Kiwis getting used to high interest rates but warned not to fix for long

Missed mortgage repayments still remain below the pre-Covid levels of 1.35% of December 2019 to stand at 1.27% of the active population in April, down from 1.31% in March, with 19,000 mortgages reported past due. 

However, mortgage arrears have risen 25% when compared to the same time last year.

Although mortgage borrowers’ budgets remained stretched, Centrix managing director Keith McLaughlin says there is some evidence pointing towards Kiwi households potentially starting to acclimatise to the new norm.

March data from the RBNZ shows non-performing housing loans were $1.085 billion, or 0.3% of banks’ non-performing loans. That is bank loans subject to late payment or unlikely to be repaid by the mortgage holder.