Moody's investors Service says arrears of 30 days or more on prime home loans in Australia increased to 1.44 per cent at the end of the December 2012 quarter, from 1.22 per cent in September. However, Moody's said this was still lower than for the same period in 2011, when the arrears rate was 1.59 per cent. The arrears rate for the major banks rose to 1.15 per cent, from 0.90 per cent, while for the regional banks it rose to 1.67 per cent, from 1.54 per cent, and for non-bank issuers it rose to 3.24 per cent, from 2.55 per cent. Arrears on low-doc loans pools remain much higher. This ratio was at a record level in November 2012, at 5.90 per cent, before dropping down to 5.78 per cent at the end of December.Arrears on non-conforming loans fell to 6.65 per cent in December, from7.25 per cent in September, this was also 91 basis points lower than during the same period in 2011, when it was 7.56 per cent, Moody's said.