Stable interest rates saw mortgages arrears levels decline through the middle of this year, according to Fitch Ratings.
Figures released to the market yesterday show that arrears were down to 1.42% of all mortgages in September, after being recorded in May this year at 1.77%.
The ratings house put the improvement down to a stable interest rate environment during the period.
While overall mortgage delinquency levels improved in all states, localities still doing it tough included Sydney's south-western suburbs, the NSW Central Coast and the Gold Coast in Queensland.
The south-west of Western Australia was likewise still among the regions with higher delinquencies, and tourism destinations in coastal locations were increasingly in arrears.
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Borrowers breathing easier as arrears fall