Ballaroo leads the top 10 locations in delinquent mortgages: S&P

Western Australia leads a countrywide rise in Aussies falling behind on home loan repayments, according to a report by credit rating firm S&P.

The percentage of home loans in arrears rose to 2.1 percent of mortgages in December 2016 from 1.5 percent a year earlier in WA, says the report on AAP.

The report analyses loans in Australian residential mortgage-backed securities transactions, which account for about 5 per cent of all outstanding home loans, but are considered representative of the broader market.

The resource-dependent states of WA and Queensland are home to eight of the 10 postcodes with the greatest portion of home loans in arrears in Australia, the report said.

"Higher unemployment, lower wage growth, and falling property prices are creating mortgage stress in WA, as evidenced by the state's higher arrears," Standard & Poor's said.

The agency said it does not expect the recent rise in commodity prices to significantly boost investment or employment in the resources sector.

"This means higher arrears in WA are likely to persist for some time, as the downturn in mining investment continues to take effect," it said.

NSW (0.86 per cent) and Victoria (1.08 per cent) had lower rates of mortgage arrears, helping to offset the higher rates experienced in states with more exposure to resources.

The national level of mortgages more than 30 days in arrears was 1.15 per cent in December, up from 1.14 per cent in September.

That is well below the historical peak of 1.69 per cent, and it is normal for the percentage of loans in arrears to rise in the last quarter of a year, Standard & Poor's said.

Postcodes with the highest percentage of mortgages in arrears

1. Ballaroo, Qld - 6.23 per cent
2. Alexandria, Qld - 5.42 per cent
3. Butler, WA - 5.12 per cent
4. Armstrong Beach, Qld - 5.07 per cent
5. Whyalla Norrie, SA - 4.91 per cent
6. Jimboomba, Qld - 4.71 per cent
7. Bucasia, Qld - 4 per per cent
8. Kurunjang, Vic - 3.99 per cent
9. Bayswater, WA - 3.99 per cent
10. Alexandra, Qld - 3.98 per cent

Property Observer found a few property listings in the Ballaroo, Qld (postcode 4455) but none marketed as mortgagee. 

A three-bedroom house at 28 Howard Street Roma is on the market for $285,000 with the ad saying the price is negotiable.

A four-bedroom house at 84 Hawthorne St, Roma is up for auction on March 25 and April 1.