housing to devalue 40 to 60 percent

Commonwealth bank have budgeted for 6 times the defalt rate now and a loss of approx 500million from domestic lending.

If the population loose their homes, thats not such a bad thing, because the whole housing sector will devalue by about 40-60% just like the us.

Let me give you an example, if you own a house that cost you $500k, you paid off 50k. The house drops to $300k, that would mean you can buy it back or some other house back for 300k. You end up in the same position or even a little better because your loan for your new house is reduced.