Overdue mortgages rise 40pc says Westpac

Overdue Westpac mortgages from New Zealand homeowners rose 40 per cent in the three months to December 31, figures from the bank showed yesterday.

In its quarterly trading update, Westpac Banking Group said the proportion of its New Zealand mortgage loans 90 days or more in arrears rose by 40.4 per cent during the December quarter to 0.66 per cent.

The bank said this indicated "signs of increasing stress as economic conditions deteriorate".

Westpac had just over $31 billion worth of New Zealand housing loans at the end of the September quarter.

In Australia 90 days past due home loans rose by 19.4 per cent to 0.44 per cent which was "in line with cycle, but still relatively benign".

Across the Australasian group, bad and doubtful loans were up A$930 million ($1.16 billion) with 9 per cent of that "mostly New Zealand" mortgages.

To read the full NZ Herald article click here

Posted: 19 Feb 2009

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