Bloomberg News

Western Australia Leads Mortgage Arrears Improvement, Fitch Says

December 20, 2011

Dec. 20 (Bloomberg) -- Western Australia led an improvement in mortgage arrears across the country, boosted by a rebound in the state’s mining and tourism industries, Fitch Ratings said.

About 1.5 percent of home loans in the state were more than 30 days overdue, down from 1.99 percent in March, the ratings company said in an e-mailed report. One in four borrowers had cured their delinquency status in the six months, it said.

Western Australia has “experienced a rebound in both the tourism and mining industries and a slight improvement in employment over 2010 and 2011,” Fitch said in the report. “However, the property market in Western Australia may suffer additional volatility in case of downsizing, relocation or changes in the mining industry.”

Delinquencies across the country fell in September from six months ago as borrowers benefited from stable interest rates and the strength of the Australian economy.

Queensland state’s delinquency rate declined to 1.7 percent in September from 2 percent in March. About 1.55 percent of loans in New South Wales and 1.04 percent in Victoria state were more than 30 days overdue, according to the report.

--Editors: Linus Chua, Andreea Papuc

To contact the reporter on this story: Nichola Saminather in Sydney on nsaminather1@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net


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