Non-performing housing loans up, monthly mortgage arrears down
In the loans by asset quality RBNZ figures, non-performing loans rose by 7.8% - a year-on-year increase of $797 million. This is the second biggest monthly rise since June 2020.
Since mortgage rates started rising in the second half of 2021 and household finances have taken a hit, non-performing loans have risen, although they are not at historically high levels.
In the same figures non-performing commercial loans fell $7 million or 1.4%, bringing the NPL (non performing loans) ratio to 1.09%, while non-performing loans for SMEs rose $8 million or 0.8%, leaving the NPL ratio at 1.19%.
Mortgage applicants cautious
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