The RBA is recklessly ignoring the mortgage stress of households that were lured into mortgages to prop up the bubble; Australia needs a foreclosure moratorium now!
The primary purpose of Scott Morrison’s plan to give first home buyers access to their superannuation is not to help young Australian afford a home, but to keep the big banks ringing up profits from mortgages.
If young Australians access $50K from their super to buy a home just before rising interest rates trigger a market crash, will Prime Minister Scott Morrison care if they lose their home? No!
Australia’s housing bubble faces a reckoning, following today’s decision by the central bank to finally lift interest rates, by 0.25 per cent.
The major parties are responsible for the property bubble that has made Australian housing completely unaffordable.
Mortgage stress now grips 42 per cent of Australian households, according to a UNSW City Futures Research Centre survey. This is a sharp increase from 30 per cent in February 2020. The UNSW survey defines mortgage stress as households with less than 5 per cent of residual household income left over after paying normal household expenses, including on housing.
Australia’s most experienced advocate for victims of predatory bank lending has slammed as “insane” Prime Minister Scott Morrison’s policy to lower bank lending standards to boost economic activity.
Since the election in May, the Morrison government, Reserve Bank and Australian Prudential Regulation Authority have thrown everything and the kitchen sink at reversing the fall in house prices. They have been desperate to avert a crisis in the major banks, which have the highest exposure to household debt of any banks in the world—far higher than the banks in the USA and Europe that collapsed when their housing bubbles burst in 2008.
