Westpac is the latest major bank to experience a rise in the number of home loan customers getting into financial trouble, reporting an increase in mortgage arrears in the June quarter, as more properties were repossessed by the bank.

While experts stressed the bank's bad debts were still at very low levels overall, a stockmarket filing from the bank on Monday said the proportion of mortgages more than 90 days behind on their repayment schedule was 0.9 per cent, up from 0.82 per cent in the March quarter.

Arrears also rose for credit cards and personal loans, while the number of residential properties Westpac had repossessed increased, from 482 to 550, mainly in mining-heavy states.

Westpac said mortgage arrears had risen due to weakness in the property market. Credit:Jessica Hromas

The banking giant's capital position was also slightly weaker than expected by some analysts, and it pointed to several headwinds in the coming months, in the lead-up to new "unquestionably strong" capital requirements coming into force from 2020.