56 Aus regions where mortgage arrears are worse than average

Alarming new figures behind Australia’s mortgage crisis show 56 regions are experiencing distress levels exceeding the national average, covering hundreds of suburbs.

The latest S & P Market Overview for the first quarter of 2025 found the national average for home loan repayment arrears of more than a month was 0.97 per cent as of March – a figure exceeded by 56 SA4 regions.

MORE: Secret tactics of dodgy agents exposed

Shock twist as former Virgin CEO to tear down $17m mansion

Scroll down for full list of SA4 regions with arrears exceeding national average

Arrears levels across the country as of March 2025. Source: S & P Global.

MORE: Shock: Brisbane prices to smash Sydney

Australia’s biggest political property moguls revealed

This as four states/territories also topped the national arrears level led by Victoria’s 1.17pc, Northern Territory 1.01pc, and New South Wales 1.07pc with Australian Capital Territory on 1.29pc off a smaller, more volatile base; while four others were below national average – Tasmania (0.58pc), South Australia (0.74pc), Queensland (0.71pc), and Western Australia (0.86pc).

There was a silver lining thanks to rate cuts put in by the Reserve Bank, only one of which would have impacted the data.

S & P Global said “arrears are likely to remain low with interest rate cuts in play and inflation coming down”.

“Heightened global uncertainty and its effect on global trade and supply chains, will have downstream impacts on business and consumer confidence, affecting investment and consumer spending decisions.”

But it added “households are likely to behave more cautiously, electing to save or paydown mortgages over spending. This will help to keep arrears low.”

NSW has over 20 regions where arrears are above national average.

MORE: Theme park legend’s crypto hideaway hits the market

Zac Efron’s Aussie long lunch haunt is on the market

The top 10 worst postcodes for mortgage arrears were named, shockingly half of them were in Victoria – with the worst about three times national average.

1. Cragieburn, VIC (3064): 3.10pc

2. Caroline Springs, VIC (3023): 2.81pc

3. Bateau Bay, NSW (2261): 2.78pc

4. Narre Warren, VIC (3805): 2.59pc

5. Liverpool, NSW (2170): 2.44pc

6. Carrara, QLD (4211): 2.20pc

7. Pakenham, VIC (3810): 2.11pc

8. Melton South, VIC (3338): 2.07pc

9. Blacktown, NSW (2148): 2.02pc

10. Campbelltown, NSW (2560): 1.94pc

S&P Global does expect unemployment to rise this year which will impact arrears levels, but forecasts it will remain below prepandemic levels.

“Interest rate cuts will ease debt serviceability pressures. But we believe they won’t make a material difference to overall arrear levels because they’re likely to be gradual. These factors will enable most households to remain current on their mortgages.”

Mortgage pressure is expected to ease with interest rates falling, allowing more households to stay current on repayments.

MORE: Buyer of $12m mansion plans to give it away

Culture Kings founders’ bold $30m push

SA4 REGIONS WITH ARREARS ABOVE AUS AVERAGE:

VICTORIA

Melbourne – North West, VIC: 2.88pc

Shepparton, VIC: 2.63pc

Melbourne – South East, VIC: 2.04pc

Melbourne – North East, VIC: 2.03pc

Latrobe – Gippsland, VIC: 2.01pc

Ballarat, Vic: 1.94pc

Melbourne – West, Vic: 1.86pc

Melbourne – Outer East, Vic: 1.77pc

Hume, Vic: 1.69pc

Mornington Peninsula, Vic: 1.63pc

Geelong, Vic: 1.54pc

Warrnambool and South West Vic, Vic: 1.51pc

Melbourne – Inner South, Vic: 1.24pc

Melbourne – Inner, Vic: 1.06pc

NSW

Riverina, NSW: 2.77pc

Sydney – South West, NSW: 2.05pc

Sydney – Inner South West, NSW: 2.00pc

Richmond – Tweed, NSW: 1.89pc

Sydney – Parramatta, NSW: 1.73pc

Sydney – Outer South West, NSW: 1.72pc

Central Coast, NSW: 1.68pc

Capital Region, NSW: 1.60pc

Southern Highlands and Shoalhaven, NSW: 1.57pc

Sydney – Blacktown, NSW: 1.56pc

Hunter Valley exc Newcastle, NSW: 1.55pc

Sydney – Outer West and Blue Mountains, NSW: 1.49pc

Sydney – Baulkham Hills and Hawkesbury, NSW: 1.42pc

Sydney – Inner West, NSW: 1.42pc

Far West and Orana, NSW: 1.36pc

Central West, NSW: 1.31pc

Illawarra, NSW: 1.29pc

Mid North Coast, NSW: 1.22pc

Coffs Harbour – Grafton, NSW: 1.21pc

Far West and Orana, NSW: 1.05pc

QLD

Queensland – Outback, Qld: 2.16pc

Logan – Beaudesert, Qld: 1.54pc

Mackay, Qld: 1.31pc

Sunshine Coast, Qld: 1.24pc

Fitzroy, Qld: 1.15pc

Cairns, Qld: 1.13pc

Gold Coast, Qld: 1.11pc

Moreton Bay – North, Qld: 1.10pc

Townsville, Qld: 1.05pc

Wide Bay, Qld: 1.04pc

SA:

Barossa – Yorke – Mid North, SA: 1.42pc

Adelaide – North, SA: 1.35pc

South Australia – South East, SA: 1.27pc

Adelaide – Central and Hills, SA: 1.11pc

WA:

Perth – North East, WA: 1.26pc

Western Australia – Wheat Belt, WA: 1.26pc

Mandurah, WA: 1.23pc

Perth – North West, WA: 1.14pc

Perth – South West, WA: 1.13pc

TAS:

Hobart, Tas: 1.26pc

West and North West Tas, Tas: 1.13pc

NT

Northern Territory – Outback, NT: 2.08pc

Darwin, NT: 1.04pc

ACT:

Australian Capital Territory, ACT: 1.29pc

MORE REAL ESTATE NEWS

The post 56 Aus regions where mortgage arrears are worse than average appeared first on realestate.com.au.