Low interest rates are helping property owners to get ahead on their mortgage repayments.


The Reserve Bank says two-thirds of borrowing is covered by a repayment buffer of at least one month’s worth of mortgage payments.


Half of those who are ahead on their repayments have a buffer of more than one year.


The RBA also says that arrears levels are relatively low in all states and territories, with New South Wales the best placed, thanks to its solid economic performance.


It says it’s clear that households prefer to accumulate savings and pay down debt faster than required. Many do this by maintaining the size of their repayments when their lenders cut their interest rates and some also make substantial extra repayments to reduce their debt.