PHOTO: Economists think the banks could be forced to act further.
The six-month grace period being offered by the banks to mortgage holders may not be enough to see off the ill-effects of the coronavirus-induced economic weakness and a longer period may be needed, economists warn.
The national shutdown of non-essential industries, travel and the closing of international borders has left thousands without jobs and more on reduced incomes. The Australian Treasury has predicted the unemployment rate will spike at 10 per cent.
Australia’s most powerful banker paints a grim picture
The property market has suffered too, with both sale and rental activity dropping. Renters and landlords have also been locked in a battle about the non-payment of rent, as many renters lost their jobs in the retail, service and arts industries almost overnight.
As a result, banks have begun offering mortgage relief to those who have had their income impacted or tenants who have had the same.
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