Problem mortgage stockpile grows

While the country’s mortgage stock rose by $1.9 billion in March, the number of problem mortgages also rose by $61 million to $2.4 billion and withdrawals from KiwiSaver on hardship grounds reached a record monthly high.

Of the total $368.5 billion in outstanding bank mortgages, non-performing housing loans increased in March to $2,412 million month-on-month and $648 million or 36.7% year-on-year, Reserve Bank data show.

Over the first quarter of this year problem mortgages rose by 11.5%.

While nowhere near the 1.2% high of non-performing loans to outstanding mortgage stock during the GFC period, the percentage last month still crept up to 0.7%. The last time it was this high was in 2013.

Loans that are impaired have risen to $504 million, increasing by about a quarter over the past six months, and mortgages 90 days past due but not impaired sit at $1.9 billion.

Housing lending stock increased by $1.9b in March, the biggest monthly growth since December 2021. It is the seventh consecutive month it has risen, up from 4.4% to 4.6%.

Lending to residential investors, who have been waiting more than three years for the market to improve, rose by $597 million or 0.6% in March, the highest monthly increase since April 2021 when the housing boom was in full swing.

Owner occupier lending increased by $1.3 billion or 0.5%.

New high for KiwiSaver withdrawals

Meanwhile early KiwiSaver withdrawals topped $225 million during March, IRD figures show.

According to IRD data 9,170 KiwiSaver members withdrew a total of $225,483,431 during March.

Just over 4,100 people withdrew $181.1 million to buy homes – a new monthly high at $32 million above February and $37.4 million more than a year ago.

Nearly 4,980 people in financial hardship took out $44.3 million, the second highest ever monthly withdrawal level. Withdrawals were up $7.3 million compared to February and $15 million more than a year ago.

The previous monthly record for early KiwiSaver withdrawals was in November last year when over $222 million was withdrawn.