28 June 2012 6:43am

Borrowers with low-doc loans, who tend to be self-employed, may be experiencing a greater than the usual level of difficulty paying their loans.

Fitch Ratings said that delinquencies in the low-doc segment tend to be between two times and two and a half times those of full-doc loans.

In the year to March 2012 they were four times to four and a half times higher.

Fitch put the level of arrears of 30 days or more among those with low-doc loans at 7.08 per cent at the end of March, up from 6.62 per cent at the end of December 2011.

Home loan arrears grew more...