RBA Says Victoria Recorded Biggest Increase in Mortgage Arrears

Homeowners in Victoria and the state capital of Melbourne recorded the “most significant” increase in loan arrears among Australia’s regions during the period of strong inflation and elevated interest rates, the Reserve Bank said in a semi-annual report.

“In part, this reflects that a higher share of borrowers in Victoria have both larger loan sizes and smaller cash buffers than other states, which have made them slightly less resilient,” the RBA said in its Financial Stability Review released in Sydney on Thursday.