Moody's has predicted mortgage arrears will level off in 2012, and says borrowers have the RBA to thank.
The ratings agency has indicated that arrears headed upwards over 2011, from 1.35% to 1.54%. But Moody's has said the RBA's rate cuts last year should keep arrears steady in 2012.
The RBA cuts should also put a floor under house prices. In spite of a decline over 2011, Moody's said house prices should stabilise over the year.
"The interest rate cuts and a strong economic environment will help stabilise prices, while limited supply will mitigate the likelihood of a downturn," Moody's said.
Though Moody's said it expected arrears to hold steady for 2012, it warned that areas such as the Sunshine Coast and Gold Coast could continue to see borrowers fall behind.
Rate reprieve sees arrears rollback