00:02A massive $10.9 billion profit for Australia's biggest bank.
00:07How do you think they're making their money?
00:09Half of all of us.
00:10Does it surprise me that big organisations are scaling up their profit year on year? No.
00:16While the Commonwealth Bank's financial results are healthy, they reveal mortgage stress is rising,
00:22and the bank is reporting more bad loans.
00:24Look, this is quite a difficult year for many households and for businesses.
00:29Since the federal budget in May, home loan applications have slumped 15%.
00:34Westpac is reporting a 20% decline, while the NAB flagged a 15% fall since the end of March.
00:41So there's a combination of factors from affordability to interest rate rises,
00:46of course global uncertainty, including the oil shock resulting from the Middle East,
00:51and yes, the tax changes that are announced.
00:54The Commonwealth Bank warns the economy is slowing, fast enough maybe, to see the Reserve Bank cutting interest rates next
01:01year.
01:02That'll support the housing market, the bank says, but some analysts think there's still steeper property price drops to come.
01:09We are expecting housing prices to fall somewhere around 10% from peak to trough.
01:14We expect to see more modest growth over the course of the next couple of years.
01:19Price falls can't come soon enough for some.
01:21You're a bit frustrated?
01:23Yeah, a little bit, but I'm trying not to.
01:26How much would you like house prices to fall?
01:28I would say quite a bit.
01:30Home prices heading down. Another step forward for aspiring home buyers.
01:34ALAIN
01:36AMIGAS
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