Queensland has become the worst performing state for mortgage arrears, with 2 per cent of borrowers more than a month behind in repayments.
The report on residential mortgage backed securities (RMBS) from credit rating agency Fitch shows New South Wales was close behind with 1.93 per cent of borrowers in trouble, while Victoria had a 1.34 per cent rate of arrears.
The report uses data that covers around 17 per cent of all Australian mortgages, or more than a million loans, and looked at the six months to March.
Fitch found the rise in Queensland mortgage arrears to be largely unrelated to the floods, with unaffected regions such as the Gold Coast and Logan City contributing the highest rates of borrowers falling behind on their repayments.