17/12/2015 - 14:10

WA borrowers struggle with repayments

17/12/2015 - 14:10

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Western Australians are falling behind on their mortgage repayments at a higher rate than borrowers in any other state, according to new Reserve Bank of Australia data.

WA borrowers struggle with repayments
Just over 3 per cent of WA homeowners with mortgages have fallen behind on their repayments

Western Australians are falling behind on their mortgage repayments at a higher rate than borrowers in any other state, according to new Reserve Bank of Australia data.

RBA assistant governor financial markets Guy Debelle said borrowers in NSW had the lowest rate of home loans in arrears or in default, while WA had the highest.

The findings are based on new data acquired by the RBA that measures the value of loans on around 2 million homes, about one-third of mortgaged properties in Australia.

Mr Debelle said it was perhaps not surprising that WA had the highest value of loans in arrears or in default, given the figures were consistent with recent economic performances of the states.

He tempered the news by noting the overall arrears rate was actually fairly low.

According to the RBA, about 3.1 per cent of home loans in WA are in arrears or in default.

About 1.9 per cent are in arrears of up to a month, about 0.5 per cent are in arrears of between one and two months, about 0.25 per cent are in arrears of between two and three months, and about 0.5 per cent are in arrears of more than three months or in default.

Tasmanian homeowners had the second highest rate of loans in arrears or in default, at just under 3 per cent, followed by next highest Queensland, then South Australia and Victoria.

NSW recorded the lowest rates of loans in arrears or in default at about 2.2 per cent.

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