The Reserve Bank of Australia says that the problem of Mortgage stress has increased in Australia and most households are struggling to repay their mortgage amount. The Reserve Bank totally blames the mortgage brokers for grasping lending practice and also the increased desire for debt by the households. The situation is being surveyed by the Reserve Bank financial stability review focusing on the financial strains. On the other hand another section finds that there has been fight Back Boulevard or Struggle Street in Australia which increases the stress on mortgage.    Financial counselors are being approached by the public for assistance in many parts of the country especially Melbourne's north and western suburbs.

One of the surveys says that in western Sydney the default in repayments of loan is thrice the national average. The mayor of western Sydney is witnessing large number of mortgage stress every day. The most affected part of the public due to the mortgage stress is the hopeful families that like to own a house in good location with all resources and facilities to work live and play which makes them forced to get loan and find it difficult to repay due to the increased rates day by day. Because of this they have the stress of mortgage.

Economic rescue

The ANZ bank has warned that the depression in Australia due to the mortgage stress will increase if the rescue is not made in the financial sector. The crisis if not controlled may extend to more than one and half years and it will be difficult to control the mortgage stress. The bankers and the customers should restrict debt. However, now the percentage of loan borrowers has reduced. Even the credit card is a way of debt and the banks charge high interest on these things. The implications for Australia comprise constant stress for the RBA to slash interest rates again next month. Economists are of the view that the RBA should slash 0.5 % interest to make sure to reduce the mortgage stress. Another reason for the raise of interest and stress on mortgage may be due to increase in the cost of money. The ANZ says that they are managing a bank and not a welfare state. If this continues then the bank will only become a welfare state. It insists that the Reserve Bank of Australia has to take steps to reduce the interest rates and also the stress on mortgage.

The federal government has planned to boost the mortgage sector to meet the increased interest rates. However lenders apart from the bank have been banned because the funds provided by them have been dried up due to the global disaster. This plan will on the one hand will benefit the liquidity in the market but it will create possible cost. The scheme will represent taxpayers to the housing market even though this coverage must be small if properly managed. The government is trying to ensure the survivability of small organizations by allowing them to admit funds. The government has laid rules by only accepting top rated and high quality mortgages.