Australian Housing Dynamics and Affordability

NEW ZEALAND HOME LOANS PORTFOLIO OVERVIEW¹ Portfolio Flow FY17 FY18 FY19 FY19 Portfolio FY17 FY18 FY19 Number of Home Loan Accounts 520k 526k 527k 118k Average LVR at Origination² 59% 58% 56% Total FUM NZD77b NZD81b NZD85b NZD19b Average Dynamic LVR2 43% 41% 42% Average Loan Size2 NZD148k NZD153k NZD161k NZD157k Market Share5 31.1% 30.9% 30.7% % Owner Occupied 73% 74% 75% 77% % Low Doc 0.44% 0.38% 0.34% % Investor 27% 26% 25% 23% Home Loan Loss Rates (0.01%) 0.00% 0.00% % Paying Variable Rate Loan³ 21% 18% 15% 14% % of NZ Geography Lending 61% 62% 63% % Paying Fixed Rate Loan³ 79% 82% 85% 86% % Paying Interest Only 22% 21% 19% 19% % Paying Principal & Interest 78% 79% 81% 81% % Broker Originated4 35% 36% 38% 40% 1. New Zealand Geography 2345 2. Average data as of September 2019 3. Flow excludes revolving credit facilities 4. Flow FY19 11 months to August 2019 5. Source: RBNZ, FY19 share of all banks as at August 2019 6. Low documentation (low doc) lending allowed customers who met certain criteria to apply for a mortgage with reduced income confirmation requirements. New low doc lending ceased in 2007 ANZ 97

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