According to a new industry report, more than 30,000 homes will be repossessed or foreclosed and almost half a million Australians plunged into severe mortgage stress by the end of 2009.
One third of the expected repossessions will be first time home buyers who bought in the last 12 months. The main reason for this is the projected unemployment growth from the current 5.2% to 7.5% by the end of 2009.
Those that lose their job will have to fall back on savings. While some will be able to ride it out but for (many) it will be much more difficult.
Home owners should seek financial assistance as soon as they experience mortgage stress. However many ignore the problem, leaving it too late for any help to be effective.