These figures are up to the end of March.
The agency says this trend was accompanied by falling sales and rising listings in the home market.
It also blames inflation pressures, rate hikes and new lending restrictions.
Mortgages are not the only part of the lending industry to be affected. Demand for consumer credit remains down year-on-year, by 9% til March.
“Omicron and inflation pressures appear to have hit consumer confidence, with many Kiwis uncertain about the future of Omicron and the long-term expectations for discretionary spending,” Centrix wrote
Another factor was falling foot traffic in main city centres because of self-imposed isolation and remote working practices.
The Buy Now Pay Later (BNPL) sector and bank lending were the hardest hit, while auto finance retained its level.
The agency as usual made special mention of the Credit Contracts and Consumer Finance Act (CCCFA).
It said since that act came into effect in December, conversion rates had dropped for all major loan types.
“Lenders appear to have rejected 5% of new applicants who would have qualified in November,” Centrix wrote.
“Hardest hit are credit card applications, which have seen the sharpest drop in approvals in the last 3 months.”
The CCCFA is under review and a draft version of the first tranche of proposed reforms has just been published by the Ministry of Business Innovation and Employment.
