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AUSTRALIA’S DEBT CRISIS WARNING — Record Mortgage Stress & 14,000 Calls Go Unanswered!

2,950 views · Published 15 February 2017 · 12:57 · Indexed 12 November 2026

Channel: Mike Martins · 2017 · News & Politics

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“The least little wind is going to tip it into something that could look very much like a catastrophe.” — Mike Martins

Australia’s housing and household debt situation is flashing another major warning sign.

In this video, I’m looking at reports out of Australia that the National Debt Helpline is being overwhelmed by Australians seeking financial counselling, with 14,000 calls reportedly going unanswered in January 2017 because there simply weren’t enough staff available to handle the demand.

This is exactly why I keep following the housing markets across the English-speaking world. Australia, Canada, New Zealand and the UK are all dealing with different versions of the same affordability problem: people taking on enormous amounts of debt just to put a roof over their heads.

The frightening part is what happens if interest rates start moving higher or unemployment increases.

According to the report I'm discussing, household debt is already at record highs, and financial counsellors are warning that even a relatively small economic shock could cause serious problems for households already stretched to the limit.

There are also two different versions of mortgage stress happening in Australia. In some former mining areas, homeowners are dealing with properties that may now be worth less than their mortgages. Meanwhile, in Sydney and Melbourne, people have taken on extremely large mortgages simply because that’s what it takes to enter the market.

This is why I keep telling people: housing should be somewhere you live, raise your family and establish roots. It shouldn't require putting your entire financial future on the line.

I recently made my own decision to leave Vancouver and move to a smaller community where housing is dramatically more affordable. I'm documenting that journey in my Living the Dream series because I want people to see that there may be alternatives outside these enormously expensive major cities.

Australia, I’m watching what’s happening there closely.

What happens when interest rates finally start rising?

Comment below. I especially want to hear from Australians experiencing this firsthand.

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