<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

National Australia Bank (NAB) has brought forward the timing of the first RBA cash rate cut by three months.

NAB is now expecting a cut in February, in line with ANZ and Westpac, having initially thought a cut wouldn't come until May.

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB changed its call following the August monthly inflation figures that were released at the end of September, showing it had dropped to 2.7 per cent.

"The risk has been skewed to a first cut earlier in 2025, and today’s change acknowledges the balance of risks has likely shifted sufficiently for the RBA to feel comfortable cutting a little sooner than we earlier expected," NAB noted in its latest update.

They added that the cadence of the cuts may be faster than its central profile.

"Domestic inflation pressures are cooling, but only gradually, and we continue to expect the conditions for a cut will not be in place this year.

NAB believes the easing cycle will end at 3.1 per cent by early 2026, which is five cuts from the current 4.35 per cent cash rate.&nbsp;

CBA also thinks 3.1 per cent will mark the end of the cutting cycle, while Westpac is forecasting 3.35 per cent, and ANZ is the most pessimistic at 3.6 per cent, which would be just three interest rate cuts.

<h2>What would a rate cut in February look like for borrowers?</h2>

According to&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2vK2ujS77CHs9VRvSSXzLC" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG" target="_blank">Canstar</a>, if there is a cut in February, a borrower with a $600,000 loan today and 25 years remaining would see their monthly repayments drop by $92.&nbsp;

<table border="1" cellpadding="0" cellspacing="0">
	<tbody>
		<tr>
			<td colspan="3">
			Impact of 0.25% pt cut in February 2025
			</td>
		</tr>
		<tr>
			<td>
			Current loan size
			</td>
			<td>
			Drop in monthly repayment
			</td>
			<td>
			New monthly repayment
			</td>
		</tr>
		<tr>
			<td>
			$600,000
			</td>
			<td>
			-$92
			</td>
			<td>
			$3,907
			</td>
		</tr>
		<tr>
			<td>
			$750,000
			</td>
			<td>
			-$114
			</td>
			<td>
			$4,884
			</td>
		</tr>
		<tr>
			<td>
			$1M
			</td>
			<td>
			-$153
			</td>
			<td>
			$6,512
			</td>
		</tr>
		<tr>
			<td colspan="3">
			Source:&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2qVnp6oqATgqDUi2Frm22q" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL" target="_blank">www.canstar.com.au</a>. Starting rate is the RBA existing average owner-occupier variable rate of 6.36%. Assumes banks pass the cash rate cut on in full the month after the meeting.
			</td>
		</tr>
	</tbody>
</table>

Canstar Data Insights Director, Sally Tindall, says if core inflation continues to track in the right direction, or unemployment starts to accelerate significantly, we could well see a cash rate cut as early as February of next year.

“All four big banks now believe the RBA will be ready to cut the cash rate in just over four months’ time, if not before, in the case of CBA.

“However, the outlook for both inflation and unemployment is still highly uncertain. A couple of wobbly sets of inflation data could see the RBA holding for longer, particularly if unemployment remains relatively steady."

&nbsp;

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB bring forward first RBA cut to February 2025

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Following nearly three days of silence NAB has reduced its standard variable home loan rate by 20 basis points to 6.58% p.a.
NAB will also reduce its rate on standard variable business rate lending products by 0.2 percentage points p.a.
Both new rates are effective from Monday, October 8.
The banks says it has offered the lowest SVR of the major banks for the past 39 months, saving borrowers $1,800 in interest compared with those who have a standard variable loan with another major bank.
<img src="/images/stories/2012/09/banksoct5.gif">
But borrowers will be upset that the bank has not passed on the full 25 basis points on offer following Tuesday’s cash rate cut.
NAB has maintained its promise of having the lowest standard variable rate of the major banks throughout 2012.
Soon after the NAB announcement, the Commonwealth Bank said it would also pass on 20 basis points to variable mortgage holders, reducing its SVR to 6.6% from October 12.
Were ANZ to pass on 23 basis points or more at its independent interest rates meeting next Friday it would surpass NAB's 6.58% offering.
Westpac cut its SVR by 18 basis points to 6.71% effective from October 15.
NAB group executive for personal banking, Lisa Gray, said decisions on interest rates were not taken lightly and NAB had sought to strike the right balance between offering the lowest SVR of the major banks and its obligations to ensure Australian banks are safe and secure. "Banks obtain funds for lending from deposits and from wholesale funding markets. Around the world, banking regulators require banks to hold more stable forms of funding, like deposits, to reduce risk in the banking sector,” says Gray. "The increased competition for deposits is pushing up costs, making it more expensive to fund our lending. “The decision we have taken today means we can continue to offer competitive deposit rates while delivering on our pledge to have the lowest SVR of the major banks for 2012.”
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lschlesinger-FZcF9M3vE6

NAB passes on 20 basis points and trims standard variable rate to 6.58%

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We have all heard the old saying about death and taxes being the only two certainties in life. This may not be the case when you take superannuation into account, but that is for another article. Having said that, you should claim all legitimate property deductions so as to maximise the return on your investment.
For property investors, that means treating your investments as a business (notwithstanding the ATO does not recognise passive property investing as a business, which has certain tax treatments available) and claiming all deductions against your rental income or capital gains if the property is sold.
You also need to ensure that you do not arbitrarily create situations just to get a tax deduction, as this will be seen as tax avoidance and taxed anyway. Your dominant purpose cannot be for tax a benefit.
“Claim all legitimate tax deductions” may sound straightforward. The problem is, however, that the tax law is complicated and constantly changing. Indeed even the ATO may have a change of position in its thinking. It is therefore critical that property investors do not “under claim”, or claim for ineligible expenses (leading to a very emotive time if audited). 
To maximise your allowable deductions you must first understand what you are entitled to and then make sure you claim it. The concept of stopping the leakage is critical, as the word leakage implies losing what you have or are entitled to, which is exactly what happens if you do not claim all allowable deductions. 
There are several types of expenses that are deductible immediately.
In simple terms, these are costs that are created and paid for in the one year relating to the ongoing ownership of your investment property. You should in all cases be able to prove to the Australian Taxation Office (ATO) that the expenses that you are claiming relate to legitimate business expenses for the investment property.
It should therefore go without saying that you must keep all records of payments whenever you incur an expense. These expenses should not be guessed or inappropriately apportioned. This will save you a great deal of time and money when you submit your tax return and any subsequent ATO review or audit as the ATO can legally refuse unsubstantiated claims.
Ken Raiss is a certified accountant and director of <a title="Chan &amp; Naylor " href="https://www.chan-naylor.com.au/" target="_self">Chan &amp; Naylor</a> national accounting firm. Chan &amp; Naylor offers a free five-minute question-and-answer session on its website under the<a href="https://www.chan-naylor.com.au/ask-the-experts/" target="_blank"> "Ask the Experts" section.</a>
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kenraiss-JsVyb3YKka

Claim all you can on your property investment, but don't invest just for the tax benefit

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While the major banks keep as quiet as church mice, ING Direct has passed on the full 25 basis point rate cut to its borrowers.
The rate cut will take effect on October 12 and will reduce the interest rate on its most popular variable rate offering, Mortgage Simplifier to 5.97%.
ING Direct is the fifth largest home lender in the country, with $38 billion in mortgages.
Also today, The Greater Building Society has announced that it will reduce its already low home loan rates by between 0.15  and 0.25 percentage points.
A full rate cut will apply to the Greater’s Ultimate Home Loan (packaged loan) rate which will fall to 5.74% (comparison rate 6.09%).
The Greater’s standard variable home loan and basic variable home loan rates will fall by 0.15 percentage points to 6.25% p.a (comparison rate of 6.31% p.a.) and 5.89% p.a. (comparison rate of 5.95% p.a.) respectively.
The decrease in rates is effective from Monday for new loans and for existing customers from October 15.
Customers on a 30-year standard variable or basic home loan of $300,000 will see their monthly repayments reduce by $30.
CEO Don Magin says The Greater wanted to pass on as much of the cut as possible as quickly as possible to customers.
He says intense competition and high loan funding costs meant that The Greater was not able to pass on the full rate cut this time.
The Greater’s standard and basic variable home loan rates will remain lower than those of the major banks, even lower when comparison rates are used.
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ING Direct passes on full rate cut while Greater Building Society passes on 15 bps to standard variable customers

<html><body>
The RBA is likely to cut the cash rate again on Melbourne Cup Day (November 6) with another rate cut in the March quarter, according Shane Oliver, chief economist at AMP Capital.
Oliver expects the cash rate to fall to 2.5% over the next six months to deliver a variable mortgage rate of around 6%, a setting which will encourage growth and improving consumer and business confidence.
According to Oliver the current average standard variable rate of around 6.75% is the new “new neutral” setting and at a level that is only “just starting to become stimulatory”.
He expects the banks to pass on around 20 out of the 25 basis points on offer following Tuesday’s cash rate cut to 3.25%, which would take the average standard variable rate to 6.6%.
“In the last two easing cycles the mortgage rate had to fall to around 6.05% in 2002 and to 5.8% in 2009.
“Given the fall in the likely neutral level for mortgage rates and the current headwinds coming in the form of the strong Australian dollar and fiscal tightening, mortgage rates will at least need to fall to these lows.
“Given the ongoing issues with bank funding, to achieve a circa 6% mortgage rate the cash rate will need to fall to around 2.5%” he says.
This is because banks have not passed on past rate cuts in full due to “funding issues”.
“Basically banks have been seeking to reduce their reliance on non-deposit funding which has proved unreliable since the GFC and to do this they have had to offer higher deposit rates relative to the cash rate than would normally be the case.
“This has resulted in higher lending rates relative to the cash rate than was the case pre GFC.”
Oliver says the RBA is “coming around to this view”.
“As such we expect another 0.25% cash rate cut next month on Melbourne Cup day, followed by a cut to 2.5% in the March quarter next year,” Oliver says.
Oliver says key sectors likely to benefit from lower rates are retailers, building materials and home builders.
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RBA “coming round” to need for November rate cut and 2.5% cash rate: Shane Oliver

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The interest rate gift from the RBA this week, its fifth cut in the past 12 months, will be a further catalyst for property markets already moving steadily into recovery. 
The only time in the past 20 years the official rate has been lower than it is now was in 2009, following multiple cuts in response to GFC-related issues. 
It’s clear from the messages I get from real estate consumers that intending buyers await RBA deliberations before making decisions. 
But, if they were thinking clearly, the monthly interest rates moves from Glenn Stevens and his colleagues would be irrelevant. 
No one with a cogent long-term investment strategy would be swayed by short-term trends in interest rates. Buying a property means, for most people, taking on a mortgage commitment stretching decades into the future. During the life of the loan, there will be multiple rate cycles. This month’s RBA decision is essentially meaningless. 
In the past 20 years we’ve had 51 changes to the official cash rate – 24 reductions and 27 increases. The increases tend to be in smaller increments than the cuts, so the net effect is that rates are today considerably lower than they were two decades ago. 
The key point is that there have been four peaks and five troughs (including the current one) since the early 1990s. At a couple of points in that cycle (in 1996 and in 2008), the cash rate has been about 4 percentage points higher than the current level. 
The next 20 years is unlikely to be much different. 
In the light of that information, nervous investors who sit on their hands awaiting the next RBA decision, while reading the breathless daily speculation by economists in the weeks preceding the monthly board meetings, are demonstrating a losing of the plot. 
The issue that should be focusing their minds is this: if I buy a property and take on a mortgage, at some point during of the life of my mortgage rates will be higher than they are now. Will I be able to cope if rates are 2 percentage points higher than now? How about if they go 3 percentage points higher? 
If I’ve done my sums and concluded I can deal with the inevitable fluctuations along the way, then my decision should not influenced by RBA moves last month, this month or next month, nor the relentless pointless and usually inaccurate speculation on future movements by the endlessly chattering economists (most predicted the RBA would not cut rates this week and expressed their usual surprise when they discovered they’d got it wrong yet again). 
The current low levels are little more than a short-term bonus.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" rel="nofollow" target="_blank">hotspotting.com.au</a> and can be <a href="https://www.twitter.com/hotspotting" rel="nofollow" target="_blank">followed on Twitter</a>.
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terryryder-YECXbqmri2

RBA’s interest rate cut a meaningless gift for property investors with a cogent long-term strategy: Terry Ryder 

<html><body>
The percentage of Australian borrowers more than a month behind on their mortgage repayments fell for the second consecutive month in July following the RBA cash rate cuts in May and June, with the proportion of Australian borrowers at risk of defaulting on their mortgages well below that of other first-world economies, according to global credit rating agency Moody's.
Moody’s expects the arrears rate to hold steady for the remainder of the year following Tuesday’s rate cut.
The delinquency rate for mortgages more than 30 days in arrears in the Australian prime residential mortgage market was 1.61% in July, down from 1.66% in June and 1.67% in May.
A year ago the 30-day-plus arrears rate was 1.64%.
The biggest fall was the in the 30 to 60 days in arrears basket, which dropped from 0.74% to 0.66%, a month-on-month decline of 10%.
However, those borrowers more than three months behind in their mortgage payments increased from 0.63% to 0.66% – a rise of nearly 5%. 
<table border="1" cellspacing="0" cellpadding="0" width="403"><tbody>
<tr>
<td valign="bottom" width="65" nowrap>
Australian Prime RMBS
</td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
 
</td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
 
</td>
</tr>
<tr>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
MTM
</td>
<td valign="bottom" width="70" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
YOY
</td>
</tr>
<tr>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="70" nowrap>
Jul-12
</td>
<td valign="bottom" width="70" nowrap>
Jun-12
</td>
<td valign="bottom" width="65" nowrap>
% Change
</td>
<td valign="bottom" width="70" nowrap>
Jul-11
</td>
<td valign="bottom" width="65" nowrap>
% Change
</td>
</tr>
<tr>
<td valign="bottom" width="65" nowrap>
30-60 days
</td>
<td valign="bottom" width="70" nowrap>
0.66%
</td>
<td valign="bottom" width="70" nowrap>
0.74%
</td>
<td valign="bottom" width="65" nowrap>
-10.2%
</td>
<td valign="bottom" width="70" nowrap>
0.71%
</td>
<td valign="bottom" width="65" nowrap>
-5.8%
</td>
</tr>
<tr>
<td valign="bottom" width="65" nowrap>
60-90
</td>
<td valign="bottom" width="70" nowrap>
0.29%
</td>
<td valign="bottom" width="70" nowrap>
0.29%
</td>
<td valign="bottom" width="65" nowrap>
0.2%
</td>
<td valign="bottom" width="70" nowrap>
0.30%
</td>
<td valign="bottom" width="65" nowrap>
-1.9%
</td>
</tr>
<tr>
<td valign="bottom" width="65" nowrap>
90+ days
</td>
<td valign="bottom" width="70" nowrap>
0.66%
</td>
<td valign="bottom" width="70" nowrap>
0.63%
</td>
<td valign="bottom" width="65" nowrap>
4.9%
</td>
<td valign="bottom" width="70" nowrap>
0.63%
</td>
<td valign="bottom" width="65" nowrap>
3.9%
</td>
</tr>
</tbody></table>
Source: Moody’s
Putting this into an international context, the US has a 60 days or more arrears rate of 6.57% – six times higher than Australia (0.95%)
One of the worst-performing housing markets is Ireland, which has a 60 days or more arrears rate of 17.22% – meaning nearly one in five borrowers are at risk of default.
Another basket case economy, Greece, has more than doubled its 60-day-plus arrears rate from 2.38% in August 2010 to 5.37% in August 2012.
Japan has a 60-day-plus arrears rate of 0.21%.
 
<hr class="system-pagebreak">
 
"We believe the rate of arrears will hold steady in 2012 because of the recent cuts in interest rates and our expectation that GDP growth will remain robust at 3.8% in 2012," says Jennifer Wu from Moody’s.
"Given that the benefits of economic growth and low interest rates will not be felt equally across all sectors, certain regions, such as those dependent on tourism and retail, which are under pressure due to the strong Australian dollar, will see a rise in arrears.
“But, Moody's expects this trend to be offset by the decline in arrears in other regions," she adds.
The arrears rates are calculated based on the performance of loans packaged and sold to investors as residential mortgage-backed securities – also known as securitisation.
There was also an improvement in low-doc arrears rates (30 days or more), which improved from 5.72% to 5.52%.
The performance of non-confroming loans provided to credit-impaired borrowers at higher interest rates also improved from 12.47% to 11.33%. 
<table border="1" cellspacing="0" cellpadding="0" width="391"><tbody>
<tr>
<td valign="bottom" width="68" nowrap>
Australian Non-Conforming RMBS
</td>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="65" nowrap></td>
<td valign="bottom" width="65" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="68" nowrap></td>
<td valign="bottom" width="65" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
MTM
</td>
<td valign="bottom" width="65" nowrap>
 
</td>
<td valign="bottom" width="65" nowrap>
YOY
</td>
</tr>
<tr>
<td valign="bottom" width="68" nowrap></td>
<td valign="bottom" width="65" nowrap>
Jul-12
</td>
<td valign="bottom" width="65" nowrap>
Jun-12
</td>
<td valign="bottom" width="65" nowrap>
% Change
</td>
<td valign="bottom" width="65" nowrap>
Jul-11
</td>
<td valign="bottom" width="65" nowrap>
% Change
</td>
</tr>
<tr>
<td valign="bottom" width="68" nowrap>
30-60 Days
</td>
<td valign="bottom" width="65" nowrap>
3.85%
</td>
<td valign="bottom" width="65" nowrap>
4.72%
</td>
<td valign="bottom" width="65" nowrap>
-18.4%
</td>
<td valign="bottom" width="65" nowrap>
4.22%
</td>
<td valign="bottom" width="65" nowrap>
-8.8%
</td>
</tr>
<tr>
<td valign="bottom" width="68" nowrap>
60-90 Days
</td>
<td valign="bottom" width="65" nowrap>
2.57%
</td>
<td valign="bottom" width="65" nowrap>
2.18%
</td>
<td valign="bottom" width="65" nowrap>
17.9%
</td>
<td valign="bottom" width="65" nowrap>
2.79%
</td>
<td valign="bottom" width="65" nowrap>
-8.1%
</td>
</tr>
<tr>
<td valign="bottom" width="68" nowrap>
90+Days
</td>
<td valign="bottom" width="65" nowrap>
4.91%
</td>
<td valign="bottom" width="65" nowrap>
5.58%
</td>
<td valign="bottom" width="65" nowrap>
-12.0%
</td>
<td valign="bottom" width="65" nowrap>
5.39%
</td>
<td valign="bottom" width="65" nowrap>
-8.9%
</td>
</tr>
</tbody></table>
Source: Moody's
Non-conforming mortgage arrears rates peaked at 17.44% in January 2009.
The Moody’s research shows the extent of the decline of this source of funding since the GFC.
In 2007, just before the GFC froze securitization markets, Moody’s rated 75 tranches of residential mortgage-backed security deals sold to institutional investors. There were 20 tranches rated by Moody’s in 2008 and just eight in 2009.
For the first seven months of 2012 Moody’s has rated just 12 tranches.
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Australian borrowers remain world beaters on mortgage management as arrears fall further in July: Moody’s

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Yes, interest rates fell.
But what do we know?
The local economy is tough.  Overseas markets more so.  Or is it more about structural change than cyclical factors?  Ditto Australia’s housing markets.
Australians are saving at near-record rates.
Budget cutbacks means less fiscal stimulus.
We are spending money but on different things – travel and online goods, not local produce and especially not new housing (or established housing, for that matter).
We are paying down our mortgages, and taking on new debt is way out of fashion.
Inflation looks contained – well, for now.
Established house prices are starting to rise – up over 3% since May or close to 9% on an annualised rate.
Population growth across Australia is on the rise again.
The Aussie dollar remains high.
Very few people are admitting they like Alan Jones right this minute.
For mine, this week’s drop in official rates will have very little impact on our economy.  The banks are limited as to how much they can pass on.  Rates are expected to fall again in November.
True, a rate drop is better than a rate rise, given our current collective frump.
 
<hr class="system-pagebreak">
 
But what we need is a boost to our confidence.  A fall in interest rates won’t do it.  This week’s fall and even next month’s is already factored into our expectations.  It’s like having meat and three veg for dinner, the usual and so ho-hum.
Confidence, that’s what is missing and for the life of me, I don’t see it on the horizon and regardless of what direction I look.  I definitely don’t see in when I look south towards Canberra.  I was hoping to see it in George Street, but maybe my expectations were set too high.  I am not seeing it across the Pacific.  Heck, I cannot even watch a footy match these days without someone getting their ear nearly bitten off.
Without being sexist, Tom Waits has got it right – “there ain’t enough raised right men”.
We need to build something – another Snowy Mountains something.  Or really attempt to solve a major human suffering – and something tangible, like infant mortality or AIDS – and not the nebulous like “climate change”.  We need a plan and a leader to articulate and implement it.  Branson and co. need to step up.  No politician – well, not out of the current crop – is going to do it.  Ditto those mining magnates.
We need our own Springsteen.  Where’s Midnight Oil when you need them?  Come on, Pete – give up your day job!
But before I get higher on my high horse:
All the ingredients are there for another housing upturn – low rates; high yields (often now positive); a rising population growth rate; soft housing starts; very tight vacancy rates; higher rents and now rising end prices, and yet I will get more “spruiker” direct email replies from this post than “high fives”.
It’s a strange world we live in these days for sure.
Michael Matusik is the founder of <a href="https://www.matusik.com.au/" target="_blank">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a title="blocked::https://www.matusikmissive.wordpress.com /" href="https://www.matusikmissive.com.au/" target="_blank">Michael's blog</a>or follow him on <a href="https://www.twitter.com/michaelmatusik" target="_blank">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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michaelmatusik-49YzLvdmNv

What we know about the housing market in the wake of the RBA's cash rate cut

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Banks' dominance of the mortgage market – now above 90%  of all home loan approvals – means they have been able to take 10.6 days to pass on RBA cash rate cuts.
By contrast, they take 6.8 days to lift mortgage rates when the RBA lifts the cash rate.
In addition, research suggests banks have passed on 116% of cash rate rises (above official rate increases), while only passing on 84% of the benefit of RBA cash rate cuts.
These figures are contained in the latest edition of the Economic Record, published the Economic Society of Australia, which calculated the time banks take based on the last two years of RBA cash rate decisions.
Westpac is the worst offender when it comes to passing on rate cuts – taking 13 days, while the Commonwealth Bank is the quickest to pass on rate rises – taking just three days.
How long banks take to pass on RBA rate rises and rate cuts (decisons from May 2010 to June 2012)
<table border="1" cellspacing="0" cellpadding="0" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="205">
 
</td>
<td valign="top" width="205">
When rates rise
</td>
<td valign="top" width="205">
When rates fall
</td>
</tr>
<tr>
<td valign="top" width="205">
Westpac
</td>
<td valign="top" width="205">
8.5
</td>
<td valign="top" width="205">
13
</td>
</tr>
<tr>
<td valign="top" width="205">
Commonwealth Bank
</td>
<td valign="top" width="205">
3
</td>
<td valign="top" width="205">
9.75
</td>
</tr>
<tr>
<td valign="top" width="205">
ANZ
</td>
<td valign="top" width="205">
8
</td>
<td valign="top" width="205">
12.5
</td>
</tr>
<tr>
<td valign="top" width="205">
NAB
</td>
<td valign="top" width="205">
8
</td>
<td valign="top" width="205">
7.25
</td>
</tr>
<tr>
<td valign="top" width="205">
Big Four Average
</td>
<td valign="top" width="205">
6.8
</td>
<td valign="top" width="205">
10.6
</td>
</tr>
</tbody></table>
Source: Economic Record/Sydney Morning Herald
Westpac is also the worst offender when it comes to the margin between the standard variable rate and the cash rate.
Westpac's margin is 352 basis points, followed by ANZ (339 basis points), Commonwealth Bank (326 basis points) and NAB (315 basis points).
However, borrowers will have themselves partly to blame if the major banks – as expected – do not pass on the full 25-basis-point October RBA rate cut this week.
The following chart prepared by investment firm Nomura shows that Australian banks' share of total mortgage approvals has risen well above 90% as borrowers choose to secure their home loans through well-known brands.
This is despite non-bank lenders, building societies and credit unions offering competitive and in many cases lower fixed and variable-rate offerings.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/09/nomura.gif"><img src="/images/stories/2012/09/nomurathumb.gif"></a>
 
<hr class="system-pagebreak">
 
Banks' share of the mortgage market surged in the wake of the GFC from 80% of the market to more than 90% as non-bank lenders and mutuals were forced to ration their credit or in some cases stop lending all together.
Before this, the  major banks lost market share in the mid to late-1990s following the rise of the non-bank sector led by battler mortgage brands, including John Symond’s Aussie Home Loans, John Kinghorn’s Rams Home Loans and Mark Bouris’s Wizard Home Loans.
Aussie Home Loans is now a third owned by the Commonwealth Bank and is predominantly a mortgage broker.
Rams Home Loans had a disastrous float on the ASX, coinciding with the start of the GFC. Its brand and stores were snapped up by Westpac in October 2007 for a paltry $140 million – Rams had raised $695 million when it listed on the ASX in July 2007 at $2.50 a share. The former Rams mortgage book, now called RHG Limited, is now in run-off. Shares are trading at around 39¢.
Mark Bouris sold Wizard Home Loans to GE Money in 2004. GE Money quit mortgage lending in 2008, as wholesale funding costs soared, leaving some borrowers high and dry, with some of the highest variable mortgage rates in the market as it refused to pass on big RBA cash rate cuts.
Aussie acquired the Wizard Home Loans brand and franchise network in December 2008.
All Wizard Home Loans stores are now branded Aussie.
Let us know what you think will happen with interest rates and the property market in spring. <a target="_blank" href="http://propertyobserver.com.au/ebooks/the-spring-property-outlook-survey">Complete our five-minute survey for your chance to win an iPhone 5.</a>
</body></html>

Borrowers left waiting 10.6 days for a partial rate cuts as banks assert market dominance

<html><body>
AFG recorded a fall in mortgage sales in September, but an increase in borrowers that chose to fix their home loan, according to the mortgage broker’s latest monthly mortgage index.
Fixed-rate mortgage sales accounted for 21.5% of all new home loan sales over September up from 19.9% in August and 16.8% in July with three-year fixed rate home loans particularly popular.
One of the lenders on AFG’s panel, ME Bank recorded a surge in fixed-rate mortgage applications, which now account for 45% by value of all new applications, up from 14% earlier in the year.
ME Bank offers a three-year fixed home loan at 5.39% - one of the lowest in the market.
A procession of lenders have cut their fixed rates over the past few weeks including the major banks and regional banks.
While fixed rate demand increased, overall demand for housing finance fell in September.
AFG processed $2.7 billion of loans last month compared with $2.6 billion in September 2011.
Mortgage sales were down more than 10% from the $3 billion recorded in August reflecting the latest RBA figures to August, which has mortgage growth at an annualised rate of just 4.8% - the lowest for records going back to 1991.
The number of home loans arranged by AFG brokers fell by nearly 850 over the month with brokers arranging 6,882 loans in September compared with 7,730 in August.
“We welcome the RBA decision. Both the figures and our brokers are saying that while there are some areas of confidence, things are generally very patchy,” said Mark Hewitt, general manager of sales and operations at AFG.
 “The property market has been slow to emerge from winter and whilst no one is expecting any dramatic rebounds, the interest rate cut will help.”
AFG also recorded that loan-to-value ratios increased from 66.9% in June to 69% in September.
First-home buyers accounted for just 13.2% of all AFG home loans arranged over September, down from 15.9% in August
Non-major banks gained market share to 24% of all new home loans last month – up from 22.2% in August. 
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AFG fixed-rate demand increasing as ME Bank locks in 45% of all new borrowers

<html><body>
While borrowers wait to hear how much of the 25 basis points the major banks will pass on following yesterday’s cash rate cut – ANZ borrowers must wait until Friday 12 October – Property Observer has compiled a list of the lowest fixed and variable rate offerings currently in the market.
Non-bank lender eMoney is offering a three-year fixed home loan at 5.2% – the lowest advertised rate on offer.
eMoney operates as an online lender, based in Homebush, Sydney. Customers can also call to arrange their mortgages. The lender says it can offer such cheap rates by “cutting out the middleman”.
ME Bank, which offers a three-year fixed home loan at 5.39%, says fixed rates continue to be in high demand and now account for 45% by value of all new applications, up from 14% earlier in the year.
Even when the major banks do make their announcements, rate changes are unlikely to take effect immediately.
<a target="_blank" href="/news">Bank of Queensland yesterday trimmed 20 basis points from its standard variable-rate home loan to 6.71%</a> per annum, but only effective from Friday,  October 19, 2012.
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 3:
Lowest variable rate offerings:
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="134" valign="top">
Provider
</td>
<td width="124" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="134" valign="top">
eMoney
</td>
<td width="124" valign="top">
Pro Pack 75
</td>
<td width="97" valign="top">
5.6%
</td>
<td width="116" valign="top">
5.94%
</td>
</tr>
<tr>
<td width="134" valign="top">
UBank
</td>
<td width="124" valign="top">
uHome Loan for refinancing
</td>
<td width="97" valign="top">
5.62%
</td>
<td width="116" valign="top">
5.62%
</td>
</tr>
<tr>
<td width="134" valign="top">
Loans.com.au
</td>
<td width="124" valign="top">
Dream Catcher
</td>
<td width="97" valign="top">
5.65%
</td>
<td width="116" valign="top">
6.01%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="137" valign="top">
Provider
</td>
<td width="123" valign="top">
Loan name
</td>
<td width="95" valign="top">
Rate
</td>
<td width="114" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="137" valign="top">
My Mortgage Freedom
</td>
<td width="123" valign="top">
Fixed Rate loan
</td>
<td width="95" valign="top">
5.34%
</td>
<td width="114" valign="top">
5.98%
</td>
</tr>
<tr>
<td width="137" valign="top">
QT Mutual Bank
</td>
<td width="123" valign="top">
Choice Residential One Year Fixed
</td>
<td width="95" valign="top">
5.39%
</td>
<td width="114" valign="top">
6.05%
</td>
</tr>
<tr>
<td width="137" valign="top">
ME Bank
</td>
<td width="123" valign="top">
Super Member Home Loan Ultimate Offset
</td>
<td width="95" valign="top">
5.39%
</td>
<td width="114" valign="top">
6.57%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="133" valign="top">
Provider
</td>
<td width="133" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="108" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="133" valign="top">
eMoney
</td>
<td width="133" valign="top">
Pro Pack 75
</td>
<td width="97" valign="top">
5.20%
</td>
<td width="108" valign="top">
5.87%
</td>
</tr>
<tr>
<td width="133" valign="top">
ME Bank
</td>
<td width="133" valign="top">
Super Member Fixed Three years
</td>
<td width="97" valign="top">
5.39%
</td>
<td width="108" valign="top">
6.05%
</td>
</tr>
<tr>
<td width="133" valign="top">
UBank
</td>
<td width="133" valign="top">
UHomeloan for refinancing
</td>
<td width="97" valign="top">
5.48%
</td>
<td width="108" valign="top">
5.68%
</td>
</tr>
</tbody></table>
Have your say on mortgages and other aspects of the property market. <a target="_blank" href="http://propertyobserver.com.au/ebooks/the-spring-property-outlook-survey">Complete our five-minute spring 2012 property outlook survey</a> for your chance to win an iPhone 5.
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