-interest-mortgage loans. Support your discussions with a bar graph in the report and put the data in the appendix.

3. Discuss the new interest-only and principal-and-interest lending with Loan to Value Ratio greater than 80%. How likely is the interest-only lending to have LVR greater than 80%? Support your discussions with a line graph in the report and put the data in the appendix.

4. Discuss the total new and existing lending with LVR greater than 80%. Support your discussions with a line graph in the report and put the data in the appendix.

5. Discuss the percentage of interest only loans for owner occupiers (including first home buyers) and that of investors during the period. Support your discussions with a line graph in the report and put the data in the appendix.

6. Discuss the trend of interest-only lending for investors with LVR greater than 80%.

Instructions:
Your report should be 2 to not more than 3 pages in length (not including appendices). Put the charts in the report and supporting data in the appendix. Only one report submitted per group is allowed. Anyone of your group members may submit your group report. If there is any of your group members does not contribute to the assignment. Group Contribution Form is available on Blackboard/Assessment.