Payback time as arrears hit six-year high
22,600 mortgage holders were in the past due column in February
About 22,600 mortgage holders were in the past due column in February, the highest level since just prior to the pandemic, according to data from credit bureau Centrix.
The number of borrowers in arrears was at 2.29 per cent for the month, up on the 2.04 per cent last February, while the average outstanding mortgage had also tracked up by almost $14,000 to $495,465.
Aucklanders continue to carry the highest average mortgage, at $684,417, with Queenstown-Lakes at $568,823 and Wellington City at $556,901.
All three have seen higher numbers of mortgage holders slip into arrears, at 2.69 per cent, 2.01 per cent and 1.48 per cent respectively.
The Centrix numbers also reflect continued low points in new mortgage lending, which are down 6 per cent year-on-year, and a similar story with new car lending, down 16 per cent.
Seasonal high
Arrears were up 8.1 per cent overall across mortgages, personal loans and buy-now-pay-later products.
Those borrowers, citing “financial hardship” for slipping behind in their payments also bounced by 35 per cent across mortgages, 32 per cent for those with credit card debt and a whopping 50 per cent for those holding personal loans.
Centrix said 457,000 Kiwis were behind on their payments, reflecting 12.45 per cent of the 3.7 million people who tapped into credit products.
While that was down 23,000 consumers on January's numbers the number at 30 days or more past due has reached 4.88 per cent 179,000), which Centrix said was the highest level in six years.
Hospo, construction feel pinch
Centrix managing director Keith McLaughlin said while business credit demand was up 7 per cent during the month and more than 10 per cent across hospitality, retail and transport sectors over the past 12 months, pubs, bars, restaurants were “most at risk” on the back of weaker customer demand and rising costs.
The firm counted 192 company liquidations for the month, well up on the 125 for the prior February. Business credit defaults also hit their highest index level, at 130, with the average default amount of $4262. McLaughlin said business defaults and liquidations remained up yearon-year, with hospitality, construction, retail, property and transportation particularly hard hit.