REM Review

Around about the 21st of March, the government of the day announced that REM Review wasn't going to happen. This was right before the election. Thankfully the new Labour Government also committed to the same thing. Why fix something that was not fundamentally broken in the first place?

MFAACEO Retires

Since the Royal Commission, Mike Felton has been working long hours to represent the industry. He never really stopped working until the government (as well as the then opposition) announced that the REM Review was no longer needed. With the industry now in “calmer” waters, Mike announced his retirement in May.

71.1% Market share

Despite all the headwinds…Broker market share cracked the 70% level and went to 71.1% between July and September 2022.That is huge! Customers voted with their feet?Absolutely!

Hackers

Big organisations got hacked this year.This calls into question… how secure are brokers’own files? Do you have the appropriate insurance to cover you in case you got hacked?

RBA- made a mistake?

In 2022, the RBAincreased interest rates 7 times. In real terms, consumers have not seen borrowing costs this high since 2008! RBAGov comes out and admits they “got it wrong” and didnt think people took their predictions seriously when getting a mortgage. More “pain” is predicted in 2023.

Cost of Living Increases

Have you noticed how much your coffee has gone up recently? During the period September 2021-2022, headline inflation inAustralia shot up by a huge 7.3% TheABS also reported that the cost of non-discretionary items increased by 1.8% in the September 2022 quarter alone….This is crazy!

Amyriad of factors has lead to some items going crazy expensive (remember the $10 lettice?). We had floods that wiped out crops and other supply chain issues locally and internationally that have all caused massive price increases across the board. This all adds to Housing Stress.And just in time for Christmas? ….APotato shortage!

Fixed Rate Cliff?

35% of housing Debt is inside a Fixed Product.APRILNOV 2023 will create a high level of mortgage stress / Arrears as most of the low 2-3 year Fixed loans revert to the SVR at the time.This will no doubt bring more mortgage stress and cost of living issues to mortgage holders..