Mining states hit hardest by mortgage delinquencies

Adam Smith 24 March 2017

broke no money1A rise in WA in the number of people behind on their mortgages has driven a nationwide increase in delinquencies.

A report by ratings agency Standard & Poor’s has found the percentage of WA home loans in arrears has risen from 1.5% in December 2015 to 2.1% in December 2016, the Australian Financial Review has reported.

“Higher unemployment, lower wage growth and falling property prices are creating mortgage stress in WA, as evidenced by the state’s higher arrears,” S&P said.

According to the AFR, resources-dependent states suffered some of the worst performance. Western Australia and Queensland accounted for eight of the 10 postcodes with the highest proportion of arrears in Australia. Moreover, S&P said recent commodity price rises were unlikely to bolster investment or employment in the mining sector.

“This means higher arrears in WA are likely to press for some time, as the downturn in mining investment continues to take effect,” the ratings agency said.

Refinancing a home loan in arrears

The national proportion of home loans in arrears edged up slightly as a result of the rise in WA delinquencies, climbing to 1.15% in December from 1.14% in September. New South Wales and Victoria, despite their pricey property markets, saw the lowest occurrence of arrears, at 0.86% and 1.08%, respectively.

Latest home loans headlines

Image: Shutterstock

More help from

Ask a Question

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the privacy policy, receive follow up emails related to and to create a user account where further replies to your questions will be sent.

Ask a question