NSW home to nine of 10 most mortgage delinquent postcodes

New South Wales was home to nine of the 10 worst-performing postcodes for mortgage delinquencies over the June quarter, according to ratings agency Standard & Poors.

Postcode 2315 in Port Stephens  – also home to Corlette, Fingal Bay, Gan Gan, Nelson Bay and Shoal Bay – had the highest delinquency rate on mortgages in the June quarter, according to the report, RMBS Performance Watch: Australia.

Its rate of mortgage delinquencies more than 30 days overdue was 7.12% - more than five times the national average of 1.29%. That means roughly one in 14 mortgages are overdue in the postcode.

The area has historically featured strongly on the list of most mortgage delinquent suburbs.

In 2012 the area was identified by Fitch Ratings as being the most mortgage delinquent suburb though agents at the time blamed it on starry eyed holiday makers making poor investment choices.

It remained at the top of Fitch’s list this year as well.

The other eight NSW postcodes are a mixture of coastal areas and suburbs on the outskirts of Sydney.

Broadmeadows in Victoria came in at number nine.

Overall arrears declined from the previous quarter.

“The quarter-on-quarter decline may be attributed to the impact of lower interest rates and seasonal factors such as Christmas spending commonly associated with the Q1 arrears performance,” the report says.

Tasmania continued to record the highest level of mortgage arrears.

During quarter two, loans greater than 30 days in arrears in totalled 1.68% in Tasmania, 1.48% in New South Wales and 1.4% in Queensland.

The data is from residential mortgage-backed securities (RMBS) which are a means for lenders to raise funds by selling bundles of loans to investors. It involves a high proportion of non-bank originators and financial institutions and subprime and low-doc lenders.  

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The most recent mortgagee sale in postcode 2315 is a two bedroom unit at 42/1A Tomaree Street Nelson Bay (pictured above). After a 601 day marketing campaign which started at $355,000, it sold for $205,000 through Rebecca Dean from PRDnationwide.

The one bedroom unit at 4/18 King Street, Dallas, Vic 3047 (pictured below) is listed for mortgagee auction in the Broadmeadows postcode.

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