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>

Joel Robinson

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

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Eastern Suburbs buyers snap up ESTE Little Bay apartments

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

<html><body>
Australia’s largest customer-owned financial institution, CUA will cut its one, two and three-year fixed rate home loans to 4.89% from June 26.
The credit union group has cut its basic three-year fixed-rate by 10 basis points, its two-year fixed rate by 16 basis points and its one-year fixed-rate by 21 basis points. CUA has also made rate cuts across its premium one, two and three year fixed-rate products.
It joins a growing number of lenders to have cut fixed-rates recently as demand for the products rises to around one in three borrowers, according to Mortgage Choice.
</body></html>

lschlesinger-FZcF9M3vE6

CUA cuts one, two and three-year fixed-rates to 4.89%

<html><body>
Mortgage arrears among prime borrowers remained stable in the first three months of 2013, helped by low interest rates, the latest Fitch Dinkum Index shows.
Fitch records a negligible 2 basis point rise in prime mortgages more than 30 days in arrears rising from 1.46% in the December quarter of 2012 to 1.48% in the first quarter of 2013.
Fitch also notes that loans between 30-59 days arrears were at 0.59% up from 0.55% in the December quarter, making it the lowest post-Christmas level since March 2006.
An increase in 30-59 days arrears in the first quarter is anticipated each year because the serviceability of Australian borrowers is temporarily affected by the holiday season and Christmas spending.
The figures are based on Fitch's analysis of mortgages bundled and sold by lenders to investors as residential mortgage-backed securities (RMBS).
However, of concern will be the rise in arrears for both the self-employed (low-doc loans) and those with poorest credit ratings (non-conforming low-doc loans).
Fitch records the proportion of non-conforming loans more than 30 days in arrears increased from 11.99% to 12.76% while low-doc loans arrears increased from 7.05% to 7.57%.
The graph below shows the stable low-arrears rates for prime mortgages (blue) and rising arrears rates for low doc and non-confirming loans (brown and green lines).
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/06/fitchjune24one.gif" rel="shadowbox"><img src="/images/stories/2013/06/fitchjune24onethumb.gif"></a>
"Self-employed borrowers are still experiencing financial distress and finding it difficult to cure their arrears," says Iselle Gonzalez, associate director at Fitch.
"Historically, low-doc borrowers have taken longer to adjust their spending and cure arrears due to the lumpy nature of the cash flows; Fitch believes this will continue."
According to Fitch, low-doc performance, can be an early indicator of financial distress among borrowers who do not have a stable income and are therefore sensitive to volatility in the economy.
Fitch explains that non-conforming mortgage lending standards do not meet the standard lending criteria of mainstream lenders and include lending to borrowers who have poor credit or payment histories. As a consequence non-conforming transactions tend to have high levels of delinquencies and defaults.
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Mortgage arrears rise for self-employed and credit impaired borrowers: Fitch

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When official interest rates move, mortgage borrowers have decisions to make.
Broadly speaking, you can stick with a variable rate loan which means paying the best market rate in any given month. Or, you can take a fixed rate mortgage where you lock in a rate for a set number of years.
Neither approach is risk-free. If you fix for three years you risk that during that time the variable rate will become cheaper, and you’ll be paying too much on your loan.
The reverse is that you have a variable rate loan during a time when the Reserve Bank puts up the cash rate, and your mortgage goes up too.
So what should borrowers be doing now?
You should think about two perspectives: interest rates and products.
Firstly, form a view on where interest rates are going.
We can gain insight into this by looking at what the professionals think: the ones to watch are the Reserve Bank of Australia and the banks’ swap rate markets.
The Reserve Bank has been cutting the cash rate since November 2011, and it is now at the historically low 2.75%. Will they cut further?
They’re giving themselves the permission to cut again. The latest decision in June included the statement that current inflation ‘might provide some scope for further easing’.
You have to balance that against the fixed rate market. Several lenders currently have 4.99% fixed loans for three years, which is a good deal compared to the best variable loans which are around 5.3%.
The markets that underpin fixed rate mortgages are the ‘swap rates’ – in the past three weeks they slid from around 3.2% to 2.9%, which indicates banks believe the price of money is dropping.
The job for anyone who wants to fix is to look at the RBA and the swap rates and make a determination as to how low the price of money goes and for how long.
You should also look at products. While variable rate mortgages are fairly simple market-linked loans, fixed rate mortgages have potential pitfalls.
If you take a fixed rate at 4.99%, you want to get further ahead than if you took a variable rate. So you want the lender to allow lump sums on the loan so you can pay it out fast. Many fixed rate loans only allow a fixed payment.
Secondly, watch for break fees on fixed loans. If you sell your home during your three-year term and pay out the mortgage, some loans require you to make good on the income the banks otherwise would have earned.
The third point is to know yourself. Some want the certainty of fixing at a low rate while others want the best market rate in any given month. It’s a personality thing and you should understand where you’re comfortable.
As always, be aware of the forces that work on your finances and be informed. If you’re confused, ask an adviser.
Mark Bouris is executive chairman of <a target="_blank" rel="nofollow" href="https://www.ybr.com.au/">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
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Weighing up fixed vs variable interest rates: Mark Bouris

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Property investors should:
• Ensure they don’t overlook any of the many expenses that are immediately deductible in the income year of expenditure. These include interest on property loans, repairs and maintenance, insurance and land tax. (See strategy two for our comprehensive checklist.)
• Claim annual deductions over a number of years for the decline in value of removable depreciating assets. (Such items include stoves, blinds, dishwashers, carpets, hot-water systems and air-conditioners.)
• Claim capital works deductions, spread over a number of years, for certain capital expenditure. Capital works deductions are generally claimed for buildings as well as improvements such as adding a bedroom or remodelling a bathroom. (Investors can write-off 2.5 per cent a year of the construction costs for 40 years if construction began after September 15, 1987.)
• Add eligible capital expenditure to a property’s CGT cost base to reduce the CGT eventually payable. Capital expenditure includes the acquisition and disposal costs of a property – such as purchase cost of the property, conveyancing costs, advertising expenses, agent’s commission and stamp duty – and costs of improvement such as renovations. (All capital works deductions already claimed may reduce the cost base when eventually calculating capital gains upon the disposal of the property.)
• It is also possible to claim deductions over a number of years for certain borrowing expenses incurred involving a property loan. These expenses include loan establishment fees, title search fees, costs of preparing and filing mortgage documents, mortgage broker fees and stamp duty on the mortgage. (However, a borrowing expense of $100 or less can be wholly claimed upfront.)
See our eBook on the <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-top-24-tax-strategies">top 24 tax strategies</a> for property investors.
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Understand different types of rental expenses and their tax treatment

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The majority of economists expect the cash rate to remain on hold on July 2, the latest Bloomberg survey reveals.
Of the 27 economists polled by this week, 22 tip the cash rate to remain at 2.75%.
This is almost unchanged from the June 7 forecast when 21 out of 26 economists said no rate cut in July.
AMP Capital Investors chief economist Shane Oliver and Stephen Koukoulas from Market Economics are among the five economists tipping a rate cut in July.
The others are from analysts Nomura Australia, Goldman Sachs and RBC Capital Markets.
Looking ahead to August 6, economists are almost equally divided with 14 tipping a rate cut to 2.5% and 13 expecting no change.
The minutes of the <a href="https://www.propertyobserver.com.au/residential/dwelling-prices-still-relatively-flat-but-housing-market-appeared-to-be-improving-rba-minutes/2013061862374" target="_blank">June RBA monetary policy meeting</a> said there was scope for further rate cuts if needed highlighting that previous rate cuts were supporting what appeared to be an improving housing market.
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Most economists tip no RBA cash rate cut in July: Bloomberg

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Mortgage market activity picked up by 5.2% in Tasmania over June, according to RP Data's Mortgage Index.
This compared with just 0.5% growth nationally with Victoria (2.1%) and Western Australia (2%) the only other two states to register notable gains over the month.
The data is correct up to June 16.
<img alt="mortgage_activity_june" height="255" width="470" src="/images/stories/2013/larry_uploads/mortgage_activity_june.jpg">
Mortgage activity appears to have flattened out:
<img alt="mortgage_index_graph" height="204" width="470" src="/images/stories/2013/larry_uploads/mortgage_index_graph.jpg">
RP Data systems monitor more than 100,000 mortgage activity events every month across our four main finance industry platforms providing a lead indicator to housing finance commitments.
The index shows an 81% correlation with the ABS housing finance data series (88% using the seasonally adjusted series). 
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Tasmania leads flat mortgage market in June: RP Data

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Buying the home you desire may require that you be able to borrow a large amount of money than originally intended.
There are a number of ways you can increase the size of your home loan, though always keep in mind that a larger loan size will mean higher mortgage repayments and these may rise if interest rates increase.
You should always have a buffer built into your budget to cater for rising repayments. And if rates do fall, then you can possibly put extra money into your home loan or invest it elsewhere.
Here are seven tips provided by mortgage broker Mortgage Choice:
1. Know what constitutes ‘genuine savings’ - Most lenders require you to have a deposit comprised of genuine savings. Typically, ‘genuine savings’ means money that has been saved over a period of at least three successive months. For most lenders, this excludes things like tax refunds, monetary gifts, the First Home Owners Grant, the sale of personal assets (like cars or jewelry) and lump sum annual leave payouts. Some lenders will consider some of these items when assessing your deposit, if you can provide a rental payment history, for example. To make the most of your savings, it is a good idea to get a grip on what each and every lender defines as ‘genuine savings’.
2. Maximise your deposit size - Lenders will look favourably on you if you have a large deposit, and a larger deposit can bring about a better chance of getting the lowest possible interest rate from a lender and the reassurance of already having equity in the property. 
Larger deposits also remove the cost of lenders’ mortgage insurance (LMI) as it is more commonly known. LMI protects the lender if you default on the loan and the home is sold for less than the lender is owed. LMI is required to be paid when you borrow more than 80% of the property’s value. The price of LMI can vary depending on the value and type of loan you have selected as well as the deposit you have saved. 
In addition to saving hard, another popular method is for parents or other family members to put forward a monetary gift towards a property purchase. In this instance, you must provide evidence that the gift is not repayable and sign a statutory declaration. Keep in mind that if you are using gifted funds you may still be required by a lender to contribute to the deposit up to 5% of the purchase price in the form of genuine savings. 
In each state and territory eligible first homebuyers may apply for a grant towards the purchase of their first home, which is known as the First Home Owner Grant. Recent changes in many states see the grant applicable on only newly built or off the plan property purchases, so be sure to investigate what is available in your state. First homebuyers should keep in mind there are different caps on the value of properties that can be purchased with the grant. There may also be concessions on stamp duty available to borrowers, which vary from state to state.
 First time buyers may also be able to increase their savings by opening a First Home Save Account. These accounts attract a lower rate of tax on the interest earned and each financial year a government contribution calculated on the personal contributions will be deposited. Savers using these accounts can still claim federal and state first homebuyer incentives, however before they can withdraw the funds to buy or build a home they must contribute at a minimum amount per year to the account in four financial years.
3. Reduce existing debt - Cut as much of your other debt as possible, such as car and other personal loans, credit and department store cards, and HECS debts. Be aware that with credit and store cards, the amount owed isn’t what matters to the lender, they’ll factor the overall credit limit into your ability to repay the loan.
Keep in mind that if you share a loan with a friend, spouse or sibling, and you want to take out another loan in your own name, most lenders will assess your loan application based on your ability to repay the full loan amount of the existing loan – not just the half that you’re paying back! This occurs with those particular lenders regardless of whether you already have an agreement with the co-borrower to manage that existing loan.
4. Clean up your credit file - Check whether you have multiple enquires or any defaults in your credit history. If this is the case for you, try to resolve them with the relevant credit provider before you apply for a home loan and if need be, provide an explanation to your lender. You can order a copy of your credit file from suppliers such as <a href="https://www.mycreditfile.com.au">www.mycreditfile.com.au</a>.
5. Ensure you have steady employment and regular savings - Lenders also want to see a steady recent employment record, eg. 6-12 months or more in your job, receiving regular income. If you are looking to change company at the same time you are looking to buy property, seriously reconsider one or the other. If you recently changed positions within a company due to a promotion or received a payrise, or changed jobs multiple times in a short period of time but they are all connected by industry, be sure to carefully explain that in the home loan application.
6. Submit satisfactory bank statements - Your recent bank statements should be free from any suspicious withdrawals or transfers such as movements of sizeable sums of money into or from your account/s. If this does occur, include an explanation for the transaction in your loan application. 
7. Shop around - Lastly, talk to an experienced mortgage broker who has access to a lender panel of at least 20, about the wide range of options available. There are many great deals out there at the moment thanks to hot competition between lenders both large and small. Also keep in mind that lenders’ approval measures vary, meaning different lenders can offer varied loan amounts to the same borrower. The same goes for interest rate, features, fees, accessibility and approval turnaround times. Be sure to compare your options.
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Getting a bigger home loan: Seven tips to boost your borrowing power

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 The Greater Building Society will cut its one-year fixed home loan rate by 0.20% from tomorrow (June 21).

The Greater’s one year packaged home loan (ultimate home loan) will reduce to 4.54% (comparison rate of 5.49%) - one of the lowest one-year fixed-rates on offer. 
Product manager David Bryde said the new rate is the lowest one year rate for a home loan that the Greater has ever offered.
Bryde said people taking out fixed-rate loans should ensure that they don’t unnecessarily sacrifice flexibility or fall victim to the “revert rate rort”. 
“With the Greater you get an incredibly low rate but can still make extra payments and redraws," Bryde said.
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Greater Building Society cuts one-year fixed-rate home loan to 4.54%

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Borrowers can save around $300 in fees over three years by taking out a variable rate mortgage with a credit union or building society compared with a major bank, research by the RBA has found.
Average fees for a mortgage with a building society or credit union over three years are $803 compared with $1,102 for major banks, $1,160 for other banks and $1,006 for other lenders (non-bank lenders), according to a new paper by Jessica Pratten from the RBA’s Domestic Markets Department.
<img height="253" width="470" src="/images/stories/2013/larry_uploads/bank_fees.jpg" alt="bank_fees">
The fees comprise home loan establishment fees, home loan service fees and loan discharge fees (excluding mortgage exit fees which are banned on variable mortgages).
The figures are based on a $250,000 loan to owner-occupier discharged after three years and includes standard variable and package products and are  a  weighted average based on the share of housing credit for each type of institution.
Since October 2010, the major banks and credit unions and building societies have cut mortgage fees by $19, other banks have cut them by $70 and other lenders by $194.
The major banks have cut services fees by $89 over this time frame but raised establishment fees ($8) and discharge fees ($62).
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Credit union and building society mortgage fees $300 cheaper than major banks: RBA

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There was a small decline in mortgage fees earned by banks over 2012 compared with a rise of 6.5% from 2006 to 2011 a new RBA paper shows.
Banks earned $1.218 billion in mortgage fees in 2012 compare with $1.222 billion in 2011 and $1.377 billion in 2010, according to a paper by Jessica Pratten from the RBA’s Domestic Markets Department.
Mortgage fees were second only to credit card fees ($1.312 billion) and deposit fees ($1.105 billion) earned by banks over 2012.
<img src="/images/stories/2013/RBA_graph.png" width="470" height="381" alt="RBA_graph">
Pratten notes that the slight decline in housing loan fee income occurred despite the 5% increase in mortgage lending over the year.
“This divergence partly reflected the decision by a number of banks to waive application and other fees.
“It also resulted from a continued fall in exit fee income following the Federal Government’s ban on exit fees on variable rate home loans in July 2011.
“In the lead-up to the ban there had been speculation that lenders would increase other fees to compensate for the potential loss of income.
“However, average fees (excluding exit fees) charged on variable rate mortgages discharged after three years have declined slightly for both bank and non-bank lenders since the ban was implemented," she says.
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