It was down from 2.08% in July, as measured by the New Zealand Prime Standard & Poor's Mortgage Performance Index (SPIN).
Standard & Poor's rating analyst Erin Kitson said that arrears on full doc loans eased to 1.46% in August from 1.64% in July. Low doc loan arrears levels dropped to 3.93% in August from 4.24% in July.
"The level of arrears on residential mortgage loans underlying New Zealand subprime RMBS is at its lowest level so far this year," Kitson said. "It eased to 13.61% in August."
Residential mortgage loans funded through RMBS represent close to $1 billion of the New Zealand residential mortgage market.
