Australia Commonwealth and state governments should be assisting borrowers facing mortgage stress, according to a report from the Australian Housing and Urban Research Institute.
The organisation suggests governments should mandate lenders to defer repayments, directly subsidize distressed households and/or establish a home equity insurance program.
Young couples in the housing market are particularly at risk of defaulting on their mortgages, as reduced incomes, unemployment and large mortgages affect their ability to make ends meet.
NSW announced in its state budget it would cut the stamp duty on new dwellings under $600,000 by half for all non-first home buyers.
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