<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

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Westpac has revealed it has provided a distorted breakdown of its mortgage book since its merger with St George bank in late 2008.
On the final day of trading of 2011 the bank revised down its proportion of owner-occupier loans from $198.6 billion to $165.2 billion while revising up its proportion of investment loans from $88.6 billion to $116.8 billion.
The revisions relate to “legacy” adjustments following the bank acquiring St George bank in December 2008.
The revisions include changes to St George lending figures dating from November 2008 to February 2011 while Westpac revisions apply from November 2008 to October 2011.
The error was revealed following an internal review and means that monthly banking figures provided by APRA dating back to November 2008 have been incorrect for three years.
In a statement Westpac said the changes would have no impact on its published financial statements and financial position.
However, some banking analysts have questioned whether the restatement indicates a poorer-quality loan book.
Westpac says it might ake additional changes to its data “should it identify further opportunities for enhancement and alignment”.
The restatement comes as APRA prepares to issue the final version of its prudential standard covering capital adequacy requirements in mid-2012 in line with Basel II banking reforms and follows Australia’s big four banks having their <a target="_blank" href="https://www.propertyobserver.com.au/economy/major-banks-play-down-sp-ratings-downgrade/2011120252649">long-term credit rating downgraded by Standard &amp; Poor’s at the start of December 2011.</a>
Westpac says the revisions will not have any material impact on its risk profile, with a spokesperson saying the risk “relates to the individual, not the property”.
“The real risk in the mortgage is whether people can continue to pay or not. We lend based on people's capacity to repay."
The bank blames the error on borrowers using equity generated in their homes to buy investment property.
The bank was also revised down the size of loans to financial corporations from $10.1 billion to $11.3 billion, while liabilities to clearing houses and financial institutions were revised down from $6.2 billion to $5.2 billion.
Other revisions included lowering the bank's holding of trading securities from $51.1 billion to $32.2 billion, while raising the value of its investment in security holdings from $70.1 billion to $90.2 billion.
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lschlesinger-FZcF9M3vE6

Westpac has reported inaccurate mortgage book numbers for three years

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Mortgage broking firms will kick off 2012 in a better frame of mind after ASIC eased training and competence requirements for credit representatives that operate under the organisation’s credit licence. 
Since ASIC assumed the mantle of credit industry regulator in July 2010, firms have come under a tougher and more costly compliance regime, which has caused many to exit the industry. 
Under the revised regulatory guide (206) credit representatives no longer have to complete a certificate IV in finance and mortgage, but are only required to complete training “as determined by their licensee” so that they are: 
<ul>
<li>Able to deal appropriately with consumers (gather appropriate information, understand their needs, etc.)</li>
<li>Have broad knowledge about home loan products and their characteristics (features, fees, etc.)</li>
<li>Understand the economic and market context, understand basic financial and accounting concepts that relate to home loans and understand real estate terms and concepts </li>
</ul>
To assist with this training, ASIC has provided “more principles-based guidance on the types of skills and knowledge these representatives should acquire through the training they undertake”. 
In addition, ASIC has given credit representatives the option of a “regular knowledge update review”— a test administered by a registered training organisation via a secure facility – rather than undertaking 20 hours of continued professional development such as attending conferences and seminars or publishing journal articles. 
“Our revised policy seeks to minimise licensees’ compliance burden while requiring a high standard of training for those who play a significant role in decisions about home loans,” says ASIC commissioner Peter Kell. ASIC will monitor how the credit industry complies with RG 206 over the next three years.
If, following this period, the regulator is not confident that the more flexible arrangements are effective “it may investigate whether a more prescriptive approach would be appropriate”.
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ASIC eases mortgage broker training requirements

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
The massive wave of baby boomers nearing retirement and a sharp fall coastal property values make an often overlooked tax and investment strategy much more appealing. 
This innovative strategy involves typically middle-aged couples buying their next investment property based on two fundamental criteria: its potential returns and its potential as a future retirement home. 
The new property is treated strictly as a negatively geared investment property for up to 20 years or so until the owners are ready to sell their existing family home and move into it. 
Depending upon the circumstances, the breaks from income tax and capital gains tax can be outstanding – and, perhaps, unexpected. 
Tax adviser Gordon Cooper is convinced that investing in the property in your own name is likely to produce far superior after-tax benefits than pursuing an identical strategy through a self-managed super fund. 
Cooper, the principal of Cooper and Co in Sydney, believes the strategy of buying a future retirement home – initially as a geared investment – is extremely timely given the rapid ageing of the population. 
Louis Christopher, managing director of property adviser and forecaster SQM Research, says the fall in the prices of coastal houses – which may be suitable for future retirement homes – could create good buying opportunities. 
Christopher points out, for instance, that Gold Coast prices are down by 15% from a high in 2008 and prices on the NSW Central Coast are down by 12% from a peak in June last year. 
“It is probably time to research these properties,” he says, “but their prices could fall a bit more.” 
These are the four steps involved in this strategy: 
1. Borrow up to entire purchase price
Cooper says borrowers following the strategy would typically take an interest-only loan to finance the property, using their existing family home as loan security. This will help maximise their tax benefits. 
2. Claim negative-gearing tax breaks
The annual deductible shortfall between the rent and the costs of interest on the loan, maintenance, council and water rates, and insurance could eliminate much of the tax on your salary. As Cooper emphasises, salaries are often at their highest in the last decade before retirement, making the negatively gearing tax breaks highly rewarding. 
3. Minimise CGT
When you ultimately make the property your permanent home, it will gain the CGT-exempt status of your main residence. However given the property will not be your home for some years, you are likely to face a CGT bill upon its eventual sale. 
Fortunately, there is a smart way to minimise that CGT liability. 
Say you owned the property for five years before moving in and making it your home for another 15 years. Cooper explains that you would be liable for CGT on a quarter of the assessable capital gain. 
But now Cooper adds a twist that may surprise many property owners. 
“In calculating your CGT liability [upon the property’s eventual sale], you can subtract a proportion of the non-deductible expenses,” he says. 
You would have incurred these non-deductible expenses after the property ceased being used as an investment and had become your home. And such expenses would include council rates and interest on any outstanding mortgage. 
Cooper says that after taking into account these non-deductible expenses, you might actually end up with a capital loss.
4. Consider the SMSF alternative
Some investors arrange for their SMSF to buy their future retirement homes as geared investment properties as an alternative to gearing the property in their own names. 
The apparent attractions of this SMSF strategy are two-fold. First, your super fund is likely to have enough money to pay the deposit or first instalment on the property. Second, you could arrange for your fund to eventually transfer the property into your name as an in-specie (non-cash) pension payment. 
Your SMSF would not be liable for CGT upon the transfer of the property into your name provided: 
<ul>
<li>The property was backing the payment of a superannuation pension. (Fund assets supporting a pension are exempt from CGT and income tax.) </li>
</ul>
<ul>
<li>The transfer of the property into your name as a pension payment did not result in the full pension account balance being paid out. (Strictly speaking, the benefit is treated as a partial commutation to a lump sum.) </li>
</ul>
However, Cooper is convinced that high-income earners in particular would gain higher after-tax returns from negatively gearing the property in their own names rather than gearing through a SMSF. This is despite the fact that the property will not be subject to CGT if eventually transferred into your name as a non-cash pension payment. 
“I think it is very hard to see how the maths can work to show it is an advantage to gear through your SMSF rather than in your own name,” Cooper emphasises. 
For more on self-managed super funds,<a target="_blank" href="http://propertyobserver.com.au/ebooks/16-questions-self-managed-super-fund-trustees-should-ask-before-investing-in-property"> download our free eBook</a>.
 
 
</body></html>

mlaurence-vhAHaLZT8y

Sea-changing could be a huge tax savings

<html><body>
The major banks may have a hard time getting across the message that they are facing increased funding cost pressures after both St George and Bank of Melbourne cut their fixed-rate mortgage rates.
NSW-based St George and Victoria-based Bank of Melbourne, both subsidiaries of Westpac, cut their fixed rates by between 14 and 19 basis points effective immediately. 
One-year fixed-rate loans reduce from 6.33% to 6.14%, two-year fixed-rate loans reduce from 6.14% to 5.99% and three-year fixed rates have come down from 6.24% to 6.09% for both banks. 
The cheaper rates are available for limited time for new customers and existing customers switching into a new fixed-rate mortgage. 
Rob Chapman, chief executive of St George Bank, says the latest fixed-rate cut is seventh reduction since July. 
The cycle of fixed-rate cuts, which peaked in October bef0re the November and December rate cuts is forecast to ease as interest rate sentiment shifts towards further rate cuts in 2012.
Damian Smith, CEO of comparison website RateCity.com.au, says the relative attractiveness of fixed rates is decreasing, with variable rates falling faster than fixed rates over the past two months.
“There has been some small movement in some fixed rates, but no 30- or 40-basis-point cuts,” he says.
“Over the course of a cycle, consumers are generally better off with a variable rate loan, but there are windows of opportunity for taking out a fixed-rate loan.
“The last window was between August and November, following fixed rates falling very hard over the previous six months.
“That window is now closed.”
 
 
 
 
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St George and Bank of Melbourne cut fixed rates as trend for fixed-rate cuts slows

<html><body>
Refund Home Loans business founder Wayne Ormond has come under heavy fire from the man he sought to usurp as the king of mortgages, John Symond, as he finally broke his silence on the reasons behind the collapse of his franchise empire.
Ormond built a significant media profile on the back of numerous appearances on shows like Today Tonight, where he presented himself as a John Symond-like figure battling the banks while sharing lender commissions with borrowers.
Symond, though, has little sympathy for the collapse of Ormond’s business, which with around 350 franchisees had grown to rival Aussie Home Loans in size and reach – though without the same deep pockets – before its fall from grace.
“I’m not surprised what’s happened because I thought [Refund Home Loans] was a fundamentally flawed model,” Symond told BRW magazine.
“You can’t afford to say, ‘Hey, here’s $1,000’. You have to put that money in technology, business infrastructure and people coaching, everything that goes towards building your brand... How can you do that under his model?”
Symond’s comments come more than a month after Refund Home Loans collapsed owing 119 creditors a combined $9.7 million and as Ormond explains some of the factors that led to its sudden demise.
Ormond blames the franchise group’s lender for it being placed in administration as well as shouldering some of the blame himself for the business failing.
He accepts that he should have focused on its core proposition – mortgage broking – rather than diversifying into a number of other ventures including financial planning and real estate services.
Ormond had ambitions to open 400 real estate franchises nationally, operating along the same business lines as the mortgage broking business, with estate agents sharing up to half of their sales commissions with the buyer and seller.
Refund Real Estate and Refund Financial Planning were placed in voluntary administration two weeks after parent business Refund Home collapsed.
“We got away from our core business right at the end,” Ormond told BRW. “My advice is stick to what you know. Opportunities come along that will be tempting, but your core business is your bread and butter.”
Ormond says troubles began for Refund Home Loans when its lender (identified by BRW as Bankwest) demanded an audit report before providing any further funding.
The report revealed that Refund owed creditors and the Australian Taxation Office money and had entered into a deferred payment plan with them. It also identified other issues such as the company not having a chief financial officer at the time, and that it requiring a new accounting system as well as better financial management systems.
As a result of the audit report, the bank required Refund clear its debts before providing any more funding.
“The bank’s belief was that I required an equity solution, not a debt solution,” he says.
Ormond says he managed to raise $1.5 million from two investors but could not raise enough money after the share market collapsed and the business environment turned sour.
He says he is now focusing on “ensuring a smooth and easy transition for franchisees and considering new business opportunities outside of the real estate sector”.
</body></html>

Wayne Ormond says mea culpa and cops serve from John Symond over Refund's collapse

<html><body>
Toronto mayor Rob Ford says he will act on his campaign promise to abolish land transfer tax, a move that has the support of Toronto real estate agents and two-thirds of residents.
Ford has pledged to first lower the tax by as much as 25% in 2012 and then abolish it entirely in stages.
Imposed in 2008, the tax adds about C$5,351 (A$5,204) to the purchase of an average Toronto house costing C$481,305 ($468,077).
A 25% reduction would save a home buyer about C$1,338 (A$1,301).
Plans to abolish the tax in Toronto, a city of about 2.7 million, follow similar calls to abolish stamp duty in Australia at the October Canberra tax forum and replace it with a broad-based land tax to improve housing affordability –  as suggested by the 2010 Henry Review.
The move is likely to be heavily opposed by state governments, with recent forecasts from NSW and Victoria showing land taxes will account for <a href="https://www.propertyobserver.com.au/tax/nsw-stamp-duty-forecasts-suggests-strong-housing-market-recovery-by-2014-15/2011121552867" target="_blank">about a third of state taxation revenue over the next four years.</a>
Stamp duty is expected to bring in revenues of about C$300 million (A$291 million) for the city of Toronto in 2011.
According to reports in the Toronto Star, Ford will face opposition from some city councillors who are opposed to his plans.
“I campaigned we’d get rid of it by the end of my term and if we do it in pieces, we’ll do it in pieces, but I’m going to keep my promise,” Ford said in a recent television interview. “We’re going to be tackling that [next year].”
The Toronto Real Estate Board has applauded Ford’s pledge, with president Richard Silver saying the Land Transfer Tax “is not good for Torontonians or the city”.
“We look forward to working with the mayor and council to get rid of this unfair tax,” he says.
A recent poll found that 65% of Torontonians continue to support Ford’s commitment to repeal the Toronto Land Transfer Tax.  “Torontonians understand that the land transfer tax is not part of the solution to the city’s financial challenges; it is part of the problem,” says Silver.
“It unfairly forces home buyers and business owners to pay more than their fair share, costing the average Toronto home buyer more than $6,000 every time they move; it is an unpredictable revenue stream that goes up and down with the real estate market; and it makes the city less competitive than other GTA [greater Toronto area] municipalities,” he says.
 
 
 
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Toronto mayor pledges to abolish stamp duty

<html><body>
NSW stamp duty revenues are forecast to rise by 22% over the next four years, while Victoria is forecasting a more modest 9% increase in earnings from land transfers, according to mid-year state budget updates.
The forecasts also highlight how dependent state governments are on property taxes, which account for around a third of their taxation revenue annually.
At the recent Canberra Tax Forum lobbying groups such as the Australian Housing and Research Institute called on the government to scrap stamp duties in favour of a broad-based land tax to improve housing affordability –  as suggested by the 2010 Henry Review.
Given how dependent state government are on property taxes, scrapping them is likely to be heavily resisted.
The NSW government earned $4.05 billion in stamp duty revenue in the 2010-11 financial year, with an additional $2.28 billion earning in land taxes.
Stamp duty revenue is forecast to dip next year falling to $3.65 billion as buyers and builders of new homes take advantage of concessions available in the NSW Home Builders Bonus scheme available up until July 1, 2012.
Revenue is forecast to increase over the next three years, earning the state $4.27 billion in 2012-13, $4.72 billion in 2013-14 and $5.16 billion in 2014-15.
In total property taxes (including land tax revenue) accounted for 31% of revenue earned by the state in 2010-11 a figure which will rise to 33% of revenue by 2014-15.
In its 2011-12 Half Yearly Review, the NSW government expects a recovery in dwelling investment to continue over the next two years, albeit at a more moderate pace than that seen in 2010-11.
“With solid construction activity in the September quarter and trend private dwelling approvals increasing moderately, the near-term outlook is slightly more positive than at budget time. This is despite softness in the broader housing market. Dwelling investment over the next two years is expected to be supported by low vacancy rates and rising rental prices, along with growth in population and household incomes,” the review says.
The Victorian government is forecasting stamp duty earnings of $3.76 billion in 2011-12 with a modest rise to $3.78 billion in 2012-13 before accelerating to $3.94 billion in 2013-14 and reaching $4.12 billion in 2014-15.
Total property tax revenue will increase from $5.45 billion to $6.14 billion over the next four years accounting for 34% of total revenue earned by the state.
 
 
 
</body></html>

NSW stamp duty forecasts suggests strong housing market recovery by 2014-15

<html><body>
The two interest rate cuts in November and December are expected to push mortgage arrears rates down further in 2012 as Australians continue to do a better job of paying off their mortgages, according to the latest Fitch Dinkum Index on mortgage delinquencies.
Just 1.52% of prime residential mortgage-backed securitised (RMBS) mortgages were more than 30 days in arrears in the September quarter, a drop of 17 basis points from the 1.69% recorded in June 2011, according to the Fitch’s 30+ Days RMBS Index.
"The stable mortgage performance in the third quarter of 2011 reflects that households have adjusted to the payment stresses of the fourth quarter of 2010 and the first quarter of 2011.
“Mortgage performance is expected to continue its improvements in the fourth quarter of 2011, further assisted by the recent interest rate decreases in November 2011, with the December 2011 decrease having more of an impact in the first quarter of 2012," says Courtney Miller, analyst in Fitch's structured finance team.
<img src="/images/stories/fitchdec13.gif">
Across the RMBS sector, the decrease in arrears was predominantly in the 30 to 59 days and 60 to 89 days delinquent buckets – a trend expected to continue following no rate increases this year.
The Fitch Dinkum 90+ Days RMBS Index (the Dinkum 90+)decreased by 4 basis points to 0.63% in the third quarter of 2011 from 0.67% in the second quarter of 2011. The decrease was in line with expectations.
Thirty day-plus arrears rates for low-doc loans (aimed at the self-employed and charged at higher rates) were at 5.30% at September 2011, down eight basis points from 5.38% in June 2011.
The 90-plus-day low-doc delinquency ratio reached its highest peak since inception in the September 2011 quarter rising to 2.87%, “proving that low-doc borrowers remain under pressure in making mortgage payments”.
Non-conforming low-doc borrowers' 30+ days delinquencies decreased by 198 basis points to 13.85%, returning to December 2007 levels.
Non-conforming low-doc loans are provided for credit-impaired borrowers at a significantly higher rate of interest, and Fitch says the decrease in the September quarter was “primarily due to stable interest rates and the settlement of defaulted loans”.
Total low-doc 30-plus-day delinquencies decreased 18 basis points to 6.37%, down from record highs of 6.74% in the first quarter of 2011.
“Fitch continues to believe that low-doc borrowers captured in the Dinkum Index are more likely to be affected by monetary policy decisions.
“There is the expectation that these borrowers will benefit from the recent rate cuts in the fourth quarter of 2011 and from the general health of the Australian economy,” the latest report says.
</body></html>

Rate cuts will drive down mortgage arrears even further: Fitch

<html><body>
The mini-boom in demand for fixed-rate mortgages might finally be at end, following the two rate cuts in November and December. According to ABS housing finance data for November, the proportion of total housing finance commitments taken out at fixed rates increased to 9.9% in October 2011 (from 7.9% in September 2011) as an increasing number of home owners looked to lock in some financial certainty. 
The graph (below) prepared by ANZ and based on the October ABS housing finance data, shows that demand for fixed rate mortgages is at a more than three-year high, with the mini-boom kicking off in early 2009 after the RBA had cut rates by 425 basis points between September 2008 and April 2009 and following Wayne Swan introducing his $42 billion stimulus package in February 2009.
<img src="/images/stories/fixedrates.gif"> 
 Source: ANZ
 This graph is expected to dip on the back of the two 25-basis-point interest rate cuts in November and earlier this month. All the major banks (with the exception of NAB, which passed on 45 out of the 50 basis points on offer) and the majority of second-tier lenders have passed on to borrowers. 
The impact of lower variable rates has already been seen in November figures from mortgage broker AFG (six weeks ahead of ABS data), with the percentage of fixed rate mortgages processed dropping from 20.4% to 17.2% in the space of a month. 
Damian Smith, CEO of comparison website RateCity.com.au, says the AFG Mortgage Index (which covers one out of every 10 mortgage written) is a “pretty good forward indicator”. 
“We assume that demand for fixed rate loans will start to ease,” he says. 
Smith says a similar trend has emerged in people clicking on fixed rate versus variable rate links on the RateCity.com.au website. 
“As people who click on our site are usually only thinking about buying a property, the clicks are a reasonable indicator of demand two or three months ahead. 
“The relative attractiveness of fixed rates is decreasing,” Smith says, pointing to the fact that fixed rates have dropped substantially less than variable rates over the last 60 days. 
“There has been some small movement in some fixed rates, but no 30- or 40-basis-point cuts,” he says. 
“Over the course of a cycle, consumers are generally better off with a variable rate loan, but there are windows of opportunity for taking out a fixed-rate loan.
“The last window was between August and November, following fixed rates falling very hard over the previous six months. 
“That window is now closed.” 
At the start of December, Mortgage Choice said demand for fixed rate mortgages had peaked after it released November figures showing that 20% of all new loan approvals were for fixed=rate loans, up on the six-month average of 16%, with the 12-month average at 14%. 
The franchise said demand for fixed rate loans doubled over the past year, peaking in November and reaching their highest level since April 2008.
Belinda Williamson, acting head of corporate affairs at Mortgage Choice, says while the franchise group has observed positive momentum in fixed-rate demand over the past six months, “the recent rate cuts and any future cuts due to such factors as increased domestic economic pressures or growing uncertainty surrounding the European debt crisis, may cause the demand for fixed rates to taper off as the gap between fixed and variable rates diminishes”. 
“Although lenders are fiercely competitive for business, industry commentators have suggested current home loan pricing is about as competitive as it is going to get,” she says. 
Smith says consumers might still consider a one-year fixed-rate loan as an alternative to a variable rate loan. 
“There are still some exceptionally cheap fixed rate loans out there,” he says. 
Currently, the cheapest one-year fixed loan is offered by Greater Building Society, which cuts its rate on this loan 5.69% on December 2. 
“There is no chance of getting variable loan at that rate. The lowest would be in the low 6% range,” Smith says. 
“A one-year fixed loan gives you a year’s comfort. It’s not a bad security blanket – it’s highly unlikely you would be worse off.” 
Currently the cheapest variable rate loans are:
 
<div align="center">
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td nowrap>
Company/provider
</td>
<td nowrap>
Rate
</td>
</tr>
<tr>
<td>
Ubank - UHomeLoan (for refinancing)
</td>
<td>
6.14%
</td>
</tr>
<tr>
<td>
bankmecu - Premium Unlimited
</td>
<td>
6.48%
</td>
</tr>
<tr>
<td>
Macquarie Bank - Classic P&amp;I Variable
</td>
<td>
6.64%
</td>
</tr>
<tr>
<td>
Yellow Brick Road - Gold Pathway Variable
</td>
<td>
6.69%
</td>
</tr>
<tr>
<td>
Gateway Credit Union - Low Rate Plus
</td>
<td>
6.70%
</td>
</tr>
</tbody></table>
</div>
 
Currently the cheapest three-year fixed loans are:
<div align="center">
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td nowrap>
Company 
</td>
<td nowrap>
Rate 
</td>
</tr>
<tr>
<td>
Citibank
</td>
<td>
5.94%
</td>
</tr>
<tr>
<td>
Heritage Bank
</td>
<td>
5.95%
</td>
</tr>
<tr>
<td>
Homestar Finance
</td>
<td>
5.95%
</td>
</tr>
<tr>
<td>
Pacific Mortgage Group
</td>
<td>
5.95%
</td>
</tr>
<tr>
<td>
AMP Banking
</td>
<td>
5.99%
</td>
</tr>
<tr>
<td>
BoQ
</td>
<td>
5.99%
</td>
</tr>
</tbody></table>
</div>
 
Currently the cheapest one-year fixed loans are:
<div align="center">
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td nowrap>
Company 
</td>
<td nowrap>
Rate 
</td>
</tr>
<tr>
<td>
Greater Building Society
</td>
<td>
5.69%
</td>
</tr>
<tr>
<td>
Better Option Home Loans
</td>
<td>
5.84%
</td>
</tr>
<tr>
<td>
Heritage Bank
</td>
<td>
5.9%
</td>
</tr>
<tr>
<td>
Ubank
</td>
<td>
5.93%
</td>
</tr>
<tr>
<td>
Newcastle Perm
</td>
<td>
5.94%
</td>
</tr>
</tbody></table>
</div>
 
Source: RateCity.com.au. The above rates are for home loans that are widely available to the general public, ranked by rate and then alphabetically. Rates are accurate as at December 12, 2011 at 4.30pm and are subject to change.
 
 
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Fixed-rate mortgage boom ending

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First-time buyers helped lift mortgage lending in October, according to housing finance figures released today by the ABS.
It was the fourth straight month of increases, but the pace of growth has slowed.
Nationally, the total number of owner-occupier housing finance commitments increased by 0.7% on a seasonally adjusted basis, with lenders agreeing to finance 51,981 mortgages.
The bright spot in the figures was the return of first-home buyers, which increased as a percentage of the market from 16.4% to 17.9%, with an average loan size of $280,000.
Some first-time buyers make their first purchase an investment property.
Mortgage lending increased in NSW (total number of mortgages up 1.3%), Western Australia (1.3%) and the Northern Territory (4.3%) but declined in all the other states and territories, led by the ACT (down 4.2%).
The number of mortgage commitments declined by 1.6% in both Queensland and Victoria and fell by 1.3% in South Australia.
In value terms and excluding alterations and additions, the market declined 2.5% in October to $20.46 billion, with owner-occupier mortgages decreasing by 1.2% to $14.4 billion and fixed loans for investment purposes down 5.5% over the month to just over $6 billion.
The number of loans for the construction of new houses fell by 1.7% to 4,646.
Banks increased their mortgage lending to owner-occupiers by 0.7% in October while non-bank lending decreased by 0.2%.
The weak October figures follow a 2.2% seasonally adjusted increase in September to 51,821 mortgages.
The overall 0.7% growth in October was “a touch above” expectations of Westpac and market forecasts.
Westpac described the data as mixed with new lending (excluding refinancing) stronger than the headline figure, rising 2.0%
However, new lending for the year to date is still down, declining by 1.8%.
“By state, there was a divide for the month. Victoria and Queensland weakened, both down by 1.6%. 
“The Victorian market is being weighed down by a sizeable increase of supply coming onto the market
“The Queensland market has weakened during 2011, with finance to owner-occupiers down by -11% for the year to date, the weakest of the states. “These figures provide a snap shot of housing finance just ahead of the RBA's rate cuts. The November and December rate cuts, and our expectation that the RBA will lower rates by a further 50bps, will provide some support to the sector. However, upside will be capped by ongoing headwinds facing the sector.”
The Housing Industry Association (HIA) also described the October figures as a “mixed bag” and says there is a clear need for policy reforms on the new home building front.
“The update for October 2011 showed a weaker result for new home lending for both owner occupiers and investors, together with further modest improvement in aggregate lending for first time and trade-up owner occupiers,” said HIA chief economist, Harley Dale. “New home lending appears to have largely flattened out through 2011, but at levels below the decade average,” says Dale.
A bounce in mortgage lending is expected in November with figures released by mortgage broker AFG (six weeks ahead of the ABS) revealing loan approvals<a target="_blank" href="/news"> surging to a 33-month high following the November rate cut</a>, led by a jump in loans taken out by property investors.
AFG recorded an 18.4% increase in mortgages processed by its 2,000 brokers with property investors accounting for almost two out of every five mortgages sold in November (38.4%) – an all-time record for the AFG Mortgage Index.
For advice on buying your first investment property, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-how-to-buy-your-first-investment-property">download our free eBook.</a>
 
 
 
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