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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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>
NAB has announced that it will pass on 20 out of the 25 basis points cut from the cash rate by the RBA yesterday.
The bank's standard variable home loan rate will fall from 6.58% to 6.38% per annum on December 10 - the lowest of the major banks with the Commonwealth Bank (6.6%) and Westpac (6.71%) yet to make an announcement on rates and ANZ (6.6%) making its independent decision on Friday, December 14.
NABs head of personal banking, Lisa Gray said the rate cut delivers on its pledge to offer the lowest standard variable home loan rate of the major banks for 2012 - however the bank did not say whether it would continue with this pledge in 2013.
The bank has offered the lowest standard variable home loan rate of the major banks for 41 months.
"Throughout the year, we have consistently acted to deliver on our pledge to our customers to offer the lowest standard variable rate throughout 2012," she said.
NAB must be fairly confident that neither the Commonwealth Bank nor ANZ will pass on 23 basis points or more.
Were they to do so, the Commonwealth Bank and/or ANZ's standard variable rate would reduce to 6.37% meaning they would have a lower standard variable offering than NAB - a public relations disaster.
Gray said NAB's decisions on interest rates were not taken lightly and the bank sought to strike the right balance between the cost of funding and offering competitive rates to customers.
Update, the <a target="_blank" href="/news">Commonwealth Bank</a> has announced it will pass on 20 basis points to borrowers, reducing its standard variable rate to 6.40% from December 10. 
 
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lschlesinger-FZcF9M3vE6

Rate watch: NAB moves first among big four passing on 20 basis points 

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Few Australian housing policies are more <a target="_blank" href="https://www.prosper.org.au/wp-content/uploads/2012/09/Philip_Soos_Written_Off_Negative_Gearing.pdf">contentious than negative gearing</a>. Despite the publicity it has received and its popularity with government and property investors, little analysis of negative gearing can be found within easy reach, with much of it accessible only in academic journals. Only an occasional fragment is found in the mainstream media.
Australia’s policy on negative gearing is considered a sacred cow by investors and politicians, with <a target="_blank" href="https://news.domain.com.au/domain/home-investor-centre/blogs/domain-investor-centre-blog/what-housing-policy-20120621-20pcl">Prime Minister Julia Gillard</a>, <a target="_blank" href="https://www.theaustralian.com.au/national-affairs/treasury/wayne-swan-stands-by-negative-gearing/story-fn59nsif-1226321644363">Treasurer Wayne Swan</a> and <a target="_blank" href="https://www.couriermail.com.au/news/breaking-news/housing-crisis-negative-gearing-will-stay/story-e6freono-1226462610490">Federal Housing and Homelessness Minister Brendan O'Connor</a> ruling out changes to this policy. The reason for this obstinacy is that negative gearing allows a property investor to deduct losses against the investor’s personal income of the investor at their marginal tax rate (MTR), a tax minimisation strategy adopted by 1,110,922 taxpayers who vote. Property is run at a net loss when interest payments and property-related expenses like <a target="_blank" href="https://www.ato.gov.au/content/downloads/IND00270214N17290611.pdf">repairs and maintenance</a> exceed rental income.
The strong Australian economy has not experienced a recession since the early 1990s. This along with reduced personal tax burdens, real rising incomes, extensive property <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url=hsaf_ctte/report/report.pdf">subsidies</a> and <a target="_blank" href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate_Committees?url=hsaf_ctte/report/report.pdf">tax breaks</a>, and rapid increases in property values, delivered an economic environment conducive to negative gearing. From 1996 to 2010, housing prices surged by 130%, adjusted for inflation and quality.
The present <a target="_blank" href="https://housingstressed.org.au/wp-content/uploads/2011/09/Australias_Broken_Housing_System.pdf">housing and rental affordability crisis</a> is placing tremendous <a target="_blank" href="https://housingstressed.org.au/wp-content/uploads/2011/10/Housing-costs-through-the-roof-Final-Report.pdf">financial stress</a> on many Australians as <a target="_blank" href="https://www.rba.gov.au/speeches/2008/images/sp-so-270308-graph1.gif">housing and rental prices have outpaced wages</a>, and provided the spark for the public to question the validity of subsidising investors, whether they choose to gamble on making a return by selling property at a higher price or eventually becoming cash flow positive when rents rise to exceed outgoings.
Despite the fact that negative gearing has existed for a long time, much assertion but surprisingly little evidence has been made to justify this policy across all classes of investment, whether it be shares, business, or property investment. The supporters of negative gearing provide negligible evidence to show that is it a sound policy.
Deductibility and tax minimisation under negative gearing
It is common sense that both businesses and investors should be allowed to deduct the costs directly incurred in making an income, but labour is unable to do so. A salaried employee incurs substantial costs in the course of earning a wage (for instance, accommodation, travelling to and from the workplace, and childcare) but government policy bars deduction of these costs against wages.
There is a double standard in operation here. From a distributional or equity perspective, this policy is biased towards the <a target="_blank" href="https://taxreview.treasury.gov.au/content/downloads/report/Architecture_of_Australias_Tax_and_Transfer_System_Revised.pdf">wealthy</a>, as business and investment capital <a target="_blank" href="https://www.melbourneinstitute.com/downloads/working_paper_series/wp2004n12.pdf">ownership</a> is concentrated into this class, which relies proportionately less upon wages.
The disparity between wage earners and investors is exacerbated when negative gearing is considered. The net income loss from an investment property reduces the investor’s personal tax liability, even though that loss was generated elsewhere. Earning a wage and earning income from an investment are two separate activities and should be treated as such. Business commentator Alan Kohler <a target="_blank" href="https://www.propertyobserver.com.au/https://www.smh.com.au/articles/2004/06/28/1088392603764">accurately summarised</a> the inconsistency between investment and employment:
Five years ago treasurer Peter Costello told Australians: “Work for a living and we’ll tax you at close to 50 cents in the dollar; speculate and we'll only take 25 cents. Not only that but, as a special deal – while stocks last – we’ll pay half your speculating costs.”
To sum up this line of reasoning, investors are unduly advantaged by the present taxation arrangements relative to labor. Investment capital is overwhelmingly concentrated in the wealthiest households, who deduct investments costs against income generated, have the highest personal incomes and thus MTRs, can deduct investment losses against their personal tax liability (negative gearing), can carry forward losses and lower their effective MTRs.
Clearly, the tax system is biased towards the rich in terms of cost deduction and tax liability minimisation. Some of this bias can be reduced by maintaining consistency: labour should be allowed to deduct costs against wages but disallow negative gearing for investors.
 
<hr class="system-pagebreak">
 
Increasing the rental stock and lowering rents
This is the <a target="_blank" href="https://media.hia.com.au/enews/industryupdate/iss3/media/Negative_Gearing_Feb11.pdf">primary argument in favour of negative gearing</a>, that it provides an incentive to investors to purchase property for rent, thus increasing the supply of rental properties as a proportion of the total housing stock. As the reasoning goes, negative gearing holds rental prices down, benefitting tenants.
The evidence shows otherwise: <a target="_blank" href="https://www.macrobusiness.com.au/2011/04/negative-gearing-on-the-nose/">92% of residential property investment</a> is for the purchase of existing dwellings rather than those newly constructed, meaning that former owner-occupiers and tenants have to purchase or rent elsewhere, respectively, thus resulting in little to no net increase in the supply of rental dwellings.
In the long term, it makes little sense for the supply of rental properties to increase compared to the total residential stock unless there is a profound upward swing in housing prices, with investors spurred into the market on expectations of making a substantial profit through realising capital gains upon sale. Accordingly, there is little incentive when <a target="_blank" href="https://debtdeflation.com/blogs/wp-content/uploads/2010/09/KeenCLSAReportHandOfGov.pdf">long-term data</a> from Australia and other countries shows that housing prices track inflation, despite numerous and ongoing booms and busts.
Negative gearing is also <a target="_blank" href="https://www.propertyobserver.com.au/https://www.austlii.edu.au/au/journals/DeakinLRev/2002/17">badly targeted</a> as high-income professionals and millionaires also allegedly receive lower rents along with those who do need it. If policymakers are concerned about rental affordability, there are other options to pursue. The obvious candidate is the Centrelink <a target="_blank" href="https://www.humanservices.gov.au/customer/services/centrelink/rent-assistance">Commonwealth Rent Assistance</a> (CRA) scheme, a subsidy provided to low-income tenants.
The effects of quarantining negative gearing in the 1980s
The <a target="_blank" href="https://www.theage.com.au/business/a-negative-impression-20110501-1e30g">favourite scare story</a> promulgated by the housing lobby is that when the Hawke/Keating government quarantined negative gearing during 1985-87, it caused rental prices to surge, quickly leading to its reinstatement. Fortunately, not only did the evidence refute this <a target="_blank" href="https://www.theage.com.au/business/time-to-change-the-unfair-rules-for-negative-gearing-20110424-1dsu6">urban myth</a>, it showed that negative gearing can be safely quarantined, if not abolished.
Rents rose in Perth and Sydney only, remained steady in Melbourne and Canberra, and fell in Brisbane, Adelaide, Hobart and Darwin. If the lobby was correct, quarantining should’ve adversely affected all capital city rental markets equally, not just two out of eight (even when factoring in a lagged response). There were <a target="_blank" href="https://www.asb.unsw.edu.au/research/publications/ejournaloftaxresearch/Documents/paper4_v3n1.pdf">confounding factors at work</a>: rising interest rates, introduction of capital gains tax and a stock market bubble.
Oddly enough, while the lobby claims that quarantining will increase rents, the inverse is not considered: rents have escalated from 2006 onwards while negative gearing was in effect. Perhaps they could claim that rents would’ve been higher otherwise, but this is an ad infinitum argument, that is, negative gearing is not generous enough, so by increasing the scope of tax deductibility, it can serve to further constrain rents.
How much does negative gearing cost?
ATO data provides an estimate of the cost of negative gearing: in 1993-94 it was $850 million, fluctuating around the $1 billion mark over the next several years. As investors piled into the market, the cost rapidly escalated to a peak of $3.8 billion in 2007-08 before falling to $2.9 billion in 2009-10. Over the last 17 years, negative gearing has cost taxpayers an inflation-adjusted $33.5 billion (2012 dollars).
What to do?
Policy outcomes can be enhanced by quarantining negative gearing deductions to the purchase of newly constructed properties but not for established properties. It would be even better to remove it, as it makes little sense to subsidise property investors, regardless of the reasons for investment when there are <a target="_blank" href="https://housingstressed.org.au/2012/08/30/aah-releases-a-4-point-plan-to-fix-our-housing-crisis/">better policies</a> for helping low-income tenants.
Also, the negative gearing debate presupposes the existence of income taxation, which has no justification when <a target="_blank" href="https://www.prosper.org.au/wp-content/uploads/2007/11/dwyer-tax-resources.pdf">evidence suggests that substantial amounts of tax revenue</a> can be raised from far more efficient bases. Income tax is one of <a target="_blank" href="https://www.taxreview.treasury.gov.au/content/html/Publications/papers/report/image/section_2-2.gif">125</a> <a target="_blank" href="https://taxreview.treasury.gov.au/content/html/commissioned_work/downloads/KPMG_Econtech_Efficiency%20of%20Taxes_Final_Report.pdf">burdensome taxes</a> that productive individuals and business bear the brunt of.
According to the property lobby, it’s <a target="_blank" href="https://www.smh.com.au/business/negative-gearing-is-safe-from-tax-review-treasurer-hints-20100326-r34t">too dangerous to reform negative gearing</a>, let alone abolish it. Fortunately, there’s no requirement for anyone to believe the lobby, given the weight of evidence against their assertions and the fact that they have enough conflicts of interest to fill a book.
Philip Soos is a researcher at the School of International and Political Studies at <a target="_blank" href="https://www.deakin.edu.au/">Deakin University.</a>
 
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psoos-uR5EGb6SbQ

 Negative gearing has worsened the housing crisis and cost taxpayers billions of dollars: Philip Soos

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The Reserve Bank’s decision to cut the cash rate to 3% appears to have been taken – perhaps belatedly – to stimulate the non-mining sectors of the economy as well as provide a greater buffer against further global economic weaknesses.
Many will argue that it has come too late and that the RBA should have made adjustments earlier for struggling sectors like manufacturing, retail and tourism.
It also suggests some inconsistency in thinking (as pointed out rather harshly by<a href="https://www.businessspectator.com.au/bs.nsf/Article/RBA-Reserve-Bank-interest-rate-cut-inflation-pd20121204-2N6WD?OpenDocument&amp;utm_source=exact&amp;utm_medium=email&amp;utm_content=143786&amp;utm_campaign=pm&amp;modapt=commentary" target="_blank"> </a><a href="https://www.businessspectator.com.au/bs.nsf/Article/RBA-Reserve-Bank-interest-rate-cut-inflation-pd20121204-2N6WD?OpenDocument&amp;utm_source=exact&amp;utm_medium=email&amp;utm_content=143786&amp;utm_campaign=pm&amp;modapt=commentary" target="_blank">Business Spectator's Adam Carr</a>) when looking back at concluding remarks in the November statement with the RBA content to adopt a wait and see approach as to the impact of earlier rate cuts.
“Further effects of actions already taken to ease monetary policy can be expected over time. The board will continue to monitor those effects, together with information about the various other factors affecting the outlook for growth and inflation,” said Glenn Stevens in his November statement.
The December statement says growth has been “running close to trend over the past year” and that inflation is “consistent with the medium-term target”, so on those two fronts the need for a rate cut cannot be argued.
The conclusion which can then be drawn is that concerns about the world economy and the need for stimulus of the non-mining sectors of the economy have finally become uppermost in the mind of the RBA.
Certainly, the housing market is not worrying the RBA as much as it has previously, with Stevens noting in his December statement that there are “indications of a prospective improvement in dwelling investment, with dwelling prices moving a little higher, rental yields increasing and building approvals having turned up”.
And access to capital for big business and banks is also not a problem in the minds of the RBA board members.
“Capital markets remain open to corporations and well-rated banks, and Australian banks have had no difficulty accessing funding, including on an unsecured basis. Borrowing conditions for large corporations are similarly attractive and share prices have risen since mid-year," said Stevens.
Indeed, such statements could have been taken to justify a rate hold.
But clearly the two-speed economy is a serious concern.
“Available information suggests that the near-term outlook for non-residential building investment, and investment generally outside the resources sector, remains relatively subdued. Public spending is forecast to be constrained,” said Stevens in his December statement.
Adding to this, the RBA is also concerned about the forecast slowdown in the mining investment boom and that other sectors of the economy will need to grow to keep the economy on track.
“In Australia, most indicators available for this meeting suggest that growth has been running close to trend over the past year, led by very large increases in capital spending in the resources sector, while some other sectors have experienced weaker conditions.
“Looking ahead, recent data confirm that the peak in resource investment is approaching. As it does, there will be more scope for some other areas of demand to strengthen,” said Stevens.
The RBA also highlights a gloomier global outlook with global growth “forecast to be a little below average for a time”, with risks to the outlook “still seen to be on the downside”.
Given the focus on the mining investment slowdown (expected to peak in 2014) and a desire to stimulate the non-mining sectors, further rate cuts should be expected in 2013, perhaps earlier rather than later.
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Rate cut aims to stimulate non-mining sectors of the economy

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Australia's fifth biggest mortgage lender, ING Direct has thrown down the gauntlet to the major banks by passing on today's RBA cash rate cut in full.
ING Direct will lower the interest rate on its variable mortgages by 0.25 percentage points, effective Monday December 24.
The online bank's most popular home loan the Mortgage Simplifier will reduce to 5.72% p.a.
“Our funding position has eased recently allowing us to pass on 25 basis points, however, the threat of elevated funding costs has not passed completely, " says ING Direct CFO Glenn Baker.
ING Direct has a $38 billion home loan book.
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Online ING Direct quick to move with full rate cut passed on to borrowers

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Reserve Bank rate cuts no longer have any meaningful impact on housing market activity, according to Laing+Simmons general manager Leanne Pilkington, following today’s 25 basis point cash rate cut.
Swimming against the tide of industry commentary forecasting a housing market bounce in 2013, Pilkington says that while borrowers may get a final reprieve for the year from the rate cut, the Reserve Bank "no longer has the relevance or power to stimulate housing market activity as the banks are either not passing on the cuts, or passing on only a fraction of them".
“The net result is that interest rate cuts at the Reserve Bank level are not having an impact. The subdued levels of transactional activity, despite the official cash rate being at historical lows, not only emphasises the caution among buyers but also the lack of stock on the market,” said Pilkington.
“The end result of the lack of consumer confidence – and trust – in the banks is that more people are staying put, fewer first home buyers are taking the first step to ownership, and those in need of an upgrade are hesitant to make a move in the current climate.”
Laing+Simmons recorded a 30% jump in open for inspections in October over September as well as a rise in the number of auction attendees and market appraisals following the October 3 rate cut, but the rally was short lived with November numbers back on par with September.
Pilkington said spring contributed to the usual spike in activity, with the market unable to maintain the upward momentum.
She said the government needed to investigate “new avenues to stimulate activity, as cash rate adjustments are no longer cutting it and said there was a need for to incentivise the developer side of the equation “because caution is dictating the buyer side at present”.
She also called for a “reconsideration of stamp duty” calling it “the single most restrictive tax inhibiting transactional activity, one which effectively quashes a potential deposit for many buyers”.
Other market commentators said the rate cuts would have an impact.
“Two interest rate cuts this quarter (October and now December) improve the prospects of a tangible recovery emerging in 2013 for both new home building and renovations activity,” said HIA chief economist, Dr Harley Dale.
 "Lower interest rates make a vital contribution to improving conditions for the residential construction industry, but government action is the key.”
Residential developer Sekisui House, currently building the $2 billion Central Park mixed-use project in inner Sydney in partnership with Frasers Property Group and The Hermitage residential community in Sydney’s South West said the 0.25% cut would boost the property market in the coming months
“In our market, we’ve noticed a trend in higher sale volumes corresponding to previous rate cuts throughout 2012, which we believe is also buoyed by the significant State Government commitment to infrastructure in Sydney’s South West,” said Craig D’Costa, Sekisui House senior development manager at The Hermitage.
Matt Daly, general manager of residential builder Hotondo Homes, welcomed the rate cut and said it would bring the dream of building and owning your own home “a little more reachable”.
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RBA rate cut won’t stimulate housing market pick-up: Leanne Pilkington

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<h3 id="mr-title">Statement by Glenn Stevens, governor: monetary policy decision:</h3>
"At its meeting today, the board decided to reduce the cash rate by 25 basis points to 3%, effective 5 December 2012," writes Stevens.
"Global growth is forecast to be a little below average for a time. Risks to the outlook are still seen to be on the downside, largely as a result of the situation in Europe, though the uncertainty over the course of US fiscal policy is also weighing on sentiment at present. Recent data suggest that the US economy is recording moderate growth and that growth in China has stabilised. Around Asia generally, growth has been dampened by the more moderate Chinese expansion and the weakness in Europe.
"Key commodity prices for Australia remain significantly lower than earlier in the year, though trends have been more mixed over the past few months. The terms of trade have declined by about 15% since the peak, to a level that is still historically high.
"Sentiment in financial markets remains better than it was in mid year, in response to signs of progress in addressing Europe's financial problems, though Europe is likely to remain a source of instability for some time. Long-term interest rates faced by highly rated sovereigns, including Australia, remain at exceptionally low levels. Capital markets remain open to corporations and well-rated banks, and Australian banks have had no difficulty accessing funding, including on an unsecured basis. Borrowing conditions for large corporations are similarly attractive and share prices have risen since mid year.
"In Australia, most indicators available for this meeting suggest that growth has been running close to trend over the past year, led by very large increases in capital spending in the resources sector, while some other sectors have experienced weaker conditions. Looking ahead, recent data confirm that the peak in resource investment is approaching. As it does, there will be more scope for some other areas of demand to strengthen," Stevens writes.
"Private consumption spending is expected to grow, but a return to the very strong growth of some years ago is unlikely. Available information suggests that the near-term outlook for non-residential building investment, and investment generally outside the resources sector, remains relatively subdued. Public spending is forecast to be constrained. On the other hand, there are indications of a prospective improvement in dwelling investment, with dwelling prices moving a little higher, rental yields increasing and building approvals having turned up.
"Inflation is consistent with the medium-term target, with underlying measures at around 2½%. The introduction of the carbon price affected consumer prices in the September quarter, and there could be some further small effects over the next couple of quarters. Partly as a result of that, headline CPI inflation will rise above 3% briefly. Looking further ahead, with the labour market softening somewhat and unemployment edging higher, conditions are working to contain pressure on labour costs. A continuation of moderate wage outcomes and improved productivity performance will be needed to keep inflation low, since the effects on prices of the earlier exchange rate appreciation are now waning. The bank's assessment remains that inflation will be consistent with the target over the next one to two years.
"Over the past year, monetary policy has become more accommodative. There are signs of easier conditions starting to have some of the expected effects, though the exchange rate remains higher than might have been expected, given the observed decline in export prices and the weaker global outlook. While the full effects of earlier measures are yet to be observed, theboard judged at today's meeting that a further easing in the stance of monetary policy was appropriate now. This will help to foster sustainable growth in demand and inflation outcomes consistent with the target over time," says the statement.
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po-LsXgBTHBmX

Just a little housing improvement detected so rate cut given: RBA governor's statement for December cash rate meeting

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The Australian Bankers’ Association (ABA) has defended the past decisions by its banking members not to pass on cash rate cuts in full in a seemingly pre-emptive advisement ahead today’s forecast 25 basis point rate cut by the RBA.
Banks are expected to pass on around 20 basis points to borrowers with a now familiar consumer, media and political backlash likely to follow.
Ahead of today's announcement, Steven Münchenberg, chief executive of ABA, says the Reserve Bank has ttself acknowledged that funding costs have increased by 50 basis points over the past year, with banks absorbing some of this increase themselves.
“The Reserve Bank understands the cash rate is just one component of the true cost of banks’ funding and therefore does not expect banks and other lenders to exactly match every cash rate movement,” says Münchenberg.
“The Reserve Bank Board takes into account what borrowers are actually paying in the marketplace for loans and what they are receiving on deposits when making their decision.”
“Banks are facing higher funding costs mainly due to the competitive rates being paid on deposits.”
Münchenberg says customers should shop around for the best home loan deal, pointing out that banks routinely offering discounts of around 70 basis points off the advertised standard variable rate to approved customers.
However, he failed to explain how banks can offer these discounts in a higher funding-cost environment.
Münchenberg said that prior to the GFC, term deposits were priced on average 200 basis points below the cash rate. Now, they are 20 basis points above the cash rate.”
“While interest rates on deposits remain attractive and competitive for savers, when combined with the cost of wholesale funding, deposits continue to put pressure on the overall cost of funds for banks.”
He pointed to the most recent Statement on Monetary Policy, where the Reserve Bank noted that “bank funding costs – relative to the cash rate – have risen by about 50 basis points over the past year…[which] largely reflects the increased cost of deposits.”
“The Reserve Bank cash rate has reduced 150 basis points since November last year, but with banks, credit unions and building societies facing real funding cost pressures, not all of that has been passed on. The Reserve Bank calculates that the major banks have cut standard variable home loan rates by an average of 115 basis points.”
“For small business lending backed by residential security, banks have passed on more of the cash rate cuts, reducing the average loan by up to 120 basis points.”
“While the Reserve Bank has identified that average funding costs have increased by 50 basis points, banks have only passed on 30 – 35 basis points to most home and small business borrowers.”
“At the same time, banks have only passed on about half the cash rate cuts to savers with term deposits.”
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Australian Bankers' Association says banks justified in not passing on rate cuts in full

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The Reserve Bank has cut the cash rate to 3%, which is its lowest setting since the GFC.
NAB, among those lenders to tip a December rate cut, now also expects a further 25 basis point rate cut next year, probably around May.
Lenders are expected to once again hold off passing on the full rate cut to borrowers, with about 20 out of the 25 basis points expected to be shaved from variable rates.
NAB and Bank of Queensland have already announced they will pass on 20 basis points to borrowers on December 10 and December 21 respectively, while ING Direct will pass on <a target="_blank" href="/news">all 25 basis points </a>from December 24. 
Fixed rates are likely to continue to fall as lenders seek to lock in borrowers and circumvent the government’s ban on mortgage exit fees.
These are the lowest advertised mortgage rates based on listings by <a target="_blank" href="https://www.ratecity.com.au/">ratecity.com.au</a>, <a target="_blank" href="https://mozo.com.au/">Mozo.com.au</a> and <a target="_blank" href="https://www.infochoice.com.au/">infochoice.com.au</a> as of December 5:
Lowest variable rate offerings:
<table width="470" cellpadding="0" cellspacing="0" border="1"><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">Mortgage View</td>
<td width="124" valign="top">Pro pack</td>
<td width="97" valign="top">5.42%</td>
<td width="116" valign="top">5.44%</td>
</tr>
<tr>
<td width="134" valign="top">
Loans.com.au
</td>
<td width="124" valign="top">
Blackboard special
</td>
<td width="97" valign="top">
5.42%
</td>
<td width="116" valign="top">
5.45%
</td>
</tr>
<tr>
<td width="134" valign="top">
My mortgage freedom.com.au
</td>
<td width="124" valign="top">
Low rate (LVR up to 75%)
</td>
<td width="97" valign="top">
5.43%
</td>
<td width="116" valign="top">
5.74%
</td>
</tr>
<tr>
<td width="134" valign="top">
UBank
</td>
<td width="124" valign="top">
UHome loan for refinancing
</td>
<td width="97" valign="top">
5.47%
</td>
<td width="116" valign="top">
5.47%
</td>
</tr>
<tr>
<td width="134" valign="top">
Nationwide Mortgage
</td>
<td width="124" valign="top">
True Saver home loan
</td>
<td width="97" valign="top">
5.47%
</td>
<td width="116" valign="top">
5.47%
</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">
My mortgage freedom.com.au
</td>
<td width="123" valign="top">
Fixed rate (LVR up to 75%)
</td>
<td width="95" valign="top">
4.99%
</td>
<td width="114" valign="top">
5.78%
</td>
</tr>
<tr>
<td width="137" valign="top">
Community First Credit Union
</td>
<td width="123" valign="top">
Honeymoon
</td>
<td width="95" valign="top">
4.99%
</td>
<td width="114" valign="top">
6.46%
</td>
</tr>
<tr>
<td width="137" valign="top">
UBank
</td>
<td width="123" valign="top">
UHome loan for refinancing – fixed rate
</td>
<td width="95" valign="top">
5.03%
</td>
<td width="114" valign="top">
5.54%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="132" 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="132" valign="top">Resi</td>
<td width="131" valign="top">Flexi Fixed Plus 75</td>
<td width="96" valign="top">5.09%</td>
<td width="111" valign="top">5.99%</td>
</tr>
<tr>
<td width="132" valign="top">
UBank
</td>
<td width="131" valign="top">
UHome loan for refinancing – fixed rate
</td>
<td width="96" valign="top">
5.13%
</td>
<td width="111" valign="top">
5.40%
</td>
</tr>
<tr>
<td width="132" valign="top">
Pacific Mortgage Group
</td>
<td width="131" valign="top">
PMG Fixed
</td>
<td width="96" valign="top">
5.19%
</td>
<td width="111" valign="top">
5.43%
</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 target="_blank" href="/news">Refinancing and the Interest Rates Riddle</a>
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A guide to the lowest rate home loan offerings fixed and variable as of December 5 as RBA cuts cash rate to 3%

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The Reserve Bank has cut the cash rate to 3% today, as tipped by most economists.
The new setting is the lowest the cash rate has been since a period from April to September 2009, following the GFC.
Traditionally, the RBA is <a href="/news">reluctant to cut rates in December</a>, doing so at fewer than a third of December monetary policy meetings going back to 1990.
A 25-basis-point rate cut, if passed on in full by lenders, will save a borrower with a 25-year mortgage of $300,000 about $48 per month.
“The Reserve Bank has boosted consumer confidence in time for what is traditionally the most expensive season of the year. Even though rate cuts won’t be filtered through to most variable mortgage holders until January, borrowers are likely to feel more positive about spending money this Christmas," says Michelle Hutchison, spokesperson for financial comparison website RateCity.com.au. 
“Borrowers with a typical $300,000 mortgage can expect to save about $40 in monthly repayments from next month, as most lenders are likely to pass on 20 basis points. But there’s a significant difference between what lenders will pass on and the interest rates they offer.
“For instance, following the last rate cut in October, lenders passed on between 4 and 25 basis points according to RateCity. Variable interest rates range from 5.4% up to 7.2%, which is worth about $352 in extra monthly repayments for a $300,000 home loan (over 30 years).
“If you have time off over Christmas, borrowers should take advantage of their spare time by finding out how much your lender passed on, what your interest rate is and how it measures up to the rest of the home loan market.”
The RBA would have taken into account a benign inflation rate, house prices flat and manufacturing sector continuing to contract at a sharp pace and flat retail sales in October.
Earlier today, the ABS reported that <a target="_blank" href="https://www.propertyobserver.com.au/residential/dwelling-approvals-fall-by-greater-than-expected-76-in-october-abs/2012120458278?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">building approvals fell 7.8%</a> in October, greater than expectations of a 1.6% fall. Mortgage holders must now wait to hear over the next few days how much of the rate cut will be passed on by lenders to borrowers.
ANZ mortgage holders have a long wait - until Friday, December 14, - to hear if the bank will reduce its variable rates as part of its independent interest rate decision on the second Friday of every month.
Speaking to David Koch on Sunrise last week, Aussie Home Loans boss John Symond said he did not expect the banks to pass on the full rate cut, but probably 20 out of 25 basis points.
The Reserve Bank’s monetary policy committee will next meet in February – there is no meeting in January.
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RBA delivers some Christmas cheer to home borrowers with December rate cut

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Sentiment has turned strongly in favour of a December 4 RBA cash rate cut.
Of the 28 economists surveyed today by Bloomberg, 19 are tipping the RBA to cut the cash rate to 3% next week. This is up from <a target="_blank" href="/news">15 out of 26 </a>who tipped a rate cut last week and 12 out of 25 who tipped a rate cut two weeks ago.
This would equal the lowest cash rate setting, which was in place between April and September 2009.
The Commonwealth Bank continues to expect the RBA to leave the cash rate unchanged, but NAB has changed its forecast to a rate cut, joining ANZ and Westpac.
Westpac subsidiary St.George Bank is tipping the cash rate to remain on hold in December.
St.George Bank will have bragging rights over Westpac’s Bill Evans, should the RBA keep rates on hold.
Looking ahead to 2013, twenty out of 28 economists don’t expect a rate cut in the first quarter of 2013.
Monday will see some important data released which could have a bearing on the RBA’s decision.
The RP Data-Rismark house price index for November is released with economists forecasting a 1% fall in the median house price.
Retail figures will also be released for October with economists expecting a rise of 0.4% following an increase of 0.5% in September.
Just ahead of the announcement, building approval figures for October will be released with economists tipping a 1.6% drop in total dwelling units approved.
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