Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Owner-occupiers spur improvement in arrears

house coins ta house coins ta
Reporter 4 minute read

National home loan delinquencies have improved, with only three states reporting arrears increases, according to the latest data from S&P.

S&P Global Ratings has released its latest RMBS Arrears Statistics, reporting that over 30-day delinquencies across Australia’s residential mortgage portfolio fell from 1.41 per cent in August to 1.36 per cent in September.

Arrears fell in all but three states, with the sharpest decline in Queensland, where delinquencies fell by 8 bps in September.

Conversely, Tasmania reported the sharpest increase in delinquencies, up 7 bps over the same period.


Overall, delinquencies remained highest in Western Australia (2.79 per cent), followed by the Northern Territory (2.69 per cent), Queensland (1.71 per cent), South Australia (1.43 per cent), Victoria (1.26), Tasmania (1.22 per cent), NSW (1.21 per cent) and the ACT (0.98 per cent).

S&P reported that the improvement in national arrears was most pronounced across owner-occupied mortgages, with delinquencies underlying such loans falling to 1.58 per cent in September, down from 1.61 per cent in August.  

Meanwhile, arrears underlying investor loans remained unchanged at 1.38 per cent during the month of September.

S&P noted that the divergence in arrears trends across the owner-occupied and investor segments reflected “the different pace in credit growth for the two sectors”, with housing credit growth remaining “relatively stable” for owner-occupiers, while being “more subdued” for investors.

However, S&P also reported that non-conforming mortgage arrears increased in September, rising to 3.89 per cent from 3.47 per cent in August, which it said was most evident in mortgages 31-60 days in arrears.


S&P attributed the increase in delinquencies underlying non-conforming home loans to the effects of softening economic conditions, due to higher portfolio exposure to borrowers of a lower credit quality.

[Related: First home buyer activity spikes ahead of deposit scheme]

Owner-occupiers spur improvement in arrears
house coins ta
TheAdviser logo

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

house coins ta


more from the adviser
Blake Albones Bank announces new head of home lending distribution

MyState Bank has hired the CEO of RateOne and former NAB head of ...

Sydney Sydney mayor launches business support, calls for JobKeeper

Sydney’s mayor has urged the federal government to resurrect Jo...

mortgage payments money Banks accused of bias against BNPL in lending process

An executive from buy now, pay later provider Zip has echoed repo...