WA tops national mortgage default list

Western Australia now leads the nation on mortgage defaults, with more than three per cent of the market in arrears or worse, according to Reserve Bank figures.

In an address to a conference in Sydney on Wednesday, RBA assistant governor Guy Debelle discussed credit risks and their relation to the states' economic conditions, revealing WA has the highest percentage of homeowners falling behind in their mortgage payments.

Tasmania was second to WA, while NSW was the best performer, with slightly more than two per cent of borrowers in arrears on their home loans.

Mr Debelle said arrears rates across Australia were relatively low.