Report reveals the town with Australia's worst mortgage delinquency rate

By |
Strong house price growth and current low interest rates have helped to bring down Australia’s mortgage delinquency rate over the 12 months to the end of March.

According to Fitch Rating’s Australian Mortgage Delinquency by Postcode report released today, Australia’s average national delinquency rate at 31 March was 0.99%, 0.36% lower than it was at 31 March 2014.

While the national rate may be down over the 12 month period, it did increase over the six months from the end of September 2014 when it sat at 0.9%.

That increase is likely the result of overspending by households during the Christmas period, but that was tempered by low interest rates and climbing dwelling values.

Sydney in particular has benefitted from the rising house prices, with the historically poor performing areas in the west of the city not experiencing the usual deterioration in mortgage delinquency rates caused by Christmas spending.

The report shows there is new location with the worst delinquency rate by the value of mortgages in arrears as of 31 March 2015, with Budgewoi in the 2262 post code on the New South Wales Central coast recording a delinquency rate of 3.2%.

Budgewoi’s rise to the top of the list saw the previous worst performer, Queensland’s Kingston in the 4114 post code drop to second with a delinquency rate of 3%.

Queensland also claims second spot on the list with Petrie (4502) recording a delinquency rate of 2.8%.

Victoria’s Corio (3214) claimed fourth spot at 2.7%, while Greenacre in NSW came in at fifth at 2.6%.

Source: Fitch Rating’s Australian Mortgage Delinquency by Postcode - March 2015

On a regional basis Queensland’s Mackay is the country’s worst performer with a delinquency rate of 2.01%, followed by WA (excl. Perth) at 1.88%.

Melton-Wyndham (VIC) is the next worst performing region at 1.75%, followed by Logan City-Beaudesert (QLD) and Caboolture Shire (QLD) at 1.71% and 1.59% respectively.

Tasmania replaced Queensland as the worst performing state in Australia for mortgage repayments with a delinquency rate of 1.33%. This figure reflects Tasmania’s high unemployment rate and low house appreciation over the past three years.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Top Suburbs : nightcliff , keperra , st peters , freshwater , cardiff south

go back

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here