RBA's easing of interest rates over the last few months have helped ease the number of mortgage delinquencies across Australia, but many postcodes remain on the repayment blacklist.
According to a list released by credit ratings agency Fitch Ratings, overall mortgage delinquencies across Australia decreased to 1.2 per cent in September 2012, down from 1.6 per cent at end of March 2012.
Among the worst performers, Queensland topped the list with a delinquency rate of 1.41% and worst for borrowers more than 30 days behind on their mortgages. This was largely attributed to flood recovery and a tourism downturn.
However, the number was an improvement from 1.86% at end-March 2012. Most of the country's 10 worst performing regions were in Queensland.
Tourism centres in general topped the mortgage blacklist, led by the Gold Coast east.
Victorian homeowners are still the best payers in the nation. Five of the 10 best-performing regions were in Melbourne, the same number as March 2012.
Fitch also found that the regions southwest of Sydney, west of Melbourne, and south of Brisbane - where serviceability is key to mortgage performance - benefited most from the cuts.
For example, Ipswich (QLD) and Fairfield-Liverpool (NSW) had the largest decreases in 30+ day delinquency rates among all Australian regions since end-March 2012, with falls of 100bp to 1.71% and 1.82%, respectively - 2.5 times the national average decrease.
The report revealed Nelson Bay in NSW had been the worst-performing postcode in terms of value of mortgages in arrears in Australia since the report was first collated in 2007.
The October and December 2012 cash rate cuts are expected to benefit Australian mortgage performance in Q113, and offset seasonal Christmas spending.
The effect of interest rate movements is reflected in mortgage performance with a three- to four-month lag.
Regions in which serviceability is key to mortgage performance, such as New South Wales (NSW), are expected to benefit the most.
Following are the country's worst-performing suburbs with their 30+ day arrears. Courtesy: Fitch.Montrose (TAS) 3.2 per cent
Wilton (NSW) 2.9 per cent
Surfers Paradise (QLD ) 3.1 per cent
Nelson Bay (NSW) 2.8 per cent
Pacific Paradise (QLD) 2.3 per cent
Waterford (QLD) 2.3 per cent
Riverstone (NSW) 2.2 per cent
Crestmead/Marsden (QLD) 2.1 per cent
Helensvale (QLD) 2.1 per cent
Rooty Hill (NSW) 2.0 per cent
Green Valley (NSW) 2.0 per cent
Eagle Vale (NSW) 2.0 per cent
Tewantin, Noosa (QLD) 1.9 per cent
Victor Harbour (SA) 1.9 per cent
Broadbeach Waters (QLD) 1.9 per cent
Dallas (VIC) 1.9 per cent
Macquarie Fields (NSW) 1.9 per cent
Woy Woy (NSW) 1.9 per cent
Cessnock (NSW) 1.8 per cent
Armadale (WA) 1.8 per cent