The Council of Financial Regulators has reported a rise in the number of hardship applications for mortgage relief in Australia, indicating that more Australians are falling behind on their mortgage repayments due to inflation and high-interest rates.
More Australia ns are falling behind on their mortgage repayments as the combination of inflation and high-interest rates bite deep into family finances, the nation’s top economic watchdogs have conceded.
Minutes of the most recent meeting of the Council of Financial Regulators, a group that includes the Reserve Bank, Treasury, the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission, show a lift in the number of hardship applications to the nation’s banks for relief from their home loan repayment plans. Economic regulators have noted a growing proportion of Australians are struggling with their mortgage repayments.Arrears and default rates on mortgages effectively evaporated in 2020 after the collapse in mortgage interest rates, the introduction of government support programs through COVID and subdued inflation. But there have been growing signs of financial stress in the household sector, especially for those people with mortgage
Australia Mortgage Repayments Inflation High-Interest Rates Economic Watchdogs Financial Stress