The residential transformation of St Kilda Road is set to continue into with more new apartment plans for the sought-after boulevard.

Wing Tai Asia has lodged plans for a major residential tower at 464-466 St Kilda Road, replacing the former VACC House with an 18-storey mixed-use development designed around a retained heritage podium and a sculpted contemporary tower.

The proposal, prepared under Victoria’s Significant Residential Development with Affordable Housing pathway, would deliver 325 apartments and ground-floor retail across the prominent 4,653 sqm boulevard site in Melbourne’s St Kilda Road North Precinct.

The project centres on the adaptive reuse of the site’s heritage-listed VACC Building, an eight-storey office designed by Bernard Evans that has occupied the address for decades. Planning documents state the development would involve “carefully dismantling and conserving off-site the original metal fabric of the podium visible from St Kilda Road,” before reinstating it as the defining frontage of the new scheme.

Above the restored podium, Wing Tai is proposing a curvilinear residential tower. The scheme includes 172 one-bedroom apartments, 63 two-bedroom apartments, 66 three-bedroom apartments, and 24 four-bedroom apartments, alongside two ground-floor food and beverage tenancies fronting St Kilda Road.

The tower has been designed with substantial articulation and variable setbacks to minimise perceived bulk and maintain view corridors along the boulevard. Urbis, which prepared the planning report, said the design “has been significantly articulated through a curvilinear design” with “an interplay with materials, façade expression and depth” to create visual separation and visual interest.

The proposal also includes 254 basement car spaces, landscaped pedestrian links connecting St Kilda Road and Queens Lane, and a biophilic landscape strategy featuring canopy trees, raised planters, cascading greenery and a glass oculus pool overlooking the eastern frontage.

Planning documents confirm the $270.1 million development will contribute 3 per cent of project costs to the Social Housing Growth Fund as part of the application process.

Wing Tai acquired the St Kilda Road property in 2018 alongside Abacus Property Group for $95.38 million, before later consolidating ownership of the site. The property previously served as the Victorian Automobile Chamber of Commerce headquarters for around 60 years.

The transformation of the St Kilda Rd boulevard is already beginning to materialise, with a number of high-profile projects recently completed, launched, or approaching launch as developers continue to back the long-term appeal of the precinct.

Among the most notable recent completions is Louise by Samuel Property Group, just off the strip on Queens Lane, the same pocket Hirsch &amp; Faigen recently launched The Queensbury. Mirvac is too on the same street with The Albertine, which is approaching completion.

Dexus recently secured approval for its slice of St Kilda Road, while Gurner also has approved plans for the precinct.

Joel Robinson

Wing Tai unveils 325-apartment St Kilda Road tower on former VACC House site

Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" data-turn-id-container="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" dir="auto">
The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

National Australia Bank (NAB) has brought forward the timing of the first RBA cash rate cut by three months.

NAB is now expecting a cut in February, in line with ANZ and Westpac, having initially thought a cut wouldn't come until May.

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB changed its call following the August monthly inflation figures that were released at the end of September, showing it had dropped to 2.7 per cent.

"The risk has been skewed to a first cut earlier in 2025, and today’s change acknowledges the balance of risks has likely shifted sufficiently for the RBA to feel comfortable cutting a little sooner than we earlier expected," NAB noted in its latest update.

They added that the cadence of the cuts may be faster than its central profile.

"Domestic inflation pressures are cooling, but only gradually, and we continue to expect the conditions for a cut will not be in place this year.

NAB believes the easing cycle will end at 3.1 per cent by early 2026, which is five cuts from the current 4.35 per cent cash rate.&nbsp;

CBA also thinks 3.1 per cent will mark the end of the cutting cycle, while Westpac is forecasting 3.35 per cent, and ANZ is the most pessimistic at 3.6 per cent, which would be just three interest rate cuts.

<h2>What would a rate cut in February look like for borrowers?</h2>

According to&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2vK2ujS77CHs9VRvSSXzLC" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG" target="_blank">Canstar</a>, if there is a cut in February, a borrower with a $600,000 loan today and 25 years remaining would see their monthly repayments drop by $92.&nbsp;

<table border="1" cellpadding="0" cellspacing="0">
	<tbody>
		<tr>
			<td colspan="3">
			Impact of 0.25% pt cut in February 2025
			</td>
		</tr>
		<tr>
			<td>
			Current loan size
			</td>
			<td>
			Drop in monthly repayment
			</td>
			<td>
			New monthly repayment
			</td>
		</tr>
		<tr>
			<td>
			$600,000
			</td>
			<td>
			-$92
			</td>
			<td>
			$3,907
			</td>
		</tr>
		<tr>
			<td>
			$750,000
			</td>
			<td>
			-$114
			</td>
			<td>
			$4,884
			</td>
		</tr>
		<tr>
			<td>
			$1M
			</td>
			<td>
			-$153
			</td>
			<td>
			$6,512
			</td>
		</tr>
		<tr>
			<td colspan="3">
			Source:&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2qVnp6oqATgqDUi2Frm22q" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL" target="_blank">www.canstar.com.au</a>. Starting rate is the RBA existing average owner-occupier variable rate of 6.36%. Assumes banks pass the cash rate cut on in full the month after the meeting.
			</td>
		</tr>
	</tbody>
</table>

Canstar Data Insights Director, Sally Tindall, says if core inflation continues to track in the right direction, or unemployment starts to accelerate significantly, we could well see a cash rate cut as early as February of next year.

“All four big banks now believe the RBA will be ready to cut the cash rate in just over four months’ time, if not before, in the case of CBA.

“However, the outlook for both inflation and unemployment is still highly uncertain. A couple of wobbly sets of inflation data could see the RBA holding for longer, particularly if unemployment remains relatively steady."

&nbsp;

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB bring forward first RBA cut to February 2025

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Ms Jianyong (Jenny) Mao, of South Brisbane, Queensland, has appeared in the Brisbane Magistrates' Court on a charge brought by ASIC of giving documents to a lender that were materially misleading.
ASIC alleges that in May 2011, Ms Mao caused documents, including banks statements and application forms which were materially misleading, to be given to a lender in support of a home loan application. ASIC alleges that the loan was subsequently granted on the basis of these documents.   
At a hearing on 18 July 2016, the matter was adjourned to 5 September 2016.
The Commonwealth Director of Public Prosecutions (CDPP) is prosecuting the matter.
<h2>Background</h2>
Ms Mao operated a home loan broking company, Diamond Lady Group Pty Ltd (Diamond Lady Group) which held an Australian credit licence from 2010 until 2014. 
Ms Mao was charged by ASIC under section 33(2) of the National Consumer Credit Protection Act 2009 in relation to her conduct while she was engaging in credit activity. Section 33(2) (the predecessor to s160D) makes it an offence for a person engaging in credit activities to give false or misleading information or documents to another person.
</body></html>

jonathanchancellor-7SQnKwU6yx

Former mortgage broker charged with giving misleading information to lender 

<html><body>
Members commenced their discussion of developments in financial markets by noting that financial markets had been volatile around the time of the UK referendum on EU membership.
Despite large intraday movements in prices and much greater than normal volumes, market functioning had been resilient. Members noted that this event had provided a significant stress test of market structure in the wake of the regulatory reforms introduced after the financial crisis.
The most noteworthy developments that had persisted beyond the volatility immediately surrounding the UK referendum were the depreciation of the pound, the appreciation of the yen and the decline in bond yields to historic lows in a number of major markets as well as in Australia. Sovereign yields in the United Kingdom had declined considerably, notwithstanding the UK's credit rating being downgraded. Members noted that a sizeable share of the global sovereign bond market was trading at negative rates. Swiss government bond yields were negative up to a tenor of nearly 50 years. In Australia, the 10-year bond yield reached a record low of 1.95 per cent, with the decline in the yield on Friday, 24 June having been the largest daily fall since September 2001. Some bond spreads for financial institutions in the United Kingdom and Europe had widened a little, but most other financial market movements in response to the referendum had subsequently been unwound.
Expectations for the path of monetary policy in the United States had already eased prior to the UK referendum, with the Federal Open Market Committee (FOMC) keeping monetary policy unchanged at its 15 June meeting owing to concerns about a slowing in the US labour market as well as uncertainties surrounding the UK referendum. Following the referendum, market expectations had declined further so that the FOMC was not expected to raise its policy rate again before 2018. Both the Bank of England and the European Central Bank (ECB) were expected to ease monetary policy further in the near future. The ECB had commenced its corporate bond purchase program in June, as had been announced in March.
Following the UK referendum, the pound fell sharply to its lowest level against the US dollar in over three decades. On 24 June, the pound depreciated against the US dollar by as much as 12 per cent and recorded the largest single-day movement since the pound was floated in 1971. Throughout the day, there were large volumes traded in both directions. Members noted that, as at the time of the meeting, the pound had depreciated by 9 per cent in trade-weighted terms since the referendum but remained above the levels it had reached in 2008.
Over the past month as a whole, the US dollar and euro were little changed in trade-weighted terms, while the Chinese renminbi had depreciated in both trade-weighted terms and against the US dollar. A decline in the value of the People's Bank of China's foreign currency reserves in May appeared to have reflected valuation effects, but overall the value of reserves had been broadly stable over the past few months.
The Australian dollar had appreciated against the US dollar and in trade-weighted terms over the past month, having been affected by changing expectations about the future path of monetary policy in Australia and the United States, as well as the UK referendum result.
Global share prices fell sharply following the UK referendum, but, with the exception of Japan and Europe, had subsequently largely recovered. Banking share prices were generally lower, particularly those of European and domestically focused UK banks. Members noted that ongoing problems in the Italian banking system had again come to the fore. In Australia, share prices had declined by around 4 per cent over the course of the 2015/16 financial year, with divergent outcomes across sectors reflecting the continued rebalancing of the economy following the mining investment boom.
Spreads on Australian bank debt had moved marginally higher following the UK referendum, but yields had remained at low levels. Members observed that Australian banks had issued a large amount of debt earlier in the year, limiting the need for further issuance in the near term if conditions in debt markets were unsettled. Average outstanding housing lending rates were expected to continue to edge lower as loans were refinanced following the cash rate reduction in May, although members noted that banks' serviceability requirements for borrowers had not changed.
Members noted that market pricing had assigned only a small chance of a reduction in the cash rate at the present meeting.
International Economic Conditions
Members noted that, while the UK referendum decision was likely to have an adverse effect on the UK economy, it was too early to gauge the size of that effect. Also, any adverse effects on growth arising from a reduction in access to EU markets and heightened political uncertainty were likely to be offset to some extent in the near term by the depreciation of the pound. In 2015, around one-half of the United Kingdom's exports (12 per cent of GDP) went to EU countries. Around one-half of these exports were services, of which around one-third were financial services. Estimates from the International Monetary Fund had suggested that in a relatively pessimistic scenario, in which output in the United Kingdom was around 5 per cent lower than otherwise over three years, global growth could average a little more than 0.1 percentage points lower over the next few years. Members noted that the direct effect on the Australian economy was likely to be quite small, given that only around 3 per cent of Australia's exports went to the United Kingdom and around 4½ per cent went to the rest of the European Union.
Meanwhile, growth in Australia's major trading partners looked to have remained a little below average over recent months. Growth in global industrial production had remained weak in year-ended terms, while growth in merchandise trade had picked up slightly. Inflation had generally remained below most central banks' targets, although core inflation in the major advanced economies had picked up since the previous year as labour market conditions had tightened further. Overall, commodity prices had risen over the month to be well above the low levels reached around the turn of the year.
GDP growth in the United States appeared to have picked up in the June quarter, after moderating in the March quarter, and the gradual recovery in the euro area looked to have continued. In both economies, activity in the March quarter had been driven by relatively strong growth in household consumption. Members noted that business investment had contributed to growth in the euro area and in the United States (excluding the energy sector). Growth in business investment in the United Kingdom had been moderating, which may have been partly related to the effect of uncertainty leading up to the UK referendum.
Although US employment growth had moderated in May, the unemployment rate had declined to be below estimates of its long-run equilibrium. Inflation remained below the Federal Reserve's inflation goal, although it was higher than it had been a year earlier. The unemployment rate had also declined further in the euro area, although considerable spare capacity remained. Inflation had continued to be well below the ECB's target of 2 per cent or a little below. In the United Kingdom, the unemployment rate had fallen to around long-run equilibrium levels and core inflation had been picking up.
Recent data suggested that economic growth in China had continued to ease. Subdued conditions in the mining and manufacturing sectors had contributed to weakness in private investment. The output of some key industrial products, including steel, had been little changed over the past year, although iron ore imports from Australia had increased further. Members noted that the general weakness in industrial activity had been partly offset by an increase in public sector spending, which had been particularly apparent in the strong growth of public infrastructure investment over the past year or so. Dwelling investment had also picked up since late 2015, following measures by the Chinese authorities to support demand for real estate. Buoyant property market conditions, particularly in some larger cities, had more recently prompted authorities in some regions to introduce measures to constrain housing demand. Total social financing flows had moderated in recent months and overall inflationary pressures remained subdued.
In Japan, conditions in the labour market remained tight and base wages were rising at an above-average pace. However, inflation was still below the Bank of Japan's target of 2 per cent. In the rest of east Asia, recent data pointed to a continuation of below-average growth. Economic conditions had been relatively subdued in the higher-income economies in the region, in part reflecting their greater exposure to trade.
Domestic Economic Conditions
Members observed that there had been relatively little new data on the Australian economy since the previous meeting, most of which had related to labour and housing markets. Overall, the available data for the June quarter were consistent with a moderation in GDP growth following the stronger-than-expected outcome in the March quarter, mainly because there appeared to have been a smaller contribution to growth from net exports in the June quarter. Trade data suggested that iron ore export volumes had declined from very high levels in April and May, while coal export volumes had increased marginally.
Consumption had grown at around its decade-average rate in the March quarter. More recent indicators had been mixed. The value of retail sales had increased only slightly in April and May but liaison indicated that growth in retail sales had picked up in June, partly because cold weather had boosted clothing and apparel sales. However, liaison had also pointed to ongoing pressure to discount prices in response to increased competition in some retail markets. Meanwhile, survey measures of households' perceptions of their own finances had increased in May and June, to be clearly above average.
Survey measures of business conditions and capacity utilisation had remained noticeably above their long-run averages in May. Members noted that these indicators were consistent with data and evidence from liaison suggesting that non-mining business investment had been growing in some parts of the economy that were less exposed to the effects of the decline in commodity prices and the fall in mining investment. Business credit growth was higher than a year earlier, despite easing a little recently. Liaison had suggested that the outlook for investment was relatively favourable in some commercial property sectors including retail, hotels, student accommodation and aged care. However, non-residential building approvals had remained at relatively low levels over the past year.
The unemployment rate had remained steady at around 5¾ per cent for some months, having fallen by around ½ percentage point over 2015, and the participation rate had been little changed of late. Following strong outcomes in late 2015, employment growth had moderated to be around its long-run average in year-ended terms. Over the course of 2016, employment growth had been driven by part-time jobs, while full-time employment had retraced some of its earlier strong gains. Members noted that, over the past year or so, the underemployment rate (which captures those who are employed but wanting and available to work more hours) had not fallen to the same extent as the unemployment rate. Employment growth had been relatively strong in the household services sector since the beginning of 2016 and construction employment had been rising. The forward-looking indicators of employment had been slightly weaker over recent months following gains over the preceding year, but were still consistent with employment growth in the months ahead.
Housing prices in June had risen moderately in Sydney but had declined in some other capital cities. This followed unusually large increases recorded in April and May, particularly in Sydney and Melbourne. Other indicators of housing market activity had been mixed over recent months. Auction clearance rates and sales volumes had been lower than a year earlier, although both remained a little above average. Housing credit growth had eased further, consistent with a relatively low level of turnover in the housing market and the earlier tightening in lending standards.
Recent indicators suggested that dwelling investment had continued to grow strongly, particularly for higher-density dwellings. Looking through the volatility of the data, building approvals were a little lower than a year earlier but remained elevated and implied a considerable amount of work yet to be done. At the same time, a number of measures were being implemented that could dampen foreign investors' demand for new dwellings. Several state governments had increased or were preparing to increase taxes on foreign investors in housing, while the major banks had increased restrictions on housing loan approvals for applicants relying on foreign income. Nationally, growth in rents had declined over the past year to low levels and the vacancy rate had increased to around its long-term average.
Measures of inflation expectations – from consumers, market economists, union officials and financial markets – had remained below average.
Considerations for Monetary Policy
GDP growth in Australia's major trading partners looked to have remained slightly below average over recent months, in line with earlier forecasts. GDP growth in China appeared to have eased further, which was continuing to affect economic conditions throughout the Asian region. Monetary policy remained very accommodative across the major economies and was expected to remain so given that inflation was below most central banks' targets, despite improvements in labour markets leading to full employment in several large advanced economies.
The United Kingdom's vote to leave the European Union had led to considerable financial market volatility, which had since settled. Financial markets had functioned effectively throughout the episode and borrowing costs for high-quality borrowers remained low. Any effects of the referendum outcome on UK and global economic activity remained to be seen. In any event, the referendum result implied a period of uncertainty about the outlook for the United Kingdom and the European Union. In the absence of significant financial dislocation, the staff's central case was that this uncertainty was expected to have only a modest adverse effect on global economic activity.
Commodity prices had generally increased since the previous meeting. At the time of the present meeting, the Australian dollar (in trade-weighted terms) was around the levels assumed in the forecasts at the time of the May Statement on Monetary Policy.
In the domestic economy, the transition of economic activity to the non-resources sector was now well advanced and recent data suggested that growth had continued at a moderate pace in the June quarter. Low interest rates were continuing to support household spending and the lower exchange rate since 2013 had continued to assist the traded sector of the economy. Members noted that an appreciating exchange rate could complicate the necessary economic adjustments.
Recent data showed that conditions in the labour market had been more mixed of late. The unemployment rate had remained around 5¾ per cent for most of 2016, having fallen noticeably over 2015. Inflation was still expected to remain quite low for some time given very subdued growth in labour costs and very low cost pressures elsewhere in the world.
Indicators of conditions in housing markets had been somewhat mixed over recent months. Housing prices were recorded as having risen in Sydney and Melbourne in April and May, but were little changed in June. Building approvals remained elevated at levels that would add to the considerable amount of dwelling construction work already in the pipeline. Considerable supply of apartments was scheduled to come on stream over the next few years, particularly in the eastern capital cities. At the same time, however, housing credit growth had eased, in line with a lower turnover of housing and the earlier tightening in banks' lending standards following the announcement of supervisory measures. Various state government measures and changes to bank lending requirements were likely to temper foreign investor demand for housing.
Taking account of the available information, the Board judged that holding monetary policy steady would be the most prudent course of action at this meeting. The Board noted that further information on inflationary pressures, the labour market and housing market activity would be available over the following month and that the staff would provide an update of their forecasts ahead of the August Statement on Monetary Policy. This information would allow the Board to refine its assessment of the outlook for growth and inflation and to make any adjustment to the stance of policy that may be appropriate.
The Decision
The Board decided to leave the cash rate unchanged at 1.75 percent.
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Minutes of the July monetary policy meeting of the Reserve Bank Board

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GUEST OBSERVER
The minutes of the July monetary policy meeting of the Reserve Bank Board confirmed the importance of next week’s June Quarter inflation report. 
The key sentences in the concluding paragraph of the “Considerations for Monetary Policy” section state: “The Board noted that further information on inflationary pressures, the labour market and housing market activity would be available over the following month and that the staff would provide an update of their forecasts ahead of the August Statement on Monetary Policy. This information would allow the Board to refine its assessment of the outlook for growth and inflation and to make any adjustment to the stance of policy that may be appropriate.”
The minutes noted that there had been relatively little new data on the Australian economy since the previous Board meeting, most of which had related to labour and housing markets.
On both counts the commentary seemed to be less upbeat. Employment growth was described as having “moderated” and it was noted that the employment growth over the course of 2016 had been driven by part time jobs while full time employment had retraced some of its earlier strong gains. 
The minutes have not referred specifically to “the underemployment rate” (those who are unemployed or employed but wanting to work more hours) over the course of this year. In these minutes the Board chooses to highlight that this underemployment rate has not fallen to the same extent as the official unemployment rate indicating that slack in the labour market is greater than implied by the unemployment rate. It is interesting that both these comments put a less positive spin on the labour market than we have seen for some time.
Information on the housing market was also described as mixed with large price increases in April and May in Sydney and Melbourne being followed by only moderate rises in Sydney and falls in some other capital cities in June. Auction clearance rates and sales volumes are described as “lower than a year earlier”.
We are always interested in observations from the minutes on the Banks’ liaison work. In that regard it was noted that non-mining business investment had been growing in some parts of the economy that were less exposed to the decline in mining investment.
However much more importantly, liaison on inflation was less encouraging with the evidence pointing to “ongoing pressure to discount prices in response to increased competition in some retail markets”.
The Bank’s surveys and measures of inflation expectations were noted as having “remained below average”.
The international commentary was balanced, noting that economic growth in China had continued to ease with general weakness in industrial activity being only partly offset by an increase in public sector spending. Commentary around the ‘Brexit’ decision remained balanced with financial markets coping comfortably with the initial volatility while bond rates declined. There are no implied concerns in the commentary around any substantial impact on either the world economy or specifically the Australian economy from those developments.
The key sentence around the Australian dollar that has been recently used in minutes and the Governor’s statements has been repeated: “Members noted that an appreciating exchange rate could complicate the necessary economic adjustments”. However the minutes noted that the Australian TWI was around the levels assumed in the May forecasts. In the forecasts the TWI was assumed at 62.5; reached 63 on the day of the Board meeting and has since risen further to 64.
Conclusion
The minutes clearly leave the door open for another rate cut in August. This will depend upon the June quarter inflation report and of course it is not clear what would be the upper bound for this report to ensure a follow up rate cut.
Westpac’s current forecast for underlying inflation in the quarter is 0.3 percent which would support the need for another move given that underlying inflation would only have risen by 0.5 percent over the course of the first half of 2016 raising a genuine question mark as to whether even the Bank’s current 1.5 percent forecast could be achieved.
A lower result for 2016 would also place the 2 percent (bottom of the 2-3 percent target range) forecast for 2017 in jeopardy.
While the Board and the Governor consistently note that the level of the AUD could complicate the economic outlook there does not appear to be any heightened concern about the current level of the currency indicating that the inflation report will be the dominant issue from the perspective of policy.
Other interesting aspects of the minutes are a more subdued sentiment towards labour markets; no hint of any concerns about the impact of the May rate cut on housing markets; and a further downbeat assessment of the Chinese economy.
At the margin, all these factors slightly improve prospects for lower rates but in the event of an upside surprise on inflation will not be enough to deliver a follow up rate cut.
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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RBA's sober assessment of the labour market and housing: Westpac's Bill Evans

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GUEST OBSERVER
The Reserve Bank Board minutes make it clear that policymakers are waiting on more timely economic data to gauge how the economy is tracking.
However the minutes have also set the scene for next week’s inflation data and the subsequent August 2 Board meeting – highlighting potential triggers for an interest rate cut.
What makes the prospect of another rate cut a possibility in coming months is not just the modest slowdown in the economy over the past six months, but also the discussion on the Australian dollar. Board members noted that “at the time of the present meeting, the Australian dollar (in trade-weighted terms) was around the levels assumed in the forecasts at the time of the May Statement on Monetary Policy.”
Interestingly since that meeting the Australian dollar is around US1 cent higher. There was still the usual jawboning on the need for a lower Aussie dollar, with Board members noting that “an appreciation in the exchange rate could complicate the necessary economic adjustments”
A super-low inflation result would pave the way for the Reserve Bank to cut rates again. However the RBA would need to feel confident that a rate cut would have the desired impact in driving the Aussie dollar lower. Most central banks that have eased monetary policy in the past have seen their  currencies continue to strengthen. However it is easier to justify another rate cut in light of slower employment growth and softer retail activity over the first half of 2016 – although it could be election related.
<a href="/images/2016/07/19/Screen%20Shot%202016-07-20%20at%207.58.23%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/19/Screen%20Shot%202016-07-20%20at%207.58.23%20AM.png" alt="">
Consumer confidence has drifted low for the past four weeks, but it is nothing to be worried about. Rather a post- election hangover. In fact Aussie households have a lot of reasons to be more chipper about life. Not only are interest rates at generational lows, but petrol prices are falling, and job security is strong – all important in improving household budgets. In addition the Federal election is out of the way and share markets are now holding near 11 month highs – all ingredients that should hopefully result in consumers spending a little bit more freely in coming months. 
What do the figures show?
 The key quotes from the Board minute:  Economic growth: “Overall, the available data for the June quarter were consistent with a moderation in GDP growth following the stronger-than-expected outcome in the March quarter, mainly because there appeared to have been a smaller contribution to growth from net exports in the June quarter”.
  Australian dollar: “Low interest rates were continuing to support household spending and the lower exchange rate since 2013 had continued to assist the traded sector of the economy. Members noted that an appreciating exchange rate could complicate the necessary economic adjustments”.
  Inflation: “Inflation was still expected to remain quite low for some time given very subdued growth in labour costs and very low cost pressures elsewhere in the world.”
Consumer spending: “The value of retail sales had increased only slightly in April and May but liaison indicated that growth in retail sales had picked up in June, partly because cold weather had boosted clothing and apparel sales. However, liaison had also pointed to ongoing pressure to discount prices in response to increased competition in some retail markets.”
 Summary: “Taking account of the available information, the Board judged that holding monetary policy steady would be the most prudent course of action at this meeting. The Board noted that further information on inflationary pressures, the labour market and housing market activity would be available over the following month and that the staff would provide an update of their forecasts ahead of the August Statement on Monetary Policy. This information would allow the Board to refine its assessment of the outlook for growth and inflation and to make any adjustment to the stance of policy that may be appropriate.”  Consumer confidence
The ANZ/Roy Morgan consumer confidence rating fell by 0.3 percent to 114.9 in the week to July 17. Confidence is up 2.8 percent over the year and well above the average of 112.1 since 2014. Three of the five components of the index fell in the latest week:
The estimate of family finances compared with a year ago was unchanged at +7;
The estimate of family finances over the next year was down from +30 to +28;
Economic conditions over the next 12 months was up from -4 to -1;
Economic conditions over the next 5 years was down from +9 to +7;
The measure of whether it was a good time to buy a major household item was down from +34 points to +33 points.  What is the importance of the economic data?
  The ANZ/Roy Morgan weekly survey of consumer confidence closely tracks the monthly Westpac/Melbourne Institute consumer sentiment index but the former measure is a timelier assessment of consumer attitudes and is now closely tracked by the Reserve Bank.
  The Reserve Bank releases minutes of its monthly Board meeting a fortnight after the event. The minutes give a guide to Reserve Bank thinking on interest rate settings.  What are the implications for interest rates and investors?
 Overall it is clear that the low inflation environment provides the central bank with scope to cut rates further if deemed necessary. The next round of inflation data is released next week and essentially means that the mostly likely scenario for another rate cut would be at the August Board meeting. 
Click to enlarge
<img src="/images/2016/07/19/Screen%20Shot%202016-07-20%20at%208.04.01%20AM.png" alt="">
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>
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Inflation to decide on rate cut: CommSec's Savanth Sebastian

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<div>
Citi and ING Direct are both tightening the amount they will lend to property investors and owner-occupiers.
Citi has a confidential list of nearly 260 postcodes nationally that its 'high density unit policy' will apply.
The Australian Financial Review suggested high density is any unit development containing more than 30 units.
The bulk of the postcodes are in Melbourne, Sydney, surrounding inner suburbs and up to 15 kilometres from the central business districts.
</div>
<div>It is more than double the number of postcodes that were revealed as being held on Macquarie Bank's similiar constraint list.</div>
<div>recently tightened lending requirements for.</div>
<div>
Loan-to-value ratios will be reduced from 80 to 70 per cent.
</div>
<div>ING Direct has new guidelines on apartment and units with an internal floor space of less than 60 square meters.</div>
<div> </div>
<div>Those with an internal floor space of less than 60 square metres – excluding balconies car spaces – and less than five years old will have a maximum loan-to-value ratio of 70 per cent.</div>
<div> </div>
<div>Apartments with an internal floor space between 50 and 60 square metres – excluding balconies and car spaces  - and older than five years will limit the maximum loan-to-value to 80 per cent.</div>
<div>
Both lenders use broker networks to recommend their products.
Firstmac, a non-bank lender with about $8 billion under management, tightened lending for apartments in developments with more than six floors. It has excluded rental income as a source for servicing the mortgage.
</div>
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ING Direct and Citi tighten lending policies on apartments

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The former property developer Warren Anderson is suing the mortgage fund, Angas Securities and his receivers KordaMentha.
He is seeking $174 million, claiming they acted inappropriately in selling up his assets and forcing him into bankruptcy.
The lodgement of the statement of claim by Warren Anderson and his children, revealed today in The Australian, comes as shares in Angas on second-tier bourse the National Stock Exchange of Australia were suspended from trading yesterday given its wider concerns.
The Australian on Tuesday revealed Angas, which owes investors $220 million, had missed another deadline to repay investors.
Facing major financial problems, Angas has failed to meet any of the first three instalments in time and in full and trustee The Trust Company has said it is now “deeply concerned” Angas will not be able to make the payments.
The Anderson issue arose after Anderson’s family trust Owston Nominees No 2 borrowed money from Angas.
In March 2009 Angas appointed receivers KordaMentha to the trust following a breakdown of Mr Anderson’s marriage.
KordaMentha and Angas took control of Owston’s biggest asset, the Fernhill mansion at Mulgoa in western Sydney.
A spokeswoman for KordaMentha told the Australia the firm was not handling the case because the two former partners who had overseen the Owston receivership, Chris Powell and Stephan Duncan, were no longer with the company.
Their Adelaide-based firm DuncanPowell would be responding to Mr Anderson’s claims, she said, although they had not yet been served so were unable to comment.
Fernhill is currently for sale. Set on 383 hectares at the foot of the Blue Mountains, its stunning seven bedroom sandstone residence was completed in the 1840s for the Cox pioneering family.
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Warren Anderson sues Angas in Fernhill, Mulgoa saga

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Canstar have looked at the current highest, lowest and average home loan rates on the canstar.com.au database. 
"The message for consumers is that no matter what the official cash rate is, most borrowers could definitely be saving money on their mortgage, if they know what’s on offer and are prepared to drive a hard negotiation with their bank," a spokesperson advised.
Here are the current highest, lowest and average home loan rates, for both owner-occupied and investor loans.  
<a href="/images/2016/07/07/Screen%20Shot%202016-07-07%20at%209.08.05%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/07/Screen%20Shot%202016-07-07%20at%209.08.05%20AM.png" alt="">
<a href="/images/2016/07/07/Screen%20Shot%202016-07-07%20at%209.08.39%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/07/Screen%20Shot%202016-07-07%20at%209.08.39%20AM.png" alt="">
Here’s what borrowers could save 
For owner-occupiers, based on the current average standard variable rate and a 25 year loan term, negotiating a 0.5 percent lower rate could potentially save the following: 
<a href="/images/2016/07/07/Screen%20Shot%202016-07-07%20at%209.10.57%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/07/Screen%20Shot%202016-07-07%20at%209.10.57%20AM.png" alt="">
<a href="/images/2016/07/07/Screen%20Shot%202016-07-07%20at%209.11.06%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/07/Screen%20Shot%202016-07-07%20at%209.11.06%20AM.png" alt="">
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The lowest home loan and investor interest rates in July 2016

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GUEST OBSERVER
Undeterred by the pending election result and Britain’s shock exit from the EU, the RBA has announced that the cash rate will be kept on hold for another month:
<img src="/images/2016/07/05/thumbnail_56.jpg.png" alt="" width="466" height="236">
This is how many lenders have slashed three year fixed rates since May’s rate cut making a good case for home borrowers who want to lock in a competitive interest rate. The lowest three year fixed rate is now 3.67 percent from loans.com.au.
<img src="/images/2016/07/06/3.59.png" alt="">
This is the lowest variable rate on the market right now from online lender Reduce Home Loans. With experts predicting another rate cut in August, it may be possible that we’ll start to see the most competitive home loans in the 2% territory.
<img src="/images/2016/07/06/55.png" alt="">
Fifty-five lenders have made cuts to investor rates since the start of the year in a bid to scale up investor lending again.
<img src="/images/2016/07/06/0.93.png" alt="">
This is the percentage difference between the average Big 4 ongoing savings account rate and the best savings account rate on the market, despite 3 of the 4 majors actually increasing headline rates last month.  
<img src="/images/2016/07/06/12.99.png" alt="">
While most credit cardholders missed out on the May rate cut, four providers are now rewarding customers with cash back offers on purchases. The most competitive offer is from Bankwest that has a 12.99 percent purchase rate and 5 percent cashback on purchases (up to $300) for the first three months. 
Kirsty Lamont is marketing director of <a href="https://mozo.com.au/">Mozo</a>.
 
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Mozo's five need to know numbers after the July RBA decision

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GUEST OBSERVER
There were no surprises from the Reserve Bank of Australia which left the official cash rate on hold again at a record low of 1.75 percent. This was the consensus expectation and our own. 
For the most part, the Statement accompanying the RBA’s decision to leave interest rates on hold was little changed except in so far as indicating that most markets have continued to function effectively despite the Brexit vote and that its impact on global activity outside the UK may be hard to discern (what was all the fuss about!).  
Furthermore, the RBA continues to sound fairly relaxed about the renewed pick-up in dwelling prices in recent months, particularly given the large supply of apartments to hit the market in the next two years. This suggests that worries about excessive house price growth are probably not constraints on additional RBA monetary easing.
More importantly, changes to the closing paragraph in the RBA’s Statement have arguably softened its neutral bias and opened the door to another easing.  Specifically, the RBA’s newly inserted reference to “further information” over the period ahead that should allow it to refine its outlook and “make any adjustment to the stance of policy that may be appropriate” is likely a reference to the June quarter inflation data due later this month and possibly a broader reference to allowing time to be able to better assess the impact of Brexit and the Australian election and the risks to the Australian dollar, an appreciation in which the RBA continues to see as complicating the post mining boom adjustment in the economy. Since a rate hike is most unlikely, the “adjustment” that the RBA is referring to is presumably another possible interest rate cut.
We remain of the view that the RBA will cut rates again later this year. The risks to inflation are on the downside thanks to underlying deflationary pressures globally and record low wages growth domestically; the risks to global and Australian growth are still on the downside (with Brexit and the messy Australian election not helping); and the $A is still too high and at risk of further appreciation given the Fed’s endless delays in raising rates again. 
As such we are continuing to allow for two more 0.25 percent rate cuts this year, the first in August just after June quarter inflation data is released and when it next reviews its economic forecasts.
 <a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author" target="_blank">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home" target="_blank">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
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RBA on hold as expected, awaiting "further information": Shane Oliver

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RBA Governor Glenn Stevens' July 2016 statement
At its meeting today, the Board decided to leave the cash rate unchanged at 1.75 per cent. 
The global economy is continuing to grow, at a lower than average pace. Several advanced economies have recorded improved conditions over the past year, but conditions have become more difficult for a number of emerging market economies. China's growth rate has moderated further, though recent actions by Chinese policymakers are supporting the near-term outlook.
Commodity prices are above recent lows, but this follows very substantial declines over the past couple of years. Australia's terms of trade remain much lower than they had been in recent years.
Financial markets have been volatile recently as investors have re-priced assets after the UK referendum. But most markets have continued to function effectively. Funding costs for high-quality borrowers remain low and, globally, monetary policy remains remarkably accommodative. Any effects of the referendum outcome on global economic activity remain to be seen and, outside the effects on the UK economy itself, may be hard to discern.
In Australia, recent data suggest overall growth is continuing, despite a very large decline in business investment. Other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend. Labour market indicators have been more mixed of late, but are consistent with a modest pace of expansion in employment in the near term.
Inflation has been quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.
Low interest rates have been supporting domestic demand and the lower exchange rate since 2013 is helping the traded sector. Financial institutions are in a position to lend and credit growth has been moderate. These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this.
Indications are that the effects of supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments. Dwelling prices have risen again in many parts of the country over recent months. But considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities.
Taking account of the available information, the Board judged that holding monetary policy steady would be prudent at this meeting. Over the period ahead, further information should allow the Board to refine its assessment of the outlook for growth and inflation and to make any adjustment to the stance of policy that may be appropriate.
 
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