In contrast, vehicle loan arrears increased to 5.8%, sitting 6% higher year‑on‑year, while personal loan arrears climbed to 9.8%. By comparison, “retail energy arrears fell to 4.7%” and telco arrears improved for a fifth straight month, easing pressure on some household budgets.
Business demand stabilises as liquidations spike
Business credit demand “edged slightly higher, rising 0.7% year‑on‑year”, led by hospitality (+38%), education and training (+17%) and retail trade (+13%).
But rising company failures show the recovery is far from complete. Centrix reports company liquidations are now at “their highest level since 2010”, with the sharpest increases in hospitality (+50%), retail trade (+34%) and transport (+27%).
Construction, manufacturing, and property/rental also recorded more liquidations, even as defaults and average credit scores improved in some areas. Agriculture was a notable bright spot, with liquidations down 11% year‑on‑year and stronger credit demand pointing to improving financial health.
For Kiwi mortgage advisers, the data underline the need to segment client books carefully in early 2026 – distinguishing households using lower rates to get ahead from those showing early arrears pressure, and watching SME‑heavy sectors where rising business failures could quickly spill over into personal financial stress.