<a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.

Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.

The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.

[smartcode_project:default project_id=509 project_image_fid=365685]

"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.

Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.

"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."

[smartcode_project:default project_id=509 project_image_fid=368869]

That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.

Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.

Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.

[smartcode_project:default project_id=509 project_image_fid=365689]

Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.

They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.

The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=368872]

The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.

With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.

A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.

Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.

[smartcode_project_cta:default project_id=509]

Joel Robinson

Far East Consortium brings Eliza Collection to 640 Bourke Street ahead of October construction start

By the time S&amp;S Projects began planning <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia</a>, the developer already had three Rainbow Bay projects from which to draw.

Flow, Awaken and Esprit had given <a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a> experience developing in the southern Gold Coast enclave, as well as buyer feedback that could be carried into its fourth project, a boutique collection of 38 residences at 271 Boundary Street.

“We have experienced a lot of success in this location and as this was our fourth building we had taken all of the learnings and buyer feedback from previous projects to arrive at a design and apartment mix that we believe had captured all of that experience and remained a true S&amp;S Project in its design and amenity,” the developer said.

That experience has translated into a collection of two, three, four and five-bedroom residences including two penthouses positioned on an elevated corner in Rainbow Bay, where the site opens to multiple coastal view corridors and the area's distinctive north-facing bay.

[smartcode_project:default project_id=140491 project_image_fid=284542]

S&amp;S Projects says the Boundary Street site took years to assemble, having previously comprised six units, a house and a duplex. The developer worked individually with the existing owners to bring the properties together after an earlier attempt to sell the site had been complicated by the number of parties involved.

“We are constantly looking for properties that meet our brand standards of location, views, and sites that are rare with unique aspects that we can develop to maximise the lifestyle of residents who live in our buildings,” S&amp;S Projects said.

The Boundary Street site gave <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a> a different set of conditions to work with.&nbsp;

“Our design brief was to design a building that took advantage of its unique elevated corner siting offering a range of spectacular view corridor opportunities,” Cottee Parker said.

“The design had to reinforce the strong brand pillars of S&amp;S which are quality, luxury and superior resident amenity.”

[smartcode_project:default project_id=140491 project_image_fid=284543]

Cottee Parker responded with a sculptural floorplate and strong horizontal banding, with continuous balconies and landscaped planters wrapping the building. Operable screens along the balcony edges allow residents to manage light and shade while creating an additional layer of pattern across the facade.

The tower rises above a heavily landscaped podium incorporating the entry lobby and recreational level, while the broader architectural expression takes cues from Rainbow Bay's coastal environment through its organic forms and light material palette.

Cottee Parker says the design has also been developed to complement S&amp;S Projects’ three previous Rainbow Bay developments while retaining its own architectural identity.

Inside, the residences continue that coastal response through two interior schemes centred on warm timbers and neutral tones, alongside patterned natural stone and fluted detailing.

Floor-to-ceiling sliding glass doors connect open-plan living areas to wraparound balconies, while natural stone is used across benchtops, splashbacks and bathroom walls. Specifications also include light-washed timber flooring, gas fireplaces, integrated bar and wine fridges, freestanding stone baths and 100 per cent wool carpet.

[smartcode_project:default project_id=140491 project_image_fid=284559]

Cottee Parker Director Sandra Brown said the intention was to create an architectural response closely connected to its surroundings.

“Imagine architecture that breathes with the rhythm of nature, where every curve and line flows seamlessly – creating spaces that dance with the elements, where sunlight kisses every surface and the gentle sea breeze fills every space,” Brown said.

The lessons S&amp;S Projects carried into Radia also extend to its resident amenity, with a substantial collection of shared facilities planned for just 38 residences.

A dedicated Residents Club will include a lap pool and spa, gymnasium, ice bath, sauna, steam room and hot rocks sauna. A residents' lounge, private dining room, outdoor dining and barbecue area and business centre are also planned, along with storage and dedicated surfboard and beach lockers.

S&amp;S Projects Founding Director Paul Gedoun said the facilities were also designed around the project's Rainbow Bay setting.

“Each amenity is designed to capitalise on the lifestyle of Rainbow Bay, ensuring residents can enjoy the relaxed coastal experience the enclave is famous for,” Gedoun said.

[smartcode_project:default project_id=140491 project_image_fid=284555]

<a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a> says purchasers to date have predominantly included local downsizers, interstate lifestyle investors and families, alongside a strong contingent of repeat S&amp;S purchasers.&nbsp;

According to the project sales team, feedback has centred on the natural stone and joinery, generous floorplans, natural light and the ability for residences to capture views in multiple directions. The completed Flow, Awaken and Esprit developments have also provided prospective purchasers with an existing reference point for S&amp;S Projects' delivery in Rainbow Bay.

There has also been interest from high-profile surfers and people connected to the surf community, with the elevated building providing outlooks towards several of the area's recognised surf breaks.

Radia continues S&amp;S Projects' concentration of development in a tightly held part of the southern Gold Coast, close to Rainbow Bay Beach, Snapper Rocks, Duranbah Beach, Greenmount Beach and the Tweed River. The neighbourhood also includes a growing collection of hospitality venues, while Coolangatta Airport provides connections beyond the southern Gold Coast.

Hutchinson Builders is now delivering Radia, continuing the project from early works privately funded by S&amp;S Projects. The $250 million development is expected to reach completion in the third quarter of 2027.

“With our history in Rainbow Bay, we have been fortunate to be heavily involved in how the development landscape has unfolded and this project slides into the property landscape comfortably and will feel like it was always there,” the developer said.

[smartcode_project_cta:default project_id=140491]

How three Rainbow Bay projects shaped S&S Projects' fourth, Radia

Nearly 40 years after <a href="https://www.apartments.com.au/developers/sheida-group">The Sheida Group</a> began working on the northern Gold Coast, the family-owned developer is continuing its involvement in Hope Island with Marina Point Apartments, where apartment scale has been a central part of the development.

Across the 235-apartment waterfront community, the developer has prioritised larger floorplans, substantial open space and marina access, responding to a purchaser base that has predominantly comprised local owner-occupiers and downsizers moving from larger homes.

"Having already delivered Anchorage nearby, we also understood this particular market and how people live here," developer Rick Sheida said.

"<a href="https://www.apartments.com.au/new-apartments/marina-point-apartments-hope-island-66-view-line-terrace-hope-island-qld-4212">Marina Point&nbsp;Apartments</a> gave us the opportunity to build on those lessons and create the next evolution of our work in Hope Island."

[smartcode_project:default project_id=136992 project_image_fid=293151]

The Sheida Group acquired the Marina Point land around 2018. Its appeal, Sheida says, went beyond having a waterfront address.

"What attracted us was not simply that the site was waterfront, but the way it meets the water," he said.

"It sits at the junction of broad waterways, creating long sightlines, changing views and a sense of movement throughout the day. Its shape also allowed us to orient the buildings outward, improve privacy between residences and make better use of natural light and breezes."

The buildings have subsequently been positioned around the perimeter of the site, allowing most apartments to take in water views while others look across the resort amenity or hinterland. Once all four buildings are complete, approximately one hectare of the site is expected to remain as open space.

The waterfront also provides the potential for up to 50 marina berths, with berths ranging from 15 to 24 metres and options designed to accommodate wider vessels including catamarans. Access from the marina to the Gold Coast Seaway is bridge-free.

[smartcode_project:default project_id=136992 project_image_fid=293149]

The developer says purchasers to date have predominantly been owner-occupiers and downsizers from <a href="https://www.apartments.com.au/new-apartments/marina-point-apartments-hope-island-66-view-line-terrace-hope-island-qld-4212">Hope Island</a> and elsewhere on the Gold Coast, generally aged between 45 and 70. Many have sold larger family homes or properties requiring significant upkeep.

That purchaser profile informed a design brief centred on retaining the space and functionality of a larger home within an apartment format.

"Many of our buyers are coming from large, well-appointed homes in Sanctuary Cove and the surrounding area," the project team said.

"They are accustomed to generous spaces and thoughtful design, so it was important that the apartments delivered the same sense of comfort and functionality.

"Every room needed to feel well proportioned, every space needed a clear purpose and nothing could feel compromised."

Residences range from 139 sqm through to 319 sqm penthouses, with two car spaces provided to apartments and three to penthouses. Minimum 2.7-metre ceilings, floor-to-ceiling glazing, entertainer's kitchens with butler's pantries, substantial storage and balconies ranging from 18 sqm to 37 sqm further reflect the emphasis on space.

One purchaser from Sanctuary Cove has taken the concept further, combining two of Marina Point's largest apartments to create a 552 sqm residence with raked ceilings reaching up to 4.5 metres.

[smartcode_project:default project_id=136992 project_image_fid=293155]

With Building 1 now complete, the developer is also seeing its original design assumptions tested against purchaser feedback.

Three completed display residences allow prospective purchasers to compare apartment sizes, layouts, finishes and outlooks in person. The sales team says one of the most consistent responses has been to the scale of the apartments, with visitors describing them as feeling more like homes than conventional apartments.

The first stage of resident amenity is also operational, including a 25-metre heated lap pool, Technogym-equipped gym, infrared sauna, golf simulator and yoga room. Future facilities are set to include a resort-style pool and spa, waterfront barbecue area and a residents' lounge with a library, fireplace, pool table, kitchen and bar.

Rather than treating the four buildings independently, the design brief called for a complete waterfront neighbourhood, balancing private residences with landscaping, open space, marina access and shared amenity.

[smartcode_project:default project_id=136992 project_image_fid=293152]

For Sheida, Marina Point Apartments is ultimately an extension of the developer's longer-term involvement in Hope Island and its view of how the suburb is evolving.

"We were equally interested in the long-term future of Hope Island," he said.

"Its position between Brisbane and the central Gold Coast gives residents access to both, while improving transport connections are making the northern Gold Coast increasingly attractive as a permanent place to live."

Hope Island Marketplace is 1.3 kilometres from Marina Point, while Sanctuary Cove and Paradise Point are within six kilometres. Links Hope Island, The Pines and The Palms golf courses are also nearby, and the new Hope Island train station is under construction around five kilometres from the development.

Building 2 is under construction, with completion scheduled for 2027.

[smartcode_project_cta:default project_id=136992]

Marina Point Apartments continues The Sheida Group's 40-year Hope Island story

Sydney-based fund manager and developer EG is seeking to turn part of the former Roche pharmaceutical campus in Cromer into a 130-home residential community, introducing a mix of low-rise apartments, townhouses and duplexes to the tightly held Northern Beaches market.

The SJB-designed masterplan has been prepared for the 3.2-hectare site at <a href="https://www.apartments.com.au/new-apartments/100-south-creek-road-cromer-nsw-2099">100 South Creek Road</a>, part of the former Roche landholding that EG acquired for $55 million in 2017 through its Yield Plus Infrastructure Fund No. 2.

EG is proposing what SJB describes as a new "urban village" set within the site's significant existing tree canopy.

<img alt="Cromer" data-entity-type="file" data-entity-uuid="482c9a58-49f1-4c53-a12e-aaa02336229f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-24%20at%2011.20.57%E2%80%AFAM.png?VersionId=hZP8_XfPnfNq500dbcjlpVwYU1ebhF9_" />

Around three hectares of the site is considered developable, with the balance incorporating a riparian corridor that would be rehabilitated and revegetated as part of the proposal.

The indicative masterplan comprises approximately 72 apartments in low-rise residential buildings and another 58 townhouses and duplexes.

The apartment component would include around five one-bedroom, 37 two-bedroom and 30 three-bedroom residences, while the townhouse and duplex component would be spread across several different housing typologies. The overall scheme would deliver around 19,500 sqm of gross floor area at an FSR of 0.6:1.

Parking for the apartment component is currently estimated at around 112 resident spaces and 14 visitor spaces, while the townhouse and duplex component would have 116 resident and 12 visitor spaces.

A significant part of the masterplan revolves around retaining the established landscape character of the former Roche campus.

SJB's plans show heavily treed setbacks along both Campbell Avenue and South Creek Road, a centrally located collection of significant native and exotic trees retained as communal open space, and the regeneration of the northern bushland area.

The existing creek corridor along the site's western edge would also be rehabilitated and revegetated, creating additional separation between the new homes and the neighbouring Northern Beaches Business Park.

A heritage-listed cottage and its garden setting would be retained and restored, with SJB flagging its potential adaptive reuse as communal space.

The proposal also includes new communal recreation areas, pedestrian connections to Campbell Avenue and South Creek Road, and a contribution toward improvements to the adjoining Michele Reserve.

Vehicular access would be restricted to South Creek Road, with no vehicle entry proposed from Campbell Avenue. The main internal road would largely follow the site's existing driveway to minimise the impact on established trees.

SJB said residential redevelopment presented an opportunity to retain the majority of the site's heritage-listed mature trees while delivering a broader range of housing types than typically seen across the Northern Beaches.

"The site being 3.27 hectares in area represents one of the largest vacant sites in common ownership in the Cromer and Dee Why area capable of residential renewal," SJB noted in the masterplan.

The architect said the proposal would particularly target housing diversity through townhouses and other "missing middle" typologies suitable for singles, young families, downsizers and retirees.

<img alt="Cromer" data-entity-type="file" data-entity-uuid="e3f5d841-8491-427e-8ada-c70d3d03d6bc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-24%20at%2011.21.02%E2%80%AFAM.png?VersionId=xTV7r.q8lrTzC9vKzMS9zMbjm9wKwhgm" />

The site emerged following the subdivision of the former Roche campus into eastern and western parcels.

EG has already transformed the western portion into the Northern Beaches Business Park, which incorporates heritage-listed office space, modern warehouses and indoor recreation facilities.

The proposed residential community, referred to as Cromer East in SJB's plans, adjoins established housing to the north, east and south-east, while the business park sits beyond the creek corridor to the west.

It is also within 250 metres of Pittwater House School and Northern Beaches Secondary College, while bus stops within a three-to-five-minute walk provide connections to Dee Why, Brookvale and express services to the Sydney CBD. Cromer Park and the South Creek open space corridor are also nearby.

EG acquired the broader 7.5-hectare former Roche campus in 2017 for $55 million through its Yield Plus Infrastructure Fund No. 2. The campus at the time comprised more than 25,000 sqm of industrial and office buildings set within landscaped grounds.

The current residential site represents the eastern portion of that original holding.

EG's investment strategy for the fund has centred on acquiring income-producing real estate with longer-term rezoning and repositioning potential, particularly assets benefiting from infrastructure and changing land-use patterns.

EG also has an established residential track record across Sydney, including Bosco in Five Dock, Tempo in Drummoyne, The Flour Mill in Summer Hill and Pindari in Randwick.

The developer says it has delivered more than 1,000 homes to date, with a further 3,000-plus residences across its development pipeline.

First look: EG plans 130 apartments on former Roche pharmaceutical campus in Cromer

<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

SP Setia plans three-tower finale for Carlton’s former CUB precinct

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>
With expectations strong that the RBA will leave the cash rate on hold tomorrow at 2.75%, the latest APRA banking figures provide a sobering reminder of just how the dominant the major banks are in the home loan market.
And how far behind the so-called “fifth banking pillar” is in reality.
The Commonwealth Bank is Australia’s biggest mortgage lender by some distance with an owner-occupier home loan book of $219 billion, followed by Westpac ($170 billion), NAB ($141 billion) and ANZ ($128 billion), the APRA April figures show.
The fifth biggest mortgage lender to owner-occupiers is ING Direct with a home loan book of $27.6 billion followed by the regional banks Suncorp ($24 billion), Bendigo &amp; Adelaide Bank ($16 billion) and Bank of Queensland ($12.5 billion).
Collectively, these second-tier banks have a mortgage book of around $80 billion, still nearly $50 billion below that of the smallest of the big four banks, ANZ.
In investment housing lending, the top two reverse with Westpac leading the pack with a $125 billion mortgage book followed by the Commonwealth Bank ($98 billion), NAB ($53 billion) and ANZ ($49 billion).
Bank of Queensland is the fifth-biggest investment mortgage lender ($10.5 billion) followed by Suncorp ($9.8 billion), ING ($9.7 billion) and Bendigo and Adelaide Bank ($9.6 billion).
For borrowers considering taking out a home loan with one of the big four banks or refinancing into a big four bank home loan, these are their lowest advertised fixed and variable offerings:
Standard variable rates:
<table border="1" cellspacing="0" cellpadding="0" width="346"><tbody>
<tr>
<td width="134" valign="top">
Provider
</td>
<td width="97" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="134" valign="top">
NAB
</td>
<td width="97" valign="top">
6.13%
</td>
<td width="116" valign="top">
6.22%
</td>
</tr>
<tr>
<td width="134" valign="top">
ANZ
</td>
<td width="97" valign="top">
6.13%
</td>
<td width="116" valign="top">
6.23%
</td>
</tr>
<tr>
<td width="134" valign="top">
Commonwealth
</td>
<td width="97" valign="top">
6.15%
</td>
<td width="116" valign="top">
6.29%
</td>
</tr>
<tr>
<td width="134" valign="top">
Westpac
</td>
<td width="97" valign="top">
6.26%
</td>
<td width="116" valign="top">
6.39%
</td>
</tr>
</tbody></table>
Discount variable rate package offerings:
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td width="134" valign="top">
Provider
</td>
<td width="124" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="134" valign="top">
NAB
</td>
<td width="124" valign="top">
NAB Choice Package with 85 basis point saving $500k+)
</td>
<td width="97" valign="top">
5.28%
</td>
<td width="116" valign="top">
5.66%
</td>
</tr>
<tr>
<td width="134" valign="top">
Commonwealth Bank
</td>
<td width="124" valign="top">
Wealth Package 80 basis point saving
</td>
<td width="97" valign="top">
5.35%
</td>
<td width="116" valign="top">
N/A
</td>
</tr>
<tr>
<td width="134" valign="top">
ANZ
</td>
<td width="124" valign="top">
Breakfree Home Loan Package with 70 basis point discount ($700k+)
</td>
<td width="97" valign="top">
5.43%
</td>
<td width="116" valign="top">
5.50%
</td>
</tr>
<tr>
<td width="134" valign="top">
Westpac
</td>
<td width="124" valign="top">
Premier Advantage Package with 70 basis point discount
</td>
<td width="97" valign="top">
5.56%
</td>
<td width="116" valign="top">
N/A
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td width="137" valign="top">
Provider
</td>
<td width="123" valign="top">
Loan name
</td>
<td width="95" valign="top">
Rate
</td>
<td width="114" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="137" valign="top">
Westpac
</td>
<td width="123" valign="top">
Choice account and Premier Advantage package (limited time offer)
</td>
<td width="95" valign="top">
4.79%
</td>
<td width="114" valign="top">
5.87%
</td>
</tr>
<tr>
<td width="137" valign="top">
NAB
</td>
<td width="123" valign="top">
NAB Choice Package
</td>
<td width="95" valign="top">
5.09%
</td>
<td width="114" valign="top">
5.86%
</td>
</tr>
<tr>
<td width="137" valign="top">
ANZ
</td>
<td width="123" valign="top">
Breakfree Home Loan Package with 15 basis point discount
</td>
<td width="95" valign="top">
5.19%
</td>
<td width="114" valign="top">
5.66%
</td>
</tr>
<tr>
<td width="137" valign="top">
Commonwealth Bank
</td>
<td width="123" valign="top">
Wealth Package
</td>
<td width="95" valign="top">
5.19%
</td>
<td width="114" valign="top">
5.97%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table border="1" cellspacing="0" cellpadding="0" width="470"><tbody>
<tr>
<td width="131" valign="top">
Provider
</td>
<td width="131" valign="top">
Loan name
</td>
<td width="96" valign="top">
Rate
</td>
<td width="111" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="131" valign="top">
ANZ
</td>
<td width="131" valign="top">
Breakfree Home Loan Package with 15 basis point discount
</td>
<td width="96" valign="top">
4.99%
</td>
<td width="111" valign="top">
5.39%
</td>
</tr>
<tr>
<td width="131" valign="top">
NAB
</td>
<td width="131" valign="top">
NAB Choice Package
</td>
<td width="96" valign="top">
5.09%
</td>
<td width="111" valign="top">
5.80%
</td>
</tr>
<tr>
<td width="131" valign="top">
Commonwealth Bank
</td>
<td width="131" valign="top">
Wealth Package
</td>
<td width="96" valign="top">
5.09%
</td>
<td width="111" valign="top">
5.86%
</td>
</tr>
<tr>
<td width="131" valign="top">
Westpac
</td>
<td width="131" valign="top">
Fixed with 20 basis points discount
</td>
<td width="96" valign="top">
5.29%
</td>
<td width="111" valign="top">
N/A
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
For information on refinancing, watch our free webinar <a href="/news">The Do's and Don’ts of Refinancing Your Existing Home Loan ... and How to Avoid Unnecessary Hurdles</a>.
</body></html>

lschlesinger-FZcF9M3vE6

Cash rate likely to remain on hold in June: cheapest Big Four banks fixed and variable offerings

<html><body>
There is "medium-term risk" of house prices rising too fast and Australia entering housing "bubble territory", says The Australian Financial Review’s economic commentator David Bassanese.
Bassanese expects the RBA to have a “fairly easy” decision to make about leaving the cash rate on hold at 2.75% when it meets tomorrow, but beyond that the path is uncertain.
He says the RBA would want a “reasonable lift” in established house prices as part of a recovery in non-mining sectors of the economy but would not want house prices to rise “too far or too fast” – the reason it is likely to be cautious about cutting rates “anytime soon”.
He still maintains the belief that there is one more 25 basis point rate cut on the cards.
He expects house prices to rise by around 10% to 15% over the course of the RBA’s easing cycle, peaking around mid-2014 and says the recent improvements in home sales rates in NSW suggests house prices are moving in the right direction.
“Having been flat for several years, they are not yet in danger of reaching bubble territory – though that remains a medium-term risk,” he says.
Since November 2011 the RBA has cut the cash rate by 200 basis points from 4.75% to 2.75%.
As noted by <a href="/news">AMP Capital chief economist Shane Oliver in May</a>, house prices had risen just 1.9% a year-and-a-half into the easing cycle since November 2011 compared with an 11% gain in the last easing cycle, which commenced in September 2008.
RP Data- Rismark will today report around <a href="https://www.propertyobserver.com.au/residential/autumn-blues-as-dwelling-values-dip-again-in-may-rpdata-timlawless/2013052661671" target="_blank">a 1% correction in house prices</a> following a 0.5% decline in April.
<a href="/news">Twenty four out of twenty five economists</a> polled by Bloomberg expect the RBA to leave the cash rate on hold in June when it meets on Tuesday.
</body></html>

"Medium-term risk" of Australia reaching housing “bubble territory”: David Bassanese

<html><body>
Twenty four out of twenty five economists polled by Bloomberg expect the RBA to leave the cash rate on hold in June when it meets on Tuesday (June 4).
AMP Capital Investors chief economist Shane Oliver is the only economist who expects the cash rate to fall to a new low of 2.5%.
Last week Oliver and Westpac’s Bill Evans were the only two economists polled who tipped a rate cut in June.
Evans has returned to market consensus, arguing that financial market and real economy developments since the May 7 meeting, when the cash rate was cut by 25 basis points to 2.75%, “have, on net, not been supportive of an immediate follow-up move”.
“As a consequence, we now anticipate that the next move is likely to be delivered in August,”he says.
Oliver says he expects another 25 basis point rate cut next week, but admits that it's "another close call as the RBA may decide that having cut in May and with the fall in the Australian dollar it will wait and assess for now”.
“Against this though, the Australian dollar hasn't really fallen enough to provide a big stimulus to the economy (it’s just at the low end of the range its been in for two years), the latest business investment readings confirm that mining investment has peaked and that non-mining investment is likely to remain weak, readings for business and consumer confidence have been poor, forward looking jobs indicators are soft and the toughish Budget and Ford's decision to quit manufacturing seem to have added to the sense of gloom surrounding the Australian economy. 
“As a result, with low inflation providing plenty of scope to ease the RBA should act again on its easing bias and on balance we think that it will,” he adds. 
<a target="_blank" href="/news">HSBC Australian and New Zealand chief economist Paul Bloxham</a> expects a rate hold in June with his principle argument being the 6% weakening of the Australian dollar against the US dollar since the RBA cut the cash rate on May 7. 
He says the recent depreciation of the dollar has had the effect of adding to 0.1% to Australia’s GDP – “which is around the same as the estimated effect of a 25 basis point rate cut”. 
The odds of a rate cut rise in the third quarter of the year with 10 out of 25 economists favouring a downward move by the RBA.
</body></html>

AMP’s Shane Oliver the lone economist out of 25 tipping the RBA to cut rates next week: Bloomberg

<html><body>
The Reserve Bank will leave the cash rate on hold at 2.75% when it meets on Tuesday, says HSBC Australia and New Zealand chief economist Paul Bloxham.
His principle argument in favour of a rate hold is the 6% weakening of the Australian dollar against the US dollar since the RBA cut the cash rate from 3% to 2.75% on May 7.
He says the recent depreciation of the dollar has had the effect of adding to 0.1% to Australia’s GDP – “which is around the same as the estimated effect of a 25 basis point rate cut”.
“So the Australian dollar fall could be thought of as already delivering another rate cut,” says Bloxham.
The Australian dollar is currently trading around 96 cents against the American dollar having traded at just below $1.03 prior to the May 7 announcement.
Bloxham says the depreciation of the dollar means progress is being made on the “great rebalancing” of the Australian economy.
“As the RBA acknowledged at the beginning of the month, the economy was already showing signs of rebalancing.
“Retail sales are up, housing prices are rising, and new lending to households is picking up.
“Yesterday's capital expenditure survey reminded us that mining investment is slowing down - not collapsing - and that investment intentions for firms outside of the mining sector are still for a lift in capital spending next year.
Bloxham says future decisions about the cash rate will be “highly dependent on where the Australian dollar heads from here”.
He says last month’s decision by the RBA to cut the cash rate by 25 basis points was “in our view, largely because of the persistent strength of the Australian dollar”.
“The high Australian dollar had put more downward pressure on inflation than expected, which left the door open for the RBA to cut rates, which it did,” he says.
“Since then, the Australian dollar has depreciated 6% against the US dollar and 5% on a trade-weighted index (TWI) basis.
Bloxham says the Australian dollar fall would be welcomed by the RBA.
“Indeed, had the Australian dollar been at its current level when the RBA met last month, we suspect it may not have cut rates,” says Bloxham.
“For this reason, he expects the RBA to leave the cash rate on hold next week.
</body></html>

RBA to leave cash rate on hold next week as “great rebalancing” of Australian economy makes progress: HSBC's Paul Bloxham

<html><body>
Investors in collapsed mortgage lender Provident Capital’s monthly income fund (MIF) have received further distributions as liquidators from PPB Advisory continue to dispose of loans.
MIF unit holders received nine cents per unit on May 17 following distributions totalling 61 cents per unit since December last year.
Unitholders in Provident Capital’s high yield fund (HYF) have received 66 cents per unit in total distributions, with the last payment of 14 cents per unit in February.
Creditors voted to <a href="https://www.propertyobserver.com.au/news/provident-capital-s-creditors-vote-to-liquidate/2012102457415">liquidate the $130 million subprime lender</a> in October.
Provident Capital acted as a lender of last resort on risky development, charging very high interest rates and fees.
It collapsed in July last year following an application by Australian Executor Trustees Limited (AET), a trustee for Provident Capital debenture holders. It then emerged that 85% of loans were six months or more in arrears.
“The timing and amount of any further payments from the fund will depend on how the wind up process proceeds and the extent to which the remaining assets continue to earn income,” said Marcus Ayres, Tony Sims and Philip Carter receivers and liquidators from PPB Advisory.
“Income distributions may be made at the same time as payments arising from the realisation of the fund's assets.
“Investors will receive a tax statement in respect of their income distributions at the end of the financial year
To date distributions to unitholders totalling 66 cents in every dollar invested have been made.
</body></html>

Provident Capital investors receive further distributions

<html><body>
The Reserve Bank will leave the cash rate on hold at 2.75% until November, according to JP Morgan chief economist Stephen Walters.
Walters believes the dollar is key to the RBA making its next cash rate cut decision.
In newly published research, he expects the Australian dollar’s return to parity against the US dollar – making it harder for industries like manufacturing, tourism and retail – to be competitive will force the RBA to take the cash rate to a new record low of 2.5%.
As highlighted by other economists, Walters says tomorrow’s official capital expenditure figures will provide insights into the health of the overall Australian economy.
He also anticipates the unemployment rate rising while expecting GDP to be only 2.75% next year, reducing his earlier forecasts of 3.25% economic growth in 2014.
The latest Bloomberg survey has 10 out of 21 economists forecasting a cash rate of 2.5% in the final quarter of 2013 with Westpac’s Bill Evans tipping a cash rate of 2.25% and the remainder anticipating now rate cut this year.
Only two economists – Westpac's Bill Evans and AMP Capital's Shane Oliver – expect a rate cut in June.
Yesterday Citibank cut its <a href="/news">five-year fixed-rate home loan to 5.35%.</a>
These are the current lowest fixed and variable rates (as of May 28):
Lowest variable rate offerings:
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="127" valign="top">
Provider
</td>
<td width="129" valign="top">
Loan name
</td>
<td width="98" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="127" valign="top">
State Custodians
</td>
<td width="129" valign="top">
State Custodians Peak Performance Offset Home Loan
</td>
<td width="98" valign="top">
4.74%
</td>
<td width="116" valign="top">
5.11%
</td>
</tr>
<tr>
<td width="127" valign="top">
Loans.com.au
</td>
<td width="129" valign="top">
Blackboard special – purchases only
</td>
<td width="98" valign="top">
4.75%
</td>
<td width="116" valign="top">
4.77%
</td>
</tr>
<tr>
<td width="127" valign="top">
UBank
</td>
<td width="129" valign="top">
UHomeloan – refinance only
</td>
<td width="98" valign="top">
4.87%
</td>
<td width="116" valign="top">
4.87%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="137" valign="top">
Provider
</td>
<td width="123" valign="top">
Loan name
</td>
<td width="95" valign="top">
Rate
</td>
<td width="114" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="137" valign="top">
Greater Building Society
</td>
<td width="123" valign="top">
Ultimate Home Loan Package
</td>
<td width="95" valign="top">
4.74%
</td>
<td width="114" valign="top">
5.51%
</td>
</tr>
<tr>
<td width="137" valign="top">
UBank
</td>
<td width="123" valign="top">
UHomeloan – refinance only
</td>
<td width="95" valign="top">
4.83%
</td>
<td width="114" valign="top">
5.12%
</td>
</tr>
<tr>
<td width="137" valign="top">
iMortgage.com.au
</td>
<td width="123" valign="top">
iMortgage Fusion 75
</td>
<td width="95" valign="top">
4.84%
</td>
<td width="114" valign="top">
5.08%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="133" valign="top">
Provider
</td>
<td width="133" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="108" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="133" valign="top">
iMortgage.com.au
</td>
<td width="133" valign="top">
iMortgage Fusion 75
</td>
<td width="97" valign="top">
4.94%
</td>
<td width="108" valign="top">
5.16%
</td>
</tr>
<tr>
<td width="133" valign="top">
Loans.com.au
</td>
<td width="133" valign="top">
Dream Loan Express Fixed
</td>
<td width="97" valign="top">
4.99%
</td>
<td width="108" valign="top">
4.93%
</td>
</tr>
<tr>
<td width="133" valign="top">
Aussie
</td>
<td width="133" valign="top">
Aussie Select Basic Fixed Rate
</td>
<td width="97" valign="top">
4.99%
</td>
<td width="108" valign="top">
5.22%
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
</body></html>

Cash rates to remain on hold until November: JP Morgan’s Stephen Walters

<html><body>
Macquarie Group, which has one of the fastest growing home loan books and a wholesale funding deal with Yellow Brick Road, has a 4% delinquency rate on home loans securitised through its PUMA program, according to Moody's.
This is more than double the overall mortgage arrears rate of <a href="/news">1.66% for borrowers more than 30 days behind on mortgage repayments</a>.
The chart below shows Macquarie's delinquency rate has been rising since around September 2011.
Arrears rates are modest by comparison at AMP, HSBC, ING and other banks.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/05/moodysmay28two.gif" rel="shadowbox"><img src="/images/stories/2013/05/moodysmay28twothumb.gif"></a>
</body></html>

Macquarie mortgage delinquencies surge to 4% of securitised loan book: Moody's

<html><body>
Last week, I <a href="https://www.propertyobserver.com.au/residential/it-s-a-great-time-to-re-finance-but-consider-the-true-cost-of-doing-so-cameron-mcevoy/2013052361540" target="_blank">mentioned how now is a great time to refinance</a>, and listed some general considerations to costs involved when refinancing and identifying whether it is worth it to switch or stay put.
Today I want to take that one step further and (assuming you have calculated it is worth your while to refinance) present some tactics to consider when refinancing and the kinds of setups you might want to consider. I’ll then illustrate how these tactics can work with an example.
Before I do that though, I must mention up front that I am not a finance expert, nor do I have any qualifications in financial planning whatsoever, so I cannot offer any advice whatsoever regarding finance strategy.
Please do not take my examples and tactical suggestions as financial advice specific to you; instead this is more generalist tactics that I urge to you at least consider in your decision making process. So, whilst I’ll aim to answer questions such as:
-          Do you fix the lost?
-          How much do you fix and how much do you leave as variable?
-          Do you cross collateralise or not?
I can only offer a view on such questions. The truth is, every situation is different, so these are decisions you must make and seek professional advice on. All I can do is share some things that have worked for me on my journey. I am keen to hear from others who have employed successful refinancing strategies within their portfolios, as well as any criticisms of the tactical approach I mention below.
With that said, I would suggest you consider some of following tactical examples. Where possible I try to use fictional examples because it is easier to explain things in that way.
1) Know your short, medium, and long term goals within a property investment context
And I don't mean wishy-washy 'life goals' such as ‘I want to retire at age X’ or ‘I want to have enough money to go on a holiday every year’. These kinds of goals are important for us all, but to realise those big bold ones via tactics like property investment, you need to break that down into specific goals within purely your property investment life. Knowing where you want to be during these timescales will help infer your course of action.
2) Consider the type of loan product split that is right for you
As an investor and not a home owner, you should consider majority-fixed mortgage products due to the great rates on offer and the short-term (say 2-3 years) security that a majority-fixed loan at such a low rate, offers you. This is especially true if you are in an acquisition phase of your property investment life. Having the security of (mostly) fixed repayments for a couple of years means you can know your plan what buckets you allow your income streams to feed into, and enables you to park dollars in other places that you will have saved whilst on this short term phase. This could result in you being enabled to acquire more properties during the coming years more quickly than before.
 
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3) Think about what happens to the fixed portion of any loan product, when it ends
So you are refinancing to a new 25 or 30 year mortgage, with a great fixed rate on a big portion of that loan. However, the fixed rate expires in only a couple of years (say five years maximum). It is critical to negotiate and agree a good deal for that fixed portion when its term ends. Normally, a fixed portion simply reverts to a variable loan, and gets the rate-of-the-day for that variable portion. You need to be mindful of this and where possible, negotiate a good variable rate incentive (say, a portion of discount on whatever their standard variable loan rate is, at the time), for when the fixed rate portion expires.
4) Consider the 'true benefit' of fixing a majority portion of a loan for that time period
Even though I am not a finance expert, I can tell you that as an investor, no planner will ever recommend you fix 100% of your mortgage(s). That is simply not a smart move. In my view, the strategy that has worked for me during my pre-refinance calculations is this: Only leave as a variable portion, a percentage of the overall loan amount that enables the benefit of an offset account’s maximum value usage. This maximum usage can really only feasibly be an amount either equal to, or slightly greater, than the cash amount you could save up yourself, within that fixed rate period of the overall loan. What on earth does that mean, I hear you think? Let me illustrate with an example where I will attempt to simplify it:
-          Let's say you have one investment property that carries a $300K loan, and you are considering switching to a loan where you can get a great rate fixed for two years
-          As an investor you know the value of having an offset account already, so you know you want one on your new mortgage product with the new lender
-          Let's say your current annual income salary after tax is $45K. Out of that, after deducting living expenses and commitments, as well as all holding costs on the property - including interest repayments, rates, management costs and so on - and allowing for things like holidays and other purchases, you figure you'll have save say $15K of your salary per year
-          This means over that first 2-year period of that fixed rate deal, you'll probably save no more than $30K cash. Assuming you park all of this in your offset account, this means that at month #24 of the new product, you'll have the offset benefit of $30K of 'loan' that you avoid paying interest on. Happy days!
-          The way an offset account works means that there is no point having one, if it is not able to offset at least as much as you would be able to put into it. I.e. if your variable loan portion was only $20K of your $300K mortgage, the offset is only good for up to $20K of value, meaning that if you had $30K of savings, you’d have $10K that would have to sit in your regular savings account, doing sweet-nothing to reduce interest on $10K’s worth of mortgage repayments.
-          So, to help infer how much of your new mortgage you'd want to fix at a great rate and how much you'll leave variable (I.e. up to the 'chance' of variable rates staying low too, over two years!), you should leave as the fixed amount, say 10% more than the maximum you feel you could save during the period, as a neat buffer to work with
-          For this example, the person should really consider a variable loan portion of $33K ($30K maximum savings achievement plus 10% buffer). This makes the ratio of variable product overall, about 11%, meaning that 89% of the remainder of the loan product ($267K) should be fixed - if the fixed rate on offer is super-duper of course!
In my personal circumstance I am actually in the settlement phase of fixing a big portion of my entire portfolio for two years. My personal ratios for this period will be 87% fixed, with 13% variable.
I know that for that variable portion: over two years I'll probably only be able to save about 9-11% of that 13%, meaning I'll maximize my offset benefit whilst still allowing a buffer either side.
I have also ensured that at the end of the two years, that 87% fixed portion can be either renewed for another fixed period (if I feel rates are favourable to this arrangement), or it will revert to a variable rate that has already been pre-discounted for me, for when that day comes.
To conclude this two-part piece, my fundamental recommendation when refinancing your investment property mortgage(s) is really very simple, and involves just two things:
1)      Do your maths and find out if it is worth it to switch
2)      If switching, make sure you get a produce and access to account features that enable you to take advantage of the cheap rates of interest, in order to unlock more wealth to acquire more property.
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" rel="nofollow" target="_blank">Property Correspondent.</a>  
 
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Tactics to consider when refinancing your mortgage: Cameron McEvoy

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Non-bank lenders have the highest mortgage arrears rates compared with their deposit-taking banking rivals, Moody's mortgage delinquency figures show.
The graph below represents 30 days plus mortgage delinquency rates for major bank, regional bank, other banks (credit unions, building societies) and non-authorised deposit taking institutions (non-banks) based on securitised lending only.
It shows the wide gap between non-bank lenders and banks, though mortgage arrears rates are rising across all lender types, in line with a small overall rise in mortgage delinquencies in March to 1.66%.
Click to enlarge
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Non-banks have highest mortgage arrears: Moody's

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Following the May RBA rate cut , lenders continue to cut their fixed-rate home loan offerings with Citibank the latest to do so.
The bank has cut its Citibank Mortgage Plus five-year fixed home loan rate to 5.35% per annum, which it claims is the lowest five-year fixed-rate offering in the Australian market.
UBank currently offers a five-year refinancing-only fixed-rate home loan at 5.41%, the next cheapest five-year fixed-rate offering, according to RateCity.com.au.
Five-year fixed-rate home loans are the second most popular fixed-rate term, <a href="https://www.propertyobserver.com.au/news/monday-feb-25-feature-the-fix-is-on-for-bank-mortgage-rates-should-you-take-the-deal/2013022159504" target="_blank">according to research by homeloanfinder.com.au</a>, accounting for around 20% off all fixed-rate home loans.
Three-year fixed-rate home loans make up two-thirds of fixed-rate home loan applications in Australia.
Citibank previously cut its two-year fixed home loan rate to <a href="/news">4.89% at the end of April.</a>
“Fixed rates continue to be in high demand by consumers; with over 50%  of our new applications having a fixed rate component," says Vibha Coburn, head of mortgages at Citibank in Australia.
“Since September 2012, Citibank has reduced its five-year fixed rates by 34 basis points, while our two-year fixed rates have dropped 86 basis points.
"We look to provide competitive alternatives for those customers who look for stability in their mortgage repayments," she says.
Citibank is also offering a free 60-day rate lock which allows customers a guaranteed low fixed rate for 60 days after their application has been submitted.
Citibank offers borrowers who wish to take advantage of the new rate conditional approval in under 24 hours if all relevant information is supplied.
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