FEWER Liverpool-Fairfield home owners are behind their mortgage repayment.
After seven consecutive years of being the worst performing region in Australia for late mortgage repayments, Fairfield-Liverpool has dropped to fifth place.
In September 2012, the region's rate of home owners a month behind in their repayment was 1.82 per cent, down from 2.82 per cent in March 2012.
Although decreases in mortgage rates during the last year have benefited home owners' ability to pay their mortgage, the region still remains one of the five worst performing regions in the country.
The Fitch Ratings Australian Mortgage Delinquency by Postcode report recorded mortgage defaults of up to 90 days for Green Valley in the Liverpool local government area which ranked 11th in the worst performing suburbs in the country.
Smithfield and Wetherill Park in the Fairfield local government area were listed as the 38 worst performers by postcode nationally.
The report identified increasing cost of living as the main risk to household mortgage repayment capacity.
It also found the unemployment rate to be key factor in mortgage performance.
According to the Department of Education, Employment and Workplace Relations, the unemployment rate for Fairfield-Liverpool reached 7 per cent in December last year, a slight decrease from the 7.7 per cent recorded last March.
In addition to high unemployment for the region, Australian Bureau of Statistics data showed the average wage earned locally was well below the state average. It also found that close to 15 per cent of households required more than 30 per cent of their income to service their mortgage debt.
Financial adviser for Mortgage Choice Liverpool Fairien Azeem said one of the major contributing factors in mortgage defaults was home owners over extending themselves financially.
"When home buyers first apply for their loan, they often over stretch their commitment," she said.
"Generally it is recommended that a deposit of at least five to 10 per cent of the purchase price is available before making any long-term commitment — and that is exactly what a home loan is: a 20 to 30-year financial commitment."