ASX closes lower, Senate committee into lowering home loan buffer wraps up — as it happened

That's all from our live blog today! We'll be back tomorrow for more market action.

The Australian share market has closed lower, led by basic materials, consumer cyclical, and tech.

Tech was led lower by WiseTech Global, which lost -6.3% to finish at $99.37.

Plumbing supplier Reece Ltd had the biggest decline, down -7.9% to $24.45.

It was a mixed bag for the top gainers, which included Kelsian, Seek, and Sonic Healthcare.

Gold producer West African Resources led the pack, up +3.6%, followed by Viva Energy +2.7%.

Fantastic question from a reader about the complexities of economics and something our reporter Gareth Hutchens is working up a column on so stay tuned...

Reader Mitchell has posted a comment asking why does the burden of extortionate house prices get pushed to the younger generation?

I hear you Mitchell - and it's largely because the levers used by successive governments to help people get in the market have been on the demand side, and have just pushed prices higher. 

The tide is turning to boost supply but that's not a quick fix.

And let's not forget about Negative gearing - a tax incentive that allows property investors to deduct the losses they incur from rental properties against their other income. This reduces their taxable income and, in turn, their tax liability and, primarily benefits high-income earners. 

You can read an analysis piece by David Spears about negative gearing and how it could influence next year's federal election here:

There's a lot of interest in the senate inquiry and a great point made my Molly:

Average household income has lifted through the year to the end of September.

It was driven by salary, rent, investment and government benefit payments, according to quarterly data from CommBank.

But the average household hasn't raced out the door to spend.

Instead, extra cash is being spent on rising housing costs.

Thanks Michael! We do what we can ...

Many people who appeared today said lowering the buffer was not a good idea; it could lead to even worse mortgage stress and could increase house prices.

Liberal Senator Bragg — who has led the senate committee — came away with a different view.

He published a statement at the close of the inquiry that said the hearing "further exposed the blunt rigidity of the mortgage rules set by bureaucrats".

"The blunt 3% serviceability buffer is damaging first home ownership; There is no structural focus on home ownership; Different risk weightings would change pricing and access. First-home buyers are missing out on loans and are facing reduced borrowing capacity. The serviceability buffer has been unresponsive to market events and monetary policy."

He had a go at Labor for not wanting "a more flexible system to help first-home buyers enter the market".

The National Australia Bank says a change to the buffer would provide "first home buyers with additional borrowing power".

That's true but CommBank and Westpac also both said the 3% buffer was appropriate and NAB said 80% of first-home buyers did not want to borrow the highest amount offered.

Great question Phillip and definitely a great idea for a future story

To learn more about banks calling for some lending regulations to be wound back check out this story by business reporter Nassim Khadem:

The horror stories of consumers in financial strife that emerged during the banking royal commission more than five years ago led to stronger regulations aimed at better protecting consumers, and caps on bonuses paid to bankers.

But the major banks are calling for some of these regulations to be wound back as they face tougher competition and fight harder to retain profit margins in lending to consumers and businesses.

The Australian Prudential Regulation Authority (APRA) has published its opening submission to the senate inquiry.

In it, it says Australia has one of the highest levels of household debt relative to income in the world.

"Over the past 20 years, household debt to income has risen from around one and a half times income to around two times. Yet, in percentage terms, APRA-regulated banks have more housing loans on their books than most other comparable countries."

Great point Raven - Senator Pocock said earlier more and more people were spending 40% of their income on their mortgage:

I don't know about you but my brain needs a break from mortgages and lending and buffers.

Let's take a look at the saga that is the shutdown of 3G.

The ABC has a story out today on how phones purchased overseas may not work once the 3G network is switched off next week.

How to check?

If you have a refurb phone or bought it overseas, text "3" to the number "3498" to check if it will be compatible without 3G.

Read more about it below:

CommBank's Angus Sullivan said first-home buyers were a higher risk for loans and said the current buffer of 3% was appropriate.

He said over the last 2-3 years, about 10-12% of home loans were going to first-home buyers.

"The buffer is an appropriate measure to make sure first-home buyers don't over-extend themselves.

"If the buffer was increased, there would be [fewer] people who would qualify for a mortgage and if you decreased it there would be more people. We think the settings today are appropriate and balanced."

I'm listening in on the Commonwealth Bank who have put up  Kylie Rixon, Chief Risk Officer, Retail Banking Services

And Mr Angus Sullivan, Group Executive, Retail Banking Services

I'm a bit behind but catching up on it all as fast as I can!

Senator Pocock is up again and has asked if there should be a levy paid by banks to organisations like financial rights centres to help people when they are experiencing mortgage and debt stress.

No one really answered but something to ponder ...  

Financial Counselling Australia chief executive Domenique Meyrick echoed the concerns from Ms Harrison.

She said the number one reason people were contacting the national debt hotline was mortgage stress.

"The level of stress out there is extreme," Dr Meyrick said.

"People are exhausted."

Dr Meyrick said given the substantial increase in suicidal ideation from callers, she did not know why there was even a discussion going on about relaxing lending practices.

"We shudder to think what could happen."

Mortgage Stress Victoria chief exec Nadia Harrison has spoken about the effect mortgage debt was having on people's wellbeing.

Ms Harrison said suicidal ideation among callers was becoming more common.

She said if lending laws were relaxed allowing people to increase debt to get into the housing market.

"What do you think would happen? Human catastrophe. Not in all cases but a significant increase to tragedy, that's not an understatement."

"The easiest way to attract affluence is to get into the housing market and so people are willing to really stretch themselves beyond what might appear sensible and these laws are protecting people from themselves."

The Australian share market has been sitting flat since the open.

The benchmark ASX 200 index was up +0.1% to 8,226-points by 12:10pm AEDT, and the broader All Ords was a touch higher than that at 8,477-points.

Overall, local gold has been the biggest loser on the ASX 200 index, dipping -2.6% as gold prices declined due to a stronger US dollar.

Tech stocks have also declined -1.3%, with sector giant WiseTech Global falling -1.8% as a series of allegations of misconduct against its CEO/founder Richard White continue to drag on the multi-billion dollar company .

But healthcare is bucking the trend, up +0.6% and real-estate stocks rose +0.7%.