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Mortgage arrears have risen from their COVID lows of 1% in Q3 2022 to 1.6% in March 2024, marking the highest reading since Q1 2021, according to Tim Lawless, executive research director Asia Pacific at CoreLogic.

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Rising wages and stagnant productivity are significantly driving up construction costs in Australia, impacting both infrastructure projects and commercial developments, according to the latest market sentiment report from Arcadis and the Australian Constructors Association (ACA). ACA CEO Jon Davies (pictured above) pointed out that the wage disparity between government and private sector projects is a major issue. "Higher labour costs and stagnating productivity growth are also diminishing the financial viability of commercial developments," Davies said, noting that 81% of respondents reported stagnation or decline in the residential construction sector.

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The super changes on the way from the start of the 2024-25 financial year. A number of superannuation changes will come into effect from 1 July 2024 that are designed to help working Australians get more money into the retirement savings system. If fully utilised, the changes potentially allow all super fund members, including those with a self managed super fund (SMSF), to add tens of thousands of dollars extra into their account from the start of the 2024-25 financial year.

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A fall in mortgage demand has reversed the positive growth recorded in the December 2023 quarter, Equifax has reported. Equifax's Quarterly Consumer Credit Insights – March 2024 report has shown mortgage demand declined 4.5 percent during the first quarter of this year, drawing back the 0.5 percent growth recorded in the previous quarter. The December quarter's lift in mortgage demand marked the first quarter of positive growth since 2021 as the stabilization of interest rates had a positive impact on mortgages. Auto loan demand increased 4.7 percent during the March quarter of 2024 when compared to the same quarter of 2023, while secured credit demand (derived from both mortgages and auto loans) fell 2.8 percent in the March quarter of 2023.

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"Does the lender really need all this information?" Short answer is Yes! (We aren't asking for all of it because we like paperwork!) Responsible lending obligations were first introduced in 2011. There were 3 main requirements which broadly covered the key concept that lenders must not enter into a loan if its unsuitable for the client. The 3 areas addressed were Inquiries: Lenders must make reasonable inquiries about a consumer's financial situation, requirements, and objectives. Verification: They should take reasonable steps to verify a consumer's financial situation. Assessment: If providing credit assistance, lenders make a preliminary assessment; if they are the credit provider, they make a final assessment to determine if the credit contract is "not unsuitable" for the consumer. Updates to these obligations have been made & the Royal Commission made recommendations which have been embraced by Brokers and Banks. This all forms a larger need to get more information.

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