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

Joel Robinson

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

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

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

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

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

The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.

The proposal will now proceed to a full council vote on June 2.

The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;

The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" />

The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" />

“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.

“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.

“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”

<img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.

The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.

In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.

<img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" />

Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.

DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.

“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.

The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.

At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

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>
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>.
 
 
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mlaurence-vhAHaLZT8y

Sea-changing could be a huge tax savings

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

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

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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.
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Rate cuts will drive down mortgage arrears even further: Fitch

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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

<html><body>
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>
 
 
 
</body></html>

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