Australian Mortgage Delinquency by Postcode 30 September 2011

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Structured Finance www.fitchratings.com 19 December 2011 RMBS/Australia Australian Mortgage Delinquency by Postcode 30 September 2011 Special Report Key Findings General Fall in Delinquencies: Overall, delinquencies have decreased considerably across Australia to 1.42% in September 2011 from 1.77% in March 2011. Western Australia has shown a significant improvement in arrears, recording a 1.50% delinquency rate by AUD amount, down 49bp from 1.99% in March 2011. Queensland continues to be the worst performing state in terms of 30+ day arrears (1.70%), down 30bp from 2.00% in March 2011. Worst Performers Improving: The ten worst performing regions in Australia are the same as in March 2011. However, delinquency rates have decreased across all of these regions. Regions which have shown strong sensitivity to mortgage rates, due to socio-economical factors (eg high unemployment rate, low income) have benefited most from stable cash rates. Positive Signals: Fairfield-Liverpool continues to be the worst performing region in Australia, but 30+ day arrears decreased to 2.63% in September 2011 (from 2.99% in March 2011). South-west Western Australia has shown a significant improvement in mortgage performance, with arrears decreasing by 76bp to 2.17%. Northern Middle Melbourne is currently the best performing region in Australia by value (30+ day arrears at 0.54%), followed by Lower Northern Sydney (0.56%). Tourism Destinations Struggling: Nelson Bay remains the worst performing postcode overall by loan amount, recording a delinquency ratio of 7.8%. An increasing number of the 20 worst performing suburbs in Australia are located in “tourism destinations” such as Arlie Beach, Noosa Heads, Surfers Paradise and Nelson Bay. Figure 1 Australia – 30+ Day Delinquencies 0.00% To 0.47% 0.47% To 0.95% 0.95% To 1.42% 1.42% To 1.89% 1.89% To 2.36% >2.36% 1 Northern QLD 1.34 2 Mackay 1.81 3 Fitzroy 1.31 4 Wide Bay-Burnett 1.92 5 Sunshine Coast 1.87 6 Darling Downs 1.60 7 Richmond-Tweed 1.69 8 North NSW 2.01 9 Hunter 2.03 10 Illawarra 1.70 11 South East NSW 1.41 12 ACT 0.65 13 Murray Murrumbidgee 1.58 14 Mallee,Wimmera & Loddon1.27 15 Western VIC 1.17 16 Barwon 0.98 17 Goulburn & Ovens Murray 1.34 18 Gippsland 1.09 Western Australia (excl Perth) 1.84 Northern Territory 0.75 1.67 South Australia (excl. Adelaide) 1.83 North West NSW 1.47 Tasmania 1.12 Far North and West 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 5 Source: ABS, Fitch South West WA 2.17 Key Points Thanks to stable interest rates, delinquencies have decreased at state and regional level Tourism destinations” are now among the worst performing suburbs in Australia Western Australia is showing a significant improvement in delinquencies, thanks to the rebound in the mining sector Related Research Australian Mortgage Delinquency by Postcode 31 March 2011 (March 2011) The Dinkum Index Q311, Fitch Ratings’ Quarterly Australian Residential Mortgage Performance Report (Dec 2011) Analysts James Zanesi +61 2 8256 0306 [email protected] Natasha Vojvodic +61 2 8256 0350 [email protected] Kim Bui +61 2 8256 0340 [email protected] Investor Relations Vickie Brumwell +61 2 8256 0305 [email protected]

Transcript of Australian Mortgage Delinquency by Postcode 30 September 2011

Page 1: Australian Mortgage Delinquency by Postcode 30 September 2011

Structured Finance

www.fitchratings.com 19 December 2011

RMBS/Australia

Australian Mortgage Delinquency by Postcode 30 September 2011

Special Report

Key Findings

General Fall in Delinquencies: Overall, delinquencies have decreased considerably across

Australia to 1.42% in September 2011 from 1.77% in March 2011. Western Australia has

shown a significant improvement in arrears, recording a 1.50% delinquency rate by AUD

amount, down 49bp from 1.99% in March 2011. Queensland continues to be the worst

performing state in terms of 30+ day arrears (1.70%), down 30bp from 2.00% in March 2011.

Worst Performers Improving: The ten worst performing regions in Australia are the same as

in March 2011. However, delinquency rates have decreased across all of these regions.

Regions which have shown strong sensitivity to mortgage rates, due to socio-economical

factors (eg high unemployment rate, low income) have benefited most from stable cash rates.

Positive Signals: Fairfield-Liverpool continues to be the worst performing region in Australia,

but 30+ day arrears decreased to 2.63% in September 2011 (from 2.99% in March 2011).

South-west Western Australia has shown a significant improvement in mortgage performance,

with arrears decreasing by 76bp to 2.17%. Northern Middle Melbourne is currently the best

performing region in Australia by value (30+ day arrears at 0.54%), followed by Lower Northern

Sydney (0.56%).

Tourism Destinations Struggling: Nelson Bay remains the worst performing postcode overall

by loan amount, recording a delinquency ratio of 7.8%. An increasing number of the 20 worst

performing suburbs in Australia are located in “tourism destinations” such as Arlie Beach,

Noosa Heads, Surfers Paradise and Nelson Bay.

Figure 1

Australia – 30+ Day Delinquencies0.00% To 0.47%

0.47% To 0.95%

0.95% To 1.42%

1.42% To 1.89%

1.89% To 2.36%

>2.36%

1 Northern QLD 1.34

2 Mackay 1.81

3 Fitzroy 1.31

4 Wide Bay-Burnett 1.92

5 Sunshine Coast 1.87

6 Darling Downs 1.60

7 Richmond-Tweed 1.69

8 North NSW 2.01

9 Hunter 2.03

10 Illawarra 1.70

11 South East NSW 1.41

12 ACT 0.65

13 Murray Murrumbidgee 1.58

14 Mallee,Wimmera & Loddon1.27

15 Western VIC 1.17

16 Barwon 0.98

17 Goulburn & Ovens Murray 1.34

18 Gippsland 1.09

Western

Australia

(excl Perth)

1.84

Northern

Territory

0.75

1.67

South

Australia

(excl. Adelaide)

1.83

North West NSW 1.47

Tasmania

1.12

Far North and West

1

2

34

67

8

9

1011 12

1314

15

16

1718

5

Source: ABS, Fitch

South

West WA

2.17

Key Points

Thanks to stable interest rates,

delinquencies have decreased at state and

regional level

“Tourism destinations” are now among the

worst performing suburbs in Australia

Western Australia is showing a significant

improvement in delinquencies, thanks to

the rebound in the mining sector

Related Research Australian Mortgage Delinquency by Postcode – 31 March 2011 (March 2011)

The Dinkum Index – Q311, Fitch Ratings’ Quarterly Australian Residential Mortgage Performance Report (Dec 2011)

Analysts James Zanesi +61 2 8256 0306 [email protected] Natasha Vojvodic +61 2 8256 0350 [email protected] Kim Bui +61 2 8256 0340 [email protected] Investor Relations Vickie Brumwell +61 2 8256 0305 [email protected]

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Australian Mortgage Delinquency by Postcode

December 2011 2

Regional Highlights

In terms of mortgage performance, those regions which have shown strong sensitivity to

mortgage rates due to socio-economical factors (eg high unemployment rate, low income

households) and which were affected most in March 2011 by Christmas spending and

increased interest rates have also benefited the most from stable cash rates.

Figure 2

0.0

0.5

1.0

1.5

2.0

Sep 00 Sep 01 Sep 02 Sep 03 Sep 04 Sep 05 Sep 06 Sep 07 Sep 08 Sep 09 Sep 10 Sep 11

0

2

4

6

8

90+ days 30+days Cash rate(%)

The Fitch Dinkum Index RMBS delinquencies

Source: Fitch

(%)

South west Sydney, Melton-Hume in Victoria, and Logan City in Queensland have shown an

above average improvement in 30+ day arrears. However, these regions continue to be among

the “worst performing” regions in their respective states. Fairfield-Liverpool continues to be the

worst performing region in Australia, with one mortgage in 60 being in arrears and a 30+ day

delinquency rate of 2.63%.

Other regions labelled as “worst performing” — such as the Gold Coast in Queensland and the

Central Coast north of Sydney — have not shown the same degree of improvement in arrears,

as these regions were less affected by socio-economical variables. These regions tend to have

above average 90+ day arrears, indicating delinquencies in these areas are more severe, and

are often related to a slow down in the housing sector.

Nelson Bay remains the worst performing postcode overall by loan amount — recording a

delinquency ratio of 7.8% in AUD terms — and the second worst performing postcode by

number of borrowers in arrears (31 out of 1,000). Nelson Bay has been the worst Australian

performing postcode in terms of mortgage performance over the last two and half years, due to

strong 90+ day arrears (often influenced by housing speculation). These 90+ day arrears are

expected to decrease in the long term, as has been the case in the past two years. Other

suburbs, such as Budgewoi (NSW), Casuarina (WA), and Helensvale (QLD), remain among

the worst performing postcodes.

Queensland continues to be the worst performing state in terms of 30+ day arrears (1.70%),

down 30 basis points (bp) from 2.00% in March 2011. Delinquency rates in the Gold Coast and

in Logan City are still relatively high. However, Logan City has shown a strong improvement in

30+ day arrears (to 2.38% from 2.83% in March 2011). Both the 30-60 day and 60-90 day

delinquency buckets have seen an improvement since March 2011, indicating that borrowers

have been able to cope with increased interest rates.

Western Australia has shown a significant improvement in arrears, recording a 1.50%

delinquency rate by amount, down 49bp from 1.99% in March 2011. This improvement has

also been reflected in the delinquency rate by number of mortgages in arrears, with one

borrower out of four being able to cure their delinquency status since March 2011. Only one of

the worst 20 postcodes is currently located in Western Australia (versus five in March 2011).

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Arrears levels in Victoria decreased over the six months to September 2011 and it is still

performing well, with an overall delinquency rate of 1.04%. This is considerably lower than the

other large states of New South Wales (1.55%) and Queensland (1.70%). Melbourne is

performing in line with the rest of Victoria, with a delinquency ratio of 1.00%. The majority of the

20 best performing postcodes are still located in Victoria.

In this report, Fitch Ratings covers all securitised mortgages (prime and non-conforming),

including mortgages which form the collateral of REPO-eligible transactions with the Reserve

Bank of Australia (RBA). As of September 2011, securitised mortgages represented

approximately 17% of all Australian mortgages by volume. Overall, Australian arrears are still

below those of other key markets, such as the US and UK.

Figure 3

0

2

4

6

8

10

12

14

Mar 05 Apr 06 May 07 Jun 08 Jul 09 Aug 10 Sep 11

Australia 90+days US 60+days UK 90+days(%)

Serious Delinquencies

Source: Fitch

Background

This is Fitch’s seventh report covering the performance of Australian mortgages by postcode.

The analysis is based on loan-by-loan data for Australian securitised residential mortgages and

provides a window on the Australian mortgage market as a whole and specifically, the

performance of mortgages across postcodes.

For the purpose of this report, Fitch has used its mortgage performance data to divide

Australian mortgage performance by geography. The agency has done this by placing an

emphasis on the postcode in which the security property is located. In this manner, Fitch is able

to analyse missed payments on residential mortgages in Australia at varying levels of

granularity, including by state, city, region and postcode.

As not all of the mortgages are owner-occupied, the location of the property might be different

than the residency of the borrower and the business focus of the lender. Therefore, for small

geographical areas such as postcodes, the study provides more information on the

performance of the secured property market, rather than the creditworthiness of the residents

in that particular area, or the performance of a specific lender’s portfolio. For example, while

properties in one geographical area may form collateral for investment properties, the borrower

might be resident anywhere else in Australia, for example in a metropolitan city. According to

the RBA, 31% of mortgages are currently secured on investment properties. Even if the

location of the property might not always reveal the credit profile of the obligor, it remains a

discriminating factor in performance.

This study has been devised to examine Australian mortgage delinquency at a granular level

and to highlight areas of stress in the Australian mortgage market that may not be evident

when looking at national or even state-based data. The variability of the performance of

postcodes across Australia is a reminder to those reviewing RMBS performance that the

geographic diversity of a portfolio is an important attribute to be considered.

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The study relies on data from home loans that have been securitised in the Australian market.

Since September 2010, the study also takes into account the loans of REPO-eligible

transactions with the RBA, as such transactions are now well-seasoned. At 30 September 2011,

the study included approximately 1,056,000 loans (1,040,000 at 31 March 2011) with a total

outstanding balance of over AUD194bn (AUD186bn at 31 March 2011). The volume of data

has increased due to recent market issuance, and the volume of securitised mortgages in the

study currently represents approximately 17% by value of the total housing loan stock in

Australia. As such, it provides a good proxy for the performance of the Australian residential

housing finance sector. The data include both conforming and non-conforming securitised

residential loans.

Methodology

In order to compare different geographical areas across Australia, Fitch displays statistics both

by postcode and by region. Fitch first provided statistics about specific geographical regions in

2007, when it first highlighted the divergence in performance between south west Sydney and

the rest of New South Wales. In March 2008, Fitch presented for the first time a detailed

overview of the performances among the 54 largest regions in Australia.

Since the September 2010 report, Fitch has increased the number of regions covered in the

study. Previously, Fitch exclusively analysed the largest Statistical Subdivisions (SSD), as

classified by the Australian Bureau of Statistics (ABS), with an outstanding mortgage balance

greater than AUD1.0bn. Such criteria allowed the agency to quickly assess the performance in

a specific and geographically-delimited area and, at the same time, avoid the risk of running

into statistically misleading results. On the other hand, such methodology did not easily allow

Fitch to cover the whole of Australia, as it focuses on the most densely populated areas.

Moreover, it was relatively hard to capture the divergence in performance between metropolitan

and more remote areas.

For metropolitan areas such as Sydney, Melbourne, Brisbane, Adelaide, and Perth, Fitch

continues to display information for subdivisions, as provided by the ABS. While some cities

(eg Sydney and Melbourne) allow further segmentation and in turn, show geographical

differences within the metropolitan area itself, this is not always possible: for example, the

portion and size of the sample in small areas such as Darwin might lack statistical significance.

Fitch therefore groups two or more small subdivisions in order to form a new geographical area.

In the particular case of Darwin, Fitch groups all of the subdivisions in the Northern Territory

into one geographical area, as this provides a significant sample which could be compared with

other regions of similar size.

Fitch has segmented Australia into proportionate and homogenous areas. In identifying and

grouping statistical subdivisions, Fitch has reached statistical significance and geographical

divergence at the same time.

Fitch has identified 76 regions. In metropolitan areas such as Sydney, Melbourne, Brisbane,

Adelaide and Perth, the information continues to be displayed for SSD as defined by the ABS.

The 47 SSDs in the five biggest cities have not changed since the last report. Other SSDs,

which were excluded from Fitch’s reports prior to September 2010, have been grouped

together in larger divisions (eg Statistical Divisions as defined by the ABS). For more

information, see “Statistical Subdivision within Fitch Regions” on page 38.

The information is also represented visually using geographical maps. Information is displayed

in two maps for postcodes (Australia and Sydney) and six maps for regional performance

(Australia, Sydney, Melbourne, Brisbane, Perth and Adelaide). While the postcode maps show

the location of the 20 worst performing postcodes, the regional maps show those geographical

areas currently experiencing higher or lower than average 30+ day arrears by AUD amount.

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December 2011 5

Information by number of loans in arrears is provided in tables, but is not displayed in

geographical maps.

The colour of a specific region indicates whether it is under- or over-performing the national

average: arrears are grouped into quintile in relation to the national average at a particular

reporting date. For example, as of September 2011, Australian securitised mortgage arrears

amounted to 1.42%; 30+ day arrears are displayed in three quintiles above and three quintiles

below such value. In each geographical map, Fitch also displays the level of arrears as a

numeric value for each region. Furthermore, the maps show whether performance has

deteriorated or improved from the last reporting date (in this case, since March 2011).

Residential Loan Performance by Region

Figure 4

Australia – 30+ Day Delinquencies0.00% To 0.47%

0.47% To 0.95%

0.95% To 1.42%

1.42% To 1.89%

1.89% To 2.36%

>2.36%

1 Northern QLD 1.34

2 Mackay 1.81

3 Fitzroy 1.31

4 Wide Bay-Burnett 1.92

5 Sunshine Coast 1.87

6 Darling Downs 1.60

7 Richmond-Tweed 1.69

8 North NSW 2.01

9 Hunter 2.03

10 Illawarra 1.70

11 South East NSW 1.41

12 ACT 0.65

13 Murray Murrumbidgee 1.58

14 Mallee,Wimmera & Loddon1.27

15 Western VIC 1.17

16 Barwon 0.98

17 Goulburn & Ovens Murray 1.34

18 Gippsland 1.09

Western

Australia

(excl Perth)

1.84

Northern

Territory

0.75

1.67

South

Australia

(excl. Adelaide)

1.83

North West NSW 1.47

Tasmania

1.12

Far North and West

1

2

34

67

8

9

1011 12

1314

15

16

1718

5

Source: ABS, Fitch

South

West WA

2.17

Overall, delinquencies have decreased considerably across all six states in Australia. Western

Australia strongly improved over the six months to September 2011. Queensland and South

Australia have improved the least.

Figure 6

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Jan 03 Sep 03 May 04 Jan 05 Sep 05 May 06 Jan 07 Sep 07 May 08 Jan 09 Sep 09 May 10 Jan 11 Sep 11

NSW QLD SA TAS VIC WA Australia(%)

Australia - Historical Performance of States

Source: Fitch

Figure 5

95.00

105.00

115.00

125.00

Sep 08 Sep 09 Sep 10 Sep 11

Canberra Sydney

Darwin Brisbane

Adelaide Hobart

Melbourne Perth

National

(Sep 2008 = 100)

Australian Property Prices

Source: ABS, Fitch

Melbourne has shown the strongest house price appreciation over the last three years.

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December 2011 6

As of September 2011, the average 30+ day delinquency ratio by AUD amount in Australia was

1.42%. The delinquency ratio by number of loans in arrears was 1.00%, down from 1.23% in

March 2011, and exactly the same as in September 2010. This means that in Australia, one in

400 borrowers have cured their delinquent status since March 2011. As mortgage rates have

decreased and the Australian economy and unemployment remain solid, the increased cost of

living remains the main variable generally affecting household affordability.

Figure 7

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11

ACT Central Coast Sydney Fairfield-Liverpool

Inner Melbourne Lower Northern Sydney Northern Middle Melbourne

Eastern Suburbs Gold Coast East Gold Coast West

Logan City Australia(%)

Australia - Historical 30+ Day Arrears of Selected Regions

Source: Fitch

Queensland is still the worst performing state. The improvement in 30+ day delinquencies was

below the Australian average: 30+ day arrears decreased to 1.70% in September 2011 from

2.00% in March 2011, but 90+ day arrears remain almost unchanged. 30+ day arrears in New

South Wales and Western Australia have also improved, but remain above the Australian

average, at 1.55% and 1.50% respectively. Western Australia has shown a remarkable

improvement in 30+ day delinquencies, with 25% less delinquent borrowers since March 2011.

Victoria has also shown a significant improvement in delinquency rates, and continues to be

the best performing state — with 30+ day arrears at 1.04% in September 2011, down 30bp

since March 2011. The Australian Capital Territory and the Northern Territory continue to

perform well, with a delinquency rate of 0.71% and 0.75% respectively: this is practically half

the Australian average.

As in Fitch’s previous reports, the worst performing geographical area in Australia is located in

south-west Sydney. Since September 2010, performance in the southern regions of Brisbane

has deteriorated significantly and this has been reflected both at a regional level (eg Logan City,

Ipswich and Gold Coast) and at a suburb level (eg Helensvale and Kingston).

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Australian Mortgage Delinquency by Postcode

December 2011 7

Worst Performing Regions in Australia

Figure 8

10 Worst Performing Regions in Australia By Value As at 30 September 2011 As at 31 March 2011

Rank Fitch Region State

30+ day arrears

(%) Fitch Region State

30+ day arrears

(%)

1 Fairfield-Liverpool NSW 2.63 Fairfield-Liverpool NSW 2.99 2 Gold Coast East QLD 2.58 South West WA WA 2.93 3 Central Coast Sydney NSW 2.57 Gold Coast West QLD 2.87 4 Gold Coast West QLD 2.47 Outer South West Sydney NSW 2.84 5 Logan City (& Beaudesert) QLD 2.38 Logan City (& Beaudesert) QLD 2.83 6 Ipswich City QLD 2.35 Outer Western Sydney NSW 2.82 7 Blacktown NSW 2.24 Central Coast Sydney NSW 2.80 8 South West WA WA 2.17 Gold Coast East QLD 2.77 9 Outer South West Sydney NSW 2.15 Blacktown NSW 2.73 10 Outer Western Sydney NSW 2.10 Ipswich City QLD 2.52

Source: Fitch, ABS

The ten worst performing regions in Australia are the same as in March 2011. However,

delinquency rates have decreased across all of these regions. In fact, only the worst two

regional delinquency rates in September 2011 would have been included in the ten worst

performing six months before.

Fairfield-Liverpool continues to be the worst performing region in Australia, above other NSW

regions such as the Central Coast and Blacktown: 30+ day arrears decreased to 2.63% in

September 2011 (from 2.99% in March 2011). The Gold Coast West, Logan City and Ipswich

have also improved, but their improvement has been below the Australian average. In March

2011, these regions experienced a significant deterioration by number of borrowers in arrears

and have shown a more moderate improvement than the rest of the country since then. On

average, 19 borrowers out of 1,000 in the Gold Coast, Ipswich and Logan City were in arrears

as of March 2011 (compared to 17 in September 2011).

Overall, these regions were not directly impacted by the Queensland floods; however, Fitch

believes mortgage borrowers in some of these areas may have been affected by the flood (eg

business or primary residence located in a flood-affected area).

Figure 9

10 Worst Performing Regions in Australia By Number As at 30 September 2011 As at 31 March 2011

Rank Fitch Region State

30+ day arrears

(%) Fitch Region State

30+ day arrears

(%)

1 Logan City (& Beaudesert) QLD 1.73 Logan City (& Beaudesert) QLD 2.10 2 Ipswich City QLD 1.68 Outer South West Sydney NSW 1.98

3 Central Coast Sydney NSW 1.64 Central Coast Sydney NSW 1.88

4 Outer South West Sydney NSW 1.61 Blacktown NSW 1.86

5 Gold Coast East QLD 1.60 Fairfield-Liverpool NSW 1.85

6 Gold Coast West QLD 1.59 Caboolture Shire QLD 1.84

7 Fairfield-Liverpool NSW 1.59 Gold Coast West QLD 1.83

8 Blacktown NSW 1.57 Outer Western Sydney NSW 1.82

9 Outer Western Sydney NSW 1.40 South West WA WA 1.78

10 Melton-Wyndham VIC 1.38 Ipswich City QLD 1.78

Source: Fitch, ABS

Delinquencies in Perth continue to improve and no region from Perth was among the ten worst

performing regions as of September 2011. Particularly, East Metropolitan Perth has shown a

remarkable improvement in terms of number of borrowers in arrears, with 25% fewer

delinquent borrowers than at end-September 2010. The 30+ day delinquency rate in South-

Fairfield-Liverpool continues

to be the worst performing

region in Australia

The number of regions in WA

that are among the 10 worst

performing has decreased

The Gold Coast regions still

have higher than average

arrears

Victorian regions tend to be

among the best performing

regions in Australia

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Australian Mortgage Delinquency by Postcode

December 2011 8

West Western Australia has also shown a significant improvement of 76bp, in line with the

improvement across Western Australia.

Melton-Wyndham continues to be the worst performing region in Victoria and the only Victorian

region among the 10 worst performing regions by number of mortgages; approximately 14

mortgages in 1,000 were in arrears as of September 2011.

Best Performing Regions in Australia

Regions labelled as “best performing” have also shown signs of improvement: for example, in

September 2011, the delinquency rate of the tenth best performing region (Eastern Middle

Melbourne, 0.81%) was lower than the delinquency rate of the best performing region in March

2011 (Lower Northern Sydney, 0.85%).

As was the case in March 2011, five of the ten best performing regions are located in

Melbourne. The statistical subdivision of Northern Middle Melbourne is currently the best

performing region in Australia by value, followed by Lower Northern Sydney. Lower Northern

Sydney continues to be the best performing region by number of mortgages in arrears,

reflecting the solid socio-economic situation in the region: on average, less than four mortgages

out of 1,000 were delinquent at end-September 2011.

Figure 10

10 Best Performing Regions in Australia By Value As at 30 September 2011 As at 31 March 2011

Rank Fitch Region State

30+ day arrears

(%) Fitch Region State

30+ day arrears

(%)

1 Northern Middle Melbourne VIC 0.54 Lower Northern Sydney NSW 0.85

2 Lower Northern Sydney NSW 0.56 Inner Melbourne VIC 0.87 3 Inner Melbourne VIC 0.64 Northern Middle Melbourne VIC 0.90 4 ACT ACT 0.65 Moreton City VIC 0.97 5 Eastern Suburbs NSW 0.67 Boroondara City VIC 0.98 6 Boroondara City VIC 0.68 Eastern Suburbs NSW 0.99 7 Northwest Inner Brisbane QLD 0.73 ACT ACT 1.03 8 NT NT 0.75 Eastern Middle Melbourne VIC 1.04 9 Southern Melbourne VIC 0.80 NT NT 1.04 10 Eastern Middle Melbourne VIC 0.81 Northwest Inner Brisbane QLD 1.05

Source: Fitch, ABS

Figure 11 10 Best Performing Regions in Australia By Number

As at 30 September 2011 As at 31 March 2011

Rank Fitch Region State

30+ day arrears

(%) Fitch Region State

30+ day arrears

(%)

1 Lower Northern Sydney NSW 0.36 Lower Northern Sydney NSW 0.55

2 Boroondara City VIC 0.38 Boroondara City VIC 0.58 3 Northern Middle Melbourne VIC 0.45 Northern Middle Melbourne VIC 0.64 4 ACT ACT 0.46 Eastern Suburbs NSW 0.65 5 Inner Melbourne VIC 0.48 Eastern Middle Melbourne VIC 0.66 6 Eastern Suburbs NSW 0.48 Inner Brisbane QLD 0.67 7 Eastern Middle Melbourne VIC 0.52 Inner Melbourne VIC 0.68 8 Northwest Inner Brisbane QLD 0.52 Southern Melbourne VIC 0.69 9 Moreland City VIC 0.55 ACT ACT 0.70 10 Southern Melbourne VIC 0.58 Northwest Inner Brisbane QLD 0.70

Source: Fitch, ABS

Lower Northern Sydney and the Eastern Suburbs continue to be the only subdivisions of New

South Wales among the best 10 regions, boasting the lowest portion of mortgage balances in

arrears. Northwest Inner Brisbane, Boroondara City and Central Metropolitan Perth are the

best performing regions in Queensland, Victoria and Western Australia respectively by number

of mortgages in arrears.

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Australian Mortgage Delinquency by Postcode

December 2011 9

Residential Loan Performance by Suburb

This study exclusively analyses performance among the larger postcodes in Australia.

Postcodes with less than AUD100m of the total securitised mortgage balance are excluded

from the analysis, as Fitch believes that the sample is not of sufficient size to provide useful

and reliable information.

Figure 12 20 Worst Performing Postcodes in Australia by Value

As at 30 September 2011 As at 31 March 2011

Rank Post code State Suburb

30+ day arrears

(%) Post code State Suburb

30+ day arrears

(%)

1 2315 NSW Nelson Bay 7.8 2315 NSW Nelson Bay 5.6

2 2262 NSW Budgewoi 4.6 2164 NSW Smithfield 5.0

3 4212 QLD Helensvale 4.3 2765 NSW Riverstone 4.8

4 2576 NSW Kangaloon 4.3 4114 QLD Kingston 4.6

5 2171 NSW Hoxton Park 4.0 4132 QLD Crestmead/Marsden 4.4

6 4217 QLD Surfers Paradise 3.9 2770 NSW Mount Druitt 4.3

7 4130 QLD Carbrook 3.9 2577 NSW Kangaroo Valley 4.2

8 4114 QLD Kingston 3.8 4212 QLD Helensvale 4.2

9 2106 NSW Newport 3.8 2262 NSW Budgewoi 4.2

10 2761 NSW Plumpton 3.7 2780 NSW Katoomba 4.2

11 4567 QLD Noosa Heads 3.6 6168 WA Rockingham 4.2

12 4802 QLD Airlie Beach 3.6 6210 WA Mandurah 4.2

13 2753 NSW Richmond 3.4 4217 QLD Surfers Paradise 4.1

14 2324 NSW Karuah 3.4 2199 NSW Yagoona 4.1

15 2325 NSW Cessnock 3.4 6167 WA Casuarina 4.1

16 6167 WA Casuarina 3.4 4208 QLD Ormeau 4.1

17 2177 NSW Bonnyrigg 3.3 2168 NSW Green Valley 4.0 18 2428 NSW Forster 3.3 2195 NSW Lakemba 4.0 19 2263 NSW Gorokan 3.3 4213 QLD Mudgeeraba 3.9 20 2430 NSW Taree 3.2 6055 WA West Swan 3.9

Source: Fitch, ABS

Figure 13

Worst 20 Performing Australian Postcodes – Excluding Sydney and Brisbane

Source: ABS, Fitch

6167

Casuarina2315

Nelson Bay

4802

Airlie Beach

4567

Noosa

Heads

NT

SA

WA

QLD

NSW

VIC

TAS2576

Kangaloon

2324

Karuah/

Swan Bay

2325

Cessnock

2428

Forster

2430

Taree

Moreover, only postcodes with more than 500 securitised loans and more than 10 delinquent

loans are included among the analysis of worst performing loans. In relatively small postcodes,

Nelson Bay continues to be

the worst performing postcode

by balance

Six of the postcodes from

March 2011 were still among

the 20 worst performing, as at

September 2011

Fitch notes an increasing

number of ”tourism

destination” suburbs in the 20

worst performing postcodes

Budgewoi (QLD) is the worst

performing postcode by

number of borrowers, with

3.5% of loans in arrears by

more than 30 days

Page 10: Australian Mortgage Delinquency by Postcode 30 September 2011

Structured Finance

Australian Mortgage Delinquency by Postcode

December 2011 10

a few jumbo loans falling into arrears could easily exaggerate the real deterioration in such

areas.

Six of the 20 worst performing postcodes are located around Sydney (see Figure 14 Worst 20

Performing Australian Postcodes – including Sydney). Despite the overall improvement across

Australia, Nelson Bay — which includes the areas of Corlette, Fingal Bay, Nelson Bay and

Shoal Bay — continues to be the worst performing postcode, with 7.8% of mortgage balances

being in arrears, up 2.2% from March 2011. The increase was mainly in the 90+ day bucket, up

1.2% from March 2011. Other suburbs, such as Budgewoi (NSW), Helensvale (QLD), Kingston

(QLD) and Surfers Paradise (QLD), continue to be among the worst performing postcodes.

Figure 14

Worst 20 Performing Australian Postcodes – Including Sydney

2262,

Budgewoi

2761, Plumpton

2171, Hoxton Park

2263,

Gorokan

2177, Bonnyrigg

2753, Richmond

Source: ABS, Fitch

SYDNEY

2106, Newport

A considerable number of postcodes in Western Australia (Rockingham, Mandurah, West

Swan) have shown a remarkable improvement in mortgage performance over the last six

months: currently, Casuarina is the only suburb from Western Australia to be among the worst

20 performing postcodes by value of mortgage, and the second worst performing suburb in

Western Australia, behind Port Kennedy, by number of mortgages in arrears.

Apart from Sydney, the other worst performing suburbs are located around Brisbane and in

tourist regions in Queensland and NSW. As of September 2011, the 20 worst performing

postcodes were located mainly in New South Wales and Queensland. The study shows that

the number of worst performing postcodes from Western Australia has decreased.

Fitch has noticed an increasing number of suburbs located in “tourism destinations” among the

20 worst performing suburbs in Australia: in addition to the already mentioned Nelson Bay and

Surfers Paradise, arrears in Arlie Beach and Noosa Heads have not significantly improved over

the six months to September 2011.

As was the case in March 2011, postcodes around Logan City and the Gold Coast (eg

Kingston and Helensvale) are experiencing arrears levels above those of one year ago,

although they have improved slightly since March 2011. The deterioration in performance is not

limited to a few postcodes, as the whole Logan City and Gold Coast areas experienced an

Page 11: Australian Mortgage Delinquency by Postcode 30 September 2011

Structured Finance

Australian Mortgage Delinquency by Postcode

December 2011 11

increase in delinquencies during the year to September 2011 (see Residential Loan

Performance by Region, on page 5).

Figure 15

Worst 20 Performing Australian Postcodes – Including Brisbane

Source: ABS, Fitch

4217

Surfers

Paradise

4212

Helensvale

4114

Kingston

4130

Carbrook/Cornubia

BRISBANE

Figure 16 20 Worst Performing Postcodes in Australia by Number

As at 30 September 2011 As at 31 March 2011

Rank Post code State Suburb

30+ day arrears

(%) Post code State Suburb

30+ day arrears

(%)

1 2262 NSW Budgewoi 3.5 4132 QLD Crestmead/Marsden 3.3 2 2315 NSW Nelson Bay 3.1 4114 QLD Kingston 3.3

3 2576 NSW Kangaloon 3.0 2262 NSW Budgewoi 3.2

4 4217 QLD Surfers Paradise 2.9 2765 NSW Riverstone 3.2

5 2325 NSW Cessnock 2.6 4212 QLD Helensvale 2.9

6 2761 NSW Plumpton 2.6 6112 WA Armadale 2.9

7 4114 QLD Kingston 2.5 2164 NSW Smithfield 2.9

8 4212 QLD Helensvale 2.5 2770 NSW Mount Druitt 2.8

9 4132 QLD Crestmead/Marsden 2.4 6055 WA West Swan 2.8

10 2558 NSW Eagle Vale 2.3 2168 NSW Green Valley 2.7

11 6172 WA Port Kennedy 2.3 6167 WA Casuarina 2.7

12 2263 NSW Gorokan 2.2 2766 NSW Rooty Hill 2.7

13 2564 NSW Macquarie Fields 2.2 6210 WA Mandurah 2.7

14 2430 NSW Taree 2.2 2325 NSW Laguna 2.6

15 2259 NSW Hamlyn Terrace 2.2 6168 WA Rockingham 2.6

16 2168 NSW Green Valley 2.2 2322 NSW Beresfield/Hexham 2.6

17 2171 NSW Hoxton Park 2.1 2199 NSW Yagoona 2.5

18 2324 NSW Karuah/Swan Bay 2.1 2160 NSW Merrylands 2.5

19 6167 WA Casuarina 2.1 4301 QLD Redbank 2.5

20 4305 QLD Ipswich 2.1 2571 NSW Wilton 2.5

Source: Fitch, ABS

In Western Australia, West Swan (WA) and Rockingham (WA) are no longer among the worst

performing postcodes by number of mortgages in arrears; however, Port Kennedy is currently

among the 20 worst performing postcodes, as in the 18 months to September 2011, arrears

doubled from 1.60% to 3.21%.

Page 12: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 12

New South Wales

Figure 17

Sydney – 30+ Day Delinquencies

Canterbury/

Bankstown

1.70Inner West

1.12

St George/Sutherland

1.20

Inner Sydney

0.96

North West &

Western NSW

1.47

Illawarra

1.70

Fairfield/Liverpool

2.63

Outer West

2.10

Lower Northern

0.56

Hunter

2.03

Outer South Western

2.15

Central Western Sydney

1.61

Eastern Suburbs

0.67

Central Coast Sydney

2.57

Central North

1.22

Blacktown

2.24

Source: ABS, Fitch

Northern Beaches

1.12

0.00% To 0.47%

0.47% To 0.95%

0.95% To 1.42%

1.42% To 1.89%

1.89% To 2.36%

>2.36%

Since September 2010, NSW has no longer been worst performing state in terms of mortgages

in arrears, as delinquencies in Queensland increased over the year to September 2011. The

study has analysed the performance of over 311,000 mortgages in NSW, for an equivalent

amount of AUD62.8bn. On average, 1.55% of the total mortgage balance in NSW was in

arrears, slightly worse than the national average of 1.42%. Sydney is performing in line with the

rest of NSW, with a delinquency rate of 1.50%.

30-59 day arrears improved 19bp to 0.65% in September 2011, indicating NSW borrowers

have also benefited from stable interest rates. Also, 90+ day arrears in NSW decreased to

0.63% in September 2011 from 0.75% in March 2011. This is even lower than in September

2010.

Following the peak of 7.0% in March 2009, unemployment has improved over the last two

years, remaining between 4.5% and 5.3%. As of October 2011, the unemployment rate in NSW

was 5.1%, in line with historical levels. Moreover, NSW remains a well-diversified economy.

NSW is performing well in terms of employment, despite the impact of the global financial crisis

on financial services and the impact of the AUD on the tourism and manufacturing sectors. At

the moment, the main risk to household affordability is represented by the increasing cost of

living. Mortgage rates decreased 25bp in both November and December 2011: consequently,

delinquency rates, especially in the 30 – 60 day bracket, are expected to decrease.

In this report, Fitch has analysed the Sydney metropolitan area according to ABS’s statistical

subdivisions. As mentioned, Fairfield/Liverpool, Blacktown and the Central Coast (previously

referred to as Gosford-Wyong) continue to be the worst performing regions in Sydney and

NSW, despite the recent improvement in 30+ day arrears. The Outer West and Outer South

Western parts of Sydney also continue to experience increasing deterioration in mortgage

performance. Suburbs around these areas still have higher than average delinquency rates;

consequently, a portion of the worst performing postcodes in Australia is located in or nearby

Figure 18

0

2

4

6

8

Oct 08 Oct 09 Oct 10 Oct 11

(%)

NSW Unemployment

Source: ABS, Fitch

Following the peak of 7.0% in March 2009, unemployment has improved over the last two years, remaining between 4.5% and 5.3%.

Figure 19

95.00

100.00

105.00

110.00

115.00

120.00

125.00

Sep 08 Sep 09 Sep 10 Sep 11

Sydney National

(Sep 2008= 100)

Australian Property Prices

Source: ABS, Fitch

Sydney property prices have moved in line with national levels and have remained stable over the last year

Figure 20

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Mar 10 Sep 10 Mar 11 Sep 11

30-60 days 60-90 days

90+ days 0-30 days

(%)

New South Wales - Arrears

Source: Fitch The increase in 30+ day arrears in March 2011 was mainly due to constraints on household affordability, following the increase in interest rates, Christmas spending and the increasing cost of living

Page 13: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 13

Fairfield/Liverpool and Blacktown (eg Richmond, Bonnyrigg, Plumpton Hoxton Park — see

Residential Loan Performance by Suburb on page 9).

According to Department of Education, Employment and Workplace Relations (DEEWR) data,

the unemployment rate in Fairfield/Liverpool was 6.1% as of October 2011, 1.0% lower than in

March 2011, and below historical levels. The overall unemployment rate across

Farifield/Liverpool has shown an improving trend, especially for suburbs closer to the city (eg

Central West Sydney). However, according to ABS data, the average wage and salary in this

region has historically been below the NSW average and unemployment rates are still higher

than the national average. The worst performing postcodes in Fairfield/Liverpool are also above

average arrears: Hoxton Park (2171) and Bonnyrigg (2177) recorded an unemployment rate of

7.2% and 7.0% in August 2011.

Historically, above-average delinquency rates can be attributed to socio-economic variables

which lead to a strong sensitivity to fluctuations in interest rates and to changes in the cost of

living. The fact that performance in Fairfield/Liverpool worsened in March 2010 and March

2011, after interest rate hikes in Q409 and Q410, supports this conclusion. As mortgage rates

stabilise, households in these regions are able to adjust their spending and better cope with

their obligations, leading to decreasing delinquency rates.

It is therefore likely that performance will continue to improve in Q411, as households are

expected to continue to adjust their spending and no event has negatively impacted borrowers

in Q411. The RBA decision to reduce the cash rate by 25bp in both November and December

2011 is expected to have a positive impact in Q112 as interest rate movements are usually

reflected in mortgage performance with a three to four month lag. However, the overall positive

impact may be offset by the usual Christmas spending, which is still expected to negatively

affect mortgage performance in March 2012. Fitch’s view is that delinquencies will still be lower

than in March 2011, when interest rates were higher and Queensland borrowers had yet to be

affected by the floods.

Figure 21

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Sep 09 Nov 09 Jan 10 Mar 10 May 10 Jul 10 Sep 10 Nov 10 Jan 11 Mar 11 May 11 Jul 11 Sep 11

Blacktown Eastern Suburbs Fairfield-Liverpool

Inner Sydney Lower Northern Sydney Outer SouthWest Sydney

Central Coast Sydney Inner Western Sydney Sydney(%)

Sydney - Historical 30+ Day Arrears of Selected Regions

Source: Fitch

While the Central Coast shares a similar trend to that seen in Fairfield/Liverpool and Outer

Western Sydney in terms of mortgage performance, the economy of this region is different.

Despite it being the third largest urban area in NSW, the Central Coast relies heavily on tourism

from Sydney and Newcastle. As of October 2011, the Central Coast’s unemployment rate was

6.9%, 0.7% higher than in March 2011, but in line with the historical rate.

A few coastal suburbs in the Hunter region are experiencing a high level of arrears: as well as

Nelson Bay (2315) which has been the worst performing postcode in Australia for the last two

and a half years, Cessnock (2325), Karuah/Swan Bay (2324) and Forster (2428) are also

currently among the 20 worst performing postcodes.

Page 14: Australian Mortgage Delinquency by Postcode 30 September 2011

Structured Finance

Australian Mortgage Delinquency by Postcode

December 2011 14

Lower Northern Sydney continues to be the best performing suburb in NSW, with a 0.56% 30+

day delinquency rate. Lower Northern Sydney is considered to be one of the more affluent

areas in Sydney; according to ABS data, approximately 40% of wage and salary earners in the

area are professionals and associate professionals; as of June 2008, the average income in

the Lower Northern Sydney region was AUD68,600 (50% higher than the NSW average of

approximately AUD46,500).

Mosman, which is a suburb located in this area, had the highest average income in NSW

(AUD109,500). The unemployment rate in Lower Northern Sydney is also very low, being 3.5%

in October 2011 (versus 3.7% in March 2011). Suburbs around this area and close to the city

are also out-performing the national average in terms of mortgage performance (eg Inner

Sydney, Eastern Suburbs and Central Northern Sydney). Moreover, mortgage performance in

these areas has remained stable overall over the two years to September 2011.

As stressed in the previous report (Australian Mortgage Delinquency by Postcode — 31 March

2011, dated 14 June 2011), the regions located west and south west of Sydney (Blacktown,

Fairfield/Liverpool, Outer West, and South Outer West) and the Central Coast will continue to

experience higher than average arrears.

Page 15: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 15

Victoria

Figure 24

Melbourne – 30+ Day Delinquencies

Source: ABS, Fitch

Western VIC

1.17

Mallee, Wimmera

& Loddon

1.27

Hume

1.62

Melton

1.85

Barwon

0.98

Southern

0.80

Yarra

1.20

Northern

Outer

1.25

Goulburn Ovens-Murray

1.34

Sourth Eastern

Outer Melbourne

1.28

Mornington

Peninsula

1.16 Greater

Dandenong

1.34

Gippsland

1.09

Frankston

1.03

Moreton

0.85Northern

0.54

Boroondara

0.68Inner

0.64Eastern

0.81

Outer

0.84

Western

0.98

0.00% To 0.47%

0.47% To 0.95%

0.95% To 1.42%

1.42% To 1.89%

1.89% To 2.36%

>2.36%

In this study, Fitch has analysed approximately 252,000 mortgages for an equivalent amount of

AUD43.9bn. Victoria is performing well in terms of mortgage arrears, with an overall

delinquency rate of 1.04%, which is considerably lower than the other large states of New

South Wales (1.55%) and Queensland (1.70%). Melbourne is performing in line with the rest of

Victoria, with a delinquency ratio of 1.00%. Victoria’s strengths include a stable and diversified

economy, a stable property market, satisfactory affordability and low unemployment rates. As

of October 2011, the unemployment rate in Victoria was 5.1%, down from a peak of 6.3% in

February 2009. The property market has also experienced considerable growth: according to

ABS, property prices in Victoria increased by 25% in the two years to March 2010 — almost

50% more than the increase of the average house price in the eight capital cities — although

they then slightly decreased and stabilised at March 2010 levels over the most recent 12

months.

Figure 26

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Sep 09 Nov 09 Jan 10 Mar 10 May 10 Jul 10 Sep 10 Nov 10 Jan 11 Mar 11 May 11 Jul 11 Sep 11

Boroondara City Hume City Inner Melbourne

Melton-Wyndham Murray & Murrumbidgee North Middle Melbourne

SE Outer Melbourne Melbourne(%)

Melbourne - Historical 30+ Day Arrears of Selected Regions

Source: Fitch

A number of subdivisions around Melbourne are outperforming the Australian average

delinquency rate. Five Melbourne regions are among the ten best performing suburbs by loan

balance. Eastern Middle Melbourne, Inner Melbourne, Northern Middle Melbourne and

Figure 22

0

2

4

6

8

Oct 08 Oct 09 Oct 10 Oct 11

(%)

VIC Unemployment

Source: ABS, Fitch

In October 2011, the unemployment rate in Victoria was 5.1%, down from a peak of 6.3% in February 2009

Figure 25

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Mar 10 Sep 10 Mar 11 Sep 11

30-60 days 60-90 days

90+ days 0-30 days

(%)

Victoria - Arrears

Source: Fitch

Figure 23

95.00

100.00

105.00

110.00

115.00

120.00

125.00

130.00

Sep 08 Sep 09 Sep 10 Sep 11

Melbourne National

(Sep 2008= 100)

Australian Property Prices

Source: ABS, Fitch

Property prices in Victoria increased by 25% in the two years to March 2010, far above the national average

Page 16: Australian Mortgage Delinquency by Postcode 30 September 2011

Structured Finance

Australian Mortgage Delinquency by Postcode

December 2011 16

Borroondara City are also among the better performing suburbs by loan number, with 52, 48,

45 and 38 loans out of 10,000 being delinquent by more than 30 days, respectively. Melbourne

is performing well, as unemployment is low and the overall economy is well diversified.

Moreover, Melbourne’s house prices are still relatively stable.

Fitch’s study shows that arrears are mainly concentrated in the north-western part of

Melbourne. Melton-Wyndham and Hume are among the worst performing suburbs in relative

terms, with delinquency ratios of 1.85% and 1.62% respectively, down 27bp and 58bp

respectively from March 2011. As was the case for regions located in south west Sydney, the

mortgage performance in these Victorian regions is more volatile, as households are more

sensitive to interest rate movements. As was also the case for the regions located in south

west Sydney, Melton-Wyndham and Hume have shown a significant improvement above the

Australian average; however, their mortgage performance is slightly worse than the national

average.

The Hume economy is mainly based on automotive manufacturing, transport and storage, and

many international companies have major operations located in this area. While no data are

available from ABS, preliminary data from DEEWR suggests that the unemployment rate in the

City of Hume was far above the Victorian average, at approximately 8.4% in September 2011,

despite recording a 1.6% year-on-year (yoy) improvement.

Melton-Wyndham has historically experienced unemployment levels above the national

average. However, the local economy is well diversified and data released by the ABS shows

an average income of AUD42,900 in June 2008, which is in line with the state and national

levels. Unemployment increased slightly to 7.2% in September 2011, from 6.8% one year

before. As mentioned in the previous report, it is likely that households experienced an interest

rate shock in Q111, as borrowers struggled to cope with increased mortgage payments.

However, stable mortgage rates since then have strongly benefited households.

As unemployment is improving slightly and remains low, GDP is growing, and affordability

remains high, there is no reason to expect a drastic change in delinquency rates in Victoria in

the near term. The stabilisation of property prices does not currently represent a threat to

mortgage performance, although it might lead to slightly higher 90+ day arrears.

Page 17: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 17

Queensland

Figure 28

Ipswich City

2.35

West Gold

Coast

2.47

Darling Downs

& West

Moreton

1.60

Logan

2.38

Northwest

Inner

0.73

Inner Brisbane

1.08

Redland

1.35

East Gold

Coast

2.58

South Inner

0.93

SE Outer

1.17

Sunshine

1.87

Caboolture

1.93

Pine

1.33

Northwest

1.22

Source: ABS, Fitch

Brisbane – 30+ Day Delinquencies0.00% To 0.47%

0.47% To 0.94%

0.94% To 1.42%

1.42% To 1.89%

1.89% To 2.36%

>2.36%

Queensland is the second largest state in terms of securitised mortgage balance. Fitch has

available information on approximately 245,000 mortgages, for an equivalent amount of

AUD45.5bn. At the end of September 2011, the average delinquency ratio in Queensland was

1.70%, down 30bp from 2.00% in March 2011. As of September 2011, Queensland was still the

worst performing state in Australia in terms of mortgage performance. In the six months to

September 2011, the Christmas spending, in combination with socio-economic variables and

natural disasters, generated a stronger affordability shock on Queensland households than in

other states.

In turn, households found it more difficult to cure their delinquent status than in New South

Wales and Western Australia. In October 2011, the unemployment rate in Queensland

stabilised to 5.2%, down from the 6.6% in February 2011, which was one of the highest levels

in the last six years. Fitch believes that with the exception of a few coastal areas, the mortgage

performance of which is potentially linked to housing speculation, the recent monetary policy

decisions will be favourable to households in the medium to longer term.

Preliminary data from ABS suggests that house prices in Brisbane are almost back to the levels

of three years ago, as they have decreased steadily since June 2010. As the property market

has been stagnating, properties have been sold at a slower pace. Meanwhile, 90+ day arrears

have also been increasing, to 0.78% in March 2011, up 21bp yoy.

While delinquency rates have decreased for the majority of Queensland regions, bringing to a

halt an increasing trend which started in September 2009, delinquency rates around Inner

Brisbane have shown no strong signs of improvement, although they remain relatively low. The

delinquency rate in the East Gold Coast continues to be relatively high and has shown no signs

of stabilisation: as of September 2011, the East Gold Coast had 30+ day arrears of 2.58%,

showing only a 19bp improvement from the 2.77% in March 2011. The West Gold Coast has

shown a strong improvement, but arrears remain high at 2.47%. More worrying is the fact that

the number of obligors in arrears has not improved over the last six months: in these two

regions, approximately one loan out of 60 was non-performing at the end of September 2011,

Figure 27

0

2

4

6

8

Oct 08 Oct 09 Oct 10 Oct 11

(%)

QLD Unemployment

Source: ABS, Fitch

Figure 29

95.00

100.00

105.00

110.00

115.00

120.00

Sep 08 Sep 09 Sep 10 Sep 11

Brisbane National

(Sep 2008= 100)

Australian Property Prices

Source: ABS, Fitch

House prices have experienced a slowdown since March 2010 and are currently at almost the same level as three years ago

Figure 30

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Mar 10 Sep 10 Mar 11 Sep 11

30-60 days 60-90 days

90+ days 0-30 days

(%)

Queensland - Arrears

Source: Fitch

While 30-60 and 60-90 day arrears have stabilised, 90+ day arrears continue to be relatively high at 0.75

Page 18: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 18

as was the case in March 2011. Two of the 20 worst postcodes in Australia are also located in

this geographical area (Helensvale and Surfers Paradise).

The region of Logan City (including Beaudesert Shire) has also experienced a considerable

increase in delinquency rates starting from November 2010: however, 30+ day arrears decreased

to 2.4% in September 2011, from 2.8% in March 2011. Logan City is located about 50km south

of Brisbane and Kingston and Carbrook/Cornubia — which are among the 20 worst performing

postcodes in Australia — are also located in this region.

Figure 31

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Sep 09 Nov 09 Jan 10 Mar 10 May 10 Jul 10 Sep 10 Nov 10 Jan 11 Mar 11 May 11 Jul 11 Sep 11

Gold Coast East Gold Coast West Northwest Inner Brisbane

Southeast Inner Brisbane Inner Brisbane Logan City

Brisbane(%)

Brisbane - Historical 30+ Day Arrears of Selected Regions

Source: Fitch

As mentioned in the press release Fitch: Queensland Floods Could Reduce Available Income from

Mortgage-Backed Transactions, dated 16 January 2011, borrowers directly or indirectly affected by

the flooding were expected to experience some financial distress in terms of property damage,

increased living expenses and potential loss of income.

Fitch believes that the Queensland floods partially contributed to the increase in arrears

through Q111. This is also shown in Figure 32, which displays delinquencies in the postcodes

affected by the flooding, versus Fitch’s Dinkum levels. Fitch has analysed whether postcodes in

flood-affected areas experienced an increase in delinquencies. Postcodes such as Hamilton

(4007), Brookfield (4069), Redbank (4301), and Blackbutt/Colinton (4306) experienced a strong

increase in arrears in the December 2010 – March 2011 period (2.9%, 1.3%, 1.0%, and 0.9%

respectively). Regional performance did not show the same degree of volatility.

Fitch also believes that the effects of the Queensland floods will not influence arrears in the

long term. Borrowers might experience a temporary increase in expenses, which will be offset

in the following months as claims are paid and financial support is granted. Self-employed

households are however expected to be more vulnerable to potential income volatility, which in

turn might lead to more long-term stresses.

Figure 32

0.0

0.5

1.0

1.5

2.0

2.5

Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11

Flood Postcode 30+days Flood Postcode 90+days

Australia 30+days Australia 90+days(%)

QLD Flood - Delinquencies

Source: Fitch

Page 19: Australian Mortgage Delinquency by Postcode 30 September 2011

Structured Finance

Australian Mortgage Delinquency by Postcode

December 2011 19

Fitch will continue to monitor the impact of the Queensland floods in structured finance

transactions. However, the agency believes that coastal regions, like the Sunshine Coast and

the Gold Coast East, are subject to a higher level of volatility than the rest of Queensland in the

long term. This is because their economies are less diversified than the rest of the state, a fact

that is likely to impact house prices and mortgage performance.

Page 20: Australian Mortgage Delinquency by Postcode 30 September 2011

Structured Finance

Australian Mortgage Delinquency by Postcode

December 2011 20

Western Australia

Figure 34

Source: ABS, Fitch

Perth – 30+ Day Delinquencies0.00% To 0.47%

0.47% To 0.95%

0.95% To 1.42%

1.42% To 1.89%

1.89% To 2.36%

>2.36%Western Australia

(excl. Perth & South West)

1.84

East Metro Perth

1.52Cental Metro

Perth

1.19

South East Metro

1.50

South West

Metro Perth

1.50

North Metro Perth

1.22

2.17South West WA

Fitch’s analysis covers 104,000 mortgages across Western Australia, for an equivalent amount

of AUD20.1bn. As of September 2011, the 30+ day arrears in Western Australia were recorded

at 1.50% (compared to 1.99% in March 2011). The number of obligors in arrears also

improved: one in four obligors has cured their delinquency status since March 2011. As

highlighted in Fitch’s previous postcode report, the study shows a stabilisation of arrears in

Perth; in particular North Metropolitan Perth, which recorded 30+ day arrears at 1.22% in

September 2011, down 61bp from March 2011. The improvement in arrears is mainly due to a

strong decrease in 30-60 days arrears, to 0.43% in September 2011 from 0.70% in March 2011.

Western Australia has also experienced a rebound in both the tourism and mining industries

and a slight improvement in employment over 2010 and 2011; this might have contributed to

the improvement in mortgage performance through the September 2010 - September 2011

period.

The mining industry is among the main industries in Western Australia. Almost 41% of all those

employed in the Australian mining industry are located in Western Australia, followed by

Queensland (27%). The mining industry rebounded in 2010-2011 and according to ABS, the

number employed in this industry in Western Australia continued to increase to almost 88,700

in August 2011, from 80,800 in February 2011. The mining industry was also the largest

contributor to the gross state product of Western Australia in the fiscal year 2009-2010.

However, the property market in Western Australia may suffer additional volatility in case of

downsizing, relocation or changes in the mining industry.

30-59 day arrears have reduced since March 2011, but in contrast to other states, they have

also reduced since September 2010. The amount of 90+ day arrears has however remained

overall stable and relatively high. As of September 2011, 30-60 day and 90+ day arrears were

recorded at 0.53% and 0.74% (versus 0.78% and 0.81% respectively in March 2011). This

would suggest that Western Australian (WA) borrowers have been better able to cope with the

increasing cost of living (and Christmas spending) than borrowers in other states. On the other

hand, the stagnation in the housing market might have lead to an accumulation of 90+ day

arrears.

Figure 33

0

2

4

6

8

Oct 08 Oct 09 Oct 10 Oct 11

(%)

WA Unemployment

Source: ABS, Fitch The unemployment rate is extremely low in comparison to other Australian states

Figure 35

95.00

100.00

105.00

110.00

115.00

120.00

Sep 08 Sep 09 Sep 10 Sep 11

Perth National

(Sep 2008= 100)

Australian Property Prices

Source: ABS, Fitch

Property prices in Perth have not enjoy the same house price appreciations than the rest of Australian in the last three years

Figure 36

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Mar 10 Sep 10 Mar 11 Sep 11

30-60 days 60-90 days

90+ days 0-30 days

(%)

Western Australia - Arrears

Source: Fitch

30-60 day arrears have strongly improved, but severe delinquencies remain relatively high

Page 21: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 21

Currently, delinquencies outside Perth are mainly concentrated in the south west of Western

Australia. 30+ day arrears in the south west WA region are still high; as of September 2011, it

was the eighth worst performing region in Australia by value, with 2.17% of the total mortgage

balance in arrears (although it has shown a remarkable 76bp improvement since March 2011).

However, the south west part of Western Australia is the worst performing region in Australia in

terms of 90+ day arrears by mortgage balance: the 90+ day delinquency rate was 1.33% in

September 2011. This indicates that borrowers are experiencing significant financial distress.

The south west WA region is the most popular tourism area outside Perth and is the object of

what is often referred to as “coastal suburbanisation”. While reports have shown how tourism

has been impacted locally and internationally due to the strong AUD (see Tourism Western

Australia, 2010-2011 Annual Report), Fitch believes that foreclosed properties in these areas

might sell at a slower pace, in turn keeping 90+ day arrears at a high level.

The rest of Western Australia, excluding Perth and South Western Australia, has shown a slight

improvement in mortgage performance, with 30+ day arrears decreasing to 1.84% in

September 2011 from 2.10% in March 2011.

As of September 2011, Casuarina (6167) — a suburb of Perth, located within the region of

Kwinana — was the worst performing postcode in Western Australia, with 3.4% of the total

mortgage balance in arrears for more than 30 days, compared with 4.1% in March 2011. The

unemployment rate in Kwinana was 9.5% in September 2011, more than twice the average

4.2% unemployment rate in Western Australia. Casuarina was the only WA suburb in the 20

worst performing suburbs in Australia. Other suburbs, such as Mandurah and Rockingham,

continue to experience above-average levels of arrears.

Page 22: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 22

South Australia

Figure 38

Source: ABS, Fitch

Adelaide – 30+ Day Delinquencies

South Australia

1.83

Northern

Adelaide

1.66

Southern

Adelaide

1.02

Eastern

Adelaide

1.18

Western

Adelaide

0.95

0.00% To 0.47%

0.47% To 0.95%

0.95% To 1.42%

1.42% To 1.89%

1.89% To 2.36%

>2.36%

Fitch has analysed approximately 80,000 mortgages in South Australia for an equivalent

amount of AUD11.9bn. As of September 2011, overall delinquencies in South Australia were

below the national average at 1.34%, 20bp below the March 2011 level (1.54%). Adelaide

continues to outperform the rest of South Australia. The region of Northern Adelaide has the

highest delinquency rate of 1.66%, down 32bp from March 2011. Arrears in Eastern and

Southern Adelaide continue to be overall stable.

Figure 37

0

2

4

6

8

Oct 08 Oct 09 Oct 10 Oct 11

(%)

SA Unemployment

Source: ABS, Fitch

The unemployment rate is still low, mirroring that of the country as a whole

Figure 39

95.00

100.00

105.00

110.00

115.00

120.00

Sep 08 Sep 09 Sep 10 Sep 11

Adelaide National

(Sep 2008= 100)

Australian Property Prices

Source: ABS, Fitch

House prices in Adelaide have shown a marginal decline since December 2010

Figure 40

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Mar 10 Sep 10 Mar 11 Sep 11

30-60 days 60-90 days

90+ days 0-30 days

(%)

South Australia - Arrears

Source: Fitch

Since March 2011, 30-60 and 60-90 day arrears have improved, while 90+ day arrears have remained stable

Page 23: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 23

Figure 41 Australian Regions Ranked by AUD Amount of 30+ Day Arrears at 30 September 11 Rank Region State 30 Sep 11 (%) 31 Mar 11 (%) 30 Sep 10 (%) 31 Mar 10 (%)

1 Fairfield-Liverpool NSW 2.63 2.99 2.81 2.84 2 Gold Coast East QLD 2.58 2.77 2.26 2.11 3 Central Coast Sydney NSW 2.57 2.80 2.74 2.50 4 Gold Coast West QLD 2.47 2.87 2.00 2.04 5 Logan City (& Beaudesert Shire) QLD 2.38 2.83 1.98 1.69 6 Ipswich City QLD 2.35 2.52 1.73 1.73 7 Blacktown NSW 2.24 2.73 2.65 2.59 8 South West WA WA 2.17 2.93 2.80 2.08 9 Outer South Western Sydney NSW 2.15 2.84 2.42 2.45 10 Outer Western Sydney NSW 2.10 2.82 2.56 2.50 11 Hunter NSW 2.03 2.21 2.08 1.99 12 Mid-North Coast NSW 2.01 2.12 1.96 2.01 13 Caboolture Shire QLD 1.93 2.43 1.77 1.77 14 Wide Bay-Burnett QLD 1.92 2.50 1.74 1.74 15 Sunshine Coast QLD 1.87 2.39 1.96 1.80 16 Melton-Wyndham VIC 1.85 2.12 2.00 1.92 17 WA Regional WA 1.84 2.10 1.49 1.36 18 SA Regional SA 1.83 1.90 1.42 1.29 19 Mackay QLD 1.81 2.12 1.99 2.01 20 Canterbury-Bankstown NSW 1.70 2.37 1.90 1.99 21 Illawarra NSW 1.70 1.88 2.03 1.78 22 Richmond-Tweed NSW 1.69 2.22 1.56 1.73 23 Far North and West QLD QLD 1.67 2.16 1.78 1.91 24 Northern Adelaide SA 1.66 1.98 1.73 1.54 25 Hume City VIC 1.62 2.20 1.81 2.02 26 Central Western Sydney NSW 1.61 1.91 1.89 1.79 27 Darling Downs & West Moreton QLD 1.60 1.87 1.62 1.48 28 Murray & Murrumbidgee VIC 1.58 1.92 1.89 1.82 29 East Metropolitan Perth WA 1.52 1.80 2.03 1.54 30 South East Metropolitan Perth WA 1.50 1.80 1.67 1.70 31 South West Metropolitan Perth WA 1.50 2.27 2.07 1.86 32 North West NSW NSW 1.47 2.12 1.89 1.73 33 South Eastern NSW NSW 1.41 1.83 1.39 1.51 34 South Eastern Outer Melbourne VIC 1.38 1.66 1.63 1.77 35 Redland Shire QLD 1.35 1.48 1.14 1.18 36 Goulburn & Ovens-Murray VIC 1.34 1.54 1.27 1.26 37 Greater Dandenong City VIC 1.34 1.33 1.00 1.67 38 Northern QLD QLD 1.34 1.70 1.29 1.53 39 Pine Rivers Shire & Redcliffe City QLD 1.33 1.51 1.21 1.18 40 Fitzroy QLD 1.31 1.67 1.44 1.35 41 Mallee, Wimmera & Loddon VIC 1.27 1.64 1.10 1.11 42 Northern Outer Melbourne VIC 1.25 1.81 1.31 1.35 43 Central Northern Sydney NSW 1.22 1.43 1.56 1.41 44 Northwest Outer Brisbane QLD 1.22 1.28 0.84 0.95 45 North Metropolitan Perth WA 1.22 1.83 1.86 1.60 46 Yarra Ranges Shire Part A VIC 1.20 1.55 1.11 1.03 47 St George-Sutherland NSW 1.20 1.60 1.58 1.52 48 Central Metropolitan Perth WA 1.19 1.27 1.91 0.87 49 Eastern Adelaide SA 1.18 1.39 1.08 0.95 50 Central Highlands & Western District VIC 1.17 1.80 1.62 1.48 51 Southeast Outer Brisbane QLD 1.17 1.25 1.13 1.05 52 Mornington Peninsula Shire VIC 1.16 1.55 0.92 1.39 53 Northern Beaches NSW 1.12 1.46 1.11 1.21 54 Inner Western Sydney NSW 1.12 1.49 1.27 1.06

Page 24: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 24

Australian Regions Ranked by AUD Amount of 30+ Day Arrears at 30 September 11 (Cont.)

Rank Region State 30 Sep 11 (%) 31 Mar 11 (%) 30 Sep 10 (%) 31 Mar 10 (%)

55 TAS TAS 1.12 1.37 1.20 1.23 56 Gippsland (incl. East Gippsland) VIC 1.09 1.29 1.06 1.28 57 Inner Brisbane QLD 1.08 1.14 1.10 0.77 58 Frankston City VIC 1.03 1.51 1.62 1.32 59 Southern Adelaide SA 1.02 1.05 1.09 0.93 60 Barwon VIC 0.98 1.42 1.33 1.19 61 Western Melbourne VIC 0.98 1.18 0.88 0.99 62 Inner Sydney NSW 0.96 1.28 1.21 1.09 63 Western Adelaide SA 0.95 1.37 1.05 1.03 64 Southeast Inner Brisbane QLD 0.93 1.13 0.97 0.98 65 Moreland City VIC 0.85 0.97 0.96 0.56 66 Eastern Outer Melbourne VIC 0.84 1.13 1.06 0.95 67 Eastern Middle Melbourne VIC 0.81 1.04 0.94 1.01 68 Southern Melbourne VIC 0.80 1.05 0.84 0.73 69 NT NT 0.75 1.04 0.93 0.71 70 Northwest Inner Brisbane QLD 0.73 1.05 0.77 0.82 71 Boroondara City VIC 0.68 0.98 0.27 0.58 72 Eastern Suburbs NSW 0.67 0.99 1.18 0.99 73 ACT ACT 0.65 1.03 0.71 0.67 74 Inner Melbourne VIC 0.64 0.87 0.69 0.62 75 Lower Northern Sydney NSW 0.56 0.85 0.68 0.66 76 Northern Middle Melbourne VIC 0.54 0.90 0.66 0.75

Source: Fitch, ABS

Page 25: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 25

Figure 42 Australian Regions Ranked by Number of Loans in 30+ Day Arrears at 31 March 11 Rank Region State 30 Sep 11 (%) 31 Mar 11 (%) 30 Sep 10 (%) 31 Mar 10 (%)

1 Logan City (incl. Beaudesert Shire) QLD 1.73 2.10 1.39 1.24 2 Ipswich City QLD 1.68 1.78 1.28 1.26 3 Central Coast Sydney NSW 1.64 1.88 1.67 1.69 4 Outer South Western Sydney NSW 1.61 1.98 1.60 1.71 5 Gold Coast East QLD 1.60 1.62 1.35 1.18 6 Gold Coast West QLD 1.59 1.83 1.31 1.28 7 Fairfield-Liverpool NSW 1.59 1.85 1.76 1.80 8 Blacktown NSW 1.57 1.86 1.69 1.75 9 Outer Western Sydney NSW 1.40 1.82 1.61 1.60 10 Melton-Wyndham VIC 1.38 1.58 1.36 1.42 11 Caboolture Shire QLD 1.36 1.84 1.33 1.24 12 SA Regional SA 1.35 1.45 1.02 0.95 13 Mid-North Coast NSW 1.32 1.38 1.27 1.32 14 Hunter NSW 1.30 1.44 1.19 1.34 15 South West WA WA 1.29 1.78 1.45 1.34 16 North West NSW NSW 1.28 1.75 1.42 1.39 17 Hume City VIC 1.27 1.58 1.30 1.55 18 WA Regional WA 1.26 1.59 1.04 1.17 19 Murray & Murrumbidgee VIC 1.25 1.52 1.34 1.42 20 Northern Adelaide SA 1.24 1.46 1.20 1.13 21 Wide Bay-Burnett QLD 1.22 1.65 1.16 1.27 22 Darling Downs & West Moreton QLD 1.18 1.39 1.13 1.01 23 Mackay QLD 1.17 1.35 1.18 1.31 24 Sunshine Coast QLD 1.16 1.52 1.05 1.07 25 South Eastern NSW NSW 1.13 1.53 1.15 1.27 26 South East Metropolitan Perth WA 1.12 1.31 1.14 1.14 27 Illawarra NSW 1.10 1.15 1.15 1.17 28 Richmond-Tweed NSW 1.10 1.31 1.04 1.05 29 Far North and West QLD QLD 1.10 1.53 1.13 1.23 30 South West Metropolitan Perth WA 1.07 1.53 1.31 1.15 31 Canterbury-Bankstown NSW 1.05 1.42 1.12 1.27 32 Central Western Sydney NSW 1.05 1.25 1.17 1.13 33 Northern QLD QLD 1.04 1.27 0.86 1.13 34 South Eastern Outer Melbourne VIC 1.03 1.32 1.16 1.26 35 Pine Rivers Shire & Redcliffe City QLD 0.97 1.11 0.87 0.89 36 Greater Dandenong City VIC 0.96 1.03 0.68 1.18 37 Fitzroy QLD 0.95 1.26 1.08 0.97 38 East Metropolitan Perth WA 0.95 1.17 1.27 1.05 39 Mallee, Wimmera & Loddon VIC 0.95 1.18 0.87 0.90 40 Goulburn & Ovens-Murray VIC 0.95 1.15 0.91 0.98 41 Yarra Ranges Shire Part A VIC 0.94 1.14 0.78 0.88 42 Gippsland (incl. East Gippsland) VIC 0.92 1.13 0.90 0.99 43 North Metropolitan Perth WA 0.92 1.33 1.15 1.11 44 Redland Shire QLD 0.90 1.02 0.83 0.76 45 Mornington Peninsula Shire VIC 0.89 1.09 0.70 1.11 46 TAS TAS 0.88 1.05 0.87 0.94 47 Northwest Outer Brisbane QLD 0.86 0.96 0.61 0.72 48 Barwon VIC 0.84 1.11 0.95 0.87 49 Northern Outer Melbourne VIC 0.83 1.16 0.87 0.92 50 Frankston City VIC 0.82 1.22 1.27 1.04 51 Central Highlands & Western District VIC 0.79 1.15 1.09 1.04 52 St George-Sutherland NSW 0.77 0.94 0.83 0.79 53 Eastern Adelaide SA 0.76 0.85 0.69 0.61 54 Central Northern Sydney NSW 0.76 0.87 0.83 0.75 55 Southern Adelaide SA 0.75 0.80 0.71 0.69 56 Southeast Outer Brisbane QLD 0.74 0.88 0.73 0.69 57 Western Adelaide SA 0.74 0.98 0.71 0.77 58 Northern Beaches NSW 0.71 0.85 0.60 0.68 59 Western Melbourne VIC 0.71 0.93 0.66 0.76 60 Inner Western Sydney NSW 0.70 0.91 0.70 0.68 61 Central Metropolitan Perth WA 0.68 0.71 0.70 0.52 62 Inner Brisbane QLD 0.64 0.67 0.56 0.54 63 Inner Sydney NSW 0.64 0.84 0.75 0.66 64 NT NT 0.64 0.83 0.60 0.49 65 Eastern Outer Melbourne VIC 0.60 0.86 0.64 0.70 66 Southeast Inner Brisbane QLD 0.59 0.72 0.49 0.54 67 Lower Northern Sydney NSW 0.36 0.69 0.54 0.46 68 Boroondara City VIC 0.38 0.71 0.66 0.42 69 Northern Middle Melbourne VIC 0.45 0.70 0.47 0.54 70 ACT ACT 0.46 0.66 0.61 0.61

Page 26: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 26

Australian Regions Ranked by Number of Loans in 30+ Day Arrears at 31 March 11 (Cont.)

Rank Region State 30 Sep 11 (%) 31 Mar 11 (%) 30 Sep 10 (%) 31 Mar 10 (%)

71 Inner Melbourne VIC 0.48 0.65 0.71 0.60 72 Eastern Suburbs NSW 0.48 0.68 0.44 0.44 73 Eastern Middle Melbourne VIC 0.52 0.70 0.44 0.46 74 Northwest Inner Brisbane QLD 0.52 0.64 0.46 0.56 75 Moreland City VIC 0.55 0.58 0.20 0.38 76 Southern Melbourne VIC 0.58 0.55 0.39 0.39

Source: Fitch, ABS

Page 27: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 27

Figure 43 Australian Worst 100 Postcodes Ranked by AUD Amount 30+ Day Arrears (%) Rank Postcode Districts 30 Sep 11 31 Mar 11 30 Sep 10 31 Mar 10

1 2315 CORLETTE, FINGAL BAY, NELSON BAY, SHOAL BAY 7.79 5.62 8.02 6.80 2 2262 BLUE HAVEN, BUDGEWOI, BUDGEWOI PENINSULA, BUFF POINT, COLONGRA,

DOYALSON, DOYALSON NORTH, HALEKULANI, SAN REMO 4.59 4.23 4.38 3.89

3 4212 HELENSVALE, HELENSVALE TOWN CENTRE, HOPE ISLAND, SANCTUARY COVE

4.27 4.24 3.34 4.64

4 2576 BOWRAL, BURRADOO, EAST BOWRAL, EAST KANGALOON, GLENQUARRY, KANGALOON

4.27 2.23

5 2171 CARNES HILL, CECIL HILLS, ELIZABETH HILLS, HORNINGSEA PARK, HOXTON PARK, LEN WATERS ESTATE, MIDDLETON GRANGE, WEST HOXTON

4.04 2.62 3.15 3.15

6 4217 BENOWA, BUNDALL, BUNDALL BC, BUNDALL DC, CHEVRON ISLAND, GOLD COAST MC, ISLE OF CAPRI, MAIN BEACH, SURFERS PARADISE

3.93 4.10 4.33 3.28

7 4130 CARBROOK, CORNUBIA 3.93 3.83 2.42 8 4114 KINGSTON, LOGAN CENTRAL, LOGAN CITY DC, WOODRIDGE 3.80 4.61 2.65 2.29 9 2106 NEWPORT, NEWPORT BEACH 3.78 1.97 10 2761 COLEBEE, DEAN PARK, GLENDENNING, HASSALL GROVE, OAKHURST,

PLUMPTON 3.67 2.90 2.48 3.22

11 4567 CASTAWAYS BEACH, NOOSA HEADS, SUNRISE BEACH, SUNSHINE BEACH 3.59 2.46 12 4802 AIRLIE BEACH, CANNONVALE, FLAMETREE, JUBILEE POCKET, MANDALAY,

MOUNT ROOPER, SHUTE HARBOUR, WHITSUNDAYS, WOODWARK 3.57 3.86 3.26 3.01

13 2753 AGNES BANKS, BOWEN MOUNTAIN, GROSE VALE, GROSE WOLD, HOBARTVILLE, LONDONDERRY, RICHMOND, RICHMOND LOWLANDS, YARRAMUNDI

3.42 2.98 3.36 3.75

14 2324 BALICKERA, BRANDY HILL, BUNDABAH, CARRINGTON, EAGLETON, EAST SEAHAM, HAWKS NEST, HEATHERBRAE, KARUAH, LIMEBURNERS CREEK, MILLERS FOREST, NELSONS PLAINS, NORTH ARM COVE, OSTERLEY, PINDIMAR, RAYMOND TERRACE, RAYMOND TERRACE EAST, SEAHAM, SWAN BAY, TAHLEE, T

3.40 2.29 2.55 2.24

15 2325 ABERDARE, ABERNETHY, BELLBIRD, BELLBIRD HEIGHTS, CEDAR CREEK, CESSNOCK, CESSNOCK WEST, CONGEWAI, CORRABARE, ELLALONG, ELRINGTON, GRETA MAIN, KEARSLEY, KITCHENER, LAGUNA, LOVEDALE, MILLFIELD, MORUBEN, MOUNT VIEW, NULKABA, OLNEY, PAXTON, PAYNES CROSSING, PE

3.37 3.45 2.56 2.58

16 6167 ANKETELL, BERTRAM, CALISTA, CASUARINA, KWINANA BEACH, KWINANA TOWN CENTRE, MANDOGALUP, MEDINA, ORELIA, PARMELIA, POSTANS, THE SPECTACLES, WANDI

3.36 4.10 3.81 4.91

17 2177 BONNYRIGG, BONNYRIGG HEIGHTS 3.30 2.03 1.34 1.72 18 2428 BLUEYS BEACH, BOOMERANG BEACH, BOOTI BOOTI, CHARLOTTE BAY,

COOMBA BAY, COOMBA PARK, DARAWANK, ELIZABETH BEACH, FORSTER, FORSTER SHOPPING VILLAGE, GREEN POINT, PACIFIC PALMS, SANDBAR, SHALLOW BAY, SMITHS LAKE, TARBUCK BAY, TIONA, TUNCURRY, WALLINGAT, WALLI

3.26 3.09 2.45 2.40

19 2263 CANTON BEACH, CHARMHAVEN, GOROKAN, LAKE HAVEN, NORAH HEAD, NORAVILLE, TOUKLEY

3.26 2.35 1.83 4.02

20 2430 BLACK HEAD, BOHNOCK, BOOTAWA, BRIMBIN, CABBAGE TREE ISLAND, CHATHAM, CROKI, CUNDLETOWN, DIAMOND BEACH, DUMARESQ ISLAND, FAILFORD, GHINNI GHINNI, GLENTHORNE, HALLIDAYS POINT, HILLVILLE, JONES ISLAND, KIWARRAK, KOORAINGHAT, KUNDLE KUNDLE

3.21 2.62 2.21 3.17

21 2767 DOONSIDE, WOODCROFT 3.21 2.74 3.08 3.61 22 6172 PORT KENNEDY 3.21 2.91 2.83 1.60 23 3337 KURUNJANG, MELTON, MELTON WEST, TOOLERN VALE 3.18 2.90 2.91 3.40 24 4132 CRESTMEAD, MARSDEN 3.15 4.35 3.40 2.09 25 2765 BERKSHIRE PARK, BOX HILL, MARAYLYA, MARSDEN PARK, NELSON,

OAKVILLE, RIVERSTONE, VINEYARD 3.12 4.84 5.17 3.13

26 2168 ASHCROFT, BUSBY, CARTWRIGHT, GREEN VALLEY, HECKENBERG, HINCHINBROOK, MILLER, SADLEIR

3.11 4.02 3.69 3.57

27 2125 WEST PENNANT HILLS 3.06 3.06 1.70 28 6210 COODANUP, DUDLEY PARK, ERSKINE, FALCON, GREENFIELDS, HALLS HEAD,

MADORA BAY, MANDURAH, MANDURAH DC, MANDURAH EAST, MANDURAH NORTH, MEADOW SPRINGS, SAN REMO, SILVER SANDS, WANNANUP

3.04 4.19 3.85 2.58

29 2571 BALMORAL, BUXTON, COURIDJAH, MALDON, MOWBRAY PARK, PICTON, RAZORBACK, WILTON

2.98 3.81 3.34

30 2558 EAGLE VALE, ESCHOL PARK, KEARNS 2.96 2.93 1.90 2.31 31 5108 PARALOWIE, SALISBURY, SALISBURY DOWNS, SALISBURY NORTH,

SALISBURY NORTH WHITES ROAD 2.89 2.52 1.84 2.30

32 2564 GLENQUARIE, LONG POINT, MACQUARIE FIELDS 2.89 2.41 1.91 2.72 33 4305 BASIN POCKET, BRASSALL, BREMER, CHURCHILL, COALFALLS, EAST

IPSWICH, EASTERN HEIGHTS, FLINDERS VIEW, IPSWICH, LEICHHARDT, LIMESTONE RIDGES, MOORES POCKET, NEWTOWN, NORTH IPSWICH, NORTH TIVOLI, ONE MILE, RACEVIEW, SADLIERS CROSSING, TIVOLI, WEST IPSWICH, WO

2.89 2.82 2.16 2.03

Page 28: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 28

Australian Worst 100 Postcodes Ranked by AUD Amount 30+ Day Arrears (%) (Cont.)

Rank Postcode Districts 30 Sep 11 31 Mar 11 30 Sep 10 31 Mar 10

34 3139 BEENAK, DON VALLEY, HODDLES CREEK, LAUNCHING PLACE, SEVILLE, SEVILLE EAST, WANDIN EAST, WANDIN NORTH, WOORI YALLOCK, YELLINGBO

2.88 1.92 1.11 1.37

35 4133 CHAMBERS FLAT, LOGAN RESERVE, WATERFORD, WATERFORD WEST 2.86 2.62 2.05 2.27

36 5072 AULDANA, MAGILL, MAGILL NORTH, MAGILL SOUTH, ROSSLYN PARK, SKYE, TERINGIE, WOODFORDE

2.84 1.65

37 5112 ELIZABETH, ELIZABETH EAST, ELIZABETH GROVE, ELIZABETH SOUTH, ELIZABETH VALE, HILLBANK

2.78 2.62 2.18

38 4573 COOLUM BEACH, MARCUS BEACH, MOUNT COOLUM, PEREGIAN BEACH, PEREGIAN SPRINGS, POINT ARKWRIGHT, YAROOMBA

2.75 2.22 2.55 2.72

39 5096 GULFVIEW HEIGHTS, PARA HILLS, PARA HILLS WEST 2.73 3.13 1.45 40 2749 CASTLEREAGH, CRANEBROOK 2.72 3.02 2.42 2.30 41 4218 BROADBEACH, BROADBEACH WATERS, MERMAID BEACH, MERMAID WATERS,

NOBBY BEACH, PACIFIC FAIR, Q SUPERCENTRE 2.72 2.76 1.86 1.45

42 4300 AUGUSTINE HEIGHTS, BELLBIRD PARK, BROOKWATER, CAMIRA, CAROLE PARK, GAILES, GOODNA, SPRINGFIELD, SPRINGFIELD CENTRAL, SPRINGFIELD LAKES

2.71 2.19 1.49 1.75

43 2770 BIDWILL, BLACKETT, DHARRUK, EMERTON, HEBERSHAM, LETHBRIDGE PARK, MINCHINBURY, MOUNT DRUITT, MOUNT DRUITT VILLAGE, SHALVEY, TREGEAR, WHALAN, WILLMOT

2.69 4.32 2.94 3.68

44 2280 BELMONT, BELMONT NORTH, BELMONT SOUTH, CROUDACE BAY, FLORAVILLE, JEWELLS, MARKS POINT, VALENTINE

2.69 1.50 3.52 2.85

45 3187 BRIGHTON EAST, NORTH ROAD 2.68 2.32 1.59 46 2170 CASULA, CASULA MALL, CHIPPING NORTON, HAMMONDVILLE, LIVERPOOL,

LIVERPOOL SOUTH, LIVERPOOL WESTFIELD, LURNEA, MOOREBANK, MOUNT PRITCHARD, PRESTONS, WARWICK FARM

2.67 3.13 2.32 2.69

47 2766 EASTERN CREEK, ROOTY HILL 2.64 3.69 3.70 3.13 48 2760 COLYTON, NORTH ST MARYS, OXLEY PARK, ROPES CROSSING, ST MARYS,

ST MARYS EAST, ST MARYS SOUTH 2.63 3.41 2.95 3.20

49 6058 FORRESTFIELD 2.63 2.22 1.50 50 2190 CHULLORA, GREENACRE, MOUNT LEWIS 2.62 3.28 3.84 3.55 51 4211 ADVANCETOWN, BEECHMONT, BINNA BURRA, CARRARA, CLAGIRABA, GAVEN,

GILSTON, HIGHLAND PARK, LOWER BEECHMONT, MOUNT NATHAN, NATURAL BRIDGE, NERANG, NERANG BC, NERANG DC, NUMINBAH VALLEY, PACIFIC PINES, SOUTHERN LAMINGTON

2.61 2.66 1.84 1.47

52 2747 CAMBRIDGE GARDENS, CAMBRIDGE PARK, CLAREMONT MEADOWS, KINGSWOOD, LLANDILO, SHANES PARK, WERRINGTON, WERRINGTON COUNTY, WERRINGTON DOWNS

2.60 3.55 3.43 2.70

53 2259 ALISON, BUSHELLS RIDGE, CEDAR BRUSH CREEK, CHAIN VALLEY BAY, CRANGAN BAY, DOORALONG, DURREN DURREN, FRAZER PARK, FREEMANS, GWANDALAN, HALLORAN, HAMLYN TERRACE, JILLIBY, KANWAL, KIAR, KINGFISHER SHORES, LAKE MUNMORAH, LEMON TREE, LITTLE JILLIBY, MANNERING

2.60 3.07 2.67 2.90

54 2250 BUCKETTY, CALGA, CENTRAL MANGROVE, EAST GOSFORD, ERINA, ERINA FAIR, GLENWORTH VALLEY, GOSFORD, GREENGROVE, HOLGATE, KARIONG, KULNURA, LISAROW, LOWER MANGROVE, MANGROVE CREEK, MANGROVE MOUNTAIN, MATCHAM, MOONEY MOONEY CREEK, MOUNT ELLIOT, MOUNT WHITE, NARA

2.59 2.47 3.06 2.24

55 2142 BLAXCELL, CAMELLIA, CLYDE, GRANVILLE, HOLROYD, ROSEHILL, SOUTH GRANVILLE

2.59 2.33 2.92 2.12

56 4220 BURLEIGH DC, BURLEIGH HEADS, BURLEIGH TOWN, BURLEIGH WATERS, MIAMI

2.56 2.25 1.33 1.57

57 4825 ALEXANDRIA, ALPURRURULAM, BARKLY, BREAKAWAY, BUCKINGHAM, CARRANDOTTA, DAJARRA, DUCHESS, FIELDING, FISHER, GEORGINA, GUNPOWDER, HAPPY VALLEY, HEALY, KALKADOON, LANSKEY, LAWN HILL, MENZIES, MICA CREEK, MILES END, MORNINGTON, MOUNT ISA, MOUNT ISA CITY, MOUNT

2.55 2.17 1.26 1.18

58 4019 CLONTARF, CLONTARF BEACH, CLONTARF DC, MARGATE, MARGATE BEACH, WOODY POINT

2.54 2.29 1.02 1.05

59 2160 MERRYLANDS, MERRYLANDS WEST 2.53 3.82 3.05 3.05 60 2577 AVOCA, BANGADILLY, BARREN GROUNDS, BARRENGARRY, BEAUMONT,

BELANGLO, BERRIMA, BUDGONG, BURRAWANG, CANYONLEIGH, CARRINGTON FALLS, FITZROY FALLS, HANGING ROCK, KANGAROO VALLEY, KNIGHTS HILL, MACQUARIE PASS, MANCHESTER SQUARE, MEDWAY, MERYLA, MOSS VALE, MOUNT

2.52 4.25 3.00

61 6330 ALBANY, BAYONET HEAD, BIG GROVE, BORNHOLM, CENTENNIAL PARK, COLLINGWOOD HEIGHTS, COLLINGWOOD PARK, CUTHBERT, DROME, ELLEKER, EMU POINT, FRENCHMAN BAY, GLEDHOW, GOODE BEACH, GREEN VALLEY, KALGAN, KING RIVER, KRONKUP, LANGE, LITTLE GROVE, LOCKYER, LOWER KIN

2.52 2.22 2.15 2.04

62 2221 BLAKEHURST, CARSS PARK, CONNELLS POINT, KYLE BAY, SOUTH HURSTVILLE

2.51 2.95

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Structured Finance

Australian Mortgage Delinquency by Postcode

December 2011 29

Australian Worst 100 Postcodes Ranked by AUD Amount 30+ Day Arrears (%) (Cont.)

Rank Postcode Districts 30 Sep 11 31 Mar 11 30 Sep 10

31 Mar 10

63 4879 CLIFTON BEACH, ELLIS BEACH, KEWARRA BEACH, PALM COVE, TRINITY BEACH, TRINITY PARK

2.50 3.28 2.81 2.25

64 4214 ARUNDEL, ARUNDEL BC, ARUNDEL DC, ASHMORE, ASHMORE CITY, MOLENDINAR, PARKWOOD

2.50 2.74 2.08 2.09

65 4213 AUSTINVILLE, BONOGIN, MUDGEERABA, NERANWOOD, SPRINGBROOK, TALLAI, WORONGARY

2.50 3.92 2.99 3.13

66 2260 ERINA HEIGHTS, FORRESTERS BEACH, NORTH AVOCA, TERRIGAL, WAMBERAL

2.49 1.36 1.79 1.73

67 2176 ABBOTSBURY, BOSSLEY PARK, EDENSOR PARK, GREENFIELD PARK, PRAIRIEWOOD, ST JOHNS PARK, WAKELEY

2.48 2.62 3.47 2.78

68 6010 CLAREMONT, CLAREMONT NORTH, KARRAKATTA, MOUNT CLAREMONT, SWANBOURNE

2.47

69 2756 BLIGH PARK, CATTAI, CENTRAL COLO, CLARENDON, COLO, COLO HEIGHTS, CORNWALLIS, CUMBERLAND REACH, EBENEZER, FREEMANS REACH, GLOSSODIA, LOWER PORTLAND, MAROOTA, MCGRATHS HILL, MELLONG, MULGRAVE, PITT TOWN, PITT TOWN BOTTOMS, SACKVILLE, SACKVILLE NORTH, SCHEYV

2.47 3.34 2.50 3.23

70 2205 ARNCLIFFE, TURRELLA, WOLLI CREEK 2.47 3.52 3.28 2.50 71 4216 BIGGERA WATERS, COOMBABAH, HOLLYWELL, PARADISE POINT, RUNAWAY

BAY, SOUTH STRADBROKE 2.42 2.99 2.34 1.92

72 6112 ARMADALE, BEDFORDALE, BROOKDALE, FORRESTDALE, HARRISDALE, HAYNES, HILBERT, MOUNT NASURA, MOUNT RICHON, PIARA WATERS, SEVILLE GROVE, WUNGONG

2.42 3.42 2.68 2.22

73 2037 FOREST LODGE, GLEBE 2.40 74 2018 EASTLAKES, ROSEBERY 2.39 3.50 75 4815 CONDON, GRANITE VALE, GUMLOW, KELSO, PINNACLES, RASMUSSEN 2.38 3.47 1.71 76 4227 REEDY CREEK, VARSITY LAKES 2.37 3.00 1.91 2.16 77 6168 COOLOONGUP, EAST ROCKINGHAM, GARDEN ISLAND, HILLMAN, PERON,

ROCKINGHAM, ROCKINGHAM BEACH, ROCKINGHAM DC 2.36 4.22 2.87 2.38

78 2256 BLACKWALL, HORSFIELD BAY, KOOLEWONG, LITTLE WOBBY, PATONGA, PEARL BEACH, PHEGANS BAY, WONDABYNE, WOY WOY, WOY WOY BAY

2.36 2.79 2.46 2.16

79 5169 MOANA, SEAFORD, SEAFORD HEIGHTS, SEAFORD MEADOWS, SEAFORD RISE 2.35 1.73 80 2485 TWEED HEADS, TWEED HEADS WEST 2.35 2.45 81 4280 JIMBOOMBA, NORTH MACLEAN, SOUTH MACLEAN, STOCKLEIGH 2.33 2.59 2.47 1.47 82 6069 AVELEY, BELHUS, BRIGADOON, ELLENBROOK, ELLENBROOK EAST, THE

VINES, UPPER SWAN 2.33 1.85 3.34 1.47

83 2165 FAIRFIELD, FAIRFIELD EAST, FAIRFIELD HEIGHTS, FAIRFIELD WEST 2.32 2.72 2.89 2.93 84 4564 MARCOOLA, MUDJIMBA, PACIFIC PARADISE, TWIN WATERS 2.31 2.74 2.47 2.12 85 2322 BERESFIELD, BLACK HILL, CHISHOLM, HEXHAM, LENAGHAN, STOCKRINGTON,

TARRO, THORNTON, TOMAGO, WOODBERRY 2.31 3.38 1.37

86 6147 LANGFORD, LYNWOOD, PARKWOOD 2.30 2.12 1.81 87 4077 DOOLANDELLA, DURACK, INALA, INALA EAST, INALA HEIGHTS, RICHLANDS 2.30 2.22 1.18 1.80 88 4504 NARANGBA 2.30 2.01 1.50 1.83 89 2107 AVALON, AVALON BEACH, BILGOLA, CLAREVILLE, WHALE BEACH 2.29 1.73 90 2560 AIRDS, AMBARVALE, APPIN, BLAIR ATHOL, BRADBURY, CAMPBELLTOWN,

CAMPBELLTOWN NORTH, CATARACT, ENGLORIE PARK, GILEAD, GLEN ALPINE, KENTLYN, LEUMEAH, MACARTHUR SQUARE, ROSEMEADOW, RUSE, ST HELENS PARK, WEDDERBURN, WOODBINE

2.29 2.76 2.47 2.29

91 6110 GOSNELLS, HUNTINGDALE, MARTIN, SOUTHERN RIVER 2.28 2.61 3.36 3.42 92 4506 MOORINA, MORAYFIELD 2.28 2.90 2.08 1.43 93 2261 BATEAU BAY, BAY VILLAGE, BERKELEY VALE, BLUE BAY, CHITTAWAY BAY,

CHITTAWAY POINT, GLENNING VALLEY, KILLARNEY VALE, LONG JETTY, MAGENTA, SHELLY BEACH, THE ENTRANCE, THE ENTRANCE NORTH, TOOWOON BAY, TUMBI UMBI

2.27 3.58 3.13 2.53

94 2199 YAGOONA, YAGOONA WEST 2.27 4.10 2.62 1.89 95 2146 OLD TOONGABBIE, TOONGABBIE, TOONGABBIE EAST 2.27 3.00 2.65 1.43 96 2902 KAMBAH, KAMBAH VILLAGE 2.25 2.67 0.88 97 4352 BALLARD, BAPAUME, BIRNAM, BLANCHVIEW, BRANCHVIEW, CABARLAH,

CAWDOR, CEMENT MILLS, COALBANK, CONDAMINE PLAINS, CUTELLA, DERRYMORE, DJUAN, DOCTOR CREEK, EVERGREEN, FIFTEEN MILE, GEHAM, GLENCOE, GORE, GOWRIE JUNCTION, GOWRIE LITTLE PLAIN, GRAPETREE, GROOMSVI

2.25 2.40 1.79 2.46

98 2148 ARNDELL PARK, BLACKTOWN, BLACKTOWN WESTPOINT, HUNTINGWOOD, KINGS PARK, MARAYONG, PROSPECT

2.24 2.41 2.37 2.28

99 4655 BOORAL, BUNYA CREEK, CRAIGNISH, DUNDOWRAN, DUNDOWRAN BEACH, ELI WATERS, GREAT SANDY STRAIT, HERVEY BAY, HERVEY BAY DC, KAWUNGAN, KINGFISHER BAY RESORT, NIKENBAH, PIALBA, POINT VERNON, RIVER HEADS, SCARNESS, SUNSHINE ACRES, SUSAN RIVER, TAKURA, TOOGOOM, TO

2.24 3.37 2.55 1.82

100 2515 AUSTINMER, CLIFTON, COLEDALE, SCARBOROUGH, THIRROUL, WOMBARRA 2.24 2.54

Source: Fitch

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Structured Finance

Australian Mortgage Delinquency by Postcode

December 2011 30

Figure 44 Australian Worst 100 Postcodes Ranked by Number of Loans in 30+ Day Arrears (%) Rank Postcode Districts 30 Sep 11 31 Mar 11 30 Sep 10 31 Mar 10

1 2262 BLUE HAVEN, BUDGEWOI, BUDGEWOI PENINSULA, BUFF POINT, COLONGRA, DOYALSON, DOYALSON NORTH, HALEKULANI, SAN REMO

3.5 3.23 2.97 2.60

2 2315 CORLETTE, FINGAL BAY, NELSON BAY, SHOAL BAY 3.1 2.08 3.28 3.37 3 2576 BOWRAL, BURRADOO, EAST BOWRAL, EAST KANGALOON, GLENQUARRY,

KANGALOON 3.0 1.72

4 4217 BENOWA, BUNDALL, BUNDALL BC, BUNDALL DC, CHEVRON ISLAND, GOLD COAST MC, ISLE OF CAPRI, MAIN BEACH, SURFERS PARADISE

2.9 2.31 2.35 1.64

5 2325 ABERDARE, ABERNETHY, BELLBIRD, BELLBIRD HEIGHTS, CEDAR CREEK, CESSNOCK, CESSNOCK WEST, CONGEWAI, CORRABARE, ELLALONG, ELRINGTON, GRETA MAIN, KEARSLEY, KITCHENER, LAGUNA, LOVEDALE, MILLFIELD, MORUBEN, MOUNT VIEW, NULKABA, OLNEY, PAXTON, PAYNES CROSSING, PE

2.6 2.64 1.68 1.64

6 2761 COLEBEE, DEAN PARK, GLENDENNING, HASSALL GROVE, OAKHURST, PLUMPTON

2.6 2.08 1.79 2.18

7 4114 KINGSTON, LOGAN CENTRAL, LOGAN CITY DC, WOODRIDGE 2.5 3.26 1.46 1.44 8 4212 HELENSVALE, HELENSVALE TOWN CENTRE, HOPE ISLAND, SANCTUARY

COVE 2.5 2.92 1.96 2.27

9 4132 CRESTMEAD, MARSDEN 2.4 3.27 2.70 1.54 10 2558 EAGLE VALE, ESCHOL PARK, KEARNS 2.3 1.82 1.26 1.45 11 6172 PORT KENNEDY 2.3 2.16 1.78 1.19 12 2263 CANTON BEACH, CHARMHAVEN, GOROKAN, LAKE HAVEN, NORAH HEAD,

NORAVILLE, TOUKLEY 2.2 1.78 1.32 2.43

13 2564 GLENQUARIE, LONG POINT, MACQUARIE FIELDS 2.2 1.60 1.25 1.66 14 2430 BLACK HEAD, BOHNOCK, BOOTAWA, BRIMBIN, CABBAGE TREE ISLAND,

CHATHAM, CROKI, CUNDLETOWN, DIAMOND BEACH, DUMARESQ ISLAND, FAILFORD, GHINNI GHINNI, GLENTHORNE, HALLIDAYS POINT, HILLVILLE, JONES ISLAND, KIWARRAK, KOORAINGHAT, KUNDLE KUNDLE, LANSDOWNE, LANSDOW

2.2 1.81 1.37 1.34

15 2259 ALISON, BUSHELLS RIDGE, CEDAR BRUSH CREEK, CHAIN VALLEY BAY, CRANGAN BAY, DOORALONG, DURREN DURREN, FRAZER PARK, FREEMANS, GWANDALAN, HALLORAN, HAMLYN TERRACE, JILLIBY, KANWAL, KIAR, KINGFISHER SHORES, LAKE MUNMORAH, LEMON TREE, LITTLE JILLIBY, MANNERING

2.2 2.10 1.77 1.94

16 2168 ASHCROFT, BUSBY, CARTWRIGHT, GREEN VALLEY, HECKENBERG, HINCHINBROOK, MILLER, SADLEIR

2.2 2.73 2.38 2.35

17 2171 CARNES HILL, CECIL HILLS, ELIZABETH HILLS, HORNINGSEA PARK, HOXTON PARK, LEN WATERS ESTATE, MIDDLETON GRANGE, WEST HOXTON

2.1 1.51 1.56 1.78

18 2324 BALICKERA, BRANDY HILL, BUNDABAH, CARRINGTON, EAGLETON, EAST SEAHAM, HAWKS NEST, HEATHERBRAE, KARUAH, LIMEBURNERS CREEK, MILLERS FOREST, NELSONS PLAINS, NORTH ARM COVE, OSTERLEY, PINDIMAR, RAYMOND TERRACE, RAYMOND TERRACE EAST, SEAHAM, SWAN BAY, TAHLEE, T

2.1 1.72 1.47 1.89

19 6167 ANKETELL, BERTRAM, CALISTA, CASUARINA, KWINANA BEACH, KWINANA TOWN CENTRE, MANDOGALUP, MEDINA, ORELIA, PARMELIA, POSTANS, THE SPECTACLES, WANDI

2.1 2.73 2.63 3.14

20 4305 BASIN POCKET, BRASSALL, BREMER, CHURCHILL, COALFALLS, EAST IPSWICH, EASTERN HEIGHTS, FLINDERS VIEW, IPSWICH, LEICHHARDT, LIMESTONE RIDGES, MOORES POCKET, NEWTOWN, NORTH IPSWICH, NORTH TIVOLI, ONE MILE, RACEVIEW, SADLIERS CROSSING, TIVOLI, WEST IPSWICH, WO

2.1 2.03 1.57 1.45

21 2749 CASTLEREAGH, CRANEBROOK 2.08 1.97 1.41 1.46 22 2753 AGNES BANKS, BOWEN MOUNTAIN, GROSE VALE, GROSE WOLD,

HOBARTVILLE, LONDONDERRY, RICHMOND, RICHMOND LOWLANDS, YARRAMUNDI

2.08 1.64 1.75 2.18

23 5108 PARALOWIE, SALISBURY, SALISBURY DOWNS, SALISBURY NORTH, SALISBURY NORTH WHITES ROAD

2.07 1.94 1.48 1.69

24 2767 DOONSIDE, WOODCROFT 2.05 1.88 2.08 2.36 25 4285 ALLENVIEW, BEAUDESERT, BIRNAM, BROMELTON, CAINBABLE, CEDAR

GROVE, CEDAR VALE, CHINGHEE CREEK, CHRISTMAS CREEK, CRYNA, DARLINGTON, GLENEAGLE, HILLVIEW, INNISPLAIN, JOSEPHVILLE, KAGARU, KERRY, KNAPP CREEK, KOORALBYN, LAMINGTON, LARAVALE, MOUNT GIPPS, MUNDOO

2.04 1.98 1.60 1.08

26 4802 AIRLIE BEACH, CANNONVALE, FLAMETREE, JUBILEE POCKET, MANDALAY, MOUNT ROOPER, SHUTE HARBOUR, WHITSUNDAYS, WOODWARK

2.03 2.20 1.78 2.03

27 4304 BLACKSTONE, BOOVAL, BOOVAL FAIR, BUNDAMBA, EBBW VALE, NORTH BOOVAL, SILKSTONE

2.00 1.08 1.24 0.78

28 2766 EASTERN CREEK, ROOTY HILL 1.94 2.71 2.49 1.85 29 3337 KURUNJANG, MELTON, MELTON WEST, TOOLERN VALE 1.93 1.99 1.71 2.15

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Australian Mortgage Delinquency by Postcode

December 2011 31

Australian Worst 100 Postcodes Ranked by Number of Loans in 30+ Day Arrears (%) (Cont.)

Rank Postcode Districts 30 Sep 11 31 Mar 11 30 Sep 10 31 Mar 10

30 4825 ALEXANDRIA, ALPURRURULAM, BARKLY, BREAKAWAY, BUCKINGHAM, CARRANDOTTA, DAJARRA, DUCHESS, FIELDING, FISHER, GEORGINA, GUNPOWDER, HAPPY VALLEY, HEALY, KALKADOON, LANSKEY, LAWN HILL, MENZIES, MICA CREEK, MILES END, MORNINGTON, MOUNT ISA, MOUNT ISA CITY, MOUNT

1.90 1.78 0.98 1.24

31 2770 BIDWILL, BLACKETT, DHARRUK, EMERTON, HEBERSHAM, LETHBRIDGE PARK, MINCHINBURY, MOUNT DRUITT, MOUNT DRUITT VILLAGE, SHALVEY, TREGEAR, WHALAN, WILLMOT

1.90 2.83 1.82 2.31

32 6112 ARMADALE, BEDFORDALE, BROOKDALE, FORRESTDALE, HARRISDALE, HAYNES, HILBERT, MOUNT NASURA, MOUNT RICHON, PIARA WATERS, SEVILLE GROVE, WUNGONG

1.88 2.92 1.83 1.79

33 4133 CHAMBERS FLAT, LOGAN RESERVE, WATERFORD, WATERFORD WEST 1.88 1.78 1.26 1.29 34 2571 BALMORAL, BUXTON, COURIDJAH, MALDON, MOWBRAY PARK, PICTON,

RAZORBACK, WILTON 1.85 2.47 2.44

35 2322 BERESFIELD, BLACK HILL, CHISHOLM, HEXHAM, LENAGHAN, STOCKRINGTON, TARRO, THORNTON, TOMAGO, WOODBERRY

1.83 2.56 1.01

36 2177 BONNYRIGG, BONNYRIGG HEIGHTS 1.83 1.42 0.92 1.19 37 2560 AIRDS, AMBARVALE, APPIN, BLAIR ATHOL, BRADBURY, CAMPBELLTOWN,

CAMPBELLTOWN NORTH, CATARACT, ENGLORIE PARK, GILEAD, GLEN ALPINE, KENTLYN, LEUMEAH, MACARTHUR SQUARE, ROSEMEADOW, RUSE, ST HELENS PARK, WEDDERBURN, WOODBINE

1.82 1.94 1.76 1.73

38 5112 ELIZABETH, ELIZABETH EAST, ELIZABETH GROVE, ELIZABETH SOUTH, ELIZABETH VALE, HILLBANK

1.82 2.11 2.05

39 4130 CARBROOK, CORNUBIA 1.80 1.80 1.35 40 6010 CLAREMONT, CLAREMONT NORTH, KARRAKATTA, MOUNT CLAREMONT,

SWANBOURNE 1.79

41 5169 MOANA, SEAFORD, SEAFORD HEIGHTS, SEAFORD MEADOWS, SEAFORD RISE 1.78 1.26 42 3139 BEENAK, DON VALLEY, HODDLES CREEK, LAUNCHING PLACE, SEVILLE,

SEVILLE EAST, WANDIN EAST, WANDIN NORTH, WOORI YALLOCK, YELLINGBO 1.78 1.42 0.78 1.37

43 2428 BLUEYS BEACH, BOOMERANG BEACH, BOOTI BOOTI, CHARLOTTE BAY, COOMBA BAY, COOMBA PARK, DARAWANK, ELIZABETH BEACH, FORSTER, FORSTER SHOPPING VILLAGE, GREEN POINT, PACIFIC PALMS, SANDBAR, SHALLOW BAY, SMITHS LAKE, TARBUCK BAY, TIONA, TUNCURRY, WALLINGAT

1.78 1.80 1.04 1.50

44 3187 BRIGHTON EAST, NORTH ROAD 1.77 2.15 0.87 45 2221 BLAKEHURST, CARSS PARK, CONNELLS POINT, KYLE BAY, SOUTH

HURSTVILLE 1.75 1.89

46 4300 AUGUSTINE HEIGHTS, BELLBIRD PARK, BROOKWATER, CAMIRA, CAROLE PARK, GAILES, GOODNA, SPRINGFIELD, SPRINGFIELD CENTRAL, SPRINGFIELD LAKES

1.75 1.66 1.14 1.25

47 7011 AUSTINS FERRY, BERRIEDALE, CHIGWELL, CLAREMONT 1.73 48 4019 CLONTARF, CLONTARF BEACH, CLONTARF DC, MARGATE, MARGATE BEACH,

WOODY POINT 1.73 1.32 0.99 0.87

49 4504 NARANGBA 1.73 1.72 1.33 1.37 50 4567 CASTAWAYS BEACH, NOOSA HEADS, SUNRISE BEACH, SUNSHINE BEACH 1.72 1.07 51 2747 CAMBRIDGE GARDENS, CAMBRIDGE PARK, CLAREMONT MEADOWS,

KINGSWOOD, LLANDILO, SHANES PARK, WERRINGTON, WERRINGTON COUNTY, WERRINGTON DOWNS

1.72 2.35 2.17 1.71

52 4815 CONDON, GRANITE VALE, GUMLOW, KELSO, PINNACLES, RASMUSSEN 1.71 2.29 1.51 53 4280 JIMBOOMBA, NORTH MACLEAN, SOUTH MACLEAN, STOCKLEIGH 1.70 1.89 2.16 1.50 54 5096 GULFVIEW HEIGHTS, PARA HILLS, PARA HILLS WEST 1.70 2.12 0.82 55 2142 BLAXCELL, CAMELLIA, CLYDE, GRANVILLE, HOLROYD, ROSEHILL, SOUTH

GRANVILLE 1.69 1.60 1.70 1.58

56 6110 GOSNELLS, HUNTINGDALE, MARTIN, SOUTHERN RIVER 1.69 1.75 2.20 2.43 57 6168 COOLOONGUP, EAST ROCKINGHAM, GARDEN ISLAND, HILLMAN, PERON,

ROCKINGHAM, ROCKINGHAM BEACH, ROCKINGHAM DC 1.68 2.61 1.72 1.30

58 2170 CASULA, CASULA MALL, CHIPPING NORTON, HAMMONDVILLE, LIVERPOOL, LIVERPOOL SOUTH, LIVERPOOL WESTFIELD, LURNEA, MOOREBANK, MOUNT PRITCHARD, PRESTONS, WARWICK FARM

1.68 1.99 1.44 1.67

59 6210 COODANUP, DUDLEY PARK, ERSKINE, FALCON, GREENFIELDS, HALLS HEAD, MADORA BAY, MANDURAH, MANDURAH DC, MANDURAH EAST, MANDURAH NORTH, MEADOW SPRINGS, SAN REMO, SILVER SANDS, WANNANUP

1.67 2.66 2.16 1.73

60 2280 BELMONT, BELMONT NORTH, BELMONT SOUTH, CROUDACE BAY, FLORAVILLE, JEWELLS, MARKS POINT, VALENTINE

1.65 1.01 2.11 1.63

61 4077 DOOLANDELLA, DURACK, INALA, INALA EAST, INALA HEIGHTS, RICHLANDS 1.65 1.50 0.76 1.24 62 4226 CLEAR ISLAND WATERS, MERRIMAC, ROBINA, ROBINA DC 1.64 1.46 1.69 1.24

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Australian Mortgage Delinquency by Postcode

December 2011 32

Australian Worst 100 Postcodes Ranked by Number of Loans in 30+ Day Arrears (%) (Cont.)

Rank Postcode Districts 30 Sep 11 31 Mar 11 30 Sep 10 31 Mar 10

63 4211 ADVANCETOWN, BEECHMONT, BINNA BURRA, CARRARA, CLAGIRABA, GAVEN, GILSTON, HIGHLAND PARK, LOWER BEECHMONT, MOUNT NATHAN, NATURAL BRIDGE, NERANG, NERANG BC, NERANG DC, NUMINBAH VALLEY, PACIFIC PINES, SOUTHERN LAMINGTON

1.61 1.62 1.26 0.97

64 2206 CLEMTON PARK, EARLWOOD 1.61 1.30 1.16 65 4069 BROOKFIELD, CHAPEL HILL, FIG TREE POCKET, KENMORE, KENMORE DC,

KENMORE EAST, KENMORE HILLS, PINJARRA HILLS, PULLENVALE, UPPER BROOKFIELD

1.60 1.29 0.69 0.74

66 6147 LANGFORD, LYNWOOD, PARKWOOD 1.60 1.32 1.25 67 2760 COLYTON, NORTH ST MARYS, OXLEY PARK, ROPES CROSSING, ST MARYS,

ST MARYS EAST, ST MARYS SOUTH 1.60 2.30 2.06 2.29

68 2190 CHULLORA, GREENACRE, MOUNT LEWIS 1.59 1.71 2.27 2.26 69 4213 AUSTINVILLE, BONOGIN, MUDGEERABA, NERANWOOD, SPRINGBROOK,

TALLAI, WORONGARY 1.59 2.43 1.68 1.98

70 3029 HOPPERS CROSSING, TARNEIT, TRUGANINA 1.59 1.64 1.20 1.37 71 2765 BERKSHIRE PARK, BOX HILL, MARAYLYA, MARSDEN PARK, NELSON,

OAKVILLE, RIVERSTONE, VINEYARD 1.59 3.19 3.03 1.38

72 4127 DAISY HILL, PRIESTDALE, SLACKS CREEK, SPRINGWOOD 1.59 2.32 1.19 1.27 73 6280 ABBA RIVER, ABBEY, ACTON PARK, AMBERGATE, ANNIEBROOK, BOALLIA,

BOVELL, BROADWATER, BUSSELTON, CARBUNUP RIVER, CHAPMAN HILL, GEOGRAPHE, HITHERGREEN, JINDONG, KALGUP, KALOORUP, KEALY, LUDLOW, MARYBROOK, METRICUP, NORTH JINDONG, REINSCOURT, RUABON, SABINA RI

1.58 0.98 1.01

74 3018 ALTONA, SEAHOLME 1.58 75 4216 BIGGERA WATERS, COOMBABAH, HOLLYWELL, PARADISE POINT, RUNAWAY

BAY, SOUTH STRADBROKE 1.57 1.65 1.52 1.17

76 5173 ALDINGA, ALDINGA BEACH, PORT WILLUNGA, SILVER SANDS 1.57 77 2759 ERSKINE PARK, ST CLAIR 1.57 1.84 2.42 1.79 78 4118 BROWNS PLAINS, FORESTDALE, HERITAGE PARK, HILLCREST, REGENTS

PARK 1.56 1.79 1.35 1.45

79 6111 ASHENDON, CAMILLO, CANNING MILLS, CHAMPION LAKES, KARRAGULLEN, KELMSCOTT, KELMSCOTT DC, LESLEY, ROLEYSTONE

1.56 1.56 0.99 0.86

80 2160 MERRYLANDS, MERRYLANDS WEST 1.55 2.52 1.89 1.88 81 4209 COOMERA, PIMPAMA, UPPER COOMERA, WILLOW VALE 1.55 1.46 0.91 0.94 82 3140 LILYDALE 1.54 1.18 0.96 83 4208 GILBERTON, JACOBS WELL, KINGSHOLME, NORWELL, ORMEAU, ORMEAU

HILLS 1.54 2.45 1.09 0.77

84 2106 NEWPORT, NEWPORT BEACH 1.54 1.25 85 4227 REEDY CREEK, VARSITY LAKES 1.53 1.71 1.26 1.36 86 3941 RYE, ST ANDREWS BEACH, TOOTGAROOK 1.53 0.94 1.12 87 2285 CAMERON PARK, CARDIFF, CARDIFF HEIGHTS, CARDIFF SOUTH,

EDGEWORTH, GLENDALE, MACQUARIE HILLS 1.52 1.67 1.43 1.49

88 3214 CORIO, NORLANE, NORTH SHORE 1.52 1.44 1.54 1.29 89 2528 BARRACK HEIGHTS, BARRACK POINT, LAKE ILLAWARRA, MOUNT WARRIGAL,

WARILLA, WINDANG 1.51 1.36 0.88 1.61

90 2566 BOW BOWING, MINTO, MINTO DC, MINTO HEIGHTS, RABY, ST ANDREWS, VARROVILLE

1.50 1.91 1.40 1.59

91 6030 CLARKSON, MERRIWA, MINDARIE, QUINNS ROCKS, RIDGEWOOD, TAMALA PARK

1.50 1.97 1.97 1.92

92 4214 ARUNDEL, ARUNDEL BC, ARUNDEL DC, ASHMORE, ASHMORE CITY, MOLENDINAR, PARKWOOD

1.49 1.64 1.41 1.04

93 2125 WEST PENNANT HILLS 1.49 1.30 0.69 94 2148 ARNDELL PARK, BLACKTOWN, BLACKTOWN WESTPOINT, HUNTINGWOOD,

KINGS PARK, MARAYONG, PROSPECT 1.49 1.55 1.50 1.49

95 6065 ASHBY, DARCH, HOCKING, KINGSWAY, LANDSDALE, MADELEY, PEARSALL, SINAGRA, TAPPING, WANGARA, WANGARA DC, WANNEROO

1.49 1.45 1.40 1.66

96 5072 AULDANA, MAGILL, MAGILL NORTH, MAGILL SOUTH, ROSSLYN PARK, SKYE, TERINGIE, WOODFORDE

1.49 1.50

97 5109 BRAHMA LODGE, SALISBURY EAST, SALISBURY EAST NORTHBRI AVE, SALISBURY HEIGHTS, SALISBURY PARK, SALISBURY PLAIN

1.49 1.69 2.10 0.85

98 5107 GREEN FIELDS, PARAFIELD GARDENS 1.49 99 2756 BLIGH PARK, CATTAI, CENTRAL COLO, CLARENDON, COLO, COLO HEIGHTS,

CORNWALLIS, CUMBERLAND REACH, EBENEZER, FREEMANS REACH, GLOSSODIA, LOWER PORTLAND, MAROOTA, MCGRATHS HILL, MELLONG, MULGRAVE, PITT TOWN, PITT TOWN BOTTOMS, SACKVILLE, SACKVILLE NORTH, SCHEYV

1.48 1.98 1.55 1.97

100 6069 AVELEY, BELHUS, BRIGADOON, ELLENBROOK, ELLENBROOK EAST, THE VINES, UPPER SWAN

1.48 1.40 1.99 0.99

Source: Fitch

Page 33: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 33

Australian Mortgage Performance by Postcode as at 30 September 2011

Figure 45 NSW/ACT Postcodes Ranked by 30+ Day Arrears (%) as at 30 September 2011

By number By value

Rank Postcode Arrears (%) Rank Postcode Arrears (%) Rank Postcode Arrears (%) Rank Postcode Arrears (%)

1 2262 3.45 67 2127 1.27 1 2315 7.79 67 2283 1.93

2 2315 3.13 68 2216 1.24 2 2262 4.59 68 2097 1.88 3 2576 3.01 69 2902 1.23 3 2576 4.27 69 2164 1.88 4 2325 2.65 70 2750 1.23 4 2171 4.04 70 2444 1.87 5 2761 2.55 71 2577 1.23 5 2106 3.78 71 2216 1.87 6 2558 2.35 72 2260 1.23 6 2761 3.67 72 2640 1.85 7 2263 2.22 73 2205 1.23 7 2753 3.42 73 2220 1.82 8 2564 2.19 74 2161 1.22 8 2324 3.40 74 2200 1.82 9 2430 2.19 75 2570 1.22 9 2325 3.37 75 2155 1.80 10 2259 2.18 76 2795 1.22 10 2177 3.30 76 2570 1.78 11 2168 2.16 77 2450 1.21 11 2428 3.26 77 2750 1.77 12 2171 2.14 78 2196 1.21 12 2263 3.26 78 2745 1.77 13 2324 2.12 79 2830 1.20 13 2430 3.21 79 2540 1.77 14 2749 2.08 80 2037 1.19 14 2767 3.21 80 2526 1.77 15 2753 2.08 81 2460 1.19 15 2765 3.12 81 2460 1.75 16 2767 2.05 82 2283 1.18 16 2168 3.11 82 2166 1.71 17 2766 1.94 83 2166 1.17 17 2125 3.06 83 2251 1.70 18 2770 1.90 84 2137 1.17 18 2571 2.98 84 2257 1.66 19 2571 1.85 85 2780 1.16 19 2558 2.96 85 2487 1.66 20 2322 1.83 86 2107 1.16 20 2564 2.89 86 2539 1.65 21 2177 1.83 87 2155 1.15 21 2749 2.72 87 2529 1.64 22 2560 1.82 88 2515 1.13 22 2770 2.69 88 2530 1.64 23 2428 1.78 89 2147 1.13 23 2280 2.69 89 2196 1.64 24 2221 1.75 90 2018 1.11 24 2170 2.67 90 2795 1.60 25 2747 1.72 91 2000 1.11 25 2766 2.64 91 2289 1.55 26 2142 1.69 92 2800 1.11 26 2760 2.63 92 2450 1.55 27 2170 1.68 93 2224 1.09 27 2190 2.62 93 2086 1.55 28 2280 1.65 94 2287 1.07 28 2747 2.60 94 2147 1.54 29 2206 1.61 95 2526 1.06 29 2259 2.60 95 2145 1.52 30 2760 1.60 96 2226 1.06 30 2250 2.59 96 2480 1.51 31 2190 1.59 97 2580 1.03 31 2142 2.59 97 2156 1.51 32 2765 1.59 98 2195 1.03 32 2160 2.53 98 2541 1.51 33 2759 1.57 99 2768 1.03 33 2577 2.52 99 2137 1.50 34 2160 1.55 100 2220 1.02 34 2221 2.51 100 2519 1.49 35 2106 1.54 101 2228 1.01 35 2260 2.49 101 2041 1.49 36 2285 1.52 102 2138 1.00 36 2176 2.48 102 2144 1.48 37 2528 1.51 103 2536 1.00 37 2756 2.47 103 2830 1.47 38 2566 1.50 104 2582 0.99 38 2205 2.47 104 2154 1.45 39 2125 1.49 105 2145 0.99 39 2037 2.40 105 2536 1.43 40 2148 1.49 106 2251 0.99 40 2018 2.39 106 2620 1.43 41 2756 1.48 107 2144 0.98 41 2256 2.36 107 2224 1.42 42 2165 1.48 108 2217 0.97 42 2485 2.35 108 2768 1.41 43 2527 1.48 109 2041 0.96 43 2165 2.32 109 2194 1.41 44 2250 1.45 110 2444 0.95 44 2322 2.31 110 2000 1.39 45 2199 1.44 111 2340 0.95 45 2107 2.29 111 2287 1.37 46 2193 1.43 112 2009 0.90 46 2560 2.29 112 2074 1.35 47 2567 1.43 113 2289 0.90 47 2261 2.27 113 2151 1.33 48 2256 1.41 114 2620 0.90 48 2199 2.27 114 2046 1.32 49 2485 1.40 115 2200 0.89 49 2146 2.27 115 2195 1.32 50 2745 1.39 116 2575 0.89 50 2902 2.25 116 2153 1.31 51 2640 1.36 117 2095 0.88 51 2148 2.24 117 2228 1.31 52 2487 1.35 118 2150 0.88 52 2515 2.24 118 2340 1.28 53 2565 1.34 119 2619 0.88 53 2127 2.23 119 2141 1.28 54 2176 1.34 120 2141 0.87 54 2759 2.16 120 2020 1.28 55 2261 1.34 121 2257 0.87 55 2285 2.15 121 2207 1.27 56 2075 1.33 122 2519 0.86 56 2075 2.15 122 2217 1.26 57 2540 1.32 123 2480 0.86 57 2528 2.12 123 2777 1.26 58 2086 1.32 124 2541 0.85 58 2566 2.12 124 2619 1.26 59 2530 1.31 125 2529 0.85 59 2527 2.11 125 2229 1.24 60 2486 1.30 126 2207 0.85 60 2206 2.07 126 2582 1.21

61 2146 1.30 127 2097 0.84 61 2780 2.04 127 2580 1.21

62 2074 1.29 128 2194 0.83 62 2567 2.03 128 2009 1.20 63 2020 1.28 129 2153 0.82 63 2193 2.02 129 2138 1.19 64 2156 1.28 130 2478 0.79 64 2161 2.01 130 2500 1.17 65 2539 1.28 131 2154 0.79 65 2486 1.94 131 2226 1.16 66 2164 1.27 132 2777 0.79 66 2565 1.94 132 2575 1.14

Page 34: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 34

NSW/ACT Postcodes Ranked by 30+ Day Arrears (%) as at 30 September 2011 (Cont.)

By number By value

Rank Postcode Arrears (%) Rank Postcode Arrears (%) Rank Postcode Arrears (%) Rank Postcode Arrears (%)

133 2026 0.76 150 2500 0.64 133 2114 1.14 150 2906 0.89 134 2518 0.75 151 2131 0.64 134 2800 1.13 151 2518 0.86 135 2010 0.75 152 2121 0.62 135 2131 1.12 152 2320 0.84 136 2213 0.75 153 3500 0.62 136 2233 1.12 153 2011 0.83 137 2763 0.75 154 2615 0.58 137 2099 1.12 154 2478 0.82 138 2229 0.74 155 2066 0.57 138 2076 1.11 155 2290 0.80 139 2114 0.73 156 2076 0.55 139 2010 1.09 156 2230 0.77 140 2151 0.73 157 2011 0.54 140 2213 1.07 157 2066 0.76 141 2233 0.73 158 2046 0.54 141 2905 1.06 158 2077 0.75 142 2650 0.71 159 2906 0.52 142 2150 1.03 159 2615 0.73 143 2905 0.71 160 2077 0.46 143 2763 0.96 160 2234 0.64 144 2101 0.70 161 2234 0.44 144 2650 0.96 161 2122 0.62 145 2099 0.69 162 2122 0.43 145 2121 0.94 162 2913 0.61 146 2320 0.67 163 2913 0.39 146 2101 0.94 163 2232 0.55 147 2230 0.65 164 2602 0.37 147 2026 0.92 164 2095 0.52 148 2290 0.65 165 2617 0.35 148 3500 0.90 165 2602 0.31 149 2120 0.64 166 2232 0.33 149 2120 0.89 166 2617 0.28

Source: Fitch

Page 35: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 35

Figure 46 QLD Postcodes Ranked by 30+ Day Arrears (%) as at 30 September 2011

By number By value

Rank Postcode Arrears (%) Rank Postcode Arrears (%) Rank Postcode Arrears (%) Rank Postcode Arrears (%)

1 4217 2.90 59 4551 1.09 1 4212 4.27 59 4215 1.59 2 4114 2.47 60 4700 1.07 2 4217 3.93 60 4510 1.57 3 4212 2.47 61 4879 1.07 3 4130 3.93 61 4670 1.57 4 4132 2.42 62 4868 1.06 4 4114 3.80 62 4165 1.57 5 4305 2.10 63 4161 1.06 5 4567 3.59 63 4502 1.56 6 4285 2.04 64 4221 1.05 6 4802 3.57 64 4018 1.55 7 4802 2.03 65 4170 1.04 7 4132 3.15 65 4128 1.54 8 4304 2.00 66 4878 1.04 8 4305 2.89 66 4006 1.52 9 4825 1.90 67 4670 1.03 9 4133 2.86 67 4702 1.51 10 4133 1.88 68 4560 1.02 10 4573 2.75 68 4558 1.51 11 4130 1.80 69 4811 1.00 11 4218 2.72 69 4115 1.48 12 4300 1.75 70 4116 1.00 12 4300 2.71 70 4124 1.47 13 4019 1.73 71 4054 0.97 13 4211 2.61 71 4868 1.46 14 4504 1.73 72 4812 0.97 14 4220 2.56 72 4020 1.41 15 4567 1.72 73 4507 0.96 15 4825 2.55 73 4034 1.40 16 4815 1.71 74 4818 0.95 16 4019 2.54 74 4306 1.39 17 4280 1.70 75 4164 0.94 17 4879 2.50 75 4164 1.39 18 4077 1.65 76 4000 0.94 18 4214 2.50 76 4551 1.38 19 4226 1.64 77 4034 0.93 19 4213 2.50 77 4878 1.38 20 4211 1.61 78 4306 0.93 20 4216 2.42 78 4161 1.37 21 4069 1.60 79 4128 0.93 21 4815 2.38 79 4074 1.36 22 4213 1.59 80 4565 0.92 22 4227 2.37 80 4123 1.36 23 4127 1.59 81 4123 0.92 23 4280 2.33 81 4031 1.34 24 4216 1.57 82 4031 0.88 24 4564 2.31 82 4053 1.26 25 4118 1.56 83 4500 0.86 25 4077 2.30 83 4223 1.24 26 4209 1.55 84 4814 0.86 26 4504 2.30 84 4121 1.20 27 4208 1.54 85 4151 0.86 27 4506 2.28 85 4507 1.19 28 4227 1.53 86 4169 0.85 28 4352 2.25 86 4812 1.19 29 4214 1.49 87 4740 0.84 29 4655 2.24 87 4078 1.19 30 4508 1.48 88 4074 0.83 30 4226 2.22 88 4017 1.16 31 4573 1.47 89 4223 0.82 31 4210 2.15 89 4818 1.16 32 4506 1.47 90 4020 0.79 32 4208 2.11 90 4509 1.16 33 4218 1.46 91 4520 0.78 33 4505 2.11 91 4565 1.11 34 4301 1.43 92 4053 0.76 34 4169 2.08 92 4740 1.09 35 4210 1.40 93 4017 0.75 35 4069 2.08 93 4054 1.07 36 4655 1.39 94 4350 0.75 36 4701 2.05 94 4122 1.04 37 4154 1.39 95 4078 0.75 37 4118 2.05 95 4520 1.03 38 4510 1.38 96 4509 0.73 38 4508 2.03 96 4869 1.00 39 4564 1.37 97 4006 0.70 39 4304 2.00 97 4160 0.97 40 4701 1.37 98 4159 0.70 40 4285 2.00 98 4650 0.96 41 4503 1.35 99 4650 0.69 41 4209 1.94 99 4814 0.96 42 4570 1.33 100 4558 0.65 42 4154 1.94 100 4035 0.94 43 4870 1.30 101 4869 0.63 43 4570 1.92 101 4350 0.92 44 4575 1.30 102 4557 0.62 44 4207 1.88 102 4500 0.91 45 4018 1.29 103 4817 0.61 45 4301 1.86 103 4178 0.91 46 4207 1.29 104 4066 0.60 46 4700 1.85 104 4557 0.90 47 4702 1.29 105 4160 0.60 47 4870 1.85 105 4152 0.89 48 4505 1.22 106 4109 0.60 48 4703 1.83 106 4817 0.86 49 4165 1.20 107 4680 0.59 49 4556 1.82 107 4109 0.86 50 4556 1.19 108 4178 0.58 50 4810 1.80 108 4811 0.86 51 4215 1.16 109 4121 0.57 51 4127 1.78 109 4066 0.82 52 4220 1.16 110 4122 0.54 52 4503 1.71 110 4680 0.79 53 4352 1.16 111 4055 0.52 53 4170 1.71 111 4151 0.77 54 4124 1.15 112 4035 0.50 54 4575 1.68 112 4159 0.72 55 4703 1.15 113 4152 0.48 55 4221 1.64 113 4055 0.66 56 4115 1.13 114 4113 0.44 56 4560 1.63 114 4051 0.66 57 4810 1.13 115 4051 0.37 57 4116 1.61 115 4113 0.59 58 4502 1.11 58 4000 1.60

Source: Fitch

Page 36: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 36

Figure 47 South Australia Postcodes Ranked by 30+ Day Arrears (%) as at 30 September 2011

By number By value

Rank Postcode Arrears (%) Rank Postcode Arrears (%) Rank Postcode Arrears (%) Rank Postcode Arrears (%)

1 5108 2.07 15 5041 1.08 1 5108 2.89 15 5066 1.39 2 5112 1.82 16 5095 0.97 2 5072 2.84 16 5158 1.39 3 5169 1.78 17 5000 0.93 3 5112 2.78 17 5063 1.37 4 5096 1.70 18 5085 0.93 4 5096 2.73 18 5092 1.33 5 5173 1.57 19 5063 0.92 5 5169 2.35 19 5000 1.29 6 5072 1.49 20 5092 0.85 6 5173 2.22 20 5125 1.25 7 5109 1.49 21 5023 0.84 7 5109 1.93 21 5023 1.25 8 5107 1.49 22 5163 0.77 8 5107 1.92 22 5163 1.22 9 5118 1.39 23 5051 0.71 9 5118 1.83 23 5051 1.21 10 5114 1.28 24 5045 0.70 10 5085 1.74 24 5086 1.11 11 5290 1.17 25 5125 0.67 11 5290 1.52 25 5045 1.08 12 5086 1.13 26 5162 0.57 12 5114 1.50 26 5162 0.81 13 5158 1.11 27 5159 0.51 13 5095 1.46 27 5159 0.73 14 5066 1.10 14 5041 1.42

Source: Fitch

Figure 48 VIC/TAS Postcodes Ranked by 30+ Day Arrears (%) as at 30 September 2011

By number By value

Rank Postcode Arrears (%) Rank Postcode Arrears (%) Rank Postcode Arrears (%) Rank Postcode Arrears (%)

1 3337 1.93 44 3068 0.84 1 3337 3.18 44 3131 1.13 2 3139 1.78 45 3199 0.83 2 3139 2.88 45 3199 1.12 3 3187 1.77 46 3910 0.81 3 3187 2.68 46 3172 1.12 4 7011 1.73 47 3073 0.80 4 7011 2.18 47 3934 1.12 5 3029 1.59 48 3178 0.79 5 3029 2.07 48 3150 1.12 6 3018 1.58 49 3934 0.78 6 3752 2.06 49 7250 1.11 7 3140 1.54 50 3131 0.78 7 3037 2.04 50 3630 1.10 8 3941 1.53 51 3150 0.77 8 3550 1.99 51 3058 1.10 9 3214 1.52 52 3690 0.77 9 3941 1.95 52 3910 1.09 10 3037 1.47 53 3195 0.77 10 3215 1.89 53 3195 1.09 11 3752 1.45 54 3226 0.77 11 3140 1.88 54 3196 1.07 12 3064 1.38 55 3802 0.77 12 3064 1.86 55 3168 1.06 13 3193 1.33 56 3072 0.77 13 3018 1.75 56 3152 1.06 14 3429 1.30 57 3340 0.75 14 3197 1.68 57 3181 1.05 15 3043 1.23 58 3153 0.74 15 3805 1.67 58 3028 1.03 16 3550 1.22 59 3172 0.74 16 3016 1.66 59 3280 1.00 17 3810 1.16 60 3028 0.73 17 3024 1.60 60 3122 1.00 18 3024 1.16 61 3931 0.72 18 3043 1.58 61 3690 1.00 19 3976 1.16 62 3181 0.70 19 3429 1.58 62 3201 0.96 20 7018 1.15 63 7250 0.69 20 3173 1.57 63 3844 0.96 21 3977 1.15 64 3122 0.68 21 3214 1.57 64 3500 0.90 22 3219 1.13 65 3071 0.66 22 3976 1.56 65 7310 0.90 23 3175 1.12 66 7310 0.66 23 3175 1.55 66 3136 0.87 24 3805 1.07 67 3082 0.65 24 3810 1.53 67 3082 0.87 25 3806 1.06 68 3156 0.63 25 3977 1.49 68 3068 0.85 26 3201 1.02 69 3000 0.63 26 3219 1.44 69 3134 0.83 27 3020 1.01 70 3280 0.62 27 3020 1.41 70 3931 0.80 28 3030 0.99 71 3500 0.62 28 3806 1.40 71 3012 0.78 29 3173 0.98 72 3350 0.60 29 3193 1.33 72 3046 0.78 30 3168 0.98 73 3216 0.60 30 3076 1.32 73 3350 0.76 31 3174 0.97 74 3083 0.60 31 3340 1.29 74 3083 0.75 32 3023 0.95 75 3046 0.58 32 3802 1.28 75 3135 0.75 33 3141 0.91 76 3136 0.58 33 3023 1.26 76 3130 0.75 34 3844 0.91 77 3130 0.58 34 7018 1.24 77 3095 0.72 35 3076 0.89 78 3152 0.57 35 3072 1.20 78 3165 0.72 36 3215 0.88 79 3032 0.54 36 3030 1.20 79 3153 0.71 37 3197 0.88 80 3196 0.54 37 3178 1.18 80 3156 0.66 38 3630 0.88 81 3058 0.53 38 3174 1.18 81 3216 0.65 39 3021 0.88 82 3012 0.51 39 3141 1.18 82 3000 0.62 40 3135 0.88 83 3165 0.49 40 3021 1.17 83 3032 0.56 41 3171 0.85 84 3095 0.46 41 3171 1.17 84 3071 0.50 42 3016 0.84 85 3134 0.41 42 3038 1.16 85 3226 0.46 43 3038 0.84 43 3073 1.13

Source: Fitch

Page 37: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 37

Figure 49 Western Australia Postcodes Ranked by 30+ Day Arrears (%) as at 30 September 2011

By number By value

Rank Postcode Arrears (%) Rank Postcode Arrears (%) Rank Postcode Arrears (%) Rank Postcode Arrears (%)

1 6172 2.35 27 6028 1.06 1 6167 3.36 27 6031 1.46 2 6167 2.11 28 6171 1.05 2 6172 3.21 28 6050 1.46 3 6112 1.88 29 6061 1.02 3 6210 3.04 29 6059 1.43 4 6010 1.79 30 6151 1.01 4 6058 2.63 30 6051 1.43 5 6110 1.69 31 6066 0.93 5 6330 2.52 31 6233 1.40 6 6168 1.68 32 6055 0.93 6 6010 2.47 32 6060 1.39 7 6210 1.67 33 6430 0.92 7 6112 2.42 33 6108 1.38 8 6147 1.60 34 6164 0.91 8 6168 2.36 34 6152 1.33 9 6280 1.58 35 6163 0.87 9 6069 2.33 35 6066 1.31 10 6111 1.56 36 6108 0.85 10 6147 2.30 36 6055 1.20 11 6030 1.50 37 6104 0.85 11 6110 2.28 37 6530 1.18 12 6065 1.49 38 6050 0.84 12 6056 2.01 38 6164 1.16 13 6069 1.48 39 6059 0.84 13 6030 2.00 39 6430 1.09 14 6064 1.37 40 6024 0.79 14 6065 1.98 40 6019 1.07 15 6107 1.37 41 6230 0.75 15 6151 1.92 41 6026 1.04 16 6169 1.36 42 6530 0.73 16 6107 1.89 42 6057 1.01 17 6173 1.25 43 6019 0.70 17 6280 1.84 43 6104 0.99 18 6058 1.25 44 6076 0.69 18 6061 1.77 44 6163 0.96 19 6330 1.24 45 6148 0.68 19 6111 1.74 45 6028 0.91 20 6026 1.20 46 6155 0.68 20 6173 1.73 46 6076 0.84 21 6063 1.18 47 6057 0.63 21 6063 1.67 47 6155 0.78 22 6051 1.17 48 6152 0.61 22 6230 1.57 48 6148 0.67 23 6233 1.17 49 6060 0.60 23 6171 1.57 49 6025 0.62 24 6021 1.15 50 6025 0.53 24 6021 1.55 50 6024 0.52 25 6056 1.11 51 6027 0.32 25 6169 1.53 51 6027 0.51 26 6031 1.08 26 6064 1.48

Source: Fitch

Page 38: Australian Mortgage Delinquency by Postcode 30 September 2011

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Australian Mortgage Delinquency by Postcode

December 2011 38

Figure 50 Statistical Subdivision Within Fitch Regions

State Previous district (SSD) Included in the previous report Fitch region Description

ACT Belconnen No ACT Grouped at State level ACT Gungahlin-Hall No ACT Grouped at State level ACT North Canberra No ACT Grouped at State level ACT South Canberra No ACT Grouped at State level ACT Southern Tablelands (excl. Queanbeyan) No ACT Grouped at State level ACT Tuggeranong No ACT Grouped at State level ACT Weston Creek-Stromlo No ACT Grouped at State level ACT Woden Valley No ACT Grouped at State level NSW Blacktown Yes Blacktown Continue to be a separate division NSW Canterbury-Bankstown Yes Canterbury-Bankstown Continue to be a separate division NSW Gosford-Wyong Yes Central Coast Sydney Continue to be a separate division NSW Central Northern Sydney Yes Central Northern Sydney Continue to be a separate division NSW Central Western Sydney Yes Central Western Sydney Continue to be a separate division NSW Eastern Suburbs Yes Eastern Suburbs Continue to be a separate division NSW Fairfield-Liverpool Yes Fairfield-Liverpool Continue to be a separate division NSW Hunter SD Bal No Hunter Grouped at Statistical Division level NSW Newcastle Yes Hunter Grouped at Statistical Division level NSW Illawarra SD Bal No Illawarra Grouped at Statistical Division level NSW Nowra-Bomaderry No Illawarra Grouped at Statistical Division level NSW Wollongong Yes Illawarra Grouped at Statistical Division level NSW Inner Sydney Yes Inner Sydney Continue to be a separate division NSW Inner Western Sydney Yes Inner Western Sydney Continue to be a separate division NSW Lower Northern Sydney Yes Lower Northern Sydney Continue to be a separate division NSW Clarence (excl. Coffs Harbour) No Mid-North Coast Grouped at Statistical Division level NSW Coffs Harbour No Mid-North Coast Grouped at Statistical Division level NSW Hastings (excl. Port Macquarie) No Mid-North Coast Grouped at Statistical Division level NSW Port Macquarie No Mid-North Coast Grouped at Statistical Division level NSW Bathurst No North West NSW Grouped in a new region NSW Central Macquarie (excl. Dubbo) No North West NSW Grouped in a new region NSW Central Tablelands (excl. Bathurst & Orange) No North West NSW Grouped in a new region NSW Dubbo No North West NSW Grouped in a new region NSW Far West No North West NSW Grouped in a new region NSW Lachlan No North West NSW Grouped in a new region NSW Macquarie-Barwon No North West NSW Grouped in a new region NSW North Central Plain No North West NSW Grouped in a new region NSW Northern Slopes (excl. Tamworth) No North West NSW Grouped in a new region NSW Northern Tablelands No North West NSW Grouped in a new region NSW Orange No North West NSW Grouped in a new region NSW Tamworth No North West NSW Grouped in a new region NSW Upper Darling No North West NSW Grouped in a new region NSW Northern Beaches Yes Northern Beaches Continue to be a separate division NSW Outer South Western Sydney Yes Outer South Western Sydney Continue to be a separate division NSW Outer Western Sydney Yes Outer Western Sydney Continue to be a separate division NSW Lismore No Richmond-Tweed Grouped at Statistical Division level NSW Richmond-Tweed SD Bal No Richmond-Tweed Grouped at Statistical Division level NSW Tweed Heads & Tweed Coast No Richmond-Tweed Grouped at Statistical Division level NSW Lower South Coast No South Eastern NSW Grouped at Statistical Division level NSW Queanbeyan No South Eastern NSW Grouped at Statistical Division level NSW Snowy No South Eastern NSW Grouped at Statistical Division level NSW Southern Tablelands (excl. Queanbeyan) No South Eastern NSW Grouped at Statistical Division level NSW St George-Sutherland Yes St George-Sutherland Continue to be a separate division NT Barkly No NT Grouped at State level NT Central NT No NT Grouped at State level NT Darwin City No NT Grouped at State level NT East Arnhem No NT Grouped at State level NT Finniss No NT Grouped at State level NT Litchfield Shire No NT Grouped at State level NT Lower Top End NT No NT Grouped at State level NT Palmerston-East Arm No NT Grouped at State level QLD Caboolture Shire No Caboolture Shire Continue to be a separate division QLD Darling Downs SD Bal No Darling Downs & West Moreton Grouped in a new region QLD Lower West Moreton No Darling Downs & West Moreton Grouped in a new region QLD Toowoomba No Darling Downs & West Moreton Grouped in a new region QLD Upper West Moreton No Darling Downs & West Moreton Grouped in a new region QLD Cairns City Part A No Far North and West QLD Grouped in a new region QLD Central West No Far North and West QLD Grouped in a new region QLD Far North SD Bal No Far North and West QLD Grouped in a new region

Page 39: Australian Mortgage Delinquency by Postcode 30 September 2011

Structured Finance

Australian Mortgage Delinquency by Postcode

December 2011 39

Statistical Subdivision Within Fitch Regions (Cont.)

State Previous district Included in the previous report Fitch region Description

QLD North West No Far North and West QLD Grouped in a new region QLD South West No Far North and West QLD Grouped in a new region QLD Fitzroy SD Bal No Fitzroy Grouped at Statistical Division level QLD Gladstone No Fitzroy Grouped at Statistical Division level QLD Rockhampton No Fitzroy Grouped at Statistical Division level QLD Gold Coast East Yes Gold Coast East Continue to be a separate division QLD Gold Coast North No Gold Coast West Grouped in a new region QLD Gold Coast SD Bal No Gold Coast West Grouped in a new region QLD Gold Coast West Yes Gold Coast West Grouped in a new region QLD Inner Brisbane No Inner Brisbane Continue to be a separate division QLD Ipswich City Yes Ipswich City Continue to be a separate division QLD Beaudesert Shire Part A No Logan City (incl. Beaudesert Shire) Grouped in a new region QLD Logan City Yes Logan City (incl. Beaudesert Shire) Grouped in a new region QLD Mackay City Part A No Mackay Grouped at Statistical Division level QLD Mackay SD Bal No Mackay Grouped at Statistical Division level QLD Northern SD Bal No Northern QLD Grouped at Statistical Division level QLD Thuringowa City Part A No Northern QLD Grouped at Statistical Division level QLD Townsville City Part A No Northern QLD Grouped at Statistical Division level QLD Northwest Inner Brisbane Yes Northwest Inner Brisbane Continue to be a separate division QLD Northwest Outer Brisbane Yes Northwest Outer Brisbane Continue to be a separate division QLD Pine Rivers Shire Yes Pine Rivers Shire & Redcliffe City Grouped in a new region QLD Redcliffe City No Pine Rivers Shire & Redcliffe City Grouped in a new region QLD Redland Shire No Redland Shire Continue to be a separate division QLD Southeast Inner Brisbane Yes Southeast Inner Brisbane Continue to be a separate division QLD Southeast Outer Brisbane Yes Southeast Outer Brisbane Continue to be a separate division QLD Sunshine Coast Yes Sunshine Coast Grouped at Statistical Division level QLD Sunshine Coast SD Bal No Sunshine Coast Grouped at Statistical Division level QLD Bundaberg No Wide Bay-Burnett Grouped at Statistical Division level QLD Hervey Bay City Part A No Wide Bay-Burnett Grouped at Statistical Division level QLD Wide Bay-Burnett SD Bal No Wide Bay-Burnett Grouped at Statistical Division level SA Eastern Adelaide Yes Eastern Adelaide Continue to be a separate division SA Northern Adelaide Yes Northern Adelaide Continue to be a separate division SA Barossa No SA (excl. Adealide) Grouped in a new region SA Far North No SA (excl. Adealide) Grouped in a new region SA Fleurieu No SA (excl. Adealide) Grouped in a new region SA Flinders Ranges No SA (excl. Adealide) Grouped in a new region SA Kangaroo Island No SA (excl. Adealide) Grouped in a new region SA Lincoln No SA (excl. Adealide) Grouped in a new region SA Lower North No SA (excl. Adealide) Grouped in a new region SA Lower South East No SA (excl. Adealide) Grouped in a new region SA Mt Lofty Ranges No SA (excl. Adealide) Grouped in a new region SA Murray Mallee No SA (excl. Adealide) Grouped in a new region SA Pirie No SA (excl. Adealide) Grouped in a new region SA Riverland No SA (excl. Adealide) Grouped in a new region SA Upper South East No SA (excl. Adealide) Grouped in a new region SA West Coast No SA (excl. Adealide) Grouped in a new region SA Whyalla No SA (excl. Adealide) Grouped in a new region SA Yorke No SA (excl. Adealide) Grouped in a new region SA Southern Adelaide Yes Southern Adelaide Continue to be a separate division SA Western Adelaide Yes Western Adelaide Continue to be a separate division TAS Burnie-Devonport No TAS Grouped at State level TAS Central North No TAS Grouped at State level TAS Greater Hobart No TAS Grouped at State level TAS Greater Launceston No TAS Grouped at State level TAS Lyell No TAS Grouped at State level TAS North Eastern No TAS Grouped at State level TAS North Western Rural No TAS Grouped at State level TAS Southern No TAS Grouped at State level VIC East Barwon No Barwon Grouped at Statistical Division level VIC Greater Geelong City Part A No Barwon Grouped at Statistical Division level VIC West Barwon No Barwon Grouped at Statistical Division level VIC Boroondara City No Boroondara City Continue to be a separate division VIC Ballarat City No Central Highlands & Western District Grouped in a new region VIC East Central Highlands No Central Highlands & Western District Grouped in a new region VIC Glenelg No Central Highlands & Western District Grouped in a new region VIC Hopkins No Central Highlands & Western District Grouped in a new region VIC Warrnambool City No Central Highlands & Western District Grouped in a new region

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Structured Finance

Australian Mortgage Delinquency by Postcode

December 2011 40

Statistical Subdivision Within Fitch Regions (Cont.)

State Previous district Included in the previous report Fitch region Description

VIC West Central Highlands No Central Highlands & Western District Grouped in a new region VIC Eastern Middle Melbourne Yes Eastern Middle Melbourne Continue to be a separate division VIC Eastern Outer Melbourne Yes Eastern Outer Melbourne Continue to be a separate division VIC Frankston City No Frankston City Continue to be a separate division VIC East Gippsland Shire No Gippsland (incl. East Gippsland) Grouped in a new region VIC La Trobe Valley No Gippsland (incl. East Gippsland) Grouped in a new region VIC South Gippsland No Gippsland (incl. East Gippsland) Grouped in a new region VIC Wellington Shire No Gippsland (incl. East Gippsland) Grouped in a new region VIC West Gippsland No Gippsland (incl. East Gippsland) Grouped in a new region VIC East Ovens-Murray No Goulburn & Ovens-Murray Grouped in a new region VIC Greater Shepparton City Part A No Goulburn & Ovens-Murray Grouped in a new region VIC North Goulburn No Goulburn & Ovens-Murray Grouped in a new region VIC South Goulburn No Goulburn & Ovens-Murray Grouped in a new region VIC South West Goulburn No Goulburn & Ovens-Murray Grouped in a new region VIC West Ovens-Murray No Goulburn & Ovens-Murray Grouped in a new region VIC Wodonga No Goulburn & Ovens-Murray Grouped in a new region VIC Greater Dandenong City No Greater Dandenong City Continue to be a separate division VIC Hume City No Hume City Continue to be a separate division VIC Inner Melbourne Yes Inner Melbourne Continue to be a separate division VIC East Mallee No Mallee, Wimmera & Loddon Grouped in a new region VIC Greater Bendigo City Part A No Mallee, Wimmera & Loddon Grouped in a new region VIC Mildura Rural City Part A No Mallee, Wimmera & Loddon Grouped in a new region VIC North Loddon No Mallee, Wimmera & Loddon Grouped in a new region VIC North Wimmera No Mallee, Wimmera & Loddon Grouped in a new region VIC South Loddon No Mallee, Wimmera & Loddon Grouped in a new region VIC South Wimmera No Mallee, Wimmera & Loddon Grouped in a new region VIC West Mallee No Mallee, Wimmera & Loddon Grouped in a new region VIC Melton-Wyndham Yes Melton-Wyndham Continue to be a separate division VIC Moreland City No Moreland City Continue to be a separate division VIC Mornington Peninsula Shire No Mornington Peninsula Shire Continue to be a separate division VIC Albury No Murray & Murrumbidgee Grouped in a new region VIC Central Murray No Murray & Murrumbidgee Grouped in a new region VIC Central Murrumbidgee (excl. Wagga Wagga) No Murray & Murrumbidgee Grouped in a new region VIC East Ovens-Murray No Murray & Murrumbidgee Grouped in a new region VIC Lower Murrumbidgee No Murray & Murrumbidgee Grouped in a new region VIC Murray-Darling No Murray & Murrumbidgee Grouped in a new region VIC North Goulburn No Murray & Murrumbidgee Grouped in a new region VIC Upper Murray (excl. Albury) No Murray & Murrumbidgee Grouped in a new region VIC Wagga Wagga No Murray & Murrumbidgee Grouped in a new region VIC Northern Middle Melbourne Yes Northern Middle Melbourne Continue to be a separate division VIC Northern Outer Melbourne No Northern Outer Melbourne Continue to be a separate division VIC South Eastern Outer Melbourne Yes South Eastern Outer Melbourne Continue to be a separate division VIC Yarra Ranges Shire Part A No South Eastern Outer Melbourne Continue to be a separate division VIC Southern Melbourne Yes Southern Melbourne Continue to be a separate division VIC Western Melbourne Yes Western Melbourne Continue to be a separate division VIC Yarra Ranges Shire Part A No Yarra Ranges Continue to be a separate division WA Central Metropolitan No Central Metropolitan Perth Continue to be a separate division WA East Metropolitan Yes East Metropolitan Perth Continue to be a separate division WA North Metropolitan Yes North Metropolitan Perth Continue to be a separate division WA South East Metropolitan Yes South East Metropolitan Perth Continue to be a separate division WA South West Metropolitan Yes South West Metropolitan Perth Continue to be a separate division WA Blackwood No South West WA Grouped at Statistical Division level WA Bunbury No South West WA Grouped at Statistical Division level WA Mandurah No South West WA Grouped at Statistical Division level WA Preston No South West WA Grouped at Statistical Division level WA Vasse No South West WA Grouped at Statistical Division level WA Avon No WA (excl. Perth and South West) Grouped in a new region WA Campion No WA (excl. Perth and South West) Grouped in a new region WA Carnegie No WA (excl. Perth and South West) Grouped in a new region WA De Grey No WA (excl. Perth and South West) Grouped in a new region WA Fitzroy No WA (excl. Perth and South West) Grouped in a new region WA Fortescue No WA (excl. Perth and South West) Grouped in a new region WA Gascoyne No WA (excl. Perth and South West) Grouped in a new region WA Geraldton No WA (excl. Perth and South West) Grouped in a new region WA Greenough River No WA (excl. Perth and South West) Grouped in a new region WA Hotham No WA (excl. Perth and South West) Grouped in a new region WA Johnston No WA (excl. Perth and South West) Grouped in a new region

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December 2011 41

Statistical Subdivision Within Fitch Regions (Cont.)

State Previous district Included in the previous report Fitch region Description

WA Kalgoorlie/Boulder City Part A No WA (excl. Perth and South West) Grouped in a new region WA King No WA (excl. Perth and South West) Grouped in a new region WA Lakes No WA (excl. Perth and South West) Grouped in a new region WA Lefroy No WA (excl. Perth and South West) Grouped in a new region WA Moore No WA (excl. Perth and South West) Grouped in a new region WA Ord No WA (excl. Perth and South West) Grouped in a new region WA Other Territories No WA (excl. Perth and South West) Grouped in a new region WA Pallinup No WA (excl. Perth and South West) Grouped in a new region

Source: ABS, Fitch

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December 2011 42

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