Australian Default Statistics 2026
This page summarises the most recent publicly reported figures on loan defaults and arrears in Australia — drawn from the Australian Prudential Regulation Authority (APRA) and Equifax, alongside the legal rules governing how long a default stays on a credit file.
Mortgage Arrears and Non-Performing Loans
What share of Australian home loans are in default?
The share of non-performing home loans held by Australian banks remained low at around 1% across 2024–25, according to APRA's Quarterly ADI Property Exposures statistics, and was slightly higher for owner-occupiers than investors. Early-stage arrears (30–89 days past due) sat around 0.7%.
Source: APRA, Quarterly ADI Property Exposure statistics — highlights
While these rates are low by historical standards, APRA has noted a gradual rise in borrowers under stress driven by cost-of-living pressure and elevated repayments.
Are arrears in Australia rising?
Yes, in dollar terms. Equifax's Consumer Market Pulse for Q4 2025 reported that while the number of people missing mortgage payments held steady, the dollar value of mortgage arrears rose 6.8% year-on-year, and the average loan amount in late-stage delinquency climbed 8.4% from about $371,000 to $403,000.
Source: Equifax, Consumer Market Pulse Q4 2025, released February 2026
This pattern — stable borrower numbers but larger debts in arrears — points to financial stress concentrating among households with bigger loans.
Regional and Demographic Trends
Which states have the fastest-rising arrears?
Arrears growth in late 2025 was sharpest in Victoria (up 16% year-on-year) and New South Wales (up 10.5%), according to Equifax's Q4 2025 Consumer Market Pulse. Among age groups, Baby Boomers recorded the fastest rise in arrears at 14.6%, followed by Millennials and Gen Z at 11.3%.
Source: Equifax, Consumer Market Pulse Q4 2025, released February 2026
These figures track the volume of accounts falling behind, not the total number of defaults already listed on files.
How Long Defaults Stay on Your File
How long does a default stay on a credit file in Australia?
A default stays on an Australian credit file for 5 years from the date it is listed, under the Privacy Act 1988 — and paying the debt does not remove it early. Once paid, the status changes to ‘paid’, which lenders view more favourably, but the listing itself remains for the full five years.
Source: Privacy Act 1988; Office of the Australian Information Commissioner (OAIC), credit reporting
Court judgements and most hard credit enquiries also stay for 5 years. A default can sometimes be removed earlier where the listing breached the credit reporting rules — for example, where a required pre-listing notice was not issued. Whether grounds exist depends on individual circumstances. For the full process, see our guide to default removal services in Australia.
How many people complain about financial difficulty in Australia?
The Australian Financial Complaints Authority (AFCA) received 4,764 financial difficulty complaints in 2024–25, down 17% on the prior year but still described by AFCA as too high. The single most common financial-difficulty issue was firms failing to respond to a request for assistance.
Source: AFCA, 2024–25 Annual Review, financial difficulty complaints
Financial hardship and default listing are closely linked — borrowers who fall behind may be listed if hardship is not addressed promptly.
Related Statistics & Guides
Sources & methodology
- APRA — Quarterly ADI Property Exposure statistics — apra.gov.au
- Equifax — Consumer Market Pulse Q4 2025 — equifax.com.au
- AFCA — 2024–25 Annual Review — afca.org.au
- Privacy Act 1988 (Cth) — legislation.gov.au
Default Statistics Questions
What share of Australian home loans are in default?
How long does a default stay on a credit file in Australia?
Are mortgage arrears rising in Australia?
Which states have the fastest-rising arrears?
Is There a Default on Your Credit File?
A free, no-obligation assessment shows you what is listed on your file and whether a default may have been listed in breach of the Privacy Act 1988. No Win No Fee — you only pay if we succeed.
Australian Credit Solutions Pty Ltd holds Australian Credit Licence ACL 532003. Credit file correction services are subject to individual assessment and results may vary. This page provides general information only and does not constitute legal or financial advice. Statistics are drawn from third-party sources current at the date of publication; figures are updated periodically and may change. Always check the original source for the latest data.
Last updated: 14 June 2026 · Reviewed by Elisa Rothschild BA/LLB · ASIC ACL 532003