Mortgage stress to double by early 2025 – RBNZ’s financial stability report

Mortgage burdens are mounting. (Image: Getty)

Wed, 01 Nov 2023

The Reserve Bank (RBNZ) warns mortgage stress is set to shoot up from relatively low levels, as high interest rates bite.The banking regulator forecasts the portion of banks’ housing lending deemed “non-performing” will almost double by early 2025.Non-performing lending includes loans that are more than 90 days past due, or impaired – meaning the bank believes the borrower won’t meet their repayment obligations.A silver lining is that the financial system is relatively strong and should be able to weather the storm...

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