Centrix chief operating officer Monika Lacey (pictured) said the improvement reflects a genuine shift in household finances.
“This suggests many borrowers are in a stronger position than they were a year ago, helped by lower mortgage rates and a gradual easing in repayment pressure,” Lacey said.
That said, the recovery isn’t universal. Some 89,000 consumers remain 90 or more days overdue, with renters accounting for 74,000 of those cases, a reminder that stress is concentrated among households without home equity to fall back on.
Lending cools despite renewed mortgage interest
Credit demand overall softened, down 5.3% year-on-year in June, as households pulled back on discretionary borrowing: credit card demand fell 14.3% and Buy Now Pay Later demand dropped 18.7%. Mortgage enquiries bucked the trend, rising 12.5%, alongside an 8.8% lift in auto loan demand, a sign borrowers remain engaged with larger, purpose-driven credit even as smaller-ticket spending cools.
Looking at the broader May quarter, approved new mortgage lending fell 2.4% compared with a year earlier, suggesting fewer borrowers are refinancing with a new provider and purchasers are taking longer to weigh affordability before committing.