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.

Joel Robinson

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

Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.

Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.

The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.

“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.

"Eight residences is exceptionally boutique, but that's precisely what this site calls for.

“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”

<img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" />

The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.

The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.

The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.

<img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" />

The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.

It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.

Heritage has subsequently played a significant role in Cera Stribley's design.

The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.

Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.

<img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" />

Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.

A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.

A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.

Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.

Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.

The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.

Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.

Lowe Living unveils Middle Park apartment development

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

<a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.

Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.

The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.

The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.

A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.

<img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" />

The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.

"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.

"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."

The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."

Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.

Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.

The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.

The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.

First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

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>
As lenders continue to cut fixed-rates, demand for this mortgage type rose to a six-month high, according to October mortgage approval figures from Mortgage Choice.
Over the month, 22% of all new home loans taken out by new borrowers via a Mortgage Choice broker were for fixed rates, just above the 12-month average of 21%.
The most recent lender to cut its fixed-rate mortgages was Credit Union Australia (CUA), the nation’s biggest customer-owned lender, which dropped its one, two and three-year fixed rate home loans to 5.3% this week, following moves by other lenders throughout the month.
Currently, <a target="_blank" href="/news">three lenders offer a one-year fixed rate home loan under 5%</a> while Mortgage Choice says seven lenders on its panel dropped their fixed-rate loans over the past week.
Of those borrowers who did lock in a fixed-rate, the most popular term (74% of all fixed-rate home loans) was three years, followed by two-years (16%).
Only 5% of fixed-rate borrowers chose a one-year fixed rate term.
“Following speculation last month of fewer rate cuts to come this year, and the latest CPI data hinting at less rate activity, it comes as no surprise that borrowers are taking advantage of the good fixed rate loan offers available. By securing their interest rate they are also locking in peace of mind over the next few years," says Mortgage Choice spokesperson Belinda Williamson.
The Mortgage Choice October figures also show a considerable uplift in the preference for ongoing discount rates loans, reaching 40% of all new loans approved. This follows two consecutive monthly drops in demand in August and September.
 “There was a downward trend on the popularity of discount rates loans – where the loan is discounted over the entire loan term – in the months before October, as economists were predicting a number of rate cuts by the Reserve Bank before the end of the year,” says Williamson.
“This month appeared to buck this trend however, as we saw an increase in ongoing discount rate loan appeal. As the talk of further rate cuts dries up, this increase shows more borrowers are now shopping around for long-term bargains.”
Standard variable rate loan demand fell by three percentage points to 15% of all new loan approvals, while the preference for basic variable rates remained steady at 19%.
Demand for line of credit loans - popular with investors - fell by one percentage point to 3% and introductory rate popularity remained at less than 1%.
</body></html>

lschlesinger-FZcF9M3vE6

Demand for fixed-rate mortgages climbs to six-month high: Mortgage Choice

<html><body>
Once again the value of negative gearing to allow property investors to buy their properties has come into question. 
Some academic commentators and social welfare lobbyists seem to regard negative gearing as primarily a tax avoidance device use by the wealthy to rort the system, which has the added consequence of pushing up property values. 
Negative gearing is not just for the rich
The assertion that all negatively geared property investors are “ugly wealthy Australians” is simply unfounded and incorrect. 
According to 2006-07 ATO taxation records, 1.6 million taxpayers claimed rental income, and of those, two in three negatively geared their investment(s). Interestingly, these investors predominately do not come from the wealthy end of town. Indeed, 74% of negatively geared investors earned less than $80,000. Only 4% were in the top tax bracket. 
The fact is, using the benefit of negative gearing investment has allowed many ordinary working-class Australians to invest in property and to take control of their financial destiny. 
Property investors provide an essential service
While some opponents of negative gearing appeal to the frustration of would-be home owners, suggesting they have been locked out of the market by greedy, tax-driven property investors who receive billions of dollars of tax breaks that push up property prices, I would argue that property investors provide an essential service to millions of Australians who chose to, or have to, rent their accommodation, and as such these investors should be treated like all other businesspeople. 
In our modern society we pay taxes and expect the government to provide us with certain essential services. These include hospitals, roads, schools, jails, public transport, aged care and public housing. 
In Australia the government often shares the burden of providing these services with private enterprises that can often deliver them more efficiently and cheaper. 
When the government can’t supply enough public hospital beds, privately run hospitals step up to the mark and not only receive tax deductions for their business loans, but also allowances to subsidise them. So do aged care providers, schools and public transport providers that provide services in tandem with the government.
Our government also provides public housing, but not enough for all those who can’t afford to buy their own property. While government programs such as the National Rental Affordability Scheme and other social and public housing programs are helpful, it is only the private rental market that can deliver rental accommodation at the rate and scale that is required at present. 
Property investors save a deposit, buy a property, commit to a loan for 25 or 30 years and provide accommodation for others in our community. In return we expect to get a reasonable return on our investment risk, just like other businesspeople do. 
We know that the rent won’t cover our expenses, but accept that certain tax benefits plus the long-term capital growth will make up for this. 
Sometimes it does, and sometimes it doesn’t.
What if the government removes negative gearing?
Leverage and negative gearing compounds returns in the good times, but multiplies losses when property prices are flat or falling. I know as many people who have lost money in property investment as those who have made money.
Much like most other small businesspeople.
If the government takes away my tax concessions, I would have to consider my investment options. To ensure I get a decent return I’d put up my rents if I could, or maybe I’d invest elsewhere to get the best bang for my bucks.
The result would be that rents would rise and tenants would have to fight over the few rental properties left, or the government would have to invest its own money and buy or build properties and enjoy the pleasures of being a landlord.
Of course the government already provides some public housing, but not enough, leaving the task of providing rental accommodation not only in our capital cities, but also in regional Australia and in the remote mining towns to private investors. People like you and me who have chosen to run our own little property investment businesses.
If I set up a dog wash business or a restaurant, I’d be able to claim a tax deduction for legitimate business expenses including loans to set up our business or purchasing business equipment.
Why should it be different for property investors who take on a business risk?
 
<hr class="system-pagebreak">
 
Doesn’t negative gearing push up property values?
To say negative gearing has pushed up property prices is a smoke screen.
Just look what happened to property prices overseas in countries like the USA and parts of Europe, where negative gearing isn’t allowed. They experienced a boom and a subsequent bust of much greater magnitude that we have.
What these lobbyists may not recognise is that borrowing in order to undertake productive investment actually helps economic growth because value is being added.
After all, there will always be some investments that have lower returns than the interest expenses on the loans taken on to acquire them. This economic reality has nothing whatsoever to do with tax.
For example, a typical property investment may start off with a large loan and lowish rent. As time goes by the loan is paid down and the rent increases. Overall the investor makes a profit and the tax office gets its share of this.
Actually, there is not as much loss of revenue to the authorities as some critics believe, because for every dollar of interest claimed as a tax deduction by a borrower there is a corresponding dollar of interest assessable to a lender.
But that’s not all
If the government stops the availability of negative gearing benefits, the danger arises that there may be unintended consequences.
It is possible that even following a positive cashflow strategy you end up negatively geared and suffer. What if:
• Interest rates rise after you buy your investment?
• Rents fall or your property becomes vacant for a period of time? Or
• You have to undertake a major repair of your investment property?
To deny the person making commercial a loss like this a tax deduction would be to inflict a double whammy on them and increase their hardship unduly.
In conclusion:
Any reduction in negative gearing benefits would significantly reduce rental investment in both new and existing properties and would worsen rental affordability through a reduced supply of investment housing. A reduced rental supply means lower rental vacancies and increased rents.
Property investment is a real and effective method for bolstering the savings of middle Australia at the same time providing accommodation for those who the government can’t or won’t help and should remain as is.
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Investment Update</a> blog. Subscribe today and you'll receive a free video, The Golden Rules of Property Investment.
</body></html>

myardney-DFoGhGbSJX

Negative gearing helps all Australians, not just the rich

<html><body>
With the recent interest rate reduction in October by the Reserve Bank of Australia (RBA) and another one predicted to possibly occur on Melbourne Cup Day next week. I thought it would be a good time to have a look at just what a difference a 0.25-percentage-point drop in your interest rate really does and how to take advantage of it. (As long as the bank pass on the full rate reduction, but that’s a discussion for next month.)
The first thing that happens every time the rate drops is that every media outlet and even we often send out a chart of what happens with your repayments. And it’s true that on an average $350,000 mortgage a 0.25% difference will save you about $72.91 per month in interest.
For the clever investor or home owner, though, the impact can be far greater.
So how do you take advantage of the recent rate reductions?
For home owners looking to pay off their home
Maintain your current repayments
Now that sounds simple enough, but in reality this can be a little tricky because it can depend on your lender. You see some lenders like the idea of collecting 30 years’ worth of interest from you and will adjust your payments downward each time the interest rate drops. So you get a letter in the mail that says your new payment will be X, you read it and file in the circular filing cabinet. Then what ends up happening is that next month the automatic payment gets taken and you don’t realise and all of a sudden you have spent that extra $72.
If you want to really take advantage of the extra money what you may need to do is call your bank and change your repayment from the minimum amount to a set payment. It’s a simple call that could cut years of your home loan. Why not check out the <a title="Extra Repayment Calculator" target="_blank" href="https://www.chan-naylor.com.au/uploads/57029/ufiles/extrarepayments">Extra Repayment Calculator</a> at <a title="Chan and Naylor | Home Loan &amp; Finance Calculators" href="https://www.chan-naylor.com.au/calculators/">chan-naylor.com.au/calculators</a> and you will see that an extra repayment of $72 a month will cut a $350,000 mortgage by two years and eight months.
Put the extra fund towards paying off your credit cards
If you aren’t paying off your credit card on a monthly basis the rate reduction can be a great way to finally start bringing that credit card balance down. Again, this can be as simple as arranging with your bank to set up an automatic direct debit form the same account your mortgage payments where coming from so that you don’t notice the extra $72. And remember when rates are falling it can be a great time to negotiate to get your credit card interest rate down.
 
<hr class="system-pagebreak">
 
It can be a great time to check out a new loan
Because the market is more competitive and lenders are trying to position themselves after a rate reduction and get you to commit, it can be a great time to shop around for a mortgage. Lenders tend to offer rate discounts and switching incentives to get you to sign on the dotted line, so negotiating can be easier. The savings made by reviewing your loans can be quite substantial, however as always, just be sure to weigh up the overall costs of refinancing (upfront, ongoing and exit fees) compared to the savings.
For property investors
In the last 12 months interest rates have dropped over 1.5 percentage points (according to the RBA website), that means we have had six rate drops of 25 basis points each in the last 12 months. Well, you're probably thinking that's pretty simple maths and rather obvious. But have you thought about the fact that these rate reductions have essentially reduced your interest cost by six times $72 a month? That means you now have almost $432 extra per month.
What if you put that $432 in cashflow per month back to work for you? With variable interest rates around 6% at the moment that’s an extra $86,400 you may be able to borrow. Probably not enough to get you into another property, but then these numbers are based on a single $350,000 loan.
What if you have a home loan and an investment property? You can see that the last 12 months could really be doing you some favours.  And with three-year and five-year fixed rates between 5.5% and 6% now is a great time to take advantage of a <a title="Request a Free Lending Capacity Check | Chan &amp; Naylor Finance |" href="https://www.chan-naylor.com.au/free-lending-capacity-check/">Free Lending Capacity Check</a> to check your new borrowing capacity.
With your extra borrowing power it can be a great time to be looking for new property investments especially where property market prices have fallen. However when interest rates drop, eventually people start to notice the extra money in their pockets and eventually consumer confidence starts to return.
Now if anyone can tell me exactly when consumer confidence is going to return, as they say in the old movies I will buy them a steak dinner.
Albertus Waldron is finance strategist and partner at<a href="https://www.chan-naylor.com.au/" target="_blank"> Chan &amp; Naylor</a>
</body></html>

awaldron-dVhPXocinv

How owner-occupiers and property investors can make the most of an RBA rate cut

<html><body>
Nearly two-thirds of property investors and buyers expect the cash rate to fall over the next six months, according to a survey of more than 800 Property Observer readers.
More than a third (35%) of those surveyed expect one more rate cut over the next six months – the most popular choice among readers of the website with just over a quarter (28%) expecting two rate cuts (50 basis points)  between now and March next year.
However, a significant proportion – roughly in one five – expect no more rate cuts over this period while more than one in ten readers (12%) expect the cash rate to rise by either 25 basis points or 50 basis points in the short term.
The results of the survey suggest there is fair amount of uncertainty among investors and borrowers about the direction of interest rates.
This is also borne out by the response to a refinancing question in the survey with just a quarter of borrowers saying they would consider refinancing over the next year - a lower mortgage rate is a reason why many borrowers would refinance.
The results of the survey come less than a week until the Melbourne Cup Day November RBA cash rate decision, where sentiment has swung from a sure-bet of a rate cut to it now being a close call following a speech by RBA deputy governor Philip Lowe, who said “very low interest rates in many other economies should not be seen as a good thing or something to aspire to”.
<a href="/news">Commonwealth Bank chief economist Michael Blythe</a> interpreted the speech to mean that it was now only a “50-50 call” as to whether the RBA would cut rates.
Similarly, in a recent column for the Australian Financial Review, economist Christopher Joye said November rate cut hopes were dimming <a href="https://www.propertyobserver.com.au/news/fewer-economists-expecting-a-november-cup-day-rba-rate-cut-bloomberg/2012102657470">despite 21 out 28 economists polled by Bloomberg</a> still expecting the RBA to trim further.
Joye highlighted that bank interest rates rather than the target cash rate set by the RBA were having more of an impact on stimulating demand.
“The RBA is belatedly starting to acknowledge that interest rates, as opposed to its target cash rate, are getting quite stimulatory for rate-sensitive sectors,” said Joye.
"Two major banks have now cut the price of their fixed-rate home loan products to 20-plus-year lows. Unsurprisingly, auction clearance rates are reinvigorating," he added.
</body></html>

A maximum of two more rate cuts to come say uncertain Property Observer readers

<html><body>
An internal ASIC taskforce will investigate the collapse of Victorian non-bank lender and debenture issuer Banksia as well as consider regulation of the wider Australian unlisted debenture sector.
Banksia Securities collapsed last week placing $660 million in small investor savings at risk. The financier lent on debenture holders' money as mortgages to fund property purchases.
Apart from Banksia, the other notable debenture issuer to collapse recently was <a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/news/provident-capital-s-creditors-vote-to-liquidate/2012102457415" target="_blank">NSW-based non-bank lender Provident Capital,</a> with unsecured creditors voting to liquidate the $130 million sub-prime lender last week.
Debenture issuers unlike banks, building societies and credit unions are not generally regulated by APRA nor are there any prudential standards that apply.
The ASIC taskforce will be led in Melbourne by Commissioner John Price and will make its recommendations to Treasury.
“The <a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/industry-news/victorian-non-bank-lender-banksia-securities-collapses/2012102657456">failure of Banksia</a>, an unlisted debenture company that has operated a mortgage financing business across a large part of regional Victoria, will affect the lives of many everyday Australians. ASIC wants to take a closer look as it is another area of retail-funded shadow banking,” says ASIC chairman Greg Medcraft.
"At the moment there are laws around disclosure and, to a limited extent, the conduct of debenture issuers. But we need to lift the regulatory intensity to make sure that investors are confident and informed.’ "The taskforce will review the extensive work we’ve done to date around the regulation of the unlisted debenture sector. The taskforce’s work may involve making recommendations to Treasury about law reform given we have pushed the existing conduct and disclosure regime to its limit.’ "We will also work closely with Banksia receivers and managers McGrath Nicol to try and get the best result for Banksia investors and retail clients who Banksia provided credit to.
"Importantly, we’ll also continue to remind debenture trustees of their obligations as gatekeepers to protect investors and monitor debenture investments - particularly bad loans and liquidity problems,” says Medcraft. 
Prior to the collapse of Banksia and Provident Capital, unlisted debenture issuers were on ASIC’s radar with the watchdog undertaking “general market reviews” of the sector and conducting “risk based surveillances on a small number of debenture issuers”.
ASIC is not a prudential regulator but will monitor disclosures made by debenture issuers.
</body></html>

ASIC taskforce to investigate Banksia collapse and seek regulation of unlisted debenture sector

<html><body>
September RBA housing credit figures have emphasised the point made by both Commonwealth Bank chief Ian Narev and RBA deputy governor Philip Lowe that lower interest rates are not encouraging borrowers to take on more housing debt.
Housing credit increased by just 0.4% over September, following an increase of 0.3% over August to be up  4.7% over the year to September.
This set new low for annual mortgage growth for RBA records going back to 1976.
The previous low was an annual growth rate of 4.8% in August 2012.
Since the RBA started cutting the cash rate in November last year annualised mortgage lending growth has fallen from 5.6% to 4.7%.
Putting this into context, between 2000 and 2004 – during the last housing boom – annual mortgage lending growth averaged between 15% and 22%.
The RBA figures show low credit growth in other sectors as well indicating business and consumer caution and an unwillingness to take on more debt.
Other personal credit (such as credit cards and personal loans) increased by 0.2% over September, after decreasing by 0.3% over August.
Over the year to September, other personal credit decreased by 0.9%.
Business credit increased by 0.3% over September, after decreasing by 0.1% over August.
Speaking at the Commonwealth Bank AGM yesterday, <a href="https://www.propertyobserver.com.au/news/rate-cuts-wont-stimulate-housing-market-whether-passed-on-in-full-or-not-cba-chief-executive-ian-narev/2012103057535" target="_blank">Ian Narev</a> said interest rate reductions were being used to “accelerate repayment of debt”.
</body></html>

Mortgage growth falls to new historic lows as borrower caution rules over lower interest rates: RBA figures

<html><body>
Big four bank NAB has reported a 22% drop in full year profits but very strong growth in mortgage lending despite soft metropolitan housing markets and low demand for housing credit.
Statutory net profits for the year to September decreased by $1.1 billion or 21.8% to $4.1 billion while cash earnings fell by $27 million or 0.5% to $5.4 billion reflecting “ongoing challenges” in the restructuring of its UK banking business.
However, mortgage lending increased by 9.9% over the financial year – 1.6% higher than system growth - with NAB picking up 30 basis points in mortgage market share (up from 14.5% to 14.8%) as its Australian mortgage book increased from $130 billion to $143 billion over the course of the financial year.
Cash earnings from NAB’s personal banking division increased by $113 million or 12.1% to $1.0 billion with the bank reporting that its “differentiated customer proposition continued to deliver market share gains in both housing lending and household deposits in a highly competitive market”.
NAB has maintained its promise of having the lowest standard variable home loan rate of the Big Four banks over the past three years.
NAB group chief executive Cameron Clyne says personal banking had a “particularly strong year delivering increased returns, higher market share in mortgages and household deposits, and the highest bank customer satisfaction score of the four major Australian banks ever recorded in the Roy Morgan survey”.
However mortgage lending has become less profitable with NAB’s net interest margin decreasing by 16 basis points compared to September 2011 due to "funding and deposit cost pressures and changes in product mix".
The bank regained two basis points on its net interest margins in the second half of the financial year (March to September) “reflecting mortgage repricing”.
The report notes the ongoing subdued lending environment and cautious behaviour of households, who remain focused on repaying down debt.
“The slowing in housing credit to a record low reflects the easing in lending to owner occupiers,” says NAB in its full year results release.
“Loan approval numbers have recently stabilised at a low level as the volume of lending has been held back by the weakness in key metropolitan housing markets.
NAB expects mortgage lending to accelerate further over the next two years to “around 8% year-on-year by late 2014”.
In its review of group performance, NAB reports that “Australia has been one of the best performing advanced economies over the last five years”.
However, it notes that challenges remain including the impact of the stronger Australian dollar due to the mining boom on employment and activity in the manufacturing and tourism industries and in the regions reliant on those sectors.
“Caution in the household sector, reflected in the higher savings ratio and weak credit appetite, is the other major challenge.
</body></html>

NAB full year profits slump but mortgage growth up 10% despite soft metro housing markets

<html><body>
A speech last night by RBA deputy governor Philip Lowe has reduced what seemed like a sure bet cash rate cut on Melbourne Cup Day to only a "50-50 call", according to Commonwealth Bank chief economist Michael Blythe.
Blythe says the overall impression of the speech is that “lower interest rates may be required at some point but there was no strong signal that the Bank was preparing to cut rates at next week’s board meeting”.


“We still favour a Melbourne Cup Day rate cut but it is increasingly looking like another 50?50 call,” he added.
Speaking at the Australasian Fixed Income Conference, where he gave an overall positive assessment of Australia’s stronger position relative to Asia and other advanced economies, Lowe said “lower-than-average interest rates” were providing “some support to demand in the economy”.
He said there was also “some sign that they have led to a slight improvement in the property market, although there has been little change in the appetite for debt”.
Blythe highlighted the remarks made by Lowe comparing Australia’s high interest rate settings relative to other countries.
Lowe says the main reason for these higher settings is that “the rate of return on new investment in Australia is higher than in many other countries, as evidenced by the high level of investment”.
“The very low interest rates in many other economies should not be seen as a good thing or something to aspire to. They reflect those countries' difficult economic circumstances, and particularly the low risk-adjusted returns available on new investment,” Lowe says.
Blythe says the case for lower rates at some point revolves around “weak global growth, the global uncertainties impacting on household and business decisions and the asset allocation decisions triggered by quantitative easing (QE) measures that are putting upward pressure on exchange rates in non?QE economies.
“The deputy governor explicitly noted that high exchange rates in some countries “should not come as a surprise” but could be “uncomfortable” for those involved.”
In his speech Lowe noted that “uncertainty stemming from problems in the advanced economies" was having an impact on confidence in Australia.
“It has adversely affected confidence and has led to the deferral of some decisions and more cautious behaviour.
But he also says that subdued confidence levels have “domestic roots”
“Employment growth, the rate of asset price increases and consumption growth are all lower than they were over the decade to the mid-2000s," said Lowe.
“During this earlier period the outcomes in these areas were very strong as the economy adjusted to low inflation and the increased availability of credit.
"But this adjustment is now complete, and the return to more normal patterns has come as a disappointing surprise to many who thought that the previous outcomes were the norm.
"This gradual realisation that the future is likely to be different from the past is an important factor weighing on sentiment in Australia,” Lowe says.
</body></html>

Melbourne Cup Day rate cut now only a '50-50 call' following deputy RBA governor speech: Michael Blythe

<html><body>
Lenders continue to cut their fixed-rate home loans as anticipation builds that the RBA may cut the cash rate to 3% on Melbourne Cup Day on Tuesday.
Yesterday Credit Union Australia (CUA), the nation’s biggest customer-owned lender, dropped its one, two and three-year fixed rate home loans to 5.3% following moves by other lenders throughout the month.
Mozo product data manager Peter Marshall told Property Observer earlier this month that fixed rates <a href="/news">“still have some way to fall”</a> and have not matched the falls in variable rates since the RBA starting cutting the cash rate in November last year.
This follows Community First Credit Union and Greater Building Society both offering one-year fixed rate home loans at 4.99%.
The following results are based on advertised mortgage rates listed 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 October 30:
Lowest variable rate offerings:
<table border="1" cellpadding="0" cellspacing="0" width="470"><tbody>
<tr>
<td valign="top" width="134">
Provider
</td>
<td valign="top" width="124">
Loan name
</td>
<td valign="top" width="97">
Rate
</td>
<td valign="top" width="116">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="134">
Loans.com.au
</td>
<td valign="top" width="124">
Dream Catcher
</td>
<td valign="top" width="97">
5.42%
</td>
<td valign="top" width="116">
5.45%
</td>
</tr>
<tr>
<td valign="top" width="134">
UBank
</td>
<td valign="top" width="124">
UHome Loan (for refinancing)
</td>
<td valign="top" width="97">
5.47%
</td>
<td valign="top" width="116">
5.47%
</td>
</tr>
<tr>
<td valign="top" width="134">
Nationwide Mortgage
</td>
<td valign="top" width="124">
True Save Home Loan
</td>
<td valign="top" width="97">
5.47%
</td>
<td valign="top" width="116">
5.47%
</td>
</tr>
<tr>
<td valign="top" width="134">
Mortgage View
</td>
<td valign="top" width="124">
Pro Pack
</td>
<td valign="top" width="97">
5.47%
</td>
<td valign="top" width="116">
5.49%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table border="1" cellpadding="0" cellspacing="0" width="470"><tbody>
<tr>
<td valign="top" width="137">
Provider
</td>
<td valign="top" width="123">
Loan name
</td>
<td valign="top" width="95">
Rate
</td>
<td valign="top" width="114">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="137">
Greater Building Society
</td>
<td valign="top" width="123">
Ultimate home loan
</td>
<td valign="top" width="95">
4.99%
</td>
<td valign="top" width="114">
6.02%
</td>
</tr>
<tr>
<td valign="top" width="137">
Community First Credit Union
</td>
<td valign="top" width="123">
12 month fixed
</td>
<td valign="top" width="95">
4.99%
</td>
<td valign="top" width="114">
6.46%
</td>
</tr>
<tr>
<td valign="top" width="137">
My Mortgage Freedom
</td>
<td valign="top" width="123">
Fixed rate &gt;75 LVR
</td>
<td valign="top" width="95">
4.99%
</td>
<td valign="top" width="114">
5.98%
</td>
</tr>
<tr>
<td valign="top" width="137">
UBank
</td>
<td valign="top" width="123">
UHome Loan (for refinancing)
</td>
<td valign="top" width="95">
5.03%
</td>
<td valign="top" width="114">
5.4%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table border="1" cellpadding="0" cellspacing="0" width="470"><tbody>
<tr>
<td valign="top" width="133">
Provider
</td>
<td valign="top" width="133">
Loan name
</td>
<td valign="top" width="97">
Rate
</td>
<td valign="top" width="108">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="133">
UBank
</td>
<td valign="top" width="133">
Three year fixed
</td>
<td valign="top" width="97">
5.13%
</td>
<td valign="top" width="108">
5.40%
</td>
</tr>
<tr>
<td valign="top" width="133">
Pacific Mortgage Group
</td>
<td valign="top" width="133">
Three year fixed
</td>
<td valign="top" width="97">
5.19%
</td>
<td valign="top" width="108">
5.43%
</td>
</tr>
<tr>
<td valign="top" width="133">
HSBC
</td>
<td valign="top" width="133">
Three year fixed
</td>
<td valign="top" width="97">
5.29%
</td>
<td valign="top" width="108">
6.15%
</td>
</tr>
<tr>
<td valign="top" width="133">
CUA
</td>
<td valign="top" width="133">
Residential Fixed Three years
</td>
<td valign="top" width="97">
5.30%
</td>
<td valign="top" width="108">
5.9%
</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>
</body></html>

Lenders cut fixed rates: guide to the lowest rate home loan offerings fixed and variable as of October 30

<html><body>
Credit Union Australia (CUA), the nation’s biggest customer-owned lender, has dropped its one-, two- and three-year fixed rate home loans to 5.3% from October 26 – making them among the lowest offered in the market today.
Click to enlarge
<a href="/images/stories/2012/10/cuaoct29.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/10/cuaoct29thumb.gif"></a>
Jason Murray, CUA’s general manager for products and marketing, says for people wanting to take advantage of the current low market rates, CUA’s suite of fixed rates offer home buyers and existing borrowers a highly competitive option.
</body></html>

Latest Finance Insights

NAB bring forward first RBA cut to February 2025

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Finance Insights

NAB bring forward first RBA cut to February 2025

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News