<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>
The NSW coastal tourism and retirement towns of Nelson Bay and Budgewoi have retained their unwanted titles of Australia's most delinquent postcodes, according to the latest report by Fitch Ratings.
The Port Stephens suburb of Nelson Bay in the Hunter region of NSW has a delinquency rate of 7.8% as of March 2012 for mortgages more than 30 days in arrears – unchanged from the last survey by Fitch six months ago.
This is nearly five times above the national average of 1.6%, up 18 basis points from 1.42% in September 2011.
The seachange Nelson Bay district includes the areas of Corlette, Fingal Bay, Nelson Bay and Shoal Bay and has been among the worst-performing postcodes since Fitch first published its report in 2007.
Fitch blamed the high delinquency rate in Nelson Bay on “stagnation in the local housing market, which lead to an accumulation of arrears in the 90+ day bucket”.
“The stagnation in the local housing market has increased the time required for foreclosed properties to sell, leading to an accumulation of arrears in the 90+ day bucket (4.57% as of March 2012).
“Furthermore, properties that are in arrears tend to be high-value properties, where the mortgage balance is on average almost three times the average loan balance in Nelson Bay,” says Fitch.
Notably Surfers Paradise, the epicentre of the struggling Gold Coast property market rose from sixth to third most delinquent post code by value with its arrears rate rising from 3.9% to 4.1%
Cessnock in the Hunter region rose from 15th to 8th most delinquent post code by value with its 30 days plus arrears rate rising from 3.4% to 3.9%. Two years ago it had a delinquency rate of 2.56%.
RP Data's Tim Lawless says all struggling markets have in common "some material declines in values".
Eleven of the 20 worst performing suburbs were located in NSW, seven of which were around Sydney, predominantly in the traditional mortgage belts of south-west and western Sydney.
The-worst performing postcodes — such as Hoxton Park (2171), Eagle Vale (2558), Rooty Hill (2766), Macquarie Fields (2564), and Green Valley (2168) — are all in Sydney’s outer west, located in or nearby Fairfield/Liverpool.
Outer=western Sydney ranked as the ninth worst-performing region by value and 10th worst by number of delinquent mortgages.
Fairfield/Liverpool ranked the most delinquent region in Australia with 2.82% of mortgages more than 30 days in arrears.
Click to enlarge
<a href="/images/stories/2012/08/fitchaug222.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/2012/08/fitchaug222thumb.gif"></a>
Budgewoi on the central coast remained the worst performing suburb by number of mortgages in arrears, with 33 borrowers out of 1,000 in delinquency as of March 2012, followed by Surfers Paradise (QLD), Eagle Vale (NSW), Cessnock (NSW), Nelson Bay (NSW), Crestmead/Marsden (QLD), Beaudesert (QLD), and Helensvale (QLD).
For the first time, two of the 20 worst-performing postcodes by number of mortgages in arrears were located in Victoria (Corio,\ and Wyndham Vale). In South Australia, Salisbury was the worst-performing postcode, with 25 borrowers out of 1,000 in delinquency as of March 2012.
Click to enlarge
<a href="/images/stories/2012/08/fitchaug222.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/2012/08/fitchaug223thumb.gif"></a>
The figures are compiled before the May and June cash rate cuts (a combined 75 basis points) which may have subsequently helped borrowers better manage their mortgage repayments.
Fitch says interest rate movements are usually reflected in mortgage performance with a three to four month lag.
“Regions in which serviceability is key to mortgage performance are expected to benefit the most,” says the credit ratings agency.
 
</body></html>

lschlesinger-FZcF9M3vE6

Nelson Bay and Budgewoi on NSW coast still most delinquent postcodes in Australia: Fitch

<html><body>
RBA board members noted that conditions in the housing market remain weak but were showing “tentative signs” of starting to pick, the release of minutes from the August 7 monetary policy meeting have revealed.
At the August 7 meeting, where the cash rate was left on hold at 3.5%, members noted that there were “tentative signs that housing market conditions and residential building activity were starting to pick up after being weak for some time”.
“Prices had increased a little in recent months, but remained somewhat lower than a year ago.
“Demand for housing finance was broadly unchanged over the year. With building approvals rising from low levels, the outlook for residential construction activity was more positive for the second half of the year. Earlier falls in interest rates and rising rental yields were likely to have increased the attractiveness of housing investment,” the minutes read.
Westpac chief economist Bill Evans says there were "little new insights" into monetary policy in the minutes but says there were some "tentative positive comments are made about housing market conditions and residential building market activity with prices increasing a little in recent months".
"Overall downside risks to the economy are firmly in the 'international' camp with Europe in the spotlight: 'the risk of significant economic and financial disruption in the euro area continued to cloud the outlook'," says Evans.
At the meeting, board members also noted that underlying inflation was at 2% for the year, “the lowest annual rate since the late 1990s” – providing scope for future interest rate cuts if the recovery in the housing market and other non-resource industries stalls.
“The inflation data for the June quarter were broadly in line with expectations, and confirmed that underlying inflation was around the bottom of the target," said the RBA.
The board also noted that the domestic economy appeared to be growing at around trend pace in the June quarter, “though activity continued to vary significantly across industries”
“Resource investment, which continued to evolve broadly in line with the Bank's forecasts, spurred activity in a number of industries, while the high Australian dollar and weak conditions in the housing market had weighed on activity in a number of non-resource industries.”
The performance of the global economy will impact on future interest rate decisions with the RBA board noting the global economic environment remained “fragile”.
“The latest forecasts for global growth had been revised down a little, reflecting further deterioration in Europe and slower growth in the United States and parts of Asia,” say the minutes.
The board concluded that “inflation expected to be consistent with the target and growth close to trend, but with a more subdued international outlook than was the case a few months ago, the Board judged that the stance of monetary policy remained appropriate”.
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Housing market weak but showing 'tentative signs' of pick-up: RBA August minutes

<html><body>
Property Observer has scoured the most well-known mortgage comparison websites to determine the lowest variable-rate home loan and one- and three-year fixed home loans currently available.
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 August 21:
Lowest variable rate offerings:
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="158">
Provider
</td>
<td valign="top" width="151">
Loan name
</td>
<td valign="top" width="123">
Rate
</td>
<td valign="top" width="132">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="158">
UBank (NAB)
</td>
<td valign="top" width="151">
UHomeloan Refinance
</td>
<td valign="top" width="123">
5.62%
</td>
<td valign="top" width="132">
5.62%
</td>
</tr>
<tr>
<td valign="top" width="158">
Nationwide Mortgage
</td>
<td valign="top" width="151">
True Saver Home Loan
</td>
<td valign="top" width="123">
5.65%
</td>
<td valign="top" width="132">
5.65%
</td>
</tr>
<tr>
<td valign="top" width="158">
Loans.com.au
</td>
<td valign="top" width="151">
Dream Catcher
</td>
<td valign="top" width="123">
5.65%
</td>
<td valign="top" width="132">
6.00%
</td>
</tr>
<tr>
<td valign="top" width="158">
Mortgage View
</td>
<td valign="top" width="151">
Mortgage View Pro Pack
</td>
<td valign="top" width="123">
5.70%
</td>
<td valign="top" width="132">
5.71%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="158">
Provider
</td>
<td valign="top" width="151">
Loan name
</td>
<td valign="top" width="124">
Rate
</td>
<td valign="top" width="132">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="158">
Mymortgagefreedom.
com.au
</td>
<td valign="top" width="151">
Mymortgagefreedom.
com.au fixed rate
</td>
<td valign="top" width="124">
5.44%
</td>
<td valign="top" width="132">
6.06%
</td>
</tr>
<tr>
<td valign="top" width="158">
Reduce Home Loans
</td>
<td valign="top" width="151">
Reduce Fee Free 1 Year Fixed Rate
 
</td>
<td valign="top" width="124">
5.54%
</td>
<td valign="top" width="132">
6.16%
</td>
</tr>
<tr>
<td valign="top" width="158">
UBank (NAB)
</td>
<td valign="top" width="151">
UHomeLoan Fixed (refinance only)
</td>
<td valign="top" width="124">
5.58%
</td>
<td valign="top" width="132">
5.81%
</td>
</tr>
<tr>
<td valign="top" width="158">
Newcastle Permanent
</td>
<td valign="top" width="151">
1 Year residential fixed
</td>
<td valign="top" width="124">
5.59%
</td>
<td valign="top" width="132">
6.4%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="152">
Provider
</td>
<td valign="top" width="158">
Loan name
</td>
<td valign="top" width="132">
Rate
</td>
<td valign="top" width="123">
Comparison rate*
</td>
</tr>
<tr>
<td valign="top" width="152">
UBank (NAB)
</td>
<td valign="top" width="158">
UHomeLoan Fixed (refinance only)
</td>
<td valign="top" width="132">
5.54%
</td>
<td valign="top" width="123">
5.69%
</td>
</tr>
<tr>
<td valign="top" width="152">
Bank of Queensland
</td>
<td valign="top" width="158">
Fixed Loan
</td>
<td valign="top" width="132">
5.55%
</td>
<td valign="top" width="123">
6.54%
</td>
</tr>
<tr>
<td valign="top" width="152">
Newcastle Permanent
</td>
<td valign="top" width="158">
3 Year residential fixed
</td>
<td valign="top" width="132">
5.59%
</td>
<td valign="top" width="123">
6.24%
</td>
</tr>
<tr>
<td valign="top" width="152">
Resi
</td>
<td valign="top" width="158">
Flexi fix 75 3 years
</td>
<td valign="top" width="132">
5.69%
</td>
<td valign="top" width="123">
5.94%
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
For information on refinancing, watch our free webinar <a target="_blank" href="/news">Refinancing and the Interest Rates Riddle</a>
</body></html>

From 5.44%, the lowest rate home loan offerings: fixed and variable as of August 21

<html><body>
The level of sub-prime mortgages in Australia may be far in advance of what was previously assumed and provided for by banks. The story was <a target="_blank" href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2012-08-13/mortgage-broker-blows-whistle-on-big-banks/4195920">broken on the ABC</a>, and covered <a target="_blank" href="https://www.smh.com.au/business/a-costly-six-degrees-of-separation-20120413-1wynu">elsewhere</a>. The revelations centred around two personalities: Kate Thompson and Denise Brailey.
Kate Thompson was a licensed mortgage broker at Mortgage Miracles in Western Australia. A highly regarded and award-winning broker, Thompson disbursed a veritable torrent of credit from bank and non-banking lenders to clients wanting funds to buy property, making around $5 million a year from upfront and trailing commissions. She is now facing fraud charges for what amounts to predatory lending: providing credit to people with little to no expectation they will be able to repay the entirety of the loan. This fraud was achieved by fudging the income and assets of clients, making them appear much wealthier on paper than was the case. Soon to face the State Administrative Tribunal in Western Australia, Thompson will provide incriminating evidence that predatory lending is widespread throughout the industry.
Denise Brailey is the president of the <a target="_blank" href="https://www.bfcsa.com.au/">Banking &amp; Finance Consumers Support Association</a>, an organisation dedicated to protecting the public against predatory financiers. Having worked in this field for the last 20 years, criminologist Brailey has seen first-hand the financial and social wreckage wrought by a multitude of scams and predatory lending.
Last week, Brailey gave explosive <a target="_blank" href="/news">testimony before the Senate Economics References Committee </a>alleging wide-scale fraud from banks to brokers.
While her testimony, which covers the period of 2008 to the present, was largely about low-doc loans, her claims extend into the mainstream of full-doc mortgages.
Certainly what emerges is a shock to those who believe the claims of the RBA and regulatory agencies that Australia’s banking and financial system is a picture of prudence and reticence.
The term “non-conforming” denotes a mortgage to an owner-occupier or investor where the loan value does not match the fundamental borrower criteria of tangible assets and income. Low-doc loans are provided to those who have difficulty in proving their income, mainly the self-employed.
In the desire to create bank assets, loans were granted to almost anyone who asked for them. For instance, it was recently revealed that three years ago, <a target="_blank" href="https://www.heraldsun.com.au/news/national/elderly-sent-broke-by-over-the-top-loans/story-fndo45r1-1226447127770">Westpac granted a $440,000 loan</a> to a 98-year-old pensioner.
Brailey testified about the way these loans were conceived. Clients would approach a broker and complete a short form, detailing their current assets and income. Through an online “service calculator” created by the banks, the broker would enter clients’ details and create a highly inflated figure. Amazingly, this would include the imputed rent (the rent that owner-occupiers pay themselves), even if the property being purchased was a vacant block of land.
Anticipated increases in the value of the clients’ principal place of residence – essentially, estimated unrealised future capital gains – are counted as current income. Banks’ own lending criteria suggests that for a low-doc loan to be approved, a person needs to have an ABN for a minimum of two years. Unbelievably, for those without an ABN, the banks were teaching brokers how to go online to create an ABN for a client within a day, often without lenders mortgage insurance (LMI). This was done in the back office after the form was signed, without the clients’ knowledge.
As the form passed through the back channels from broker to bank, the three pages morphed into a higher number, typically 11, up to a total of 39. These extra pages detailed the figures provided by the service calculator. Borrowers, however, never get to see these extra pages, and Freedom of Information requests do not work on the private sector. When asked, banks and their law firms send borrowers on a merry-go-round between them, and of course, low- and moderate-income borrowers don’t have the financial power to sue the banks to get them. Once the figures have been fudged, the loan is approved and the bank grants the mortgage to the client.
Brailey says she has more than 4,000 documents relating to borrowers’ loan applications and emails between the brokers and banks, clearly showing how incomes and wealth were grossly inflated. And this practice is continuing. Brailey contends that of 400 loan applications she has gathered in the last six weeks, not one was free from tampering.
Appallingly, both banks and brokers targeted a segment of the population they called ARIPs: asset-rich, income poor. They identified pensioners, the disabled, retirees and single mothers in this group. Incomes of $40,000 were transformed into $180,000 through accounting manipulation.
Interestingly, the banks provide generous commissions for the mortgage managers, originators and introducers, culminating in the broker at the end of the line. This happens to be a highly inefficient method of allocating mortgages to borrowers, as banks could simply hire more loan officers instead. The reason for this chain, Brailey testified, is to create “<a target="_blank" href="https://www.bfcsa.com.au/images/6linkschain.pdf">six degrees of separation</a>” between the banks and brokers, in order to protect banks by outsourcing responsibility to the brokers to ensure they, not the banks, get the blame for fraud.
Why are banks lending out enormous amounts of credit to anyone who asks for it? The likely cause is the escalation of residential property values over the last 15 years, requiring larger mortgages for property purchases.
To maintain profitability, banks have to keep issuing ever-more credit. Unsurprisingly, the stock of mortgage debt has increased from $180 billion in 1996 to over $1.2 trillion today or <a target="_blank" href="https://www.dailyreckoning.com.au/images/dr20120319b.jpg">85% of GDP</a>, a tremendous financial burden.
The other question is where the regulators have been in all of this. In 2005, Brailey met with Australian Tax Office investigators, but she contends her claims were referred to the Australian Securities and Investments Commission, which did not pursue them. As the financial regulator, it must investigate fraud, especially when substaintial evidence is provided. Accordingly to Brailey, however, “ASIC will not enforce the law. It has decriminalised that which Parliament deemed criminal activity.”
The Reserve Bank of Australia, while not strictly a regulator, has substantial political and economic clout. In its <a target="_blank" href="https://www.rba.gov.au/publications/fsr/2012/mar/pdf/0312.pdf">latest Financial Stability Report</a>, one of the risks it sees is falling asset prices may expose credit quality problems – in other countries. The RBA concludes that Australia’s financial system is stable (just as it did before the global financial crisis in 2008).
The Senate’s report will be an interesting read, though only time will tell how this scenario will play out.
Philip Soos is a researcher at the School of International and Political Studies at Deakin University. This story first appeared on <a href="https://theconversation.edu.au/" target="_blank">The Conversation</a>.
</body></html>

psoos-uR5EGb6SbQ

Predatory mortgage lending widespread, and there is no regulation

<html><body>
Consumer sentiment has shifted away from an expectation that mortgage rates will fall further over the next 12 months to expectations that they are just as likely to remain unchanged or rise over this time frame.
Less than a third of consumers (32.5%) who hold a view on mortgage rates expect them to fall over the next 12 months, according to the August Westpac-Melbourne Institute Consumer survey.
Two-thirds of consumers expect either rates to rise (32.7%) or rates to remain unchanged (34.7%), indicating a considerable lack of consensus on where mortgages rates are heading over the medium term.
The extra question on mortgage rates was included as part of the wider benchmark Westpac-Melbourne Institute Consumer Sentiment index in February and June.
The latest August results show a distinct shift away from expectations of future rate cuts in the June survey, when 52% of consumers expected rates to fall – an outright majority if a very slender one.
In the February survey – following the rate cuts in November and December – more respondents (around 40%) expected rates to rise than fall.
The graph below shows just how confused borrowers have become about the future direction of rates – a year ago, more than 70% of borrowers expected (incorrectly, it turns out) that rates would rise over the next 12 months.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/08/westpacaug20.gif"><img src="/images/stories/2012/08/westpacaug20thumb.gif"></a>
According to Westpac senior economist Matthew Hassan, consumers lack of consensus on the rate outlook likely reflects several factors.
“The inflation backdrop looks benign ... consumers see little threat to the RBA’s 2% to 3% target.
“Meanwhile the picture on Australian growth remains mixed.
“Notwithstanding patchy consumer sentiment on the economic outlook, actual growth remains solidly positive. Similarly, despite intense job loss fears official unemployment rates are holding at low levels," Hassan says. 
Hassan says comments from RBA governor Glenn Stevens in recent speeches would likely have reinforced this mixed assessment.
“‘The glass half full' speech in early June and his Anika Foundation address on July 24, entitled 'The Lucky Country', both emphasised Australia’s positive economic prospects.
“Against this though the RBA’s recent decisions, accompanying statements and forecasts indicate the bank is in a 'wait and see' mode.
“Markets continue to favour additional official interest rate cuts with 50 basis points of easing by early 2013 still priced in," Hassan says.
“However, this measure is likely being skewed by investors seeking ‘safe-haven’ assets. Economists also favour rates moving lower with polls showing a median expectation of a 25 basis points reduction by Sep 2013.
“Westpac continues to anticipate 75-basis-point reduction over the same period."
Across the different sub-groups, home owners remain more dovish than those renting but showed a bigger swing since June, suggesting more positive house price news may have been a factor.
</body></html>

Less than a third of consumers expect RBA rate cut in next 12 months: Westpac consumer survey

<html><body>
Banks are holding back the property market, according to the Melbourne buyers' agent Mal James.
“I suspect that one of the reasons buyers are increasingly reluctant to stretch themselves at some of the big-ticket auctions is that banks have become increasingly tight-fisted in their lending.
“Their letters of offer are not as forthcoming, and there are clear use-by dates with no guarantees of renewing older bank offers," James says.
James suggests the nervousness is filtering through to valuers, who are responding with lower valuations on bricks-and-mortar securities.
“And, in something of a vicious circle, their new lower valuations are ultimately re-feeding the bankers' nervousness.
“The bankers’ concerns are then being passed on to their clients, the buyers."
James Buyer Advocates analysis of the miserably wet day of Melbourne auctions concluded with a 50% clearance rate among the 32 $1 million-plus auctions the group attended in the inner east and bayside.
"The average number of bidders per auction was 1.5, and half the auctions were one bidder (lone rangers) or (no bidders) ducks," James says.
While noting there is still strong demand for quality stock, James notes there are some major pass-ins on big-name properties including Barwon at 38 Cromwell Road, South Yarra, which received no bids other than a vendor bid of $5 million.
"There were also no bids for the Edwardian at 1097 Malvern Road, Toorak - which passed in at $2.8 million, or the contemporary family home at 16 Banool Ave, which passed in at $2,550,000."
James notes it is not that the banks were necessarily refusing loans, but they arelowering the LVRs (loan-to-value ratios).
“And this in turn is being reflected in more conservative bidding at auctions and private sales,” he says.
“This in turn means there is less money overall in the market – and so you can feel the tightening collars as the money tap is slowly being turned off.”
Melbourne's overall weekend cleareance rate was 58%, which mirrored Sydney's 58% success rate. 
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jchancellor-FAypfDUnLy

Banks holding back the big ticket property market: Mal James

<html><body>
Most of the low-doc loans banks provided to borrowers would have been rejected if they had made a "simple phone call to the borrowers”, banking consumer advocate Denise Brailey has testified before a Senate inquiry into behaviour of the banking sector post-GFC.
But she says banks chose “in a corporate decision” not to make this phone call to ascertain the true financial circumstances of the borrower.
Brailey, who runs the <a target="_blank" href="https://www.bfcsa.com.au/">Banking and Consumers Finance Support Association (BCFSA)</a>, brought with her to the inquiry a “small bundle” of 4,000 “falsified loan applications", which she said includes applications to every bank in Australia.
“The four majors are in there.
“They are all responsible, through a series of emails from banks to brokers, instructing the brokers how to get their deals across the line — 'make the deal fit' was their usual interpretation."
Brailey’s views are shared by former Mortgage Miracles mortgage broker Kate Thompson, who told the ABC’s 7.30 report that she was earning $5 million a year through low-doc lending, but all based on a “lie”.
“I do not think there was a bank or non-bank lender that wasn't doing it. I — from my files alone, I am certain I could evidence every single bank,” said Thompson, who was WA mortgage broker of the year in 2007 and is now facing fraud charges.
In her August 2012 Senate testimony, Brailey said lenders targeted older people, carers, people on parenting allowance and the aged pension.
According to Brailey, any lender who approved a loan without verifying the loan application data with the borrower was “imprudent, negligent and in many cases just plain reckless”.
In the case of the 25 Australian Bankers' Association (ABA) members, she claims they are "also in breach of their contract with the borrower to assess the borrower's ability to repay the loan, as provided for in article 25 of the Code of Banking Practice".
"No lender, and no holder of loan securities, including the government, should be allowed to maintain any loan which the lender would not have given had it applied the simplest of lending criteria tools—namely, verifying the loan application details with the borrower.
“And that simply was not done,” she said.
During her testimony Brailey described how low-doc lending was facilitated.
“The banks provided commissions for mortgage managers, mortgage originators and mortgage introducers that came down in a chain to employing brokers.”
Brailey also pointed the finger of blame at business development manager (BDMs), who were employed by the banks and who worked with mortgage brokers to get mortgage deals approved.
She says BDMs would teach brokers how to use an online loan servicing calculator and “put in certain parameters such that the calculator, belonging to the bank — engineered by the bank — would actually bring out a figure that was highly inflated, based on a possible rental from a property.
“There is just no truth in the document at all." 
Brailey says  the paperwork suggests brokers were merely following policy changes that were both rapid and carried massive risk, which was to be borne by the consumer.
“We have the loan application forms from over 400 people in the last six weeks. During that time, not one of them is a clean document—each one has been fraudulently dealt with.
“But the brokers will get the blame that they put the figures on, but the figures that they have written in the original loan application form are calculated by the banks' calculator through the system, as taught by the BDMs.
“This structure needs to be looked at before we can even start to work out whether we have a problem here in Australia.
“My evidence shows that we have a massive problem here in Australia with these low-doc loans," she said.
"I want to know what we are going to do about them, because the government has purchased around $20 billion worth of them.”
Brailey was referring to the program instigated by the government's Australian Office of Financial Management (AOFM) to buy mortgage-backed securities from lenders to keep the securitisation market afloat after foreign buyers of these mortgage bundles disappeared in the wake of the GFC.
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Banks 'negligent and reckless' with low-doc loans: Denise Brailey in Senate testimony

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Australia’s biggest apartment developer, Meriton, has been obliged to join<a href="https://www.propertyobserver.com.au/developments/incentives-on-offer-as-waterloo-developers-battle-government-timelines-to-entice-buyers/2012080955910" target="_blank"> </a>a spate of other NSW apartment developers<a href="https://www.propertyobserver.com.au/developments/incentives-on-offer-as-waterloo-developers-battle-government-timelines-to-entice-buyers/2012080955910" target="_blank"> </a>by offering incentives to encourage off-the-plan investors in its apartment projects.
Meriton is currently offering to refund stamp duty on six of its NSW apartment projects following changes announced in June to state government housing incentives. <a target="_blank" href="https://www.propertyobserver.com.au/developments/incentives-on-offer-as-waterloo-developers-battle-government-timelines-to-entice-buyers/2012080955910">Other builders have also come up with their own incentives to encourage sales.</a>
A spokesperson declined to comment on the launch of the incentives.
Meriton boss Harry Triguboff was a vocal critic of the changes to NSW government handouts announced in the June budget, which resulted in investors losing out on generous stamp duty savings, while first-home buyers must wait until October 1 for a more generous scheme if they are buying a new home.
<a target="_blank" href="https://www.propertyobserver.com.au/residential/nsw-budgets-needlessly-complex-artificial-deadlines-have-short-term-and-long-term-consequences-for-residential-property/2012061455119">At the time these changes were introduced Triguboff lamented</a> that they would kill off investors “while still not giving birth to the first-home buyers [until October 1]”.
Up until June 30 anyone, including investors, could save as much as $22,490 under the NSW Home Builders' Bonus, which provided a full stamp duty exemption for new homes up to a value of $600,000.
This has been replaced with a $5,000 government handout for investors and non-first-home buyers for new homes up to a value of $650,000.
First-home buyers can still access handouts worth $27,240 ($7,000 first-home owners grant plus up to $20,240 under the First Home – New Home scheme).
However, under the June budget changes, they will get an extra $8,000 from October 1 with the doubling of the first-home owners’ grant to $15,000, but only if they buy a new house or apartment.
Meriton's stamp-duty refund campaign comes as Meriton continues to acquire sites in Sydney and build its pipeline of future apartment projects.
Meriton has acquired five sites since the start of the year with capacity for over 2,000 units and an end value of $1.3 billion. The most recent purchase was on McEvoy Street in Waterloo, with plans for 220 apartments.
Meriton built 1,438 apartments last year and is expecting to build 1,570 this year, The Australian reported. Triguboff says a high proportion of the apartments will be held as serviced apartments. By the end of the year Meriton will have nearly 6,000 serviced apartments in its portfolio.
Meriton is considering buying a Brookfield's site on the corner of Pitt Street and Bathurst Street in the Sydney CBD, which is proposed as the site for Sydney's tallest residential tower, rising to 65 storeys.
<a target="_blank" href="https://www.meriton.com.au/properties/oceanvale-apartments-warriewood/">Meriton is currently offering a stamp duty refund on its Warriewood development </a>on Sydney’s northern beaches.
Prices start from $330,000 on a studio apartment and $470,000 for a one-bedroom apartment.
Stamp duty payable would be $10,340 on the studio apartment and $16,640 on the one-bedroom apartment, with investors also eligible for the $5,000 state government handout.
The five other projects Meriton is offering stamp duty refunds are:
<ul>
<li>Rhodes Peninsula, apartments prices under $650,000</li>
<li>Epping Park, apartments prices under $650,000</li>
<li>Macquarie, apartments priced under $700,000</li>
<li>Fusion, Arncliffe, apartments prices under $650,000</li>
<li>Alcove, St Ives, apartments prices under $650,000</li>
</ul>
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Meriton looking to encourage off-the-plan buyers with stamp duty savings

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David St Pierre, the former Westpac home finance manager and mortgage broker accused by Today Tonight of selling low-doc loans to elderly pensioners whose funds have seemingly ended up in an alleged investment scam, has been suspending by his broking firm 1300 Home Loans, which is investigating his activities.
John Kolenda, CEO of 1300 Home Loans, says St Pierre was suspending on Friday, August 10, ahead of the expose, which aired on Channel 7’s current affairs program on Monday 13 August.
St Pierre’s 1300 Home Loans page comes up with error messages, but a cached version is still visible.
<img src="/images/stories/2012/08/davidstpierre2.jpg">
“David St Pierre has been suspended pending a full investigation by ourselves,” Kolenda told Property Observer.
Kolenda says St Pierre held accreditations with all the major lenders in the country – mortgage brokers must be accredited with a lender to offer their home loans – and had left Westpac of his own accord.
St Pierre is also listed as a member of the Mortgage and Finance Association of Australia (MFAA) – the peak industry body representing mortgage brokers.
MFAA chief executive Phil Naylor says it is his understanding that St Pierre was not a mortgage broker at the time the alleged loans took place but joined the MFAA subsequently.
“However, in light of the allegations, our disciplinary process is investigating his situation,” he says.
Today Tonight claimed David St Pierre, a former loan manager who worked for 20 years at Westpac, facilitated pensioners and nursing home residents to take out 30-year loans for as much as $440,000 with their funds seemingly ending up in a property investment scheme that promised returns of 15% that allegedly then never got off the ground.
In a statement to Property Observer, Westpac said that a “number of people, including a small number of Westpac customers, appear to be the victims of a sophisticated scam and are suffering financial hardship as a result of borrowing to invest in the scam”. “Westpac is committed to providing appropriate compensation to those customers who have borrowed money from us and who have been the victims of the apparent scam. “We believe that the apparent scam was committed by individuals who were never connected with Westpac's business.   “The matter is presently before the police. “We are strongly encouraging all Westpac customers who believe they are victims of this apparent scam to lodge a formal complaint with the Police so that a full and proper investigation can be undertaken.
"The home finance manager who facilitated entry into the loans is no longer employed by Westpac."
Property Observer contacted David St Pierre for a comment but had not received a reply by the time of publishing.
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Mortgage broker David St Pierre suspended by 1300 Home Loans and facing dual investigations

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Consumer sentiment fell in August despite interest rates remaining on hold and other “favourable” economic factors, according to the August reading of the Westpac–Melbourne Institute Index of Consumer Sentiment.
The overall index fell by 2.5% in August from 99.1 in July to 96.6, partially reversed a rise in the index of 3.7% in July and a smaller rise of 0.3% in June.
Westpac chief economist Bill Evans called the August reading a “disappointing result”, with the index in the "cautiously pessimistic range".
“This is the sixth consecutive month that the index has registered below 100, averaging 96.2.
“This is unusual. The only comparable periods since the recession of the early 1990s are in 2000–01 when the index printed an average of 96.5 over an eight-month period and in 2008–09, when it averaged 88 over a 16-month period.
“That most recent period coincided with the authorities responding with a very aggressive fiscal expansion. In the current period both federal and state governments are entering into substantial fiscal consolidations,” says Evans.
Commsec chief economist Craig James, said there were now "mixed messages on confidence and consumer sentiment"  following yesterday's data showed the weekly Roy Morgan consumer confidence rating at a 13-week high and up 2.1% in August.
"The Roy Morgan rating is up 5.1% on a year ago while the Westpac/Melbourne Institute was up 7.8% on a year ago. Bottom line is that consumer confidence is just OK at present," James says.
"The Reserve Bank will probably be a bit disappointed at the latest consumer confidence results. There are plenty of good reasons for Aussies to be encouraged by the state of their economy, but we are still seeing the glass as half-empty rather than half-full. "CommSec expects the Reserve Bank to maintain its easing bias but it may not follow through with another rate cut until later in the year. Europe, the level of the Aussie dollar and the Chinese economic recovery are the key issues affecting interest rate decisions," says James.
In line with the overall drop in consumer sentiment recorded by Westpac, confidence among Westpac respondents who hold a mortgage fell by 3.9% from 98.8 to 94.9.
In the home-ownership category, tenants are the most optimistic with an index score of 100.4, but this reading fell from 110.4 reading in July.
Those who wholly own their own home scored 97.6, up from 95.1 in July.
The largest decrease of 6.3% was recorded by the component index reflecting family finances compared with a year ago.
This was followed by falls of 3.6% and 3.1%, respectively, in the component indices reflecting good or bad time to buy major household items and about economic conditions over the next 12 months.
Sentiment shifted the most among younger respondents, with decreases greater than 10% recorded by those aged between 18 and 24.
“There has been enough positive news around since the last survey, and generally over the last few months, to have sustained an upswing in consumer sentiment,” says Evans.
“News that retail spending was boosted in the first half of the year; unemployment remains low; the government has released $1.9 billion in fiscal compensation over the May–June period; the Reserve Bank had cut the overnight cash rate by 0.75% in May/June; and the President of the European Central Bank has been promising to "do whatever it takes" to save the euro has been unsuccessful in sustaining an upswing in sentiment.
“Indicative of a more positive global outlook the share market has risen by 2.9% and the Australian dollar has risen from around USD 1.02 to USD 1.05 since the survey in July, the latter also reflecting Australia’s attractive interest rate differential.”
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