Its numbers for January show the demand for new mortgages is down 26.2% compared with the same period a year earlier.

This is because fewer people are buying houses and their mortgages are lower. And more people who already have loans are having trouble meeting their payments.

This fall-off has happened despite other forms of credit rising.

For example, the demand for personal loans spiked in December and remained high into January, with a 14.5% year-on-year increase,

Centrix put that down to the desire of people to maintain spending during difficult times.

This resort to borrowed money to cover a period of difficulties has, however, come at a cost, according to Centrix.

It said credit arrears were up across the board as more people struggled to meet their repayment obligations across a range of products.

“While this level is similar to pre-pandemic figures in 2019 and still low by historic standards, the broader economic landscape is vastly different in 2023,” the Centrix analysis said.

It found more than 400,000 New Zealanders were behind on repayments in December 2022. That was 11.3% of the active credit population. This affected Buy Now Pay Later and credit card arrears as well as motor vehicle debt.

But mortgage arrears were the most significant, according to Centrix.

It said the number of home loans with missed repayments had also crept up to 1.17% of mortgages in December, the largest proportion for almost a year.

“This is significant, because New Zealanders are historically very good at managing their debts,” said Centrix Managing Director Keith McLaughlin.

He added there were currently 17,200 mortgage accounts with overdue payments.

McLaughlin said other things played a part in this, such as inflation at 7.2% annually.

“Furthermore, electronic retail spending fell $166 million in December 2022 - a telling sign of where consumer confidence is heading for 2023,” McLaughlin said.