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Furthermore, only 1.9 percent of its loans have a debt-to-income ratio of six times, while Baum estimates these highly leveraged mortgages have accounted for a quarter of the major banks’ new mortgages in recent years. As interest rates rose sharply, it was these newer borrowers that Baum was most concerned about. “We’re going to see potentially disastrous outcomes on a human level on a scale I think most Australians have forgotten about, because we haven’t had a recession for 30 years,” he said from Tic:Toc’s headquarters in Adelaide. “We should have been more responsible five years ago. Because guess what? We will get a 10 percent increase, not a 25 percent increase in house prices. And the downside that we are now navigating will be much more manageable.” Baum said years of gradual easing of lending rules had allowed household debt to build up, giving policymakers and central banks limited flexibility as they tried to steer the economy through a world of higher inflation and slow

Australia’s biggest home lender fears borrowers in August could cope with their biggest monthly rate hike in nearly three decades if there is an inflation shock next week. Commonwealth Bank, along with four other major lenders, all expect the Reserve Bank of Australia next month to raise interest rates by 50 basis points, or 0.5 percentage points, to a six-year high of 1.85 percent. But CBA’s chief economist for Australia Gareth Aird said there was an outside chance of a 75 basis point hike on Aug. 2, bringing interest rates to a seven-year high of 2.1 percent from a three-year high of 1.35 percent. It would also be the steepest monthly increase since December 1994, meaning borrowers with an average mortgage of $600,000 would overcome another $256 increase in their monthly mortgage payments on top of the $352 increase they had experienced since May. Scroll down for audio Australia’s biggest home lender fears borrowers in August could cope with their biggest monthly rate hike in n

A union boss has warned the ANZ-Suncorp deal would put thousands of employees out of work and trigger mass closures of dozens of bank branches. ANZ on Monday announced its proposed purchase of smaller rival bank Suncorp for $4.9 billion – marking it as the country’s biggest banking deal in 14 years. The bank’s chief executive, Shayne Elliott, has pledged to retain Suncorp’s Queensland branches and staff for at least three years. However, the Financial Sector Union (FSU) is skeptical and has warned thousands of workers will lose their jobs when the three-year period ends. Queensland Secretary Wendy Streets told Daily Mail Australia that both ANZ and Suncorp employees should be aware of the consequences of the deal. A union boss has warned the ANZ-Suncorp deal will cost thousands of employees and trigger mass closures of dozens of bank branches ANZ on Monday announced a proposed purchase of smaller rival bank Suncorp for $4.9 billion – marking it the country’s biggest banking

It said it was expected to “resul in a substantial increase in infections, hospitalizations and unfortunately, deaths, at a time when our communities and health systems are already under stress”. Among measures including increasing vaccination rates, the group advised employers to review their occupational health and safety risks and “consider the appropriateness of some employees working from home and supporting employees to take time off when sick”. Major wholesale retailers including Coles said they were prepared for any increase in COVID-19 numbers. Credit: Paul Jeffers The advice comes amid a sharp increase in cases. Victoria recorded 7934 new cases of coronavirus on Sunday, while New South Wales reached 8670 new cases. There are more than 300,000 active cases across the country and hundreds of people die of COVID-19 every week. Governments across the country are wary of reintroducing the mandate, insisting the country is in a new phase of the pandemic and the public is tired of