Mortgage arrears still challenging

Centrix figures show the number of mortgage holders struggling to make their repayments dipped by 700, or 1.44%, from April to May. In total there were 21,900 borrowers overdue on their repayments.

RBNZ data show non-performing mortgage loans increased by $28 million in May to nearly $2.5 billion. That was a rise of 1.2% from April and is up significantly from $1.2 billion in May 2023. Of this number $534 million was impaired, a rise of $30 million or 6% from April.

While mortgage arrears are improving, according to Centrix, 15,000 people are in hardship and struggling to pay their bills – an increase of 300 from April and up 14% from a year ago.

Almost half of these cases (46%) were due to difficulties paying mortgages, a rise of 19% year-on-year.