Victorian households are further behind on their mortgage payments than those in any other state, passing Western Australia for the first time in at least seven years, according to new data published by S&P Global Ratings on Wednesday.

The level of arrears across the Australian residential mortgage-backed securities sector largely stabilised this quarter. But the arrears in Victoria have ticked up to 1.07 per cent, passing Western Australian households, which have topped the list since S&P began collecting the data in 2017.