<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;

Joel Robinson

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

<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;

Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.

[smartcode_project:default project_id=107520 project_image_fid=367193]

The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;

Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;

"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.

"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."

[smartcode_project:default project_id=107520 project_image_fid=367183]

Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;

"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;

Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;

[smartcode_project_cta:default project_id=107520]

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

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>
Borrowers refinancing are at the highest levels in three years, according to data released by the ABS.
They're taking advantage of the lower interest rates, with a 7.7 per cent jump in the value of new homes loans being refinanced.
Owner-occupiers lead the charge, posting an 8.4 per cent jump in value, the highest value of refinanced loans since September 2016.
There was a surprise to see a drop in the number of loans to first home buyers over the month, down 0.7 per cent.
Sally Tindall, research director at RateCity.com.au, said the increase in refinancing activity came on the back of the June and July rate cuts.
“The first two rate cuts have clearly encouraged borrowers to sit up and take notice of their home loan rates.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/11/Housing%20Finance%20August%20Westpac.jpg" alt=""> Source: Westpac
“We expect this trend will continue as refinance applications, that are still in the pipeline, are settled.
"The most recent cash rate cut, and the decision by most banks not to pass it on in full, is also likely to spur more refinancing activity."
There are suggestions the loosening of serviceability is starting to effect the market. 
Despite the value of owner-occupier loans soaring, the number of new loans for owner-occupiers rose just 0.7 per cent, suggesting there are bigger loans being approved as opposed to a large uptick in number of loans.
Westpac's Matthew Hassan said the 0.7 per cent rise in owner-occupier loans was considerably softer than the consensus forecast of a 2.3 per cent gain, however he noted approvals have risen 5.9 per cent from their April low.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/11/New%20finance%20approvals%20Westpac.jpg" alt=""> Source: Westpac
Approvals are still down -5.1 per cent over the year.
Investors are well and truly back in the market. The 5.7 per cent increase in value of investor loans over August puts the value of loans approved up 10 per cent over the last two months, adding to the 4.2 per cent rise in July.
The values however are still 13 per cent lower than they were a year ago.
Mortgage Choice chief executive Susan Mitchell said the growth in demand from investors is unsurprising given the factors which may be positively impacting their appetite.
"The result of the Federal Election took the potential removal of property tax concessions off the table," Mitchell said.
"“Things are looking up for investors with the election now behind them, and the threat of negative gearing changes gone. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/11/Housing%20finance%20approvals%20by%20segment.jpg" alt=""> Source: Westpac
"As a result, once cautious investors may have been encouraged to put their buying plans in action. 
“Policy and pricing on investment loans are now much more favourable," Mitchell added.
"Investor rates have continued to tumble, in many cases further than owner occupier rates.
"This, combined with the relaxing of APRA’s serviceability requirements means the market is looking increasingly appealing for investors."
 
 
 
 
</body></html>

jrobinson-rf4aSBido9

Borrowers taking advantage of falling interest rates

<html><body>
EXPERT OBSERVER
Despite ACCC chair Rod Sims’ recent criticism of the bank practice of charging higher rates to loyal existing borrowers than they do for new business, lenders are rolling out big fixed rate home loan cuts - that apply to new customers only.
In October, many lenders have reserved their biggest rate cuts for the fixed rate home loan market – where rates only apply to new loans. The 2 and 3-year fixed rate market in particular is active right now with plenty of rate cut announcements. 
All of the big four banks have slashed fixed rates in recent weeks. 
From today, 10th October, Commonwealth Bank’s advertised 2 and 3 year (OO, P&amp;I) fixed rates in the “Wealth Package” have been cut to 2.99 per cent pa (Comparison rates from 4.46 per cent pa). 
Commonwealth Bank have now cut two and three-year fixed rates by 0.80 percentage points since June. The RBA has cut the official rate by 0.75 percentage points. Commonwealth Bank’s variable (OO, P&amp;I) advertised home loan rate has come down by 0.57 percentage points in the same period.
ANZ Bank cut two and three-year fixed rates last week by up to 0.30 percentage points. ANZ Bank now boasts 2 and 3-year fixed rates from 2.98 per cent pa (comparison rates from 4.45 per cent pa) with a package deal discount. ANZ cut variable rates last week by 0.14 percentage points. 
NAB have cut their fixed rates by up to 0.40 percentage points (OO, P&amp;I). NAB’s two-year rate is now 2.98 per cent pa (comparison rate 4.47 per cent pa).
Westpac (and subsidiaries) cut fixed rates by up to 1.3 percentage points in September. Westpac’sone-year Premier Advantage (OO, P&amp;I) rate was cut by 0.80 percentage points to 3.29 per cent pa (comparison rate 4.05 per cent pa)
Other lenders have also announced big rate cuts on fixed home loans with more announcements expected in coming days. 
From yesterday, 9th October, ING cut two and three-year fixed rates (OO, P&amp;I) by up to 0.20 per cent pa. ING now has fixed home loan rates starting at 2.89 per cent pa (comparison rate 4.23 per cent pa) and variable rates starting at 3.14 per cent pa (comparison rate 3.17 per cent pa).
There are now 44 two-year fixed rate home loan products (OO, P&amp;I) with advertised headline rates under 3.0 per cent on the InfoChoice database of 145 institutions.
There are now 48 three-year fixed rate home loan products (OO, P&amp;I) with advertised headline rates under 3.0 per cent on the InfoChoice database of 145 institutions.
There are 11 variable rate home loans (OO, P&amp;I) with advertised rates under 3.0 per cent listed by InfoChoice. 
Borrowers can not expect a great deal simply because they have been loyal to a particular institution for many years. 
When lenders announce rate cuts for fixed rate loans, they only apply to new customers. Existing customers continue to pay the fixed rate that applied at the beginning of the loan.
Banks and other lenders are competing with other and constantly trying to win new business.
Fixed rates are clearly now being set with the future in mind. Banks are apparently expecting the RBA to keep rates low well into 2021 and 2022 and that’s why they are setting 2 and 3-year fixed rates at these very low levels.
Borrowers who don’t like their rate are entitled to ask for a better deal and move to a better offer if they don’t get a good deal.
Borrowers need to factor this into their calculations. If rates change, a fixed rate will stay the same until the end of the term.
Vadim Taube is the CEO of leading Australian financial comparison site InfoChoice.com.au.
 
</body></html>

More banks cut rates – for new customers only

<html><body>
NAB have forecast the next RBA cut will come before we tick in to 2020.
In their report The Forward View, NAB Economics are predicting a December rate cut, a fourth cut this calendar year, which will bring the official cash rate down to a historic low 0.5 per cent.
Economists Gerard Burg, John Sharma and Phin Ziebell, co-authors of the report, suggest the NAB continue to expect growth to remain below trend, with just a small improvement expected.
They also expect the labour market to deteriorate slightly with the unemployment rate edging higher, with inflation to also remain weak.
"With these predictions largely a continuation of recent trends, it is likely that we will see a further reduction in interest rates by the RBA," the report notes.
"While the RBA has now lowered rates three times this year, taking the cash rate to a record low of 0.75%, we think that further stimulus will be required to support the economy, given the private sector remains weak and heightened global uncertainty poses significant risk.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/9/NAB%20Key%20Economic%20Forecasts.jpg" alt="">
 
"We have pencilled in a further cut in the cash rate of 25bps in December taking rates to a new low of 0.5%."
NAB see potential for a further cut in the first half of 2020 should downside risk materialise and more significant fiscal stimulus fail to eventuate.
"The key dynamics behind our assessment of the economy continue to be headwinds from a weak consumer and a significant downturn in housing construction," NAB advise.
"That is being partly offset by strong public sector spending and growth in exports.
 
They suggest that the recent tax cuts appear to have failed to provide a significant boost to household spending given retail sales growth remains soft.
"We think the recent rate cuts will have an impact, but the effects will take longer and be more variable, which will make them less apparent.
 
NAB have positive forecasts for the national housing market.
"Conditions in the established housing market continue to brighten, with house prices continuing their recovery in Sydney and Melbourne.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/9/NAB%20House%20Prices.jpg" alt="">
"It is likely that lower interest rates, low unemployment and still strong population growth, combined with a pull-back in construction, will support prices going forward, there are clearly a number of state specific factors at play."
Despite the turnaround in price conditions, the continuing building approval decline is likely to put some downward pressure on the market.
"The activity side of the market is likely to continue to weaken with building approvals continuing to trend down.
"Overall, we expect the downturn in the housing construction cycle to continue.
"We expect further falls in dwelling investment with approvals continuing to trend lower and the large pipeline of work outstanding to be rapidly depleted.
"The increase in prices to date is a positive, but will need to be sustained, with activity returning to more normal levels in the market before residential construction sees a recovery.
"We continue to expect a modest increase in process over the next year or so."
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
<div class="page" title="Page 3">
<div class="section">
<div class="layoutArea">
<div class="column">
 
 
<div class="page" title="Page 6">
<div class="section">
<div class="layoutArea">
<div class="column">
 
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</body></html>

NAB forecasts next rate cut in December

<html><body>
EXPERT OBSERVATION
With the Reserve Bank of Australia cutting official rates to 0.75% on Tuesday, has been a wave of commentary about the move doing little to help the economy apart from boosting housing prices.
There are two parts to assessing this claim. First, do rate cuts drive up property prices? Second, is that all they do?
Do rate cuts drive up property prices?
Economists have a precise answer to this question, and also a more practical one.
The precise answer is that all assets – stocks, bonds, property, stamps, vintage baseball cards, you name it – can be priced using <a href="https://faculty.chicagobooth.edu/john.cochrane/research/papers/samplechapters.pdf" target="_blank">what is known as</a> the stochastic discount factor (SDF).
This says that in pricing an asset you should factor in all the future cash flows the asset will generate (rent or dividends or capital gains) and then translate those returns into today’s money, adjusting for the riskiness of those cash flows.
An easier way to think about how rate cuts might affect property prices – consistent with the asset-pricing approach – goes like this.
People look at how much money they can borrow based on what they can afford to pay back. An interest rate cut boosts their borrowing power.
Even though the major banks have only passed on about half of the Reserve Bank’s latest cut (owner-occupied mortgage rates have been cut by 13-15 basis points), that’s enough to give a household with income of $150,000 about another $12,000 to $14,000 in borrowing power.
They thus spend more and, because there is a limited supply of properties, this pushes prices up. So, yes, lower interest rates do tend to boost property prices.
Is that all rate cuts do?
But boosting property prices is not all that rate cuts do.
Higher prices for new dwellings help developers. They often lead to an increase in construction jobs as developers anticipate better conditions for selling properties. New property construction has a number of other effects, too, such as changing <a href="https://www.rba.gov.au/publications/rdp/2019/pdf/rdp2019-01.pdf" target="_blank">the average quality of the rental stock</a> and spurring more retail spending (because those new homes need to be furnished).
Perhaps even more important is the pseudo-psychological effect of existing home owners feeling wealthier when house prices go up. This can lead to increased consumer spending – and this can have a big economic effect, given consumer spending accounts for about 60% of GDP.
This “wealth effect”, rational or not, seems to be real. It is part of the reason the Reserve Bank’s governor, Philip Lowe, appeared to be concerned about Sydney and Melbourne house prices falling in the past couple of years. It is also why federal treasurer Josh Frydenberg is happy to see property prices again on the rise.
Finally, lower interest rates do make business investment cheaper.
Would corporate tax cuts provide a bigger boost to investment? You bet. Are there diminishing returns to rate cuts as the cash rate approaches zero? That’s very likely to be the case.
But would businesses invest more if rates were two percentage points higher? No way. And would business like rates to be higher? I seriously doubt it.
Rate cuts do something to drive down unemployment, drive up consumer prices, and boost investment generally.
Are rate-cut driven prices increases bad?
But they certainly do also drive up residential property prices.
The important question is whether that’s bad or not. The answer to this question is a little murkier.
Let’s start with the fact borrowers should be thinking about how much to borrow.
If they borrow too much and are unable to repay their loans, that’s very bad news for them. Defaulting on a mortgage is a wrenching experience. Most people try hard to avoid that.
That said, sometimes people make poor choices through lack of information, lack of thought or lack of willpower. Occasionally an unscrupulous third party will encourage them to borrow more than they should.
But it’s not in the interest of banks to make too many loans that don’t get repaid. If borrowers are the first line of defence again bad price increases, lenders are the second line of defence.
There is a third line of defence: prudential regulation. The <a href="https://www.apra.gov.au/" target="_blank">Australian Prudential Regulation Authority</a> and the <a href="https://asic.gov.au/" target="_blank">Australian Securities and Investments Commission</a> are charged with enforcing “responsible lending laws” and ensuring the animal spirits and (sometimes) bad incentives of borrowers and lenders don’t get out of control.
So property prices increasing a few percent on the back of the rate cuts is unlikely to be problem – though as the Reserve Bank governor is fond of saying, “<a href="https://www.rba.gov.au/speeches/2019/sp-gov-2019-09-24" target="_blank">time will tell</a>”.<img src="https://counter.theconversation.com/content/124600/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
Richard Holden, Professor of Economics, UNSW.
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/vital-signs-yes-house-prices-will-rise-with-lower-interest-rates-but-thats-not-the-only-effect-124600" target="_blank">original article</a>.
</body></html>

j.ballantyne1990-6AQqhLzZaK

House prices will rise with lower interest rates, but that’s not the only effect

<html><body>
Every living expense can play a potentially crucial role in whether Sydney home buyers get their loan.
Despite the recent credit loosening, home loan applications are a huge hurdle before getting approvals.
There are numerous questions about the home buyer's current situation and their plans with any purchase on past bank statements likely to trigger spending analysis by the bank. 
Their forensic line by line scrutiny on spending includes everything from UberEats, Netflix, betting, pets, and the ongoing financial impact of children or, as a recent Saturday Telegraph front page reported, even the pursuit of IVF treatment.
Lendi managing director David Hyman watches bank requests seeking more information from loan applications. Before the Royal Commission, on average 40% of loan applications came back from the lenders with more information required.
During the Royal Commission period, around 52% of all loans applications submitted were coming back seeking greater details.
 This peaked in April this year at 63%. 
Significantly since the election and APRA’s changes to serviceability guidance, the trend has settled. Data from Lendi applications submitted in July and August show the rate of more information required has dropped to 29%.
Even the boss of Mirvac, Susan Lloyd-Hurwitz, who earns over $4.5 million, has found the questioning "tortuous" when recently settling on a $770,500 investment apartment.
Lloyd-Hurwitz said the scrutiny was "painful" and could "get non-sensical".
Last week, Treasurer Josh Frydenberg said that the bank's being too zealous in the wake of the Royal Commission.
Frydenberg warned it was beginning to penalise "hard-working families" trying".
"Common sense dictates that a sensible balance needs to be struck because an unduly restrictive application of these obligations can do as much harm as an overly lax one," Frydenberg said.
"Clearly, the risk that the provision of credit may cause substantial hardship to some should not result in a significantly reduced ability to access credit by the vast majority of borrowers," the Treasurer added.
The tighter lending restrictions is one of the reasons why listing volumes are at 20 year lows which the RBA governor Philip Lowe says is hurting the economy.
"With fewer of us moving homes, spending on new furniture and household appliances has been quite soft," Lowe said.
"So too has expenditure on moving costs and real estate fees. More broadly, the correction in the housing market has also affected the economy through its impact on residential construction activity.
Stung by the Royal Commission exposure of liar loan fraud, the banks moved to tighten their procedures and policies last year.
But last month the Supreme Court judge Nye Perram wisely noted that borrowers could always cut back on their spending after getting their new home.
"I may eat wagyu beef everyday washed down with the finest shiraz but, if I really want my new home, I can make do on much more modest fare," he colourfully noted while deciding for Westpac and against the Australian Securities and Investments Commission (ASIC) on a legal question of what Westpac should consider before responsibly giving someone a loan.
The latest data from APRA shows that riskier lending including loans with a high LVR or interest-only, remain a low proportion of new mortgages.
Most loans are based on the banks making lender serviceability assessments that incorporate an interest rate buffer of 2.5% above the current lending norm, to take into account potential repayment increases in higher loan rates and the borrower capacity in the years ahead. 
This article first appeared in The Daily Telegraph. 
</body></html>

jchancellor-FAypfDUnLy

Every living expense important in securing a home loan

<html><body>
Three of the Big Four Banks have dropped rates on their fixed home loans in the past week, with NAB the latest all set to cut its rates by up to 0.40%.
In total, 17 lenders – including CBA and ANZ – have cut rates on fixed home loans since the RBA's October 1 decision.
In the month before the October rate cut, 27 lenders cut fixed rates, in particular Westpac, which slashed rates by up to 1.30%.
<img src="https://www.urban.com.au/images/2019/10/8/Rate%20cuts%201.JPG" alt="">
(Source: RateCity.com.au)
Paul Marshall, chief executive at RateCIty.com.au, said this flurry of rate cuts is a sign banks are foreseeing a further cash rate cut, which could come as soon as next month.
“Fixed rates have been tumbling since the last rate cut, which indicates lenders could be pricing in yet another RBA cut,” he said.
“As a result, we are seeing record low fixed rates and it’s now possible to lock in a rate under 3% for five years. This suggests many banks are forecasting a sustained period of low rates.
“Many punters appear to be betting on a further rate cut as soon as Melbourne Cup day where we could see the cash rate drop to 0.50%.”
<img src="https://www.urban.com.au/images/2019/10/8/Rate%20cuts%202.jgp.JPG" alt="">
</body></html>

NAB announce fixed rate cuts following RBA's October decision

<html><body>
Australia’s fifth largest bank, ING, has announced that it is cutting home loan interest rates by 0.15%.
The bank’s interest rates will drop for both new and existing customers, and will be effective from October 16.
The cuts take ING’s lowest variable interest rate for new customers to 2.99%, for home loans over $1 million, and 3.03% for loans under $1 million.
A total of 26 lenders have announced rate cuts for their customers three days after the Reserve Bank cut the official cash rate to 0.75%.
The average interest rate reduction across the owner-occupier home loan market is currently 0.17% and just five lenders are passing on the full 0.25% RBA cut.
The chief executive of RateCity.com.au, Paul Marshall, said there are still dozens of lenders yet to announce what cuts they’ll make.
“With the cash rate now below one%, banks are cautiously considering what to pass onto home loan customers, while still appeasing shareholders and savers,” Marshall said.
“If your bank hasn’t declared their hand, you should call, email or even tweet them into action.”
 
</body></html>

wdavis-8cCN98p7xp

Australia’s fifth largest bank, ING, announces interest rate cuts for home loans

<html><body>
EXPERT OBSERVER
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
Why has the treasurer of Australia, Mr Josh Frydenberg let the banks off the hook for not passing on the full interest rate cut when the RBA reduced interest rates by 0.25% of a 1% earlier this week to stimulate the economy.
Two of the big banks CBA &amp; NAB have refused to pass on the full interest rate cut to their customers, profiting on the back of everyday Australians.
When the Treasurer, Mr Josh Frydenberg was interviewed by Ross Greenwood on the today show of Channel 9, instead of bringing the banks to account threatening them with new legislation to force them to pass on 100% of the rate cut he put the earnest on the customers to shop around for a better deal.
The process of changing lenders is very difficult and intrusive, and the banks have too much control over their clients. 
The federal government of Australia needs to be held to account to stop the big banks holding their mortgage holders to ransom and not passing on the rates cuts which are meant to stimulate the economy not their bottom line. 
This has an effect of stifling economic growth, short changing every day Australians and damping confidence and restricting the growth of new jobs.
Glenn Farah is a partner at real estate agency NGFarah.
 
</div>
</div>
</div>
</body></html>

Treasurer Josh Frydenberg fails to stand up to the big four

<html><body>
EXPERT OBSERVER
As expected the RBA Board lowered the cash rate by 25 basis points at its October meeting to 0.75%.
Back in July we identified October and February as the likely dates for the next moves. At that time only 3 forecasters out of 24 in the surveys were forecasting an October move and most were not anticipating a terminal rate as low as 0.5%.
We have not changed our forecasts since then and therefore welcome the Governor’s Statement which opens the door for another move.
However we cannot concur with the markets pricing in around a 50% probability of a follow up move in November.
There are a number of reasons for this caution.
Firstly, markets should understand that central banks will usually bias their comments on days on which they make policy changes to justify the decision. We saw some examples of that approach in the Governor’s Statement.
For example, he has, for no reason that is justified by the data, adopted a bolder objective than had been the case before by aiming for “full employment” rather than the more modest, “reduce unemployment” that we saw in September.
With the unemployment rate trending away from his full employment target and, by his own admission, “forward-looking indicators of labour demand indicate that employment growth is likely to slow from its recent fast rate” the introduction of that full employment target as a substitute for the more realistic “reduce unemployment” seems curious and is probably less significant than markets may have assessed.
In full, he noted, “the Board will continue to ease monetary policy further if needed to support sustainable growth in the economy, full employment and the achievement of the inflation target over time.”
A more significant aspect of that statement is the choice of the term, “if needed” which arguably implies that time will be taken to assess the impact of the three cuts in this cycle before moving again (note that he did not use “if needed” following the June decision which was subsequently followed up by a cut in July.)
We also think the RBA will be mindful of the response of the Westpac Melbourne Institute Consumer Sentiment Index to the consecutive cuts in June/ July. Following the cut in July the Index fell by 4.1%. There was an apparent “spooking” of the consumer around the policy action.
At the time we noted: “The main driver continues to be deepening concerns about the outlook for the Australian economy and prospects for family finances. The index components show the biggest decline in the sub-index tracking expectations for the ‘economy, next 12 months’ which slumped 12.3% to be down 16.4% since May to its lowest level in four years. Longer term expectations for the economy were also pared back sharply, the ‘economy, next 5 years’ sub-index falling 6.7%.”
BILL EVANS is the Chief Economist at Westpac.
This was first published on <a href="https://westpaciq.westpac.com.au/Article/40295/52930/" target="_blank">Westpac IQ</a>.
</body></html>

bevans-rYk9SxEa4r

Low chance of follow up rate cut in November: Bill Evans

<html><body>
The big four banks have all only passed on part of the RBA's 25 basis point rate cut, keeping a large chunk for themselves.
They've defied treasurer Josh Frydenberg's call for them to pass on the full cut, with further cuts expected in the not too distant future.
CBA and NAB were the <a href="/expert-insights/finance/nab-and-cba-fail-to-pass-on-full-rate-cut">first to cut their rates</a> on Tuesday, with <a href="/expert-insights/finance/anz-cut-interest-rates-by-just-0-14">ANZ</a> and then <a href="/expert-insights/finance/westpac-the-final-big-four-bank-to-fail-to-pass-on-full-rate-cut">Westpac</a> following yesterday.
Investors were the big winners. Investors with interest only investor mortgage's saw their rates get cut the full 25 basis points by ANZ, CBA and NAB. Westpac were the only ones not to pass fully.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/3/Labour%20Market%20Oct%20RBA.jpg" alt=""> The labour market performance was one of the key statistics that drove the RBA to cut rates. Source: RBA
Owner occupiers paying principal and interest on variable rate home loans is the number one market for most banks and home lenders.
The number of fixed home loans is down over 50 per cent since August 2017, a drop from 11,373 to 5,416.
According to Finder.com.au, there has been a near 400 per cent spike in visitors to their pages about breaking from fixed loans.
Following October’s RBA rate cut, there was a 69 per cent spike in visitors across all Finder home loan pages, including a 296 per cent jump in views of the variable home loans page, week-on-week.
Graham Cooke, insights manager at Finder, said fixed rates seem "less sexy" given there are likely further cuts on the way.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/3/GDP%20Growth%20October.jpg" alt=""> GDP growth continues its downward trajectory. Source: RBA
“In our RBA cash rate survey we found that nearly three-quarters (72%, 26/36) of experts predicted that the cash rate will reach 0.50% before it starts to increase," Cooke said. “Based on all the economic indicators the RBA reviews – employment, inflation, housing, wages – we are likely to be in a low-rate environment for the foreseeable future.  “Unless we see huge drops in fixed loan rates, variable loans will likely stay in vogue,” Cooke said. The lowest current fixed home loan rate sits at 2.79% (Mortgage House and Greater Bank) which is higher than the lowest variable home loan rate on the market at 2.69% (Reduce Home Loans). 
Far and away the biggest cut came from G&amp;C Mutual Bank who cut 50 basis points, taking their variable rate first home-owner loan to 2.79 per cent.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/10/3/House%20Prices%20Oct%20RBA.jpg" alt=""> House prices have continued to bounce back. Source: RBA
InfoChoice.com.au chief executive Vadim Taube has urged home loan borrowers to check their rate and compare it with other loans in the market. 
“If your lender hasn’t passed on the full RBA rate cut to you, you may like to listen to the treasurer Josh Frydenberg and think about voting with your feet.
“There are plenty of lenders who are passing on the full rate cut to customers and switching loans is getting easier and cheaper all the time. 
“More lenders are going completely online and accepting applications that you can put together on your lounge at home.”  
Who's cut their cash rate?
ANZ
Athena
Auswide Bank
Bank of Melbourne
BankSA
Bankwest
CBA
FreedomLend
Homestar Finance
Macquarie Bank
NAB
Pepper Money
RACQ Bank
RAMS
Reduce Home Loans
St George
Suncorp
UBank
Westpac
 
 
</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