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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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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GUEST OBSERVER
What does it all mean?
The biggest change in the text accompanying the interest rate decision were the comments relating to the Aussie dollar. Since May last year the RBA has suggested that the Aussie dollar was too high in relation to commodity prices. In April 2015 the RBA indicated that further depreciation of the Aussie dollar was “likely”. And in recent months it has noted depreciation was “likely and necessary”. In the latest statement the RBA merely says that “The Australian dollar is adjusting to the significant declines in key commodity prices.” 
</div>
<div class="column"> </div>
<div class="column">That doesn’t mean that the Aussie dollar won’t fall further, but the RBA is seemingly happy with the adjustment that has occurred to date. In other words, the dollar is broadly where it needs to be. </div>
<div class="column"> </div>
<div class="column">In terms of the economy, the only real issue is the exuberance by property purchasers in Melbourne and Sydney. Still, banks have lifted interest rates on residential investment loans in response to requests from APRA to restrain investor enthusiasm. At the same time, the supply of residential properties is set to lift in Melbourne and Sydney over the coming 18 months judging by data on council approvals to build new dwellings. The increased supply of homes (new construction) will gradually meet the elevated demand and therefore temper growth in home prices. </div>
<div class="column"> </div>
<div class="column">The majority of private sector economists believe that official interest rates will be unchanged over the coming year. However, a small number of economists still believe that there is scope for the Reserve Bank to cut rates again. </div>
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On the economy, the Reserve Bank continues to mull whether the speed limit of the economy has declined: “In Australia, the available information suggests that the economy has continued to grow. While the rate of growth has been somewhat below longer-term averages, it has been associated with somewhat stronger growth of employment and a steady rate of unemployment over the past year.” 
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On home prices, the Reserve Bank is watching developments closely: “Dwelling prices continue to rise strongly in Sydney, though trends have been more varied in a number of other cities. The Bank is working with other regulators to assess and contain risks that may arise from the housing market.” 
<ul>
<li>Perspectives on interest rates </li>
<li>The previous rate cut was in May 2015 (25 basis points), taking the cash rate to a record low of 2.00%. </li>
<li>There have been 10 rate cuts since November 2011. </li>
<li>The Reserve Bank had previously lifted rates seven times from October 2009 to November 2010 – a total of 1.75 percentage points, from 3.00% to 4.75% </li>
</ul>
<a href="/images/2015/08/04/Screen%20Shot%202015-08-04%20at%203.55.09%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/08/04/Screen%20Shot%202015-08-04%20at%203.55.09%20PM.png" alt="">
What are the implications of today’s decision?
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<li>
We remain on the belief that the Reserve Bank is reluctant to cut rates again, with the central bank questioning whether another rate cut would actually give the economy a boost or whether it would be counter-productive. If the Reserve Bank was to cut interest rates again – and it wasn’t in response to a major negative event – then it may very well be the case that many Australians would become less, rather than more, confident, questioning just how bad the economy really was if further rate cuts are deemed necessary. 
</li>
<li>
Residential property investors need to do their homework. Some lenders have lifted interest rates; other lenders have retreated either in part or in full from the residential investment property market. At the same time, a large number of apartment projects are underway across the country, especially in Melbourne and Sydney. 
</li>
</ul>
Those seeking a return on cash investments also have homework to do to ensure they are receiving the best returns available. 
CRAIG JAMES is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
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cjames-5S2v74qSNK

Biggest change from RBA on Aussie dollar: Craig James

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GUEST OBSERVER
As expected the Reserve Bank Board decided to leave the cash rate unchanged at 2.0%.
However, we were very surprised that in the Governor’s statement on the Australian dollar he did not repeat the sentence “Further depreciation seems both likely and necessary”. Since he introduced that language in May, the AUD has fallen from USD0.787 to USD0.728. This strategy had proved to be quite successful in ‘talking down’ the Australian dollar.
It was reasonable to expect that the strategy would be repeated given that even at USD0.728 the AUD was still above most estimates of fair value. However, the Governor’s statement was scaled back to merely observe that “The Australian dollar is adjusting to the significant declines in key commodity prices”. It is reasonable that markets will interpret this comment as indicating that the Bank no longer sees further depreciation of the AUD as “likely and necessary”.
This perception will impact market pricing for both the AUD and the outlook for interest rates. It is reasonable that a key explanation for markets pricing in around a 60% probability of a rate cut by November is the expectation that the Bank would continue to openly discuss the possibility of rate cuts. A key motivation behind cutting rates would be to further lower the AUD. That motivation now seems to have dissipated.
As we did expect, there are very few additional changes to this statement. The Bank remains confident that inflation will remain consistent with the target over the next one or two years and also notes that the economy is likely to be operating with a degree of spare capacity for some time yet.
In July, we noted that the Governor commented that the unemployment rate had been little changed recently and this was emphasised once again, noting somewhat stronger growth in employment and observing that the unemployment rate had been steady now over the past year. In a recent speech the Governor raised the issue that trend growth in the Australian economy may be lower than 3-3.25% partly explaining the stable unemployment rate despite growth only being 2.5%.
Despite recent evidence of rapid house price growth in both Sydney and Melbourne there was no elevated concern around the house price issue. Strong price rises were noted in Sydney with the qualification that trends were more varied in other cities.
Recent increases in interest rates for housing investors were not noted although the observation that the Bank was working with regulators to contain risks was repeated.
There was a mild surprise in the observation that weaker commodity prices largely reflected increased supply given that softer demand conditions must also be a relevant factor.
Finally, the Bank repeated its expectation that the Federal Reserve will start increasing its policy rate later this year. That move of course is likely to contribute to slowing down any recovery in the AUD that might come as a result of the markets’ perception that the RBA is no longer calling for a lower AUD. The Fed’s decision will be known by 17 September although markets are likely to become more focussed on that event than is currently the case where only a modest probability is given to a Fed move at that time.
Outlook
Clearly there is nothing in this statement that would motivate us to move away from our call that rates will remain on hold in 2015 and through the course of 2016.
As discussed, less urgency around the AUD weakens one argument for lower rates in 2015, although if the RBA observes a very strong market response then it may need to reinstitute its successful strategy at the September and/or October statements.
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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bevans-rYk9SxEa4r

RBA Governor's statement scaled back on dollar: Bill Evans

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GUEST OBSERVER
Going in to today’s meeting, economists and market participants were in agreement that rates would be left unchanged. As such, there was no surprise in the RBA’s decision to leave the cash rate unchanged at 2.0%.
There were a number of familiar themes in the Governor’s accompanying Statement. Indeed, a large chunk of the Statement was left unchanged from the July Statement (see page 2 for a comparison).
There was a distinct lack of forward guidance with the Bank noting, like last month, that “information on economic and financial conditions to be received over the period ahead will inform the Board's assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target”. In other words, another rate cut has not been ruled out. But equally, the RBA doesn’t have an explicit easing bias. What we previously described as a soft implicit easing bias has been further watered down by a change in narrative around the labour market and AUD.
The Bank has clearly become more comfortable with conditions in the labour market. After refraining from commenting on the labour market in last month’s statement, Governor Stevens stated that below trend growth, “has been associated with somewhat stronger growth of employment and a steady rate of unemployment over the past year.”
The previous mantra around AUD depreciation seeming likely and necessary to foster growth was noticeable in its absence. Instead, the Governor simply noted that, “the Australian dollar is adjusting to the significant declines in key commodity prices.” In our view, the change in rhetoric on the exchange rate is likely to reflect the Bank’s assessment that the AUD is trading in the ‘sweet spot’. That is, it’s now low enough to help the Australian economy rebalance, but not so low that is poses a risk to the inflation outlook.
The outlook
We have had a 2% terminal cash rate target for a while now and that remains our base case. Steven’s declaration two weeks ago that further rate cuts remain, “on the table” was hosed down when he said that, “it is not quite good enough simply to say that evidence of continuing softness should necessarily result in further cuts in rates, without considering the longer-term risks involved.”
The change in language today on the AUD and labour market was telling. The RBA would need to see conditions deviate from where they are now to pull the interest rate trigger again. Our take is that further monetary policy easing will be data dependent. This means that the recent strength in the labour market, coupled with a lift in a range of leading indicators, makes a near term rate cut look unlikely.
The focus now turns to Thursday’s employment report and the August Statement on Monetary Policy (SMP), published on Friday. In our view, the RBA is likely to leave its growth and inflation forecasts unchanged. Mechanically a lower AUD means some upside risk to growth and inflation forecasts. But these are likely to be tempered by a bigger than expected fall in the terms of trade. These opposing forces are likely to cancel each other out. 
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The RBA left the cash rate unchanged at a record low of 2.0% at the August meeting. 
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<a href="/images/2015/08/04/Screen%20Shot%202015-08-04%20at%203.32.46%20PM.png">Click to enlarge</a>
 
<img src="/images/2015/08/04/Screen%20Shot%202015-08-04%20at%203.32.46%20PM.png" alt="">
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<div class="column">Gareth Aird is economist at Commonwealth Bank and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/gareth-aird/14/790/905" target="_blank">here</a>.</div>
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jchancellor-FAypfDUnLy

No surprise in the RBA’s August decision: Gareth Aird

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The Reserve Bank of Australia (RBA) has kept the official cash rate at 2.0% for August.
CoreLogic RP Data head of research Tim Lawless said rather than lifting interest rates in an effort to slow down the pace of appreciation in Sydney and Melbourne home values, the RBA will be looking towards recent prudential supervisory activities by APRA to dampen investment demand.
"We are expecting investor demand will start to moderate as investment loans are both more difficult and costly to obtain," Mr Lawless said
"Additionally, the cumulative effect of low rental yields, worsening affordability, record levels of new dwelling construction and the maturity of the growth cycle are likely to act as a disincentive to any further acceleration in investment demand across Sydney and Melbourne, despite the steady interest rate environment.
"With dwelling values continuing their stellar run of growth through July, the housing market was likely to be a key topic of conversation for the Reserve Bank when they deliberated the cash rate today. Australian regulators, including the RBA and APRA, were probably hoping to see value growth in the housing market decelerating during the winter months, however the opposite has been true in Sydney and Melbourne."
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mick.cee-iDmgDDAmu8

RBA keeps rates on hold at August meeting

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Governor of the Reserve Bank, Glenn Stevens August 2015 statement.
At its meeting today, the Board decided to leave the cash rate unchanged at 2.0 per cent.
The global economy is expanding at a moderate pace, but some key commodity prices are much lower than a year ago. Much of this trend appears to reflect increased supply, including from Australia. Australia's terms of trade are falling nonetheless.
The Federal Reserve is expected to start increasing its policy rate later this year, but some other major central banks are continuing to ease policy. Hence, global financial conditions remain very accommodative. Despite fluctuations in markets associated with the respective developments in China and Greece, long-term borrowing rates for most sovereigns and creditworthy private borrowers remain remarkably low.
In Australia, the available information suggests that the economy has continued to grow. While the rate of growth has been somewhat below longer-term averages, it has been associated with somewhat stronger growth of employment and a steady rate of unemployment over the past year. Overall, the economy is likely to be operating with a degree of spare capacity for some time yet. Recent information confirms that domestic inflationary pressures have been contained. That should remain the case for some time, given the very slow growth in labour costs. Inflation is thus forecast to remain consistent with the target over the next one to two years, even with a lower exchange rate.
In such circumstances, monetary policy needs to be accommodative. Low interest rates are acting to support borrowing and spending. Credit is recording moderate growth overall, with growth in lending to the housing market broadly steady over recent months. Dwelling prices continue to rise strongly in Sydney, though trends have been more varied in a number of other cities. The Bank is working with other regulators to assess and contain risks that may arise from the housing market. In other asset markets, prices for equities and commercial property have been supported by lower long-term interest rates. The Australian dollar is adjusting to the significant declines in key commodity prices.
The Board today judged that leaving the cash rate unchanged was appropriate at this meeting. Further information on economic and financial conditions to be received over the period ahead will inform the Board's ongoing assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target.
 
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po-LsXgBTHBmX

Sydney property rising strongly: RBA Governor Glenn Stevens' August 2015 statement

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Research from comparison website Mozo.com.au has found home loan fixed interest rates are being cut, especially for four and five year rates.
Large second-tier institutions, according to the Mozo Banking Insights Bulletin, have begun to increase three year rates.
The July report noted many more lenders were implementing recent investment lending legal changes.
<div dir="ltr">
<table style="width: 445px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td nowrap width="41">
Rank
</td>
<td nowrap width="78">
Provider
</td>
<td nowrap width="171">
Product
</td>
<td nowrap width="65">
Amount
</td>
<td nowrap width="41">
Max LVR
</td>
<td nowrap width="50">
Rate
</td>
</tr>
<tr>
<td nowrap width="41">
1
</td>
<td nowrap width="78">
Mortgage House
</td>
<td nowrap width="171">
Pure &amp; Simple ULTRA Variable Home Loan (Owner Occupier)
</td>
<td nowrap width="65">
$100000 to $500000
</td>
<td nowrap width="41">
50%
</td>
<td nowrap width="50">
3.89
</td>
</tr>
<tr>
<td nowrap width="41">
2
</td>
<td nowrap width="78">
Homestar
</td>
<td nowrap width="171">
Basic Refinance Loan (Principal &amp; Interest, Owner Occupier)
</td>
<td nowrap width="65">
$50000 to $500000
</td>
<td nowrap width="41">
70%
</td>
<td nowrap width="50">
3.94
</td>
</tr>
<tr>
<td nowrap width="41">
3
</td>
<td nowrap width="78">
Freedomlend
</td>
<td nowrap width="171">
Variable Home Loan (Owner Occupier)
</td>
<td nowrap width="65">
$50000 to $1000000
</td>
<td nowrap width="41">
80%
</td>
<td nowrap width="50">
3.98
</td>
</tr>
<tr>
<td nowrap width="41">
4
</td>
<td nowrap width="78">
Homestar
</td>
<td nowrap width="171">
Variable Rate Loan (Owner Occupier)
</td>
<td nowrap width="65">
$50000 to $1000000
</td>
<td nowrap width="41">
95%
</td>
<td nowrap width="50">
3.98
</td>
</tr>
<tr>
<td nowrap width="41">
5
</td>
<td nowrap width="78">
Auswide Bank
</td>
<td nowrap width="171">
Home Loan Plus Special (Principal &amp; Interest) (Freedom Package)
</td>
<td nowrap width="65">
$150000 to $3500000
</td>
<td nowrap width="41">
90%
</td>
<td nowrap width="50">
3.99
</td>
</tr>
<tr>
<td nowrap width="41">
6
</td>
<td nowrap width="78">
Easy Street
</td>
<td nowrap width="171">
Basic Variable Home Loan
</td>
<td nowrap width="65">
From $100000
</td>
<td nowrap width="41">
80%
</td>
<td nowrap width="50">
3.99
</td>
</tr>
<tr>
<td nowrap width="41">
7
</td>
<td nowrap width="78">
iMortgage
</td>
<td nowrap width="171">
Fusion (Owner Occupier) (ProPack)
</td>
<td nowrap width="65">
$500000 to $2000000
</td>
<td nowrap width="41">
80%
</td>
<td nowrap width="50">
3.99
</td>
</tr>
<tr>
<td nowrap width="41">
8
</td>
<td nowrap width="78">
Mortgage House
</td>
<td nowrap width="171">
Pure &amp; Simple Variable Home Loan (Owner Occupier)
</td>
<td nowrap width="65">
$100000 to $500000
</td>
<td nowrap width="41">
80%
</td>
<td nowrap width="50">
3.99
</td>
</tr>
<tr>
<td nowrap width="41">
9
</td>
<td nowrap width="78">
State Custodians
</td>
<td nowrap width="171">
Peak Performance Offset
</td>
<td nowrap width="65">
$500000 to $1500000
</td>
<td nowrap width="41">
80%
</td>
<td nowrap width="50">
3.99
</td>
</tr>
<tr>
<td nowrap width="41">
10
</td>
<td nowrap width="78">
loans.com.au
</td>
<td nowrap width="171">
Dream Home Loan Essentials
</td>
<td nowrap width="65">
$50000 to $750000
</td>
<td nowrap width="41">
80%
</td>
<td nowrap width="50">
4.02
</td>
</tr>
<tr>
<td nowrap width="41">
11
</td>
<td nowrap width="78">
Mortgage View
</td>
<td nowrap width="171">
Variable Rate Super Special
</td>
<td nowrap width="65">
$150000 to $1500000
</td>
<td nowrap width="41">
75%
</td>
<td nowrap width="50">
4.02
</td>
</tr>
<tr>
<td nowrap width="41">
12
</td>
<td nowrap width="78">
iMortgage
</td>
<td nowrap width="171">
Essential Home Loan
</td>
<td nowrap width="65">
$50000 to $750000
</td>
<td nowrap width="41">
80%
</td>
<td nowrap width="50">
4.04
</td>
</tr>
<tr>
<td nowrap width="41">
13
</td>
<td nowrap width="78">
loans.com.au
</td>
<td nowrap width="171">
Dream Home Loan Offset Variable
</td>
<td nowrap width="65">
$50000 to $2000000
</td>
<td nowrap width="41">
80%
</td>
<td nowrap width="50">
4.06
</td>
</tr>
<tr>
<td nowrap width="41">
14
</td>
<td nowrap width="78">
Yellow Brick Road
</td>
<td nowrap width="171">
Rate Smasher
</td>
<td nowrap width="65">
$100000 to $750000
</td>
<td nowrap width="41">
70%
</td>
<td nowrap width="50">
4.06
 
</td>
</tr>
</tbody></table>
</div>
 
 
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jonathanchancellor-7SQnKwU6yx

Fixed home loan rates being trimmed: Mozo

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Property investors are urged to brace for higher housing prices despite experts tipping the Reserve Bank to leave the cash rate at 2.00% ahead of its board meeting on Tuesday, August 4, 2015.
Experts who responded to the finder.com.au <a href="https://www.finder.com.au/rba-cash-rate" target="_blank">Reserve Bank Survey </a>suggested given the latest two rate cuts in February and May are yet to filter through the economy and with unemployment stable, the Reserve Bank has no reason to move the cash rate in August.
31 economists and property experts were surveyed and unanimously agreed the RBA will hold rates at 2.00%.
19% of the experts surveyed forecast a rate cut by the end of the year, with Mark Crosby from the Melbourne Business School and Peter Boehm from onthehouse.com.au expecting the cash rate to rise in the last quarter of 2015.
55% believe the cash rate will start rising next year and 39% consider there will be long stability before the cash rate will start rising beyond 2016.
Finder.com.au money expert Michelle Hutchison said while we may not see another rate cut this year, it’s still likely that property prices will continue to rise, which means higher costs for new borrowers.
 “According to the finder.com.au Reserve Bank Survey, the majority of experts surveyed (21 or 68%) are expecting property prices will keep rising this year, while almost one in five (six of 19%) believe property prices will remain at the same level for the remainder of 2015. For the hottest property market in Australia, almost one in five experts (19%) believe the Sydney property market won’t ease for the next few years, while 61% expect it to ease next year and five experts think it could be as early as this year," Michelle said. 
“Despite this, the vast majority (81% or 25 of the 31 experts surveyed) believe there is no housing bubble. However 5 experts (16 percent) expect the housing bubble will burst within the next 18 months. One of the experts – Shane Oliver from AMP – said there is one housing bubble in Sydney and it’s likely to start reversing in 2017.
“We’re expecting more borrowers to start hitting the market in spring, which is traditionally the busiest time for the property and home loan markets. If you’re planning to hit the market this mortgage season, be careful with your budget as it won’t be worth over-stretching yourself in the heat of the moment to buy a home when rate rises are also around the corner.”
 
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Experts tip RBA will keep rate at 2%: Finder.com.au

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The Property Council of Australia has welcomed comments from Treasurer Joe Hockey reported in the Weekend Australian that there is “no merit” in changing negative gearing for residential property.
"As the Government's analysis shows negative gearing is used overwhelmingly by people working in some of our most valued, but lower paid professions,” its chief executive Ken Morrison said.
“Negative gearing is a well-established, long-standing part of Australia's tax system and the people who use it most are everyday Australians looking to get ahead.
“This isn't some tax lurk for the wealthy, it is a legitimate and effective part of our taxation system that is used most by people earning under $80,000 per annum who become property investors through their own hard work.
“Any changes to negative gearing would hit middle Australia hardest and would take away one of the best ways most people have to save for their retirement.”
The Property Council of Australia says in 2012-13 almost 36,000 nurses and midwives, 10,415 emergency service workers, 53,855 teachers, 10,255 social workers and 90,000 clerical staff all earning around or less than $80,000 per annum declared a net rental loss.
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PCA says negative gearing is for everyday Australians

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The Reserve Bank Board meets on August 4. We expect the Board will decide to keep rates on hold. 
Markets are in full agreement with this view with only a negligible probability of a rate cut being priced in. 
It is a different story for November with market pricing oscillating between 60% and 80% probability of a cut by then. 
With this in mind, attention will focus on the Governor’s decision statement, released at 2:30pm on August 4, and the Statement on Monetary Policy which will print at 11.30am on August 7. 
We are not expecting any surprises in the Governor’ statement. He has finally found the right approach to ‘talking down’ the Australian dollar with the language:
 “Further depreciation seems both likely AND necessary, particularly given the significant declines in commodity prices”. He first used that sentence in May when the AUD was around USD 0.787; followed up in June (USD 0.7682) and then in July (USD 0.744). 
Now at USD 0.73 the AUD has certainly not fallen sufficiently for the Governor to abandon a successful strategy. Further, we suspect that the key reason behind his referring to potential further easing (“We remain open to the possibilities of further easing if that is, on balance, beneficial for sustainable growth”) in speeches is also a desire to maintain downward pressure on the Australian dollar. 
The forecasts for growth and inflation presented in the Statement on Monetary Policy will be of critical interest. 
Recall that in February this year the Bank adopted an approach of assuming ‘market pricing’ for the cash rate profile. At the time the market had a near 100% probability of a further rate cut by June to complement the cut in February. Markets could be excused 
for interpreting that change of approach as, in effect, franking its pricing for another rate cut. The Bank repeated the approach in its May Statement on Monetary Policy, when market pricing only had a 40% probability of a follow-up cut by year’s end price in – not a high enough probability to encourage speculation. 
Next week, with markets pricing in a 65% probability of a further rate cut by year’s end and an 80% probably of a move by early next year, considerable attention will be given to whether the assumption of market pricing is retained. I expect that for the purposes of continuity the Bank will retain the market pricing assumption but would not interpret this as any kind of signal. 
On the other hand, if the Bank drops that assumption, it would be a most discouraging signal for those folks expecting a near term rate cut. 
Note that in the May Statement on Monetary Policy the Bank forecast that underlying inflation would centre around 2.25% in 2016. Apart from during the depths of concerns around the Global Financial Crisis in 2009, this is the first time since the Bank started publishing forecasts that it has forecast underlying inflation to be below than the midpoint of the target range in the next calendar year.
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This is surely a very dovish signal from the authorities. Even though the AUD has fallen from USD 0.80 (the assumption used for its inflation and growth forecasts in May) to USD 0.73 I expect that the Bank will retain its dovish inflation forecast. 
The other risk is around the Bank’s assessment of trend growth. 
As discussed in last week’s note the Governor indicated that the Bank would be reviewing its assumption of trend growth, which has generally been assessed as 3–3.25%. 
Australia has been consistently growing below that pace since the GFC. The assessed negative output gap has weighed on inflation. If however, the trend growth rate was, say, 2.75% then the negative output gap would be smaller and disinflationary pressures less intense. Theoretically, all else being equal, that would imply a need to raise the inflation forecasts. 
We expect that the Bank may make that adjustment in future but not in the next Statement on Monetary Policy. 
Recall that the growth forecasts are currently 2.5% for 2015 and 3.25% for 2016, down from 2.75% and 3.5% respectively in the February Statement. 
Since May the data releases around the real economy have generally been disappointing. In particular the March quarter national accounts and the March quarter Capex survey have revealed a weaker than expected investment profile for both mining and non-mining and no evidence of a recovery in the downbeat 2.5% annualised pace of consumer spending. 
The ‘sticker shock’ effect of further lowering the 2015 forecast seems too high to consider but it does seem likely that the growth forecast for 2016 will be reduced to 3%. 
Policy will be targeted on growth in 2016. At 3%, growth would still be assessed at ‘around’ current estimates of trend and would still be consistent with no policy change. 
However, markets might seize on the disturbing downtrend in the 2016 growth forecasts and speculate on a ‘below trend’ forecast for 2016 in the November Statement on Monetary Policy. 
That would not be a good strategy. 
By then the Bank is likely to have adopted a lower trend growth assumption (say 2.5–2.75%). Even with a further downward revision to the growth forecast in 2016, from 3% to 2.75%, this would still be at or above the newly assessed trend precluding the need for a policy response. 
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BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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RBA will hold: Westpac's Bill Evans

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<div>These are the top variable investor loan rates available right now, including minimum loan amounts and maximum LVRs, according to banking comparison website Mozo.</div>
<div> </div>
<div>
Commonwealth Bank is applying a premium to its fixed rates for investors - 30bp for 1 and 4 years, 40bp for 2 and 3 years, and 10bp for 5 years. </div>
<div> </div>
<div>
Bankwest has capped LVR's at 80% for investors across most products. Rates are higher for investors on its 2 year fixed rate and the 3 year introductory rate on its Super Start Home Loan. </div>
<div> </div>
<div>
NAB is limiting the maximum LVR on investor loans to 90%. </div>
<div> </div>
<div>
St.George/BankSA/Bank of Melbourne has a discount on its Basic Home Loan of 34bp for owner occupiers and its 2 year fixed rates are 20bp lower for owner occupiers. </div>
<div> </div>
<div>2nd TIER LENDERS</div>
<div> </div>
<div>
<div>
ING Direct increased fixed rates for investors by 20bp and removed discounts for investors with larger loan amounts and lower LVR's on its Orange Advantage and Mortgage Simplifier variable rate loans. The interest only option is now only available on loans with LVR's less than 80%. </div>
<div> </div>
<div>
ME Bank now applies a premium for investor loans of 15bp to the variable rates on its Flexible Home Loan Member Package. </div>
</div>
<div> </div>
<div>
AMP has ceased accepting applications for investor loans and adjusted the rates and tier levels on its Professional Package. Variable rates now start at 4.12% for loans over $750,000. ANZ's Simplicity PLUS loan is no longer available for investors and there's a premium on the bank's fixed rates of 40bp for 1 and 4 years, 60bp for 2 and 3 years, and 30bp for 5 years. </div>
<div> </div>
<div>
Suncorp is charging a premium to investors on its variable Home Package Plus which varies depending on loan amount and LVR, and has imposed a maximum LVR for investors of 90%. For LVR's less than 80% the rate for owner occupiers borrowing more than $750,000 stayed at 4.15%, but increased by 9bp for owner occupiers borrowing less than that, while increasing by 29bp for investor loans under $750,000 and increasing by 24bp for investor loans over that amount. For LVR's 80 to 90% the rate was cut to 4.34% for all owner occupiers but for investors the rate stays at 4.49% for under $750,000 and 4.44% for more than that.</div>
<div> </div>
<div>NON-MAJOR LENDERS</div>
<div>
<div>
Freedomlend has increased rates for investors by 10bp and capped LVR's at 80%. </div>
<div> </div>
<div>
Heritage Bank increased variable rates for investors by 30bp across most products and there's now a 10bp premium for its fixed rates. </div>
<div> </div>
<div>
Homestar increased rates for investors by 10bp and now has a maximum LVR of 85%. </div>
</div>
<div> </div>
<div>BUILDING SOCIETIES, CREDIT UNIONS &amp; MUTUALS</div>
<div> </div>
<div>
CUA has dropped the maximum LVR on its Fresh Start loan from 80% to 70% for investors, and launched two new products (Fresh Start Access and Fresh Start Basic) that are priced 30bp higher for investors. </div>
<div> </div>
<div>
Newcastle Permanent Building Society will lend up to 80% LVR for investor loans and applies a $550 application fee. </div>
<div> </div>
<div>
UBank will apply a 29bp premium to investor and interest only loans from 10th August.
</div>
<div> </div>
<div>
Westpac has capped LVR's for investor loans at 80%, and is charging an extra 15bp for investors during the 2 year introductory rate period on its Flexi First Option Home Loan.
</div>
<div> </div>
<div>
ANZ's Simplicity PLUS loan is no longer available for investors and there's a premium on the bank's fixed rates of 40bp for 1 and 4 years, 60bp for 2 and 3 years, and 30bp for 5 years.
</div>
<div> </div>
<div><a href="/images/2015/08/04/investor_loans.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/04/investor_loans.jpg" alt=""></div>
<div> </div>
<div>
 FOR INFORMATION ON PROPERTY LOANS, RATES AND MORE, VISIT MOZO.COM.AU OR <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/42368-get-loan-savvy-expert-tips-for-a-first-time-investment-or-refinancing-loan-in-a-free-ebook" target="_blank">CLICK HERE</a> FOR THE FREE PROPERTY OBSERVER EBOOK, GET LOAN-SAVVY – TIPS FOR A FIRST TIME, INVESTMENT OR REFINANCING LOAN, WHICH HELPS YOU DECIDE ON A HOME LOAN THAT MEETS YOUR REQUIREMENTS.
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