<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 Reserve Bank board would have taken into account the improvement in capital city housing markets over the past two months in deciding to keep rates on hold today, according to RP Data national research director Tim Lawless.
Lawless says improvements in capital city home values – up 0.6% in July and 1% in June according to RP Data- Rismark figures – provided “some further evidence that Australian consumers are starting to respond to lower interest rates”.
In his monetary policy decision statement today RBA governor Glenn Stevens noted that "monetary policy is easier than it was for most of 2011, with interest rates for borrowers a little below their medium-term averages"
While Stevens said it was "too soon to see the full impact" of those  interest rate changes, he said "dwelling prices have firmed a little over the past couple of months" while there was also highest demand for business credit over the past six months for "several years".
“The bank is likely to be increasingly vigilant not to overstimulate the housing market, which is likely to be one of the reasons behind their decision to keep interest rates on hold," Lawless says.
“Most of the housing market indicators are now pointing in a positive direction.  Since the start of the year RP Data has been seeing a reduction in total stock levels, clearance rates have improved, homes are taking a shorter number of days to sell and vendors are discounting their initial asking prices less.  All these factors, together with the turnaround in value declines, is point to a stabilising housing market and less of a requirement for lower interest rates,” Lawless says.
Michelle Hutchison, spokesperson for financial comparison website RateCity.com.au, says even though the RBA held fire today, variable-rate borrowers will have extra money in their pockets from two rate cuts in May and June this year.
“The Reserve Bank has cut the cash rate by 75 basis points this year and lenders have passed on an average of 52 basis points to their variable home loan customers. This is worth an extra $103 per month for a $300,000 home loan,” she says.
Hutchison says RateCity.com.au expects to see more new tactics from under lenders, under pressure from the slow mortgage growth, to encourage borrowers to spend their savings or take on more debt.
Mortgage Choice spokesperson Belinda Williamson says the decision came as no surprise with the Australian economy showing positive momentum with recent rises in retail sales, housing prices and construction activity while unemployment figures and interest rates remain low.
“All of this has contributed to a small but promising rise in consumer confidence,” she says.
“However, soft inflation figures released this month show the Reserve Bank still has room to move should our domestic economy lose balance or the situation in Europe worsen.”
Ray White Group chairman Brian White says the unchanged cash rate decision won’t stop market momentum heading into spring. “Spring is season of hope. Traditionally sales volumes measure up to 15% over the levels of the preceding autumn/winter months.” “As a company we’re seeing steadily improving monthly results in post-GFC years, and most property data providers are reporting fabulous auction clearance rates and improved home values across the board," White says. “These are all wonderful signs for our market nationally. “Sentiment is key and we’re seeing purchasers spirits are picking up. We expect the RBA decision today won’t impact those prospective buyers from engaging in the market.” 
</body></html>

lschlesinger-FZcF9M3vE6

RBA decision to keep rates on hold influenced by improving capital city home values: RP Data’s Tim Lawless

<html><body>
The Reserve Bank board has, as expected, left the cash rate unchanged at 3.5% following today’s monetary policy meeting.
The decision was in line with the sentiments of economists, with 26 out of 27 economists polled by Bloomberg last Friday expecting no change in the cash rate today.
The last time the RBA adjusted its cash rate setting was in June, when it reduced the cash rate by 25 basis points from 3.75% to 3.5%.
ANZ will make its independent rate decision on Friday (August 10).
The RBA board will next meet on September 4.
</body></html>

RBA leaves cash rate unchanged at 3.5% in August

<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 7:
Lowest variable rate offerings:
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="158" valign="top">
Provider 
</td>
<td width="151" valign="top">
Loan name
</td>
<td width="123" valign="top">
Rate
</td>
<td width="132" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="158" valign="top">
UBank (NAB)
</td>
<td width="151" valign="top">
UHomeloan Refinance
</td>
<td width="123" valign="top">
5.62%
</td>
<td width="132" valign="top">
5.62%
</td>
</tr>
<tr>
<td width="158" valign="top">
Nationwide Mortgage
</td>
<td width="151" valign="top">
True Saver Home Loan
</td>
<td width="123" valign="top">
5.65%
</td>
<td width="132" valign="top">
5.65%
</td>
</tr>
<tr>
<td width="158" valign="top">
Loans.com.au
</td>
<td width="151" valign="top">
Dream Catcher
</td>
<td width="123" valign="top">
5.65%
</td>
<td width="132" valign="top">
6.00%
</td>
</tr>
<tr>
<td width="158" valign="top">
eMoney
</td>
<td width="151" valign="top">
Pro Pack 75
</td>
<td width="123" valign="top">
5.65%
</td>
<td width="132" valign="top">
5.96%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="158" valign="top">
Provider
</td>
<td width="151" valign="top">
Loan name
</td>
<td width="124" valign="top">
Rate
</td>
<td width="132" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="158" valign="top">
Mymortgagefreedom.
com.au
</td>
<td width="151" valign="top">
Mymortgagefreedom.
com.au fixed rate
</td>
<td width="124" valign="top">
5.44%
</td>
<td width="132" valign="top">
6.06%
</td>
</tr>
<tr>
<td width="158" valign="top">
Reduce Home Loans
</td>
<td width="151" valign="top">
Reduce Fee Free 1 Year Fixed Rate
 
</td>
<td width="124" valign="top">
5.54%
</td>
<td width="132" valign="top">
6.16%
</td>
</tr>
<tr>
<td width="158" valign="top">
UBank (NAB)
</td>
<td width="151" valign="top">
UHomeLoan for Refinance – Fixed Rate Loan
</td>
<td width="124" valign="top">
5.58%
</td>
<td width="132" valign="top">
5.81%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="152" valign="top">
Provider 
</td>
<td width="158" valign="top">
Loan name
</td>
<td width="132" valign="top">
Rate
</td>
<td width="123" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="152" valign="top">
UBank (NAB)
</td>
<td width="158" valign="top">
UHomeLoan Fixed (refinance only)
</td>
<td width="132" valign="top">
5.54%
</td>
<td width="123" valign="top">
5.55%
</td>
</tr>
<tr>
<td width="152" valign="top">
Bank of Queensland
</td>
<td width="158" valign="top">
Fixed Loan
</td>
<td width="132" valign="top">
5.55%
</td>
<td width="123" valign="top">
6.67%
</td>
</tr>
<tr>
<td width="152" valign="top">
RAMS
</td>
<td width="158" valign="top">
Low-doc Fixed Rate Home Loan
</td>
<td width="132" valign="top">
5.59%
</td>
<td width="123" valign="top">
6.80%
</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>

Lowest rate home loan offerings: fixed and variable as of August 7

<html><body>
The self-anointed "shadow RBA board", comprising a panel of academics and economists, is in favour of the cash rate remaining on hold at 3.5% today but says there is uncertainty over its direction in the next 12 months.
The shadow board gave 65% weight to the RBA keeping the interest rate unchanged at 3.5%, while an increase to 3.75% had about 15% weight.
Support for a decrease in the cash rate of 25 basis points or more received a weight of nearly 20%.
The shadow board comprises 10 members including former RBA board member Warwick McKibbin, Paul Bloxham, chief economist at HSBC Bank Australia, and former ANZ chief economist and current Bank of America Merrill Lynch Australia chief economist Saul Eslake.
The finding of the shadow board are presented every month just prior to the official RBA cash rate announcement by <a target="_blank" href="https://theconversation.edu.au/">The Conversation website</a> in conjunction with the Centre for Applied Macroeconomic Analysis (CAMA).
 
In its latest update, the shadow board warns that the risks to aggregate demand are finely balanced, with McKibbin and Macquarie University’s Jeffrey Sheen continuing to “see possible demand pressures in the domestic economy that are consistent with a higher interest rate”.
The board is almost evenly split on whether rates will rise or fall over the next 12 months.
Shadow board projections: 
<table cellpadding="0" border="0">
<thead><tr>
<td valign="top"></td>
<td valign="top">
Current
</td>
<td valign="top">
6 month
</td>
<td valign="top">
12 month
</td>
</tr></thead>
<tbody>
<tr>
<td>
Probability rates rise
</td>
<td>
15.6%
</td>
<td>
29.4%
</td>
<td>
43.9%
</td>
</tr>
<tr>
<td>
Probability rates stay put
</td>
<td>
66.1%
</td>
<td>
21.7%
</td>
<td>
16.1%
</td>
</tr>
<tr>
<td>
Probability rates fall
</td>
<td>
18.3%
</td>
<td>
48.9%
</td>
<td>
40%
</td>
</tr>
</tbody>
</table>
In his commentary HSBC’s Paul Bloxham recommends the RBA keep the cash rate on hold this month, with “evidence from the past month shows that previous cash rate cuts appear to be providing some support for the housing and retail sectors, although some part of this also reflects government payments to compensate for the carbon tax”.
“Overall, the economy appears to be tracking at close to trend. While inflation is low, which allows scope for further cuts, signs of solid demand suggest there is no urgency to provide further stimulus at this stage,” he says.
James Morley, Professor at the University of New South Wales, said that monetary policy remained in a “somewhat accommodative stance, but with little immediate cause for concern about inflationary pressures”.
“Headline inflation is low, although the less volatile measure of underlying inflation is on target, albeit at the bottom end of the 2% to 3% target range.
“This allows an increased weight on keeping the policy rate steady in the near term and slightly increases the possible need for further easing in the event that underlying inflation falls below the target range,” says Morley.
The full shadow board is:
<ul></ul>
<ul style="color: #111111; font-family: Arial, sans-serif; font-size: 14px; line-height: 20.399999618530273px;">
<li>Shaun Vahey, Professor, RSE, ANU. (non-voting chair)</li>
<li>Paul Bloxham, Chief Economist (Australia &amp; New Zealand), HSBC Bank Australia Ltd</li>
<li>Mark Crosby, Dean of the Global MBA Program, Acting Dean of the Global BBA Program, and Professor of Economics, S P Jain Center of Management in Singapore</li>
<li>Mardi Dungey, Professor, University of Tasmania, CFAP University of Cambridge, CAMA</li>
<li>Saul Eslake, Chief Economist, Bank of America Merrill Lynch Australia</li>
<li>Bob Gregory, Professor Emeritus, RSE, ANU, Professorial Fellow, Centre for Strategic Economic Studies, Victoria University, Adjunct Professor, School of Economics &amp; Finance, Queensland University of Technology</li>
<li>Warwick McKibbin, Professor, RSE, ANU, CAMA</li>
<li>James Morley, Professor, University of New South Wales, CAMA</li>
<li>Jeffrey Sheen, Professor &amp; Head, Department of Economics, Macquarie University,Editor, The Economic Record, CAMA</li>
<li>Mark Thirlwell, Director, International Economy Program, Lowy Institute for International Policy</li>
</ul>
</body></html>

‘Shadow RBA board’ favours cash rate hold in August but split over future direction

<html><body>
In the 17 months since it kicked off its “break-up” campaign on Valentine’s Day last year, NAB has steamed ahead of its big four rivals in providing home loans for owner-occupiers, APRA figures reveal.
From February 29, 2011 to June 30, 2012, APRA figures show that NAB has grown its owner-occupier loan book by $22 billion, to leap ahead of ANZ as the nation's third biggest mortgage lender, with a loan book worth $131 billion.
This translates into mortgage growth of 20% over this time period and comes as NAB revealed that it <a href="/news">would</a><a href="/news"> sign up its one millionth new customer – since the start of the break-up campaign – this week</a>.
Its closest rival over this period, ANZ, has grown its mortgage book by just over $12 billion (11% growth), with $9 billion loan book growth for Westpac 5.6% during this time period, and $7.5 billion added to the Commonwealth Bank’s loan book (4%).
The figures also reveal solid rates of growth at some of the second-tier banks over the same 17-month period, with Bendigo &amp; Adelaide Bank and Bank of Queensland growing their mortgage books by 25% each.
Top 10 fastest-growing owner-occupier loan books in volume terms
<table border="1" cellspacing="0" cellpadding="0" width="370"><tbody>
<tr>
<td width="143" nowrap valign="top"></td>
<td width="87" nowrap valign="top"></td>
<td width="76" nowrap valign="top"></td>
<td width="64" nowrap valign="top"></td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Bank 
</td>
<td width="87" nowrap valign="top">
Loan book  end of June ($ millions)
</td>
<td width="76" nowrap valign="top">
End of Feb 2011
</td>
<td width="64" nowrap valign="top">
Increase in  loan book
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
NAB
</td>
<td width="87" nowrap valign="top">
$131,333
</td>
<td width="76" nowrap valign="top">
$109,296
</td>
<td width="64" nowrap valign="top">
$22,037
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
ANZ
</td>
<td width="87" nowrap valign="top">
$123,619
</td>
<td width="76" nowrap valign="top">
$111,473
</td>
<td width="64" nowrap valign="top">
$12,146
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Westpac
</td>
<td width="87" nowrap valign="top">
$168,686
</td>
<td width="76" nowrap valign="top">
$159,737
</td>
<td width="64" nowrap valign="top">
$8,949
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
CBA
</td>
<td width="87" nowrap valign="top">
$178,931
</td>
<td width="76" nowrap valign="top">
$171,447
</td>
<td width="64" nowrap valign="top">
$7,484
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Bankwest
</td>
<td width="87" nowrap valign="top">
$36,946
</td>
<td width="76" nowrap valign="top">
$31,426
</td>
<td width="64" nowrap valign="top">
$5,521
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Bendigo and  Adelaide Bank
</td>
<td width="87" nowrap valign="top">
$14,858
</td>
<td width="76" nowrap valign="top">
$11,967
</td>
<td width="64" nowrap valign="top">
$2,891
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Bank of Queensland
</td>
<td width="87" nowrap valign="top">
$12,311
</td>
<td width="76" nowrap valign="top">
$9,840
</td>
<td width="64" nowrap valign="top">
$2,470
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Suncorp
</td>
<td width="87" nowrap valign="top">
$22,595
</td>
<td width="76" nowrap valign="top">
$20,217
</td>
<td width="64" nowrap valign="top">
$2,378
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Macquarie Bank
</td>
<td width="87" nowrap valign="top">
$2,321
</td>
<td width="76" nowrap valign="top">
$1,273
</td>
<td width="64" nowrap valign="top">
$1,048
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Members Equity Bank
</td>
<td width="87" nowrap valign="top">
$4,607
</td>
<td width="76" nowrap valign="top">
$3,737
</td>
<td width="64" nowrap valign="top">
$870
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
ING Bank
</td>
<td width="87" nowrap valign="top">
$27,938
</td>
<td width="76" nowrap valign="top">
$27,277
</td>
<td width="64" nowrap valign="top">
$661
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
QT Mutual Bank
</td>
<td width="87" nowrap valign="top">
$723
</td>
<td width="76" nowrap valign="top">
$191
</td>
<td width="64" nowrap valign="top">
$532
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
AMP Bank
</td>
<td width="87" nowrap valign="top">
$5,257
</td>
<td width="76" nowrap valign="top">
$4,786
</td>
<td width="64" nowrap valign="top">
$470
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Citigroup
</td>
<td width="87" nowrap valign="top">
$5,080
</td>
<td width="76" nowrap valign="top">
$4,708
</td>
<td width="64" nowrap valign="top">
$372
</td>
</tr>
<tr>
<td width="143" nowrap valign="top">
Source: APRA
</td>
<td width="87" nowrap valign="top"></td>
<td width="76" nowrap valign="top"></td>
<td width="64" nowrap valign="top"></td>
</tr>
</tbody></table>
 As a rough guide, NAB adding $22 billion to its mortgage book over this time frame would translate into around 75,000 owner-occupier home loans (based on the average size of mortgage being just under $294,000, according to ABS housing finance figures).
This can only be a rough estimate, as the APRA figures do not reveal the value of each bank’s mortgage book that has been run off during this time period.
This week, NAB said it was expected to sign on its one millionth new customer since launching the break-up campaign.
While some people may have assume the bank has opened 1 million new accounts, NAB has confirmed to Property Observer that it has gained one million new customers since the start of the campaign.
NAB's break-up campaign coincided with the bank keeping its promise to maintain the lowest standard-variable mortgage rate of the big four banks until at least the end of 2012 – though the gap between it and ANZ and Commonwealth Bank has narrowed.
NAB has an SVR of 6.78%, marginally below that of the Commonwealth Bank and ANZ (6.80%), with Westpac at 6.89%.
For more, <a href="/news">view our free webinar Refinancing and the Interest Rates Riddle.</a>
</body></html>

NAB surges ahead of big four rivals on owner-occupier mortgage lending since February 2011 ‘break-up’: APRA

<html><body>
NAB’s red star appears to be on the rise, with its customer satisfaction rating continuing to increase.
It is also preparing to sign up its one millionth customer 18 months after launching its "break-up" campaign urging customers of the other big four banks to switch over.
In addition, banking analysts at Nomura are encouraging their clients to increase their holdings in NAB (alongside Westpac), rating the bank as a buy. The agency rates ANZ as neutral and are urges clients to reduce their Commonwealth Bank (CBA) stock holding.
Nomura banking analyst Victor German says NAB and Westpac are "best placed to deliver better margin performance over the medium term".
Nomura analysis shows NAB has the fastest growing home loan book (9.1%) over past 12 months, almost matched by ANZ (9%), with CBA (4.5%) and Westpac (4.4%) lagging.
The rebirth of the NAB brand comes as former CBA chief David Murray backs a review of the banking system.
Murray said a review should look at ways to improve the ownership structure of banks, adding that the issue of “too big to fail” would remain “very front of mind of all the regulators”.
The NAB break-up campaign kicked off on Valentine’s Day 2011, when NAB said it would pay the $700 early mortgage exit fee for CBA and Westpac customers switching to NAB as part of a campaign of eliminating mortgage and credit card fees.
NAB was the first major bank to abolish home loan early exit fees in December 2010 – ahead of the government ban from July 1 last year.
Bank customer satisfaction ratings compiled by Roy Morgan show that NAB’s satisfaction rating has been rising since the end of 2009, when the bank first began abolishing its over limit fee on credit cards and reduced credit card late payment fee from $30 down to $5.
Between 2008 and mid-2010 NAB’s satisfaction rating was the lowest of the big four banks at a time when its share price lagged the banking index. This culminated in an internal revamp of the bank, led by chief executive Cameron Clyne, who replaced John Stewart as NAB boss in January 2009.
The bank currently has the highest satisfaction rating of the major banks at 78.2% as measured by Roy Morgan, with ANZ the lowest ranked (and on a steep downward trajectory coinciding with apparent customer distaste for its independent interest rate decisions).
NAB became the top-ranked big four bank at the start of 2012 – and while it did dip in the first few months of the year, it has maintained its leads over the other banks.
Over the past 12 months to June, NAB’s customer satisfaction rating has improved by 3.6 percentage points.
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<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/08/nabaug6.gif"><img src="/images/stories/2012/08/nabaug6thumb.gif"></a>
Clyne told the Australian Financial Review the expectation of signing up its one millionth new customer this week was a significant milestone and well ahead of its target.
However, Paul Dowling from banking analysts East &amp; Partners has warned that the key for the bank will be growing the amount of business they get from their new customers.
“The real test is the next 18?months, two years, to see what NAB can do with these customers. This is great, they’ve got to first base, 1?million new customers, but it’s what comes next.”
NAB’s group executive of personal banking Lisa Gray says the bank must now focus on retaining the new customers and cross-selling them other products.
For more, <a href="/news">view our free webinar Refinancing and the Interest Rates Riddle.</a>
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With millionth new customer, NAB ‘break-up’ campaign causes red star to shine

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Twenty six out of the 27 economists polled by Bloomberg today expect the Reserve Bank to leave the cash rate unchanged at 3.5% at its monetary policy meeting on Tuesday (August 7).
Only Stephen ‘The Kouk’ Koukoulas – former economic advisor to Julia Gillard and soon to be Business Spectator columnist – expects the RBA to cut the cash rate to 3.25% next week.
Koukoulas heads up macroeconomic advisory firm Market Economics and his economic commentary on Business Spectator, now owned by News Limited, is highly anticipated given his leanings.
Not only is Koukoulas forecasting a rate cut next week, he is also anticipating at least two more 25 basis point rate cuts before the end of the year, taking the cash rate down to 2.75%.
A frequent tweeter using the handle @TheKouk, he acknowledged today that interest rate markets are pricing in just a 20% chance of a rate cut in August.
The median forecast among economists surveyed by Bloomberg is for just one more 25 basis point rate cut this year.
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Stephen ‘The Kouk’ Koukoulas a lonely voice as economists almost unanimous on RBA cash rate hold next week

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The Reserve Bank will leave the cash rate on hold next week with 75 basis point in cuts passed over the past three months already supporting the interest rate-sensitive sectors of the economy, including housing, according to HSBC Australia economist Paul Bloxham.
However, the RBA is still leaning towards a rate cut sometime in the fourth quarter of the year, he says.
His comments follow the ABS house price indexes for the eight capital cities showing a 0.5% gain over the June quarter and an upwardly revised 0.1% decline in the March quarter.
The following chart prepared by HSBC (with the interest rate inverted) shows how house prices have responded to the reduction in mortgage rates
In addition, retail trade figures also released this week showed that Australian retail turnover rose 1% in June 2012 – better than market forecasts of 0.6% while May figures were also upwardly revised to 0.8%.
Bloxham also believes that the residential construction cycle may have bottomed out.
“After jumping sharply in May, building approvals held onto most of the gains in June, which was an upside surprise.
“While approvals for detached house construction have continued to slide, medium density approvals rose, and it is likely that the residential construction cycle has troughed.
“Housing prices are starting to lift. Finally, retail sales numbers came in strong for the second quarter, which suggests that household consumption will be well supported in the quarter,” he says.
Bloxham also says that the rate cuts in May and June have “accounted” for the easing in global conditions and the RBA is now “ahead of the game.
He adds that despite reports to the contrary (most notably from Deloitte Access Economics), “there is still significant support for growth to come from mining, both in the form of further investment and rising exports”.
“In addition to the policy decision on Tuesday, next week brings the RBA’s August official statement on Friday.
For tips on refinancing and trying to navigate the current mortgage rates riddle, watch Property Observer's recent webinar: <a href="/news">How smart property buyers and investors should approach refinancing in the current environment</a>
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Rate cuts flowing through to housing so no RBA rate cut next week: HSBC’s Paul Bloxham

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Apart from a few “pockets of weakness” mortgage delinquency rates have stabilised in Australia, according to lenders mortgage insurance (LMI) provider Genworth following the release of improved quarterly results.
The overall delinquency rate among the portfolio of loans Genworth insures decreased by 2 basis points to 0.52% as the Australian arm reported a profit of $US44 million for the June quarter, reversing a $US21 million loss in the previous quarter.
New delinquencies in the quarter totalled 3,556, up just one from 3,555 in the first quarter, but well down on the 3,983 new delinquencies reported in the second quarter of 2011.
<img alt="deliquencies" height="316" width="321" src="/images/stories/2012/deliquencies.jpg">
Ellie Comerford, CEO of Genworth Australia, said new delinquencies were consistent with first quarter levels.
She said Australian business is on track to achieve its full year goals following a “solid performance” with the insurer benefited from refinancing activity.
Genworth and QBE LMI (formerly PMI) are the two biggest providers of LMI in Australia, which is insurance taken out by lenders to cover losses should a borrower default on their home loan. LMI is generally required to be paid by borrowers who borrow more than 80% of the value of their home.
Genworth has arrangements with around 100 lenders.
Comerford told Property Observer that one of the pockets of weakness remains the Queensland coastal market - despite the delinquency rate improving from 1.13% in the first quarter of the year to 1.05% in the second quarter.
Genworth paid out 128 lender claims on delinquent loans for properties on the Queensland coastal market, slightly down on the 128 paid in the previous quarter.
Comerford blamed the continued weakness on the Queensland coastal market on the high Australian dollar impacting on what is a heavily tourism-dependent region of the country.
The other pocket of weakness was small business owners and the self-employed (borrowers that usually take out higher interest low-doc loans), which she said continued to come under pressure.
Genworth paid 770 LMI claims in the second quarter of the year down on the 852 paid in the previous quarter, but nearly double (393) the number paid in the corresponding period last year.
The average value of claims also increased from $77,000 to $91,000 quarter-on-quarter.
“Paid claims were elevated in second quarter, but we are working with lenders and borrowers and expect reductions in the coming year,” Comerford said.
On a state-by-state basis the highest delinquency rates were recorded in Queensland (0.76%) – though the sunshine state’s delinquency rate improved from 0.8% in the first quarter of 2012 with the lowest delinquency rate in Victoria (0.36%).
The other states where Genworth provides LMI were all in line with the national average.
Genworth also recorded an improvement in the 2007-2008 GFC vintage delinquency rate from 1.25% to 1.17%.
The global Genworth business- including its main US business posted a profit of $US76 million for the second quarter following a loss of $US136 million in 2011. New US delinquencies fell from 17,430 in the first quarter to 16,167 in the second quarter – the fourth straight quarterly decline.
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Pockets of weakness on Queensland coast and among self-employed, but mortgage delinquencies stabilising in Australia: Genworth 

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Australia’s largest mortgage broker AFG has bucked the national trend of slow mortgage growth with its loan writers processing the highest number of mortgages in July since July 2007.
AFG brokers processed 7,027 home loans over July worth a combined $2.73 billion.
This was also a 20% increase in value terms compared to the $2.29 billion processed by AFG brokers for the same month in 2011.
Figures released by <a href="/news">RBA earlier this week showed just a 0.3% growth in mortgage lending in June </a>with annualised growth at its lowest level since the 1970s.
AFG attributed its mortgage growth in part to the rise in the proportion of loans processed for first-home buyers, which increased from 15.6% of all mortgages arranged in June to 17.3% in July - the highest figure for first-home buyers since August 2010.
First-home buyers were strongest in WA, where they represented almost a quarter of all new mortgages arranged (22.7%), and were also well represented in Victoria (21.7%).
They were less in evidence in NSW (14.4%), QLD (13.8%) and SA (9.6%).
Consistent with the increase of first home buyers, the proportion of introductory loans arranged spiked from 2.9% in June to 5.4% in July.
In addition, overall LVRs – loans as a proportion of home values - increased slightly from 66.9% to 67.7% "as would be expected given that first-home buyers typically borrow most of the value of their new property".
Mark Hewitt, general manager of sales and operations at AFG says: ‘Low interest rates, soft property prices and escalating rents create a powerful cocktail of incentives to get people into the property market.
“This is especially true in WA, where these factors are probably at their strongest.’
The AFG Mortgage Index also shows non-major bank lenders gained ground among those borrowers refinancing existing loans - from 22.9% of market share in June to 26.7% in July.
Fixed rate loans held steady at16% of all loans processed, as most new borrowers opted to stick with variable rates.
Figures released by Mortgage Choice show a marked drop in demand for fixed rate loans from 18% to 15% as demand for variable rate home loans reached an eleventh month high due to speculation of another rate cut in coming months.
 “Demand for ongoing discount rate loans where the variable rate is reduced usually in return for an annual fee, rose by four percentage points to 44%, while interest in basic variable rate loans, which often have a low interest rate in exchange for fewer loan features, increased by one percentage point to 20% of all new loans,” said Mortgage Choice spokesperson Belinda Williamson.
“Borrowers’ interest in standard variable rate loans fell last month to 18% from 19%, as did the appetite for fixed rate loans, which dropped considerably to 15% from 18%.”
Western Australia was the only state to go against the grain and report a drop in variable rate demand, which fell to 81% in July from 86% in June.
The average increase of variable rate uptake across the remaining states was a rise of 3.75 percentage points.
“The vast majority of borrowers are feeling as confident about variable interest rate movements now as they did back in August 2011, a time when borrowers had experienced nine consecutive months of steady interest rates, which was followed by rate cuts,” says Williamson
For tips on refinancing and trying to navigate the current mortgage rates riddle, watch Property Observer's recent webinar: <a href="/news">How smart property buyers and investors should approach refinancing in the current environment</a>
 
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