56 Aus regions where mortgage arrears are worse than average

1 day ago 5

Cragieburn VIC has the worst arrears level in the country according to S & P Global figures.

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.

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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.

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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.

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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.”