Structured Finance

RMBS/Australia Special Report

Australian Mortgage Delinquency by Postcode 31 March 2008

Summary
In the Australian Mortgage Delinquency - by Postcode report published on 28 November 2007 covering the period to 30 September 2007 - Fitch Ratings forecast an increase in missed mortgage payments (mortgage delinquencies) over the following six months due to seasonal factors (the Christmas period traditionally sees an increase in pressure on household budgets and a subsequent spike in missed mortgage payments). This was coupled with an expectation that a Reserve Bank of Australia (RBA) interest rate rise in August 2007, and subsequent expected RBA rate rises, would flow through to increased incidences of mortgage stress going into 2008. The additional data for the period 1 October 2007 to 31 March 2008 confirms this forecast, with the Australian 30+ day mortgage delinquency rate increasing to 1.88% from 1.56% and 90+ day delinquency rate increasing to 0.73% from 0.68%.
Australian Mortgage Arrears
(%) 2.5 2.0 1.5 1.0 0.5 0.0 Jan 03 Aug 03 Feb 04 Aug 04 Feb 05 Aug 05 Mar 06 Sep 06 Mar 07 Sep 07 Mar 08 Source: Fitch 30 days+ 60 days + 90 days +

Analysts
Structured Finance Ben McCarthy +61 2 8256 0388 ben.mccarthy@fitchratings.com Natasha Vojvodic +61 2 8256 0350 natasha.vojvodic@fitchratings.com Banks Tim Roche +61 7 3303 8687 tim.roche@fitchratings.com

Related Research
Australian Mortgage Delinquency by Postcode, dated 28 November 2007; The Dinkum Index Q108, Fitch Ratings Quarterly Australian Residential Mortgage Performance Report, dated 20 May 2008.

The increases in delinquencies to 31 March 2008 reflect the annual Christmas seasonal run up in missed mortgage payments and incorporate the first effects of official interest rate rises by the RBA in August and November 2007 (coupled with January interest rate rises over and above those of the RBA by financial institutions passing on increased costs). The RBA increases of February and March and the continued pass-through of increased costs to borrowers by financial institutions leads Fitch to expect mortgage performance will deteriorate further during 2008. This study has been devised to examine Australian mortgage delinquency at a granular level and to highlight areas of stress in the Australian mortgage market that may not be in evidence when looking at national or even state-based data. The study relies on data from home loans that have been securitised in the Australian market. At 31 March 2008 the study included over 947,000 loans with a total outstanding balance of over AUD160bn. The data set represents approximately 17% by value of the total housing loan stock in Australia and provides a good proxy for the performance of the Australian residential housing finance sector. The data includes both conforming and non-conforming securitised residential loans. As with the report published on 28 November 2007, this report reviews delinquency data at three levels - national, state and postcode. This study extends the analysis to a fourth category - region. Fitch has used the regional classifications of the Australian Bureau of Statistics (ABS) as the basis for grouping postcodes into regional groups.

www.fitchratings.com

29 May 2008

Structured Finance
Major findings from the study include: Australian home loan missed payments remain low by international standards reflecting the low national unemployment rate, continued strong national economic growth and a relatively stable property price environment across the country. The Australian 30+ day mortgage delinquency rate increased to 1.88% from 1.56% and 90+ day delinquency rates increased to 0.73% from 0.68%.; all states saw deteriorating delinquency performance between 30 September 2007 and 31 March 2008 with New South Wales (NSW) remaining the worst performing state with 30+ day delinquencies of 2.32% at 31 March 2008. Western Australia (WA) remains the best performing state, although its delinquency rate saw the largest jump in the six months to 31 March 2008 (to 1.42% from 0.97%); at a regional level there is a stark contrast in portfolio performance. Regions in western and south western Sydney have 30+ day delinquencies up to 3.5 times (x) those of the Eastern Suburbs or Lower North Shore of Sydney, reflecting the significant impact of interest rates on housing affordability and serviceability in the west and south-western suburbs; of the 10 worst performing postcode areas in Australia, nine are in NSW, of which eight are in western or south western Sydney; the 30+ day delinquency for the worst post code in Sydney has increased to 6.7% by dollar value up from 5.65% at 30 September 2007; Fitch expects mortgage delinquency to continue to increase over the coming six months as the increase in interest rates - both official RBA interest rate rises and banks passing through increased funding costs - are reflected in the data; This study reinforces the value of geographic diversity in collateral within RMBS portfolios and confirms the emphasis given in Fitchs RMBS criteria to portfolio diversity.

Methodology
All arrears ratios are based on value of loans outstanding, as opposed to the number of loans outstanding. To ensure the conclusions are meaningful, when quoting performance at a postcode level, only postcodes for which Fitch has a data sample of greater than AUD100m of mortgages outstanding have been included. A 30+ day delinquency ratio for a postcode is calculated by taking the total dollar amount of mortgages in the postcode that are outstanding and have missed one or more payments and dividing it by the total dollar amount of loans outstanding for that postcode. Regional classifications are based on the Australian Bureau of Statistics (ABS) classification and postcode aggregation, with slight variations due to the inability to split postcodes. When discussing data at the regional level, only regions for which Fitch has a data sample in excess of AUD1bn have been included.

For the purpose of this report, Fitch has used its mortgage performance data to divide Australian mortgage performance by geography. The agency has done this by putting an emphasis on the postcode in which the security property is located. In this manner, Fitch is able to analyse missed payments on residential mortgages in Australia at varying levels of granularity, including figures by state, city, region and postcode.

Australian Mortgage Delinquency by Postcode 31 March 2008 May 2008

Structured Finance
When taken as a whole, it is clear that Australian mortgages have exhibited stellar performance over the past five years and although the level of missed mortgage payments has increased in recent times, it is off a very low base; indeed, Australian mortgage collateral continues to outperform many other international residential mortgage markets. The performance of the underlying mortgages has fed through into the continued good performance of Australian RMBS and, while Fitch expects some increase in levels of missed mortgage payments over the coming six months, the agency does not expect this increase to result in changes in the ratings of Australian RMBS.

Residential Loan Performance by State

The original report, which highlighted mortgage performance by postcode, noted that the popular press in Australia had consistently commented on mortgage stress; however, this anecdotal evidence was not borne out in market indices, including Fitchs Dinkum Index. The reason for this is the tendency to average the markets performance and, given the good performance of the Australian economy, low unemployment and the overall trend of rising property prices, Australian residential mortgages have, on average, performed well. The chart below shows the performance of mortgages in Fitchs data set (945,000+ mortgages with an outstanding balance at 31 March 2008 of more than AUD160bn) separated by state; it clearly shows a divergence between the performance of mortgages in each state when charted on the basis of mortgages that have missed one or more payments.
30+ Day Mortgage Delinquency by Amount Outstanding
(%) 2.5 2.0 1.5 1.0 0.5 0.0 Jan 03 Aug 03 Feb 04 Aug 04 Feb 05 Aug 05 Mar 06 Sep 06 Mar 07 Sep 07 Mar 08 Source: Fitch Australia NSW VIC QLD SA WA

Data from the past six months shows all states 30+ day delinquency levels deteriorating over the period, reflecting the dual impact of the seasonal Christmas stress and increased interest rates. Western Australia (WA), which has been the best performing state since August 2005, remains (albeit marginally) the best performing state in the country. WA saw the most rapid deterioration in mortgage performance in the six months to 31 March. The data continues to highlight the diverse nature of mortgage performance in Australia and indicates that geography and local market conditions have a significant impact on the performance of mortgage portfolios. Fitch believes there are three main variables affecting arrears levels in Australia; these being, unemployment (which continues to be at or near historical lows across the country), home loan interest rates (which have risen approximately 1.4% since July 2007) and housing prices, which have had mixed results in recent times. Fitch believes that the recent deterioration in Australian residential mortgage performance is the result of increased interest rates which have resulted in reduced affordability nationally. Fitch also believes that the underperformance of New South Wales and the stellar (and more recently, deteriorating) performance of Western Australia has been significantly impacted by property prices which have masked the true performance when rising and revealed the underlying stress when falling.
Australian Mortgage Delinquency by Postcode 31 March 2008 May 2008

Structured Finance
Property prices in New South Wales, and in particular Sydney, stalled at the end of 2003 and this coincided with a rising missed payment rate for this market. The most pronounced property price declines occurred in South West Sydney, where property prices fell as much as 30%. In these circumstances, highly geared borrowers have few options when they get into difficulty, as refinancing or sale of the security property becomes more difficult. This pattern appears to be evident in Western Australia over recent months, where property prices are falling leading to distressed borrowers being unable to refinance or sell the property to repay the loans in full. Fitch is of the view that rising property prices have masked the true performance of Australian residential mortgage loans and that the experience in South West Sydney - and more recently, Western Australia - provides a window to what performance may look like in circumstances of falling or static property markets.

Residential Loan Performance by Region

When the data is filtered to focus on mortgage performance by region it reveals the vastly differing performance of alternate parts of the same city. The chart below shows the performance of selected Sydney regions over the past five years. It reveals how the more expensive areas of the Lower North Shore and the Eastern Suburbs have shown resilience to rising interest rates and exhibit very little mortgage stress, while more affordable regions in western and south western Sydney continue to deteriorate.
Sydney Regional Mortgage Performance (30+ Days Arrears)
Eastern Suburbs (%) 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Jan 03 Aug 03 Source: Fitch, ABS Outer Western Sydney Canterbury-Bankstown Lower Northern Sydney Fairfield-Liverpool Gosford-Wyong

Feb 04

Aug 04

Feb 05

Aug 05

Mar 06

Sep 06

Mar 07

Sep 07

Mar 08

When regions are ranked from worst to best - based on the criterion of at least AUD1bn of mortgages outstanding and the proportion of dollar amount outstanding that has missed one or more payments - the worst performing region is FairfieldLiverpool, an area of south-west Sydney with a ratio of 4.05% as at 31 March 2008, up from 3.21% at 30 September 2007. Significantly, eight of the worst 10 regional performers in terms of mortgage delinquency were in NSW, with the majority of those in the established suburbs of western and south western Sydney.

Top 10 Worst Performing Regions in Australia

Rank 1 2 3 4 5 6 7 8 9 10 Region Fairfield-Liverpool Outer Western Sydney Gosford-Wyong Canterbury-Bankstown Wollongong Blacktown Outer South Western Sydney South Eastern Outer Melbourne Hume City Central Western Sydney State NSW NSW NSW NSW NSW NSW NSW VIC VIC NSW 30+ day arrears (%) 4.05 3.49 3.42 3.24 3.15 3.10 3.07 2.91 2.90 2.86

Source: Fitch, ABS

Australian Mortgage Delinquency by Postcode 31 March 2008 May 2008

Structured Finance
A full list of regions with more than AUD1bn outstanding in the Fitch sample including regional 30+ day arrears figures as at 31 March 2008 and as at 30 September 2007 - is available at the end of this report.

Top 10 Worst Performing Suburbs

At the most granular level it is possible to evaluate the performance of the securitised mortgage universe by postcode. The analysis shows a distinct difference between areas of the country and, more particularly, identifies particular postcodes that are under more stress than others. In order to ensure the data is meaningful, only postcodes for which Fitch has a data sample of greater than AUD100m of mortgages have been included.

Top 10 Worst Performing Postcodes in Australia

Rank 1 2 3 4 5 6 7 8 9 10
Source: Fitch

Postcode 2164 4212 2760 2758 2161 2196 2528 2190 2766 2165

State NSW QLD NSW NSW NSW NSW NSW NSW NSW NSW

Suburb Wetherill Park Helensvale St Marys Kurrajong Guildford Punchbowl Lake Illawarra Greenacre Rooty Hill Fairfield

30+ day arrears (%) 6.7 6.4 6.3 6.1 6.0 5.3 5.2 5.2 5.1 5.0

The worst performing postcode as at 31 March 2008 was 2164 Wetherill Park (6.7% 30+ day arrears) which is a suburb of Sydney in the Fairfield-Liverpool region. Wetherill Park ranked third (4.86%) at 30 September 2007. As at September 2007, the worst performing postcode in the nation - in terms of missing one or more mortgage payment - was 2161- Guildford, another suburb of Sydney, where 5.65% of mortgages by dollar amount fell into this category. As at 31 March 2008, Guildford has dropped to 5th on the list of worst performing postcodes; however, its level of 30+ day arrears had increased to 6%. It owes its slide down the list to the rapid deterioration of other postcodes. While the resources boom continues to propel the Western Australian economy it is interesting to note that interest rate increases appear to be having an impact in that market. At 30 September 2007, the worst performing postcode in WA was 6057 - High Wycombe, a suburb of Perth, with 30+ day arrears of 2.13%. However, this level of arrears placed it just 135th in Fitchs national ranking of worst performing postcodes. At 31 March 2008, 6057 remained the worst performing postcode in WA but with 3.57% of loans by balance registering outstanding 30+ days arrears, it now ranks 48th in the country A list of the 100 worst performing qualifying postcodes, ranked from worst to best on the basis of 30+ days arrears, is listed at the end of this report. In addition, individual state rankings are also provided.

Lessons for RMBS Investors

The Fitch study of mortgage loan collateral in Australian RMBS transactions by postcode clearly shows that, while the Australian market has performed very well historically, performance is not uniform across the country and certain pockets of the country can periodically perform better or worse than the market as a whole. This study provides an impetus to investors to strive for diversity in their mortgage loan collateral and confirms the emphasis given in Fitchs RMBS criteria to diversity in RMBS portfolios.

Australian Mortgage Delinquency by Postcode 31 March 2008 May 2008

Structured Finance
Australian Regional Mortgage Performance (30+ Day Arrears) Ranking
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Region Fairfield-Liverpool Outer Western Sydney Gosford-Wyong Canterbury-Bankstown Wollongong Blacktown Outer South Western Sydney South Eastern Outer Melbourne Hume City Central Western Sydney Newcastle Melton-Wyndham Gold Coast West Caboolture Shire Inner Western Sydney Northern Outer Melbourne St George-Sutherland Western Melbourne Northern Beaches - Sydney Central Northern Sydney Ipswich City Gold Coast East Northern Adelaide South East Metropolitan Perth East Metropolitan Perth Logan City Greater Hobart Sunshine Coast Cairns City Part A Southern Adelaide Mornington Peninsula Shire South West Metropolitan Perth Western Adelaide Inner Sydney Redland Shire Northern Middle Melbourne Eastern Middle Melbourne Yarra Ranges Shire Part A Eastern Outer Melbourne Eastern Adelaide Lower Northern Sydney Central Metropolitan Perth North Metropolitan Perth Inner Melbourne Southern Melbourne Eastern Suburbs Sydney Pine Rivers Shire Tuggeranong Inner Brisbane Southeast Inner Brisbane Southeast Outer Brisbane Northwest Outer Brisbane Northwest Inner Brisbane Boroondara City State NSW NSW NSW NSW NSW NSW NSW VIC VIC NSW NSW VIC QLD QLD NSW VIC NSW VIC NSW NSW QLD QLD SA WA WA QLD TAS QLD QLD SA VIC WA SA NSW QLD VIC VIC VIC VIC SA NSW WA WA VIC VIC NSW QLD ACT QLD QLD QLD QLD QLD VIC 31 Mar 08 (%) 4.05 3.49 3.42 3.24 3.15 3.10 3.07 2.91 2.90 2.86 2.47 2.42 2.24 2.17 2.04 2.02 1.86 1.84 1.83 1.71 1.70 1.68 1.67 1.67 1.62 1.59 1.57 1.54 1.53 1.52 1.49 1.47 1.46 1.43 1.32 1.27 1.27 1.26 1.25 1.23 1.22 1.20 1.20 1.15 1.14 1.13 0.98 0.98 0.96 0.93 0.92 0.87 0.72 0.47 30 Sep 07 (%) 3.21 2.67 2.81 2.60 2.25 2.32 2.45 2.02 2.56 2.70 1.96 2.22 1.49 1.65 1.51 1.86 1.62 1.66 1.45 1.41 1.39 1.34 1.59 1.02 1.12 1.27 1.14 1.58 1.54 1.12 2.09 0.93 1.08 1.35 1.10 1.28 0.96 1.42 1.22 1.06 1.17 0.96 0.76 1.02 0.99 1.22 0.88 0.65 0.70 0.86 0.86 0.69 0.78 0.59

Source: Fitch, ABS

Australian Mortgage Delinquency by Postcode 31 March 2008 May 2008

Structured Finance
Worst 100 Australian Postcodes Ranked by 30+ Days Arrears (%)
Rank Mar 08 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 Postcode 2164 4212 2760 2758 2161 2196 2528 2190 2766 2165 2325 2533 4564 4020 2176 2759 2142 2770 2500 2200 2019 2753 2780 2256 2168 2177 3976 2519 2192 2749 2259 2756 2257 4507 2540 2565 3064 2170 2260 2160 3193 2137 2761 2575 2173 3977 2070 6057 2140 2315 2324 2767 2430 2171 2261 2560 3810 2527 2144 2576 2205 4879 6064 2195 2262 2747 2571 6173 Arrears Mar 08 (%) 6.7 6.4 6.3 6.1 6.0 5.3 5.2 5.2 5.1 5.0 4.9 4.9 4.7 4.7 4.5 4.5 4.5 4.4 4.4 4.4 4.2 4.2 4.2 4.2 4.2 4.1 4.0 4.0 3.9 3.9 3.9 3.9 3.9 3.8 3.8 3.8 3.8 3.8 3.7 3.7 3.7 3.7 3.7 3.6 3.6 3.6 3.6 3.6 3.6 3.5 3.5 3.5 3.5 3.5 3.5 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.3 3.3 3.3 3.2 Rank Sep 07 3 8 11 15 1 7 70 6 16 4 50 35 24 54 2 32 29 25 14 31 18 21 17 5 23 36 45 69 10 77 49 47 37 83 20 99 73 65 27 42 97 22 26 57 40 92 53 84 62 66 90 58 44 Arrears Sep 07 (%) 4.9 4.4 4.3 4.0 5.7 4.6 2.7 4.6 2.2 4.0 4.8 2.3 2.8 3.1 3.5 2.8 4.9 3.2 3.2 3.3 4.1 3.2 2.2 3.9 3.6 3.9 2.0 1.0 4.7 3.5 3.1 2.9 2.7 4.3 2.2 1.9 2.5 2.8 2.9 3.1 2.5 2.2 2.2 3.7 2.3 2.6 0.2 2.1 2.7 3.3 3.0 2.4 3.6 2.1 3.3 2.8 3.0 2.4 2.8 2.5 1.4 2.7 1.8 2.7 2.4 2.8 3.0 0.9 Change in rank +2 +6 +8 +11 -4 +1 +63 -2 +6 -7 +37 +21 +9 +38 -15 +14 +10 +5 -7 +9 -6 -4 -9 -24 -7 +5 +13 +36 -24 +40 +11 +8 -3 +42 -24 +54 +27 +16 -23 -9 +45 -31 -29 +1 -17 +34 -6 +24 0 +2 +25 -8 -23

Australian Mortgage Delinquency by Postcode 31 March 2008 May 2008

Structured Finance
Worst 100 Australian Postcodes Ranked by 30+ Days Arrears (%) (cont.)
Rank Mar 08 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100
Source: Fitch

Postcode 2154 3340 3021 3023 2530 4132 2216 2221 3024 2206 2030 2251 3106 2097 2110 3020 2745 6167 3048 2564 6112 2199 3111 2566 2558 2146 3214 2166 3752 2148 2060 2795

Arrears Mar 08 (%) 3.2 3.2 3.2 3.2 3.2 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.0 3.0 3.0 3.0 3.0 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.8 2.8

Rank Sep 07 55 67 13 88 9 85 86 81 74 96 30 38 51 39 -

Arrears Sep 07 (%) 2.0 2.1 2.8 2.3 2.0 1.3 2.7 4.1 2.2 2.4 1.9 2.2 1.0 2.3 1.1 1.6 2.2 2.0 4.3 2.4 1.7 1.3 2.4 2.5 2.3 2.6 2.4 3.2 3.1 2.8 3.1 2.3

Change in rank

-16

-8 -63 +10

-78 -3 -5 -11 -20 +1 -66 -59 -47 -60

Australian Mortgage Delinquency by Postcode 31 March 2008 May 2008

Structured Finance
Australian Mortgage Performance by Postcode as at 31 March 2008
NSW/ACT Postcodes Ranked by 30+ Day Arrears (%)
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 Postcode 2164 2760 2758 2161 2196 2528 2190 2766 2165 2325 2533 2176 2759 2142 2770 2500 2200 2019 2753 2780 2256 2168 2177 2519 2192 2749 2259 2756 2257 2540 2565 2170 2260 2160 2137 2761 2575 2173 2070 2140 2315 2324 2767 2430 2171 2261 2560 2527 2144 2576 2205 2195 2262 2747 2571 2154 2530 2216 2221 2206 2030 2251 2097 30+ day (%) 6.7 6.3 6.1 6.0 5.3 5.2 5.2 5.1 5.0 4.9 4.9 4.5 4.5 4.5 4.4 4.4 4.4 4.2 4.2 4.2 4.2 4.2 4.1 4.0 3.9 3.9 3.9 3.9 3.9 3.8 3.8 3.8 3.7 3.7 3.7 3.7 3.6 3.6 3.6 3.6 3.5 3.5 3.5 3.5 3.5 3.5 3.4 3.4 3.4 3.4 3.4 3.4 3.3 3.3 3.3 3.2 3.2 3.1 3.1 3.1 3.1 3.1 3.1 Rank 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 Postcode 2110 2745 2564 2199 2566 2558 2146 2166 2148 2060 2795 2207 2250 2580 2141 2577 2156 2263 2133 2830 2217 2529 2340 2570 2107 2763 2022 2650 2101 2567 2145 2285 2280 2508 2428 2750 2541 2640 2322 2539 2283 2290 2132 2229 2085 2147 2212 2127 2011 2131 2017 2213 2320 2044 2777 2112 2010 2048 2211 2093 2526 2210 2162 Arrears (%) 3.0 3.0 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.8 2.8 2.8 2.8 2.7 2.7 2.7 2.7 2.7 2.6 2.6 2.6 2.5 2.5 2.5 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.1 2.1 2.1 2.1 2.1 2.0 2.0 2.0 2.0 Rank 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 Postcode 2150 2323 2536 2450 2204 2518 2077 2024 2086 2218 2151 2765 2232 2287 2153 2117 2135 2155 2234 2016 2067 2193 2100 2125 2330 2220 2036 2224 2114 2485 2768 2096 2033 2902 2194 2209 2515 2120 2126 2015 2444 2122 2000 2620 2230 2800 2026 2066 2223 2227 2478 2152 2021 2074 2228 2203 2619 2039 2076 2046 2612 2906 2121 Arrears (%) 2.0 2.0 2.0 2.0 2.0 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.8 1.8 1.8 1.8 1.7 1.7 1.7 1.7 1.7 1.7 1.6 1.6 1.6 1.6 1.6 1.6 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.3 1.3 1.3 1.3 1.3 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.1 1.1 1.1 Rank 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 Postcode 2106 2020 2905 2075 2047 2219 2486 2914 2134 2118 2099 2233 2617 2090 2041 2069 2018 2119 2095 2040 2035 2068 2774 2103 2050 2073 2064 2038 2602 2222 2065 2138 2615 2158 2009 2088 2042 2604 2113 2611 2913 2111 2049 2031 2037 2089 2023 2480 2614 2087 2034 2904 2043 2226 2032 2607 2517 Arrears (%) 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.9 0.9 0.9 0.9 0.9 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.7 0.7 0.7 0.6 0.6 0.6 0.6 0.5 0.5 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.3 0.3 0.3 0.2 0.2 0.1 0.0 0.0

Source: Fitch

Australian Mortgage Delinquency by Postcode 31 March 2008 May 2008

Structured Finance
Victorian Postcodes Ranked by 30+ Days Arrears
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
Source: Fitch

Postcode 3976 3064 3193 3977 3810 3340 3021 3023 3024 3106 3020 3048 3111 3214 3752 3337 3008 3215 3029 3166 3630 3212 3805 3806 3550 3073 3028 3153 3076 3043 3175 3174 3910 3140 3934 3690 3037 3429 3173 3197 3216 3056 3132 3198 3802 3044 3030 3201 3082 3136

Arrears (%) 4.0 3.8 3.7 3.6 3.4 3.2 3.2 3.2 3.1 3.1 3.0 3.0 2.9 2.9 2.9 2.8 2.8 2.7 2.6 2.5 2.5 2.5 2.4 2.4 2.4 2.4 2.3 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.1 2.1 2.1 2.0 2.0 2.0 2.0 1.9 1.9 1.9 1.8 1.8 1.8 1.7 1.7 1.7

Rank 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100

Postcode 3155 3188 3152 3219 3038 3181 3207 3032 3088 3108 3187 3016 3083 3172 3058 3350 3280 3046 3204 3071 3095 3199 3194 3500 3930 3941 3195 3228 3079 3183 3040 3015 3149 3130 3121 3178 3134 3068 3000 3012 3912 3165 3138 3131 3170 3129 3150 3162 3031 3844

Arrears (%) 1.7 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.3 1.3 1.3 1.3 1.3 1.3 1.2 1.2 1.2 1.2 1.2 1.1 1.1 1.1 1.0 1.0 0.9 0.9 0.8 0.8 0.8 0.8 0.7 0.7 0.7

Rank 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126

Postcode 3192 3084 3186 3146 3104 3006 3072 3931 3182 3109 3070 3141 3196 3122 3156 3184 3127 3145 3101 3135 3163 3013 3128 3011 3133 3124

Arrears (%) 0.7 0.7 0.7 0.7 0.7 0.7 0.6 0.6 0.6 0.6 0.5 0.5 0.5 0.5 0.5 0.4 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.1 0.1 0.1

Australian Mortgage Delinquency by Postcode 31 March 2008 May 2008

10

Structured Finance
Queensland Postcodes Ranked by 30+ Day Arrears
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
Source: Fitch

Postcode 4212 4564 4020 4507 4879 4132 4101 4164 4505 4077 4211 4217 4114 4285 4124 4226 4703 4506 4208 4305 4075 4218 4280 4213 4207 4575 4510 4556 4565 4133 4573 4504 4655 4227 4157 4301 4064 4570 4116 4500 4215 4209 4868 4306 4216 4151 4567 4152 4214 4223

Arrears (%) 6.4 4.7 4.7 3.8 3.4 3.1 2.6 2.6 2.4 2.4 2.3 2.3 2.2 2.2 2.1 2.1 2.1 2.1 2.0 2.0 2.0 1.9 1.9 1.8 1.8 1.8 1.8 1.7 1.7 1.7 1.7 1.6 1.6 1.6 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.4 1.4 1.4 1.4

Rank 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100

Postcode 4815 4074 4300 4560 4352 4650 4115 4701 4558 4221 4160 4870 4350 4680 4818 4210 4508 4163 4740 4127 4161 4105 4068 4220 4814 4069 4551 4113 4520 4169 4165 4670 4118 4078 4012 4509 4159 4006 4019 4055 4123 4030 4053 4503 4054 4170 4869 4557 4035 4051

Arrears (%) 1.4 1.4 1.4 1.4 1.3 1.3 1.3 1.3 1.3 1.3 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.1 1.1 1.1 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.8 0.8 0.8 0.8 0.7 0.7 0.7 0.7 0.7

Rank 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120

Postcode 4121 4810 4103 4109 4179 4122 4060 4817 4031 4017 4171 4178 4034 4128 4032 4005 4066 4000 4011 4061

Arrears (%) 0.7 0.7 0.7 0.6 0.6 0.5 0.5 0.4 0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.0 0.0

Australian Mortgage Delinquency by Postcode 31 March 2008 May 2008

11

Structured Finance
Western Australia Postcodes Ranked by 30+ Day Arrears
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Source: Fitch

Postcode 6057 6064 6173 6167 6112 6169 6069 6108 6009 6111 6066 6110 6168 6107 6019 6061 6151 6156 6054 6230 6210 6059

Arrears (%) 3.6 3.4 3.2 3.0 2.9 2.5 2.5 2.3 2.3 2.1 2.1 2.0 2.0 1.9 1.9 1.9 1.8 1.7 1.7 1.7 1.7 1.7

Rank 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44

Postcode 6030 6014 6530 6155 6063 6152 6147 6056 6060 6172 6065 6021 6100 6330 6164 6149 6148 6076 6062 6104 6163 6280

Arrears (%) 1.6 1.5 1.5 1.5 1.4 1.4 1.4 1.4 1.4 1.4 1.3 1.3 1.2 1.2 1.2 1.1 1.1 1.1 1.0 1.0 1.0 1.0

Rank 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63

Postcode 6010 6055 6053 6050 6026 6051 6025 6008 6018 6024 6430 6105 6020 6027 6023 6157 6153 6028 6101

Arrears (%) 1.0 0.9 0.9 0.8 0.8 0.7 0.7 0.7 0.7 0.6 0.6 0.6 0.6 0.6 0.5 0.5 0.5 0.3 0.0

South Australia Postcodes Ranked by 30+ Day Arrears

Rank 1 2 3 4 5 6 7 8 9 10
Source: Fitch

Postcode 5096 5114 5158 5162 5108 5109 5095 5022 5062 5082

Arrears (%) 2.6 2.5 2.4 2.4 2.2 1.8 1.6 1.6 1.5 1.3

Rank 11 12 13 14 15 16 17

Postcode 5045 5159 5051 5118 5086 5092 5125

Arrears (%) 1.1 1.0 1.0 1.0 0.9 0.9 0.7

Tasmania Postcodes Ranked by 30+ Day Arrears

Rank 1 2
Source: Fitch

Post code 7250 7018

Arrears (%) 1.3 1.1

Northern Territory Postcodes Ranked by 30+ Day Arrears

Rank 1 2
Source: Fitch

Post code 810 812

Arrears (%) 0.8 0.7

Australian Mortgage Delinquency by Postcode 31 March 2008 May 2008

12

Structured Finance

Copyright 2008 by Fitch, Inc., Fitch Ratings Ltd. and its subsidiaries. One State Street Plaza, NY, NY 10004.Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. All of the information contained herein is based on information obtained from issuers, other obligors, underwriters, and other sources which Fitch believes to be reliable. Fitch does not audit or verify the truth or accuracy of any such information. As a result, the information in this report is provided "as is" without any representation or warranty of any kind. A Fitch rating is an opinion as to the creditworthiness of a security. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. Fitch is not engaged in the offer or sale of any security. A report providing a Fitch rating is neither a prospectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of the securities. Ratings may be changed, suspended, or withdrawn at anytime for any reason in the sole discretion of Fitch. Fitch does not provide investment advice of any sort. Ratings are not a recommendation to buy, sell, or hold any security. Ratings do not comment on the adequacy of market price, the suitability of any security for a particular investor, or the tax-exempt nature or taxability of payments made in respect to any security. Fitch receives fees from issuers, insurers, guarantors, other obligors, and underwriters for rating securities. Such fees generally vary from US$1,000 to US$750,000 (or the applicable currency equivalent) per issue. In certain cases, Fitch will rate all or a number of issues issued by a particular issuer, or insured or guaranteed by a particular insurer or guarantor, for a single annual fee. Such fees are expected to vary from US$10,000 to US$1,500,000 (or the applicable currency equivalent). The assignment, publication, or dissemination of a rating by Fitch shall not constitute a consent by Fitch to use its name as an expert in connection with any registration statement filed under the United States securities laws, the Financial Services and Markets Act of 2000 of Great Britain, or the securities laws of any particular jurisdiction. Due to the relative efficiency of electronic publishing and distribution, Fitch research may be available to electronic subscribers up to three days earlier than to print subscribers.

Australian Mortgage Delinquency by Postcode 31 March 2008 May 2008

13