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.