Low-doc mortgage arrears climb as self-employed borrowers feel the squeeze
APRA data shows non-performing low-doc loans hit 4.9% in June quarter, up from 4.2% a year earlier
Borrowers who took out low-documentation home loans are falling behind on repayments at a faster rate than the broader mortgage market, with arrears on low-doc loans rising to 4.9% in the June 2026 quarter, according to Australian Prudential Regulation Authority data analysed by Canstar. Overall mortgage arrears have remained steady at 1.0% over the same period.