Mortgage stress has been a great curse for Australia this year. This situation is likely to continue. The Housing Industry Association in one of its view has said that western Sydney's mortgage stress will be more and is likely to continue for the next year, in spite of reduced interest rates. This is the maximum in Australia. According to the Reserve Bank of Australia the share of western Sydney house owners who are at least three months behind on their repayments is thrice the countrywide standard. The Reserve Bank of Australia has further stated that the most affected areas in the country are in Western Sydney only where there are delayed repayments of loan. The highest among them is Fairfield – Liverpool. The report also says that the mortgage stress has been increased by loan practices, which it says were common among newer lenders who hit the highest point of the market's report in the year 2004.

The Housing Industry Association says the situation has been worsening by increasing unemployment rates and declining of home prices, due to the worldwide credit emergency. Further Western Sydney is the one and only area in Australia where there is a rising unemployment over the last few years. Hence, there had been many people coming forward to buy their houses given that the price of the houses gradually declined and they started borrowing money for loan and a group of people were trying to stick to their jobs. One of the Minister of Western Sydney is of the view that the Government can come forward in giving interest free loans to set right the problem of mortgage stress but that should also be carried out with proper supervision, if not everyone will not be benefited. Only those persons who have the capability to repay the loans can be helped. But the situation will become bad to worse if people repay all the loans out of their earnings and may face the risk of losing their jobs. Apart from that on repayment they will have to pay more than what they afford due to the high interest rates. It will also affect the families who have moved to the suburbs. For this reason, the government considering all the above drawbacks has to take some kind of step to put and end to the mortgage stress.

The mortgage stress is so problematic that it has created a break among the families because of the overdue process. The result of all these is that they go in for selling the house and repay the loans, and their dream for a new dream home is put to an end. Thus the Reserve Bank of Australia along with the government has to take steps to cut down the interest rate to make sure that something is conceded on to the mortgage stress on consumers. Because of the elevated cost of money, the bank expenses are going up and they are likely to grasp on to some of the reduction.