New industry data reveals New Zealand mortgage arrears have climbed to an eight-year high, reaching 1.58% in March and affecting more than 24,000 households, highlighting the financial pressure facing many homeowners. As interest rates begin to ease, the continued rise in arrears signals a growing need for timely, transparent, and tailored financial support across the lending sector.
“Rate cuts alone aren’t always enough to stop arrears from mounting,” says Murray Greig, Managing Director of Loansmart. “Borrowers need more than just speed of service, they need honest advice and tailored solutions that truly meet their individual needs.”
Debt Consolidation Solutions To Help Mortgage Arrears
Loansmart provides an example of how a consolidation loan can help clear mortgage arrears, and provide some breathing room. Samantha (not her real name) first approached Loansmart thinking she needed just a $1,000 top-up to tidy up a few bills. However, their advisers’ careful review uncovered that she was actually $23,000 behind on her mortgage and owed $6,000 in overdue rates. Recognising the urgency, they arranged a $40,000 caveat loan secured against her home that not only cleared her mortgage arrears and rates but also rolled her smaller debts into one single, manageable repayment. By tailoring a solution to her exact circumstances, Samantha had breathing room and simplicity she needed to get back on track.
“Our Loan of the Month highlights exactly what we do best,” Greig explains. “We move fast, we keep it fair, and we keep it simple so families aren’t left juggling multiple arrears accounts.”
Fast, Transparent, and Tailored
When people are under some degree of financial stress, they often need fast, practical solutions. Online lending makes this possible. Loansmart’s fully digital application takes just minutes, with approvals in as little as one hour. Once approved, funds can be deposited the same day. By comparing multiple lenders and loan products on each client’s behalf, Loansmart cuts through the confusion that can lead to sub-optimal borrowing decisions.**
“We aren’t tied to one lender,” says Greig. “Our independence lets us negotiate the best terms—whether that’s extending a term out to 84 months to lower weekly payments, merging several arrears balances into one, or finding a specialist low-rate lender for those in genuine hardship.”
People-First, Always
While many lending providers focus on numbers, it’s important to find a company that prioritises people. “When someone falls behind on their mortgage, it’s not just a balance on a screen; it’s the roof over their family’s head,” observes Greig. “We treat every application with empathy and integrity, and we never charge hidden fees or push products that don’t serve the client’s long-term interest.”
Whether clients are dealing with mortgage arrears, navigating debt consolidation, or need a top up loan, Loansmart urges borrowers to take the time to find the right company to help them find smarter solutions that benefit them in the long run.
About Loansmart
Loansmart is New Zealand’s leading online loan broker, specialising in fast, affordable, and personalized lending solutions. By partnering with a broad network of low-cost, responsible lenders, Loansmart helps thousands of Kiwis each year overcome financial hurdles and secure a sustainable repayment plan.
For more information or to see the latest Loan of the Month, visit www.loansmart.co.nz or call 0800 LOANSMART.
*Subject to responsible lending checks and criteria.
