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Mortgage arrears fall significantly in NSW

Mortgage arrears fall significantly in NSW

The proportion of residential loans more than 30 days in arrears has dropped to its lowest level since 2005 in New South Wales, according to new data released by Moody’s Investors Service.

NSW saw the biggest decline Australia-wide for its 30-plus delinquency rate in the 12 months to November 2015 – down 0.17 per cent to 0.85 per cent.

In addition to the supportive housing market, Moody’s said mortgage performance in NSW has benefitted from prevailing economic and labour market conditions.

“Low interest rates and a weaker Australian dollar have led to a pick-up in housing, higher education, tourism, and agriculture,” it said.

Queensland was the only other state or territory to experience a fall in its 30-plus delinquency rate – down 0.04 per cent to 1.37 per cent.

Meanwhile, Tasmania recorded the biggest rise in its 30-plus delinquency rate over the 12-month period, with an increase of 0.56 per cent to 1.68 per cent.

The Northern Territory’s delinquency rate increased by 0.49 per cent to 0.98 per cent, while Western Australia’s rose by 0.48 per cent to 1.71 per cent – the highest 30-plus delinquency rate in Australia.

South Australia’s delinquency rate rose by 0.09 per cent to 1.63 per cent, followed by the ACT (up 0.06 per cent to 0.82 per cent) and Queensland (up 0.01 per cent to 1.19 per cent).

[Related: RMBS arrears and defaults to rise, says Moody's]

Mortgage arrears fall significantly in NSW
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