A key positive sign includes an 11,000 decrease in consumers in arrears month-on-month, suggesting a tentative improvement in the credit cycle.
Mortgage sector stabilises
Following recent RBNZ rate cuts that lowered mortgage rates, the mortgage sector saw improvements with a 400 decrease in past due mortgages, now totalling 23,000.
This marks a stabilisation in early arrears, complemented by a 22% increase in new mortgage lending year-on-year.
Consumer credit demand has also remained steady through the first quarter of 2025, with mortgage applications for new homes up by 13% compared to last year.
Additionally, there has been a notable rise in credit card applications, retail energy, and personal loans.