Powered by MOMENTUM MEDIA
Mortgage business logo

WA leads nation for mortgage arrears

The number of home loans in arrears saw another increase during the first quarter of 2016, with Western Australia topping the nation.

According to the Standard and Poor’s (S&P) Performance Index, the percentage of prime mortgages more than 30 days in arrears increased to 1.13 per cent in the March quarter, up by more than 7 per cent from the same period a year ago.

“At 1.13 per cent, however, the percentage of mortgages in arrears is relatively low and remains well below the historical peak of 1.69 per cent in 2012,” S&P said.

Loan arrears increased in every state and territory during the quarter, with WA recording the highest percentage at 1.77 per cent, followed by Tasmania (1.51 per cent) and Queensland (1.42 per cent).

S&P noted the high arrears levels partly reflect the tougher economic conditions that these states face.

“Queensland and Tasmania have seen rises in unemployment, and Western Australia is dealing with the ongoing effects of a slowdown in mining investment,” the credit ratings agency said.

“New South Wales and the Australian Capital Territory continued to have the nation’s lowest levels of mortgage stress in Q1, with both below 1 per cent.”

[Related: Loan impairment hits five-year high for CBA]

Share this article
brokerpulse

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

brokerpulse graph

What are the main barriers to securing a mortgage at the moment?