PHOTO: The Reserve Bank shows $2.6 billion worth of loans remain deferred. Photo: 123rf
Mortgage arrears have risen for the second month in a row in November.
Data from the central credit reporting agency Centrix shows there are now 15,000 mortgages in arrears, up 2000 from September.
When the pandemic first struck concessions were made to allow retail banks to defer mortgage payments for customers in hardship, although interest still accrued on the balance.
Of those who took up the deferral option, 80 percent had come off, however Reserve Bank data showed $2.6 billion worth of loans remained deferred.
Centrix chief executive Keith McLaughlin said those customers were likely the ones doing it tough.
“From our perspective, the concern leading into March is what’s going to happen to the other 20 percent deferred mortgages because that’s probably the most hard-hit consumers out there that are still on the scheme.
“We know that it’s probably a 2-3 percent higher chance of them defaulting than any other mortgage.”
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