Mortgage arrears also fell, slightly, with 400 fewer in February than in January.
There were 23,000 home loans reported past due in February, or 1.55% of the active population.
“The annual rate of growth has eased in recent months, indicating that early arrears have now stabilised, with new mortgage lending up 22% year on year,” Centrix managing director Keith McLaughlin said.
“Looking at the latest New Zealand credit insights, green shoots of optimism can be observed.”
Financial hardship cases remain 16% higher year on year, despite the rate of increase easing in February.
“While this shows the current economic climate is continuing to bite, it is positive to see individuals taking proactive steps to front-foot financial hardship with lenders,” McLaughlin said.
Business liquidations remain higher
Company liquidations are up 37% year on year, with 236 liquidations in February 2025 compared with 192 in February 2024, Centrix said.
In February, the construction sector accounted for 31% of insolvencies, followed by hospitality (12%) and property (10%).
Residential building construction, property operators, and cafe/takeaway food companies were the most common types of businesses to be placed into liquidation during the past year.
The agriculture sector also faces its challenges, with liquidations up 20% over the past year.
“Signs of recovery across the sector are emerging, however, with growers, dairy and livestock farmers seeing positive trends in recent months as strengthening export returns support national economic recovery,” Centrix said.
“Meanwhile, the forestry and logging sectors continue to face challenges due to lower demand.”
Business credit defaults also rose 18% year on year across all sectors. This was led by the transport and construction industries, up 38% and 35% respectively.