Number of people facing mortgage arrears in April fell by 1400 compared with the previous month.
More than 22,000 Kiwis remain behind on their mortgage repayments.
Consumer arrears fell to 483,000 in April.
The number of people behind on their mortgage repayments decreased in April, but financial hardship cases rose with middle-aged people experiencing the highest rates of difficulties.
In April, there were 1400 fewer individuals in mortgage arrears compared with the previous month, according to Centrix data.
There were 22,600 home loansreported as past due in April, or 1.49% of the active population, down from 1.58% in March.
However, mortgage arrears remain higher compared with the same period last year (1.45%).
Centrix managing director Keith McLaughlin said there was a seasonal trend at play.
“We typically see arrears begin to improve following the more expensive summer break and Easter holiday period,” he said.
McLaughlin said changes to interest rates can also impact household arrears.
“For example, as more people roll off fixed mortgage terms, they can often lock in lower interest rates as a result – freeing up more money in their household budget.”
Consumer arrears also fell in April to 12.43% of the credit active population, or 483,000 people.
It was the fourth month in a row that overall consumer arrears were lower than 2024.
But long-term arrears (consumers who are 90-plus days past due) rose to 83,000, the highest level since July last year.
Financial stress was hitting the younger generation hardest, Centrix said.
The number of people behind on their mortgage repayments fell in April, according to new data from Centrix. Photo / 123rf
“Consumers under 25 continue to be the hardest hit, as they tend to have limited financial buffers and greater exposure to instability,” the report said.
Financial hardship cases increased last month by 300 to 14,700 and are up 13.3% year-on-year.
While cases have been rising since November 2022, the rate of increase has eased in recent months.
Almost half (46%) of hardships relate to mortgage payment difficulties, 29% to credit card debt and 18% to personal loan repayments.
Those aged between 35 and 49 years old are experiencing the highest rate of financial hardships, according to Centrix.
“Middle-aged Kiwis often face multiple financial responsibilities, such as mortgages and raising a family, and experience stress in keeping up with debt obligations while maintaining their lifestyle.”
Liquidations in the year to April were 2612, up 30% year on year, Centrix said.
On a monthly basis, the number of liquidations fell from 257 in March to 175 in April.
“This continues to be a challenging period for small to medium enterprises across the country, especially in the construction, property, and hospitality sectors,” Centrix said.
Construction remains one of the hardest hit sectors, with 730 companies placed in liquidation in the past year, up 48% compared with the prior year.
