Aussie mortgage holders face ‘property glut’ as COVID-19 wreaks long-term damage

Australia’s property market could be left with a glut of stock as mortgage repayment holidays run out and government economic lifelines run dry.

Despite almost every bank offering a hardship program for impacted customers, and JobKeeper initiatives now costed until at least March 28 next year, the COVID-19 pandemic could impact the financial future of some for decades.

Finance Brokers Association of Australia managing director Peter White forecasts many owners with no job prospects will have to sell their house and rent with the money earnt until they find work.

“The reality is that despite government assistance, some people may not see secure employment or their business recovering in the near future, and the recommencement of mortgage payments will be a burden they cannot bear,” Mr White said.