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PeakMax Financial Services offers residential and commercial finance broking, financing for construction and development, and SMSF solutions.

04/10/2022

RBA raises rates by 0.25 percentage points

The Reserve Bank of Australia has increased the cash rate for the sixth consecutive month – but this time there’s been a twist.

Over the past six months, the RBA has raised the cash rate from 0.10% to 2.60%:

* In month one, there was an increase of 0.25 percentage points
* In months two to five, there were increases of 0.50 points
* Now, in month six, the increase has been dialled back to 0.25 points

Why? Possibly because the RBA believes we’re near the end of this rate rise cycle.

More rate hikes are almost certain, with the RBA revealing it "expects to increase interest rates further over the period ahead". But there might not be many more hikes to come.

19/09/2022

RBA determined to crush inflation

The governor of the Reserve Bank of Australia has signalled several more official rate rises are on the way, in a statement to the House of Representatives Standing Committee on Economics.

Philip Lowe said the RBA board was committed to returning underlying inflation to its target range of 2-3%, which would require the board to increase the cash rate.

"In terms of the outlook for interest rates, the Reserve Bank board expects that further increases will be required to bring inflation back to target," he said.

"The increase in interest rates has been rapid and global and we know monetary policy operates with a lag. At some point, it will be appropriate to slow the rate of increase in interest rates and the case for doing that becomes stronger as the level of interest rates increases.”

Headline inflation is 6.1% (see light blue line), while underlying or ‘core’ inflation, the RBA’s preferred measure, is 4.9% (dark blue line).

04/09/2022

Buyer activity trending down

Property buyers committed to $28.4 billion of new home loans in July, according to new data from the Australian Bureau of Statistics.

That was 11.3% lower than the year before, suggesting there are fewer active buyers in the market.

Owner-occupier borrowing activity fell 15.9% over the year, to $19.1 billion, while investor activity was unchanged, at $9.3 billion.

Despite the decline in borrowing, it is still well above the long-term averages, as the graph shows.

18/08/2022

Unemployment falls again

Australia's unemployment rate fell to just 3.4% in July, according to the Australian Bureau of Statistics.

That’s 1.3 percentage points lower than the year before.

Over the same period, the underemployment rate fell by even more, declining from 8.3% to 6.0%.

Australia’s labour market is so strong that there are more job vacancies (480,100) than unemployed workers (473,600).

Nevertheless, ANZ believes the labour market will tighten even further, and that the unemployment rate will have a ‘2’ in front of it by early 2023.

04/08/2022

Buyer demand remains firm

The number of potential buyers on https://buff.ly/x5nkyh has fallen from its peak but is still elevated.

This is based on the number of people looking at properties that are “showing a high level of interest and considered motivated buyers”, according to PropTrack.

Potential buyer numbers in June were only 0.6% lower than the year before and higher than before the pandemic.

“We expect the ongoing increases in mortgage rates and subsequent falling prices will lead to a further reduction in potential buyers over the coming months,” PropTrack said.

“However, it would have to be a substantial fall to see these numbers return to pre-pandemic levels.”

19/07/2022

5 reasons we can handle higher rates

"How are households placed for interest rate increases?" Reserve Bank deputy governor Michele Bullock has asked in a speech.

"On balance," she concluded, “households are in a fairly good position”.

Why? Because of five reasons:

* Lending standards have become "more prudent" in recent years
* Most borrowers have "substantial equity" in their homes
* Much of Australia's home loan debt is held by "high-income households" that can afford it
* Borrowers on cheap fixed loans "have some time to prepare themselves" for higher rates
* Many borrowers have been making repayments "well above what is required"

Further to that last point, as the graph shows, the pool of scheduled mortgage repayments (dark green) is dwarfed by the money stashed in offset and redraw accounts (light green) and other savings (purple).

So while no one likes paying higher interest rates, Australians are prepared.

04/07/2022

Home loan volumes rise 1.7%

The latest mortgage data from the Australian Bureau of Statistics has revealed an increase in home loan activity, suggesting there are still plenty of active buyers in some markets right now.

Borrowers signed up for $32.4 billion of new home loans in May. That was 1.7% higher than the month before, although 0.4% lower than the year before.

Owner-occupiers were responsible for $21.2 billion of those loans, which was up 2.1% on the previous month but down 9.7% on the previous year.

Meanwhile, investors committed to $11.2 billion of loans – a 0.9% monthly increase and 23.7% annual increase.

19/06/2022

Positive jobs numbers point to robust economy

There were three pieces of good news in the latest unemployment data from the Australian Bureau of Statistics.

First, unemployment remained at 3.9% in May, for the second consecutive month, which is the lowest level since 1974.

Second, the underemployment rate fell from 6.1% to 5.7%, which is the lowest since 2008.

Third, the underutilisation rate (which is unemployment plus underemployment) fell to 9.6%, which is the lowest level since 1982.

So an increasing number of people not only have a job but are working their desired number of hours.

That means the economy is in better shape than the negative media headlines suggest.

05/06/2022

Investor activity falls 4.8%

After nine consecutive monthly increases, property investor borrowing activity has fallen in April, according to the latest figures from the Australian Bureau of Statistics.

Investors signed up for $11.1 billion of loans in April, which was 4.8% lower than the record figure posted the month before (see graph).

However, investor activity was still 37.1% higher than the year before, and remains very high by historical standards.

It’s a similar story if we look at investor activity within the states and territories.

In monthly terms, activity declined everywhere except in the ACT, but in annual terms it increased in all states and territories.

20/05/2022

Unemployment falls to 3.9%

Australia’s unemployment rate fell to 3.9% in April, its lowest level since 1974.

Between March and July 2020, when the pandemic was at its peak, unemployment jumped from 5.2% to 7.5%. Since then, as the graph shows, unemployment has trended down.

Since July 2020, the number of employed people has risen 932,000, while the number of unemployed people has fallen 472,300.

Meanwhile, the underemployment rate has also steadily decreased during that time, from 11.2% in July 2020 to 6.1% now.

29/12/2021

Thought about your 2022 New Year's resolution yet? 🤔⁣⁣
⁣⁣
Don't sweat - there's still a few days to do so! 😅⁣⁣
⁣
And it doesn't always have to be just health or fitness related - you can make a financial one too!⁣
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Some ideas include smashing down your mortgage quicker, saving for a deposit faster, or refinancing to potentially save thousands of $$$.⁣
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Whatever it is, we're here to help you make it happen! 💪⁣⁣
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Here's to a successful, prosperous and enjoyable 2022! 🥳⁣⁣
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Happy New Year, from the team at PeakMax Financial
⁣

27/12/2021

🤨💭 Wondering if now's still a good time to buy your first home? 🤔⁣
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Well, 2-in-3 prospective first home buyers think it is.*⁣
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And 94.1% of recent first home buyers say they feel relieved that they now have their own property.⁣
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So if you'd like to make the jump from renter to homeowner, get in touch today to discuss a range of schemes and options that can get you into the property market sooner.⁣
⁣
To find out more, contact PeakMax Financial on:
☎️ – 0457 578 999
💻 – [email protected]
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*Genworth First Home Buyer Report 2021⁣
⁣

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