Despite press reports that some commercial banks experienced slower growth in their mortgage business during the first quarter of 2008, the latest data from the Central Bank of Barbados suggests that mortgage loans from commercial banks, as well as trust and mortgage companies, grew at their fastest rate last year compared to the past five years, while total lending from the same institutions grew at its slowest rate.

According to the February edition of the Central Bank’s Economic & Financial Statistics publication, while the mortgage component of all lending totalled just over 29 percent at the end of 2006, it accounted for one third, or 33%, last year.

In other words, to the end of 2007, the mortgage market has shown itself to be more resilient to interest rate hikes and the rising cost of living, which have helped put the brakes on total commercial bank lending. After growing by nearly 20% in 2005 over the previous year, growth in total lending slowed to just under 15% in 2006 and just eight percent last year. But within those figures, mortgages have been steadily increasing their share of the pie. After growing by just over 17% in 2005 and 20% in 2006, mortgage lending grew by over 22% last year.