UAE-based developer Arada has unveiled plans for a $2 billion twin-tower apartment development in Broadbeach, marking its first move into Queensland as it continues its rapid expansion across Australia.

Arada will develop 952 apartments across two towers on a prominent site opposite the Gold Coast Convention and Exhibition Centre, with the project targeted for completion ahead of the Brisbane 2032 Olympic and Paralympic Games.

The project represents Arada's largest commitment to the Australian market since arriving in the country in 2024 and significantly expands a local pipeline that has now grown to eight projects and more than 5,000 homes.

It will also be the first major Queensland project delivered by Roberts Co since the tier-one contractor was acquired by Arada Group in 2025.

Plus Studio has designed the Broadbeach development, which will comprise one, two and three-bedroom apartments across two towers connected by a landscaped podium.

A significant resident amenity offering will include lagoon and lap pools, a gym, sauna and steam room, alongside a mist room, infrared room and salt scrub facilities. Communal terraces, private dining areas, a library, residents' lounge and work-from-home spaces are also planned. Around 1,200 sqm of retail and hospitality space will occupy the ground floor.

The site puts Arada in one of the Gold Coast's most active apartment markets, directly opposite the convention centre and within walking distance of Pacific Fair, The Star Gold Coast and Broadbeach's dining and retail precinct.

It also has immediate access to the Gold Coast light rail network and sits just a few blocks from the beach.

Arada Group Chief Executive Ahmed Alkhoshaibi said Broadbeach represented an opportunity for the developer to expand beyond its initial NSW pipeline.

“Broadbeach is a world-class address that gives us the canvas to create a community of exceptional design and lifestyle quality that genuinely enriches the daily lives of the people who call it home,” Alkhoshaibi said.

“This is our first development outside New South Wales, and it reflects our growing ambition to grow in key urban markets around the country.”

Alkhoshaibi said bringing Roberts Co into the project would give Arada greater control over the development and construction process.

“Delivering this project through Roberts Co, our own tier-one construction business, means we can bring the quality, pace and accountability that our buyers expect.”

The move into Broadbeach comes as Arada accelerates its Australian expansion following its entry into the market two years ago. The developer has assembled a pipeline of eight projects comprising more than 5,000 homes, while the acquisition of Roberts Co last year gave the group its own Australian construction capability.

Globally, Arada has a development portfolio valued at $50 billion comprising more than 55,000 homes across the UAE, United Kingdom and Australia.

The Gold Coast is emerging as the next major market for the developer, with strong population growth and infrastructure spending ahead of the 2032 Games continuing to underpin significant apartment development across the coastal strip.

Joel Robinson

Arada plots $2 billion Broadbeach towers in major Queensland move

Sydney’s downsizer market is changing, with a growing cohort of buyers prioritising the right home over simply finding a smaller one.

Coronation Property Head of Sales Cam Porter says the traditional idea of downsizing does not necessarily reflect what many buyers are now looking for, particularly those moving from established family homes across Sydney.

Instead, he says they are increasingly becoming “right-sizers”, seeking lower-maintenance homes without sacrificing the space, amenity or quality they have become accustomed to.

“We are increasingly seeing buyers who are not motivated by the idea of simply moving into a smaller property,” Porter says.

“They are right-sizers. They want a home that is easier to manage and better connected, but they still expect generosity, quality and a floorplan that supports the way they live.”

It is a subtle but important distinction in a market where apartment developers are increasingly targeting established owner-occupiers.

[smartcode_project:default project_id=135149 project_image_fid=377495]

For many of these buyers, moving from a house to an apartment is not driven by a desire to dramatically reduce their living space. Instead, the appeal is in removing some of the maintenance associated with a larger home while retaining generous living areas, storage and enough flexibility to accommodate family and friends.

Coronation’s sales team is seeing buyers place particular importance on natural light, practical storage and additional rooms that can be used as guest bedrooms, home offices or secondary living spaces.

Kitchens and dining areas are also playing an increasingly important role, particularly for buyers who regularly entertain or have children and grandchildren visit.

[smartcode_project:default project_id=135149 project_image_fid=377494]

“These buyers still want their home to feel generous,” Porter says.

“They may want less maintenance, but they are not looking for less life.”

The challenge for the broader housing market is providing enough of the right stock to encourage that move.

While much of the discussion around Sydney’s housing shortage has centred on the number of homes being delivered, Porter says the diversity of those homes is equally important.

Older homeowners can remain in large family houses for longer when they cannot find an appropriate alternative in the neighbourhoods where they have built their lives.

“The decision is rarely as simple as wanting fewer bedrooms,” Porter says.

“People are weighing up their connection to a neighbourhood, the space they need for family, the quality of the home and whether it will continue to work for them over the long term.”

It also has implications beyond the downsizer market. Providing suitable apartments for smaller households can free up established houses for families who need the additional bedrooms and land, creating greater movement through the housing market.

<h2>Lillian targets the next stage of apartment buyer</h2>

It is a buyer Coronation is targeting at <a href="https://www.apartments.com.au/new-apartments/lillian-erskineville-9-metters-street-erskineville-nsw-2043">Lillian</a>, its new collection of apartments, terraces and penthouses at Erskineville Village.

Designed by Silvester Fuller, Lillian has been shaped around larger living spaces, natural light and flexible floorplans, alongside landscaped areas, wellness amenity and communal spaces for residents.

The development will form part of Coronation’s broader Erskineville Village precinct, which will combine new homes with green space, retail, hospitality and new pedestrian connections.

[smartcode_project:default project_id=135149 project_image_fid=377688]

McPherson Park will sit at the centre of the precinct, creating a significant new green space alongside the project’s retail and hospitality offering.

For Porter, the opportunity is to give buyers another housing option without forcing them to leave the part of Sydney they already know.

“People should be able to change the type of home they live in without having to change their entire life,” he says.

“For many buyers, Lillian offers the opportunity to remain connected to the Inner West and the city, while gaining access to a more convenient, walkable and considered way of living.”

[smartcode_project:default project_id=135149 project_image_fid=377687]

Coronation will explore the changing <a href="https://lillianresidences.com.au/news/lillian-x-space-x-downsizers-event-27-august/">right-sizer market at an event on August 27</a>, bringing together experts across property, design and lifestyle.

Held in partnership with SPACE, Poliform and Downsizer.com.au, the event will include a property market outlook from economist Michael Blythe alongside discussion around the considerations facing buyers planning their next move.

Attendees will also be able to learn more about the residences and amenity planned at Lillian Erskineville.

[smartcode_project_cta:default project_id=135149]

From downsizing to right-sizing: What Sydney buyers want from their next home

Family-owned builder and developer <a href="https://www.apartments.com.au/developers/omaya">Omaya</a> is bringing its 27-storey The Maybelle development to market, with the 229-apartment tower rising alongside Ismay Reserve near North Strathfield.

<a href="https://www.apartments.com.au/new-apartments/the-maybelle-21-parramatta-road-homebush-nsw-2140">The Maybelle</a> will comprise one, two and three-bedroom apartments, with its height providing elevated outlooks towards the Sydney skyline and Harbour Bridge, while other residences will look across neighbouring Ismay Reserve.

Designed by <a href="https://www.apartments.com.au/architects/squillace-architects">Squillace Architects</a>, the tower combines its parkside setting with proximity to the established retail, dining and transport amenity around North Strathfield.

[smartcode_project:default project_id=134873 project_image_fid=376196]

Residences will feature open-plan living spaces and a choice of two interior schemes, while communal amenity is spread across two elevated levels of the building.

Level 8 will be home to the Garden Pavilion, a full-floor resident space incorporating communal entertaining and breakout areas, seating and recreation spaces. Further up the tower, a landscaped Sky Terrace on Level 14 will provide another communal area with panoramic views towards the Harbour Bridge and Sydney skyline.

At ground level, the development sits directly alongside Ismay Reserve, where lawns, walking paths, children's play areas, picnic spaces and recreational facilities extend the green space available immediately around the project.

[smartcode_project:default project_id=134873 project_image_fid=376194]

The Maybelle is also within walking distance of North Strathfield and the Bakehouse Quarter, which provides a mix of cafés, restaurants, shops and everyday services.

Existing rail and bus services provide connections across Sydney, while the future North Strathfield Metro and access to the M4 will add to the transport options available around the precinct. Walking and cycling routes also extend via Powells Creek towards Sydney Olympic Park and its sporting, entertainment and parkland precincts.

Families are also well positioned for access to a broad selection of established schools and education options across Strathfield and the surrounding Inner West.

[smartcode_project:default project_id=134873 project_image_fid=376181]

Omaya has operated in Sydney for more than 35 years, managing projects from acquisition and design through to construction and delivery. The family-owned company is both developer and builder of The Maybelle.

Apartments start from $560,000, with the development protected by 10-year Latent Defects Insurance.

Construction is well underway, with completion expected by the end of 2026 and move-in anticipated from Q1 2027.

[smartcode_project_cta:default project_id=134873]

The Maybelle brings 27-storey parkside tower to market near North Strathfield

Melbourne developer <a href="https://www.apartments.com.au/developers/pdg-corporation">PDG</a> has unveiled its vision for the former Water Tank Site in Ivanhoe, which would see it transformed into a thriving residential neighbourhood, complete with a 2000 sqm public park.&nbsp;

Delivered in partnership with <a href="https://www.apartments.com.au/developers/development-victoria">Development Victoria</a>, the proposal would transform the prominent corner of Bell Street and Upper Heidelberg Road into a connected community comprising two residential buildings, generous public open space and shared amenities.&nbsp;

The vision includes 287 one, two and three-bedroom apartments, with a minimum of 10 per cent allocated to affordable housing, alongside a 2,000-square-metre publicly accessible park featuring a children's playground, activity lawn, indigenous planting, timber climbing logs, seating areas and a rock gathering circle.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/dko-architecture">DKO Architecture</a>, the proposal draws on the site's industrial heritage, using a robust architectural language that references the former water tank through expressive structural elements and durable, self-finished materials.&nbsp;

Extensive landscaping has been woven throughout the development, creating a living landscape that strengthens connections to nature while responding sensitively to the surrounding neighbourhood. Two residential buildings ranging from three to 12 storeys are linked by a landscaped forecourt, creating a welcoming arrival experience and improving pedestrian connections through the site.&nbsp;

Residents would also enjoy more than 1,000 square metres of communal open space, including barbecue and dining facilities, vegetable gardens, landscaped seating pavilions and a dedicated coworking space.&nbsp;

PDG Founder and Managing Director Vince Giuliano said the vision reflected an opportunity to transform one of Ivanhoe's most recognisable sites into a place that balanced housing, community and landscape.&nbsp;

"This is an opportunity to reimagine an important site and create a neighbourhood that delivers lasting benefits for Ivanhoe," Giuliano said.&nbsp;

"We're creating much more than new homes. The vision brings together affordable housing, quality architecture, meaningful public open space and shared places that encourage people to connect, while respecting the site's history and its place within the local community."&nbsp;

Development Victoria’s Executive General Manager Precincts, Niall Cunningham, said the application is an important step for the government-owned site.&nbsp;

“This is about delivering more homes in a well-connected location, along with public open space that the Ivanhoe community will benefit from for years to come,” Cunningham said.&nbsp;

PDG was selected as development partner in late 2025 following a competitive tender process.&nbsp;

A planning submission for the project is currently being progressed through the Victorian Government's Development Facilitation Program, with positive early engagement from both Banyule Council and the Department of Transport and Planning.

PDG unveils plans to transform landmark Ivanhoe Water Tank Site

Shane Wilkinson's <a href="https://www.apartments.com.au/developers/pace-development-group">Pace Development Group</a> has lodged plans for a major residential precinct on the former Presentation College site in Windsor, with an eight-building masterplan ultimately rising to 10 storeys.

The proposal at <a href="https://www.apartments.com.au/new-apartments/167-dandenong-road-windsor-vic-3181">167–187 Dandenong Road</a> spans a substantial 19,027 sqm site and is being progressed across six stages, with the first residential stages comprising 170 homes across four buildings designed by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>.

Stage Two will deliver the bulk of the initial housing, with Building A comprising 81 apartments and Building B 49 apartments, both rising to six storeys.

Stage Three will deliver a further 40 homes. The heritage Nagel Building, identified as Building C, will be converted to 12 dwellings, while a new five-storey Building D will comprise 28 apartments at the Hornby Street and Dandenong Road corner.

The 170 homes across Stages Two and Three will include a mix of one, two and three-bedroom apartments, including townhouse-style dwellings.<img alt="First look: Pace plans landscaped housing precinct on former Windsor school site" data-entity-type="file" data-entity-uuid="83c56e3e-dfb9-4e12-b172-c3f18513ec32" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_9.png?VersionId=xRcRpSZsxX.UX_NDDGcRZktw7HVrzx7u" />

&nbsp;

The longer-term masterplan points to considerably greater density across the site.

Indicative plans show Building E accommodating around 80 dwellings across up to 10 storeys, while Building F is earmarked for around 120 dwellings and also up to 10 storeys. Building G is planned to range between four and 10 storeys, however its apartment yield is yet to be determined. That means the masterplan currently identifies at least 370 dwellings across Buildings A to F before any apartments within Building G are counted.

Across the 1.9-hectare site, that represents an indicative density of at least 194 dwellings per hectare, with the final figure to increase once the yield of Building G is established.

Pace is pursuing the project through the Victorian Government's Development Facilitation Program, with Urbis lodging a combined Section 96A planning scheme amendment and planning application on behalf of the developer, which secured the site earlier this year.

The application seeks detailed approval for Stages One, Two and Three, alongside approval of the broader masterplan framework that will guide the later residential stages. Stage One will see an existing heritage building adaptively reused for a wellness and fitness-related facility, while the broader precinct will retain several significant heritage buildings and established trees as part of the redevelopment.

A minimum 10 per cent affordable housing contribution is proposed across both the initial residential stages and the later masterplan stages, delivered through a discounted rental model.

The project comes immediately after a major change to the site's planning controls.

The site was rezoned to the Housing Choice and Transport Zone through Planning Scheme Amendment GC285, gazetted on July 22, 2026, and now sits within the inner catchment of the Windsor Station precinct under the State Government's Train and Tram Zone Activity Centres Program.

While the new controls identify large sites within the inner catchment for buildings of up to six storeys, Pace's masterplan pushes height to 10 storeys in parts of the site, with the taller buildings concentrated toward the centre and along the Sandringham railway corridor.

Lower-scale built form is proposed toward the site's more sensitive residential and heritage edges, with Buildings A and B generally stepping from three storeys at their interfaces to six storeys at upper levels.

Cera Stribley's masterplan breaks the development into a collection of separate buildings rather than a continuous built form, with landscaped spaces, new pedestrian links and a new publicly accessible road forming part of the precinct.

The planning report says the development will create new pedestrian connections to Elm Place and along the railway corridor, as well as a new publicly accessible road linking Elm Place with Dandenong Road. The proposed buildings will occupy around 54 per cent of the site, leaving a substantial portion available for landscaping, communal areas and permeable surfaces.

Urbis said the scale of the project reflected the site's strategic location close to Windsor Station, tram services and the Chapel Street Activity Centre, with the former school campus identified as a significant opportunity to increase housing supply on an underutilised inner-Melbourne site.

&nbsp;

First look: Pace plans landscaped housing precinct on former Windsor school site

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>
Mortgage lending franchise RAMS will pass on the full 25-basis-point rate cut to its borrowers, taking its standard variable rate to below that of all the major banks.
The RAMS standard variable rate will drop to 7.38% on Friday (November 4) below that of NAB, which we will cut its rate to 7.47% three days later and has decided to pass on 20 basis points of the official 25-basis-point cut. 
RAMS is owned by Westpac and has a strong footing in the first-home buyer and self-employed market.
 
RAMS chief executive Melos Sulicich says RAMS continues to be committed to providing Australians with the best possible deal. 
“As a specialist local lender we hear and understand the concern about interest rates and think this reduction will have a positive effect for both homeowners and the wider community. It also shows our continued commitment to providing competitive deals,” he says. 
“For many Australians, their biggest monthly expense is their mortgage and it’s important to check it’s still working for you. If not, now is a great time to re-look at the market.”
</body></html>

lschlesinger-FZcF9M3vE6

RAMS undercuts all major banks

<html><body>
NAB will pass on only 20 basis points of the official RBA 25-basis-point cut announced yesterday, a move that is likely to annoy borrowers, despite the bank maintaining the lowest standard variable rate of the big four banks with its current rate of 7.67% reducing to 7.47% on November 7.
NAB's rate cut will be a week earlier than Westpac, which will reduce its standard variable rate to 7.61% and ANZ (down to 7.55%), but three days later than the Commonwealth Bank (down to 7.56%).
Lisa Gray, group executive of NAB personal banking, says the bank has had lowest standard variable home loan rate of the major banks for more than 28 months. 
Gray says that volatile overseas markets and impending global banking security requirements has pushed up the costs of providing funds for lending.
“We are committed to offering the most competitive standard variable interest rate possible and these decisions are never taken lightly. However, the current instability in Europe presents us with additional funding pressures, as costs of funds continue to rise,” she says. 
While the bank did not pass on the full rate cut, it will cut deposit interest rates by the full 25 basis points on some products. 
Other major lenders to announce they are passing on the full rate cut include Westpac subsidiaries the Bank of Melbourne and St George which have both cut their standard variable rate to 7.55%. The rate cuts will take effect on November 14, in line with parent Westpac. 
The Bank of Queensland says it will pass on the full 25 basis point cut on November 11 bringing its standard variable rate home loan to 7.61% with CEO and managing director Stuart Grimshaw saying it was ‘the right thing to do’.  
“A lot of people around Australia are struggling and, with Christmas around the corner, offering our customers this rate relief is the right thing to do,” he adds.
ANZ chief executive Australia Philip Chronican says the bank will be passing on the rate cut despite higher funding costs.
</body></html>

NAB the only bank not to pass on full rate cut, but claims to still have lowest rates

<html><body>
Sydney property owners are the savviest of home loan borrowers and know refinancing can provide better rates and fees, according to a recent HSBC survey.
Polling more than 30,000 Sydney and Melbourne respondents, the survey suggested 80% of Sydney borrowers know their home loan rate, 76% know what fees they pay and 85% think refinancing could reduce their costs further.
Alice Del Vecchio, the head of mortgages for HSBC Bank Australia, says Sydney’s higher average dwelling price of $504,500 compared to the national average of $443,000 was the likely driver for Sydney’s heightened awareness.
“Having a larger financial commitment means home loan rate payments and fees are front of mind for Sydney borrowers,” Del Vecchio says.
“Being more sensitive to interest rate changes, Sydney borrowers clearly see the benefit of shopping around for their home loan.”
Although Sydney borrowers' refinance awareness was higher relative to Melbourne – 85% versus 26% believing they can save money – the survey showed there are still pockets of customers in both cities missing possible savings by failing to explore refinancing.
In Melbourne 60% of borrowers know their rate and 25% know what fees they are paying.
Del Vecchio says the lack of awareness towards refinancing could stem from a perception that it involved paperwork, research and additional costs.
“Customers don’t seem to realise that now is an optimal time to consider refinancing.
“It is a highly competitive lending environment right now and banks are working really hard to win borrowers’ business.”
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jchancellor-FAypfDUnLy

Sydneysiders the savviest mortgage refinancers: HSBC

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Queensland-based mortgage lender FirstMac has revealed strong profit figures for the 2011 financial year with both operating profit before tax and net profit after tax well above five-year average figures. 
The company reported operating profit before tax of $15.7 million and net profit after tax for the year of $9.5 million, compared with five-year averages of $10.9 million per annum and $6.0 million per annum respectively. 
Loans and advances for 2011 fell marginally from the previous year to $4.4 billion, representing a 2% decrease, with new loan originations broadly equivalent to the level of discharges. 
The lender forecasts loans and advances to increase over the course of 2011-12 as a result of increasing origination levels and following the launch of its online direct retail model branded Loans.com.au. This new distribution channel commenced in March 2011, with increasing settlement volumes experienced from June 2011. 
FirstMac noted that while the average cost of funding across its mortgage portfolio increased over the 2011 financial year, residential mortgage assets have re-priced in line with major bank margin increases, benefiting the group’s net interest margin. 
FirstMac managing director Kim Cannon says the group has maintained its distribution network since the start of the GFC and continues to originate new mortgages. 
“FirstMac provides the proof that it is possible to offer home loan products with competitive interest rates and also maintain a healthy net interest margin. If we can do this, it is possible for all lenders to do.” 
FirstMac was one of the few non-bank lenders able to continue lending during the GFC and has successfully participated in the Australian government’s mortgage securitisation program, raising $1.4 billion from the scheme. 
In 2002 FirstMac entered the securitisation market and began self-funding its own loan business, by issuing bonds on global capital markets. Since 2003, FirstMac has publicly issued over $9 billion of residential mortgage-backed securities.
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FirstMac posts strong profits for 2011 financial year

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Westpac is the first of the major lenders to say it will pass on today’s 0.25% rate cut in full to its variable rate mortgage holders, though borrowers will have to wait two weeks for some relief. 
The bank says it will cut its standard variable home loan rate by 0.25% to 7.61% per annum with the new rate only becoming effective on Monday, November 14. 
The Commonwealth Bank has also confirmed that it will pass on the full 0.25% to its borrowers, but will cut rates 10 days sooner on November 4 with its base variable rate reducing to 7.05%. 
“A reduction in interest rates will provide a timely boost to sentiment and generate a positive flow-on effect for the broader Australian economy,” said Rob Coombe, group executive Westpac Retail and Business Banking. 
Both banks were beaten to the bell by super fund-owned ME Bank, which announced last week that it would pass on any interest rate cut in full to its customers. 
It confirmed this move today following the RBA decision with Ian Hendey, group executive of brand, product and distribution, saying its decision “highlights the importance of acting in the best interest of customers, especially in an environment where concern over shareholder profit often supersedes customer-centric strategy”. 
“This time last year, when the RBA raised its cash rate by 0.25% p.a., ME Bank bucked the trend by doing the right thing by its customers and only raising its standard variable home loan rates in line with the cash rate rise of 0.25%," he says.
Online lender loans.com.au says it will pass on the full rate cut to borrowers immediately. 
Loans.com.au managing director Marie Mortimer says the interest rate cut would not only be passed through to those who hold existing loans but would be extended to potential borrowers who had already applied for preapproval on their new home loans.
“From Wednesday (November 2), this entire group can expect to save almost $50 a month on the cost of an average home loan of $300,000 as their interest rate will be slashed by the full 0.25%,”she says.</body></html>

Banks start passing on rate cut with varying speed

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On the back of the majority of lenders cutting their fixed rate mortgages over the past few months, the popularity of fixed rates has soared to a three-and-a-half year high, according to October approval figures from mortgage broker Mortgage Choice. 
In October, nearly 20% of borrowers took out a fixed-rate mortgage product, up from 17% in September and significantly higher than the 12-month average of 13.5%. 
Fixed-rate mortgages are now more popular than the traditionally popular “no frills” basic variable loan and the more feature-rich standard variable loan, which were each selected by about 15% of borrowers. 
Ongoing discount mortgages, where the rate is discounted over the life of the loan in return for an annual fee, remain by far the most popular product choice (43% of approvals), but their popularity declined slightly in October.
<img src="/images/stories/mcnov1.gif">
Source: Mortgage Choice
Basic variable rates were the most popular with new home loan borrowers only 11 months ago. At that time, the product type accounted for 34% of the broker’s new approvals. 
Today, this sits at less than 16%, the second lowest point since Mortgage Choice began recording such data in January 2003. 
<a href="/news">According to mortgage comparison website</a> Ratecity.com.au, 70% of lenders, including<a style="font-size: 14px; text-align: left;" href="/news" target="_blank"> St George</a>, <a style="font-size: 14px; text-align: left;" href="/news" target="_blank">Westpac</a>, <a style="font-size: 14px; text-align: left;" href="/news" target="_blank">Greater Building Society</a>, <a style="font-size: 14px; text-align: left;" href="/news" target="_blank">Credit Union Australia</a> and <a style="font-size: 14px; text-align: left;" href="/news" target="_blank">ING</a>, have cut their fixed mortgage rates recently.
Company spokeswoman Kristy Sheppard says comparing October 2011 loan approval data with that extracted one year ago shows “how much the industry has changed in reacting to subdued housing finance demand and a relatively positive interest rate outlook”. 
“Then, basic variable rate was the loan of choice at just over 34% of approvals. Standard variable rate followed with just under 34%, then ongoing discount rate at 17% and fixed rate at 11%. 
“That situation has now flipped. New borrowers’ appetite for fixed rate loans is at a three and a half year high of 20% of approvals and ongoing discount rate loans account for 43% of approvals. 
“In an environment of rising living costs and economic uncertainty it is unsurprising borrowers are taking advantage of the relatively low fixed rates and attractive variable rate discounts offered by lenders hungry for business,” she says. 
The popularity of standard variable, line of credit (popular with investors) and introductory rate home loans all fell in October, to 15%, 4% and 1% of approvals respectively.
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More borrowers locking in interest rates: Mortgage Choice

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Mortgage lending recorded another modest 0.5% increase in September, according to RBA statistics.

The 0.5% increase follows an increase of 0.4% over August. For the year to September, housing credit is up 5.8%.

The September figure is the ninth consecutive monthly increase of either 0.5% or 0.4%.

In December 2010 housing credit increased by 0.6%. March 2010 was the last time it increased by 0.7%.

Over the month, loans for owner-occupiers increased by 0.5% to be up 6.4% for the last 12 months, while loans for investment purposes increased by 0.4% to be up 4.6% for the same period.

The growth in mortgage lending was in line with total credit provided to the private sector by financial intermediaries, which increased by 0.5% during September 2011, after rising by 0.2% during August.

Other personal credit rose by 0.4% over September, after decreasing by 1.1% over August. Over the year to September, other personal credit decreased by 0.9%.

<p style="margin-top: 0cm; margin-right: 0cm; margin-left: 0cm; margin-bottom: 0.0001pt; line-height: 15.6pt; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: white; vertical-align: baseline;">Business credit rose by 0.4% over September, after rising by 0.1% over August. Over the year to September, business credit increased by 0.2%.
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Mortgage lending up modestly in September

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The government’s First Home Saver Account (FHSA) incentive is finally gaining traction among first-home buyers, with a 56% rise in new accounts in the June quarter, according to the latest figures from the Australian Prudential Regulation Authority.
Over the first six months of 2011, the scheme attracted more than 6,000 account holders, and account holder numbers are up 95% since September 2010. 
As of June, 2011, nationwide there were 31,000 open FHSA, containing a total of $230 million. This figure is still just a fraction of the 220,000 first-home savers projected to open accounts by 2009 and is unlikely to ever reach the 2012 target of 700,000.
The take up of the savings scheme was clouded by the First Home Owner Boost scheme, which ran from October 2008 to the end of 2009 and encouraged first-home buyers to purchase a home sooner rather than save.
The increase has come despite the <a href="https://www.propertyobserver.com.au/news/anz-the-only-bank-to-offer-government-backed-first-home-saver-accounts-as-cba-exits/2011082251243" target="_blank">Commonwealth Bank, the nation's largest home lender, dumping the scheme</a> in August, leaving the ANZ as the only major bank to offer the savings accounts. Only 18 financial institutions offer the accounts, mostly credit unions.
The scheme aims to help first-time buyers save for a deposit for their first homes.  Under the FHSA, the government contributes 17% on the first $5,500 of individual contributions made each year. Account holders are required to keep savings in the FHSA for four financial years before they can use the funds to buy a home.
The government amended the scheme on May 25 to allow savings in an account to be paid into an approved mortgage after the end of a minimum four-year qualifying period, rather than requiring the money to be paid into a superannuation account.
Under the original policy, if the account holder bought a home before the end of that four-year period, the balance of their account was required to be transferred into the borrower’s superannuation fund so that it remained in a concessionally taxed environment.
“We believe further improvements to the scheme to make it more flexible that were passed by federal parliament earlier this year are helping to boost interest in FHSA,” says Dean Rushton, chief operating officer at mortgage broker Loan Market.
Rushton says previous Loan Market surveys found consumers had been confused about the scheme and believed it was too restrictive. 
“While we have seen some lenders recently remove their interest in the scheme, there still remains substantial support from the government to help potential buyers save towards a home loan deposit,” he says. 
The FHSA was launched in October, 2008 with an original target of assisting 700,000 people in its first four years of operation.
“The fact remains this is a positive initiative and it needs to continue to increase its exposure. Loan Market certainly encourages people looking to enter the property market to consider the FHSA,” Rushton says.
The property FHSA recipients buy must be their main residence for a continuous period of at least six months. The six-month period must start within 12 months of becoming the owner of the home, meaning buyers could rent out the property during the first 12 months or after living in it for six months.
For more about buying your first investment property, download our free e-book.
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First home saver accounts becoming more popular

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Potential first-time buyers – some as investors while they rent – continue to seek 100% no-deposit home loans even though banks no longer offer them.
Dean Rushton, chief operating officer of mortgage broker Loan Market says 7% of the brokerage's total enquiries during October 2011 had come from people wanting no-deposit home loans.
"There remains strong interest from people who want to enter the real estate market and borrow the entire cost of the property," Rushton notes.
"But the modern-day lending reality is that if you want to obtain housing finance you have to save for a deposit.”
In late 2008 at the onset of the global financial crisis homebuyers began to find it hard to get no-deposit loans from banks such as the Commonwealth Bank of Australia.
At the time the JP Morgan banking analyst Brian Johnson suggested stricter lending standards were here to stay.
"The era of getting very easy credit to buy a house is over," he suggested.
Aussie Home Loans boss John Symond was prompted to suggest the tightening signalled a return to sensible lending practices.
"Banks have got to have prudent lending," he suggested in 2008.
"People buying home in Australia with little or no deposit is a flawed process.”
Rushton suggests lending restrictions requiring genuine savings contributions of around 5% towards the property purchase demonstrates to the lender that you have the capacity to save money and budget.
He suggests would-be buyers are best off to develop a savings plan early to build a home deposit.
"Borrowers should consider saving for as large a deposit as possible as both interest and lenders mortgage insurance costs increase substantially the more you borrow," he says.
For more about buying your first investment property, download our free e-book.
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First-home borrowers still looking for no-deposit home loans

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A now expected RBA rate cut on Melbourne Cup Day will save the average mortgage holder around $46 a month, according to mortgage comparison website RateCity. 
The figure is calculated based on the cash rate being cut by 25 basis points to 4.5% and lenders passing on this rate cut to borrowers on variable rate mortgages.
Speaking on ABC radio today, federal Treasurer Wayne Swan said there would be “no excuse whatsoever” for banks not to pass on the expected rate cut. 
Based on an average mortgage size of $288,000 and a variable mortgage rate of between 6.86% and 7.11%, a 25-basis-point trim would give borrowers an extra $46 to spend on other goods, save for a rainy day or perhaps, as Tony Abbott suggests, blow on the pokies.
On average NSW borrowers will see the greatest reduction in monthly mortgage payments with $51 per month being trimmed while Tasmanians, which have the smallest average loan size ($187,000) will see the smallest jump in bank balances of just $30 per month.
How a 0.25% rate cut impacts variable rate mortgage borrowers across Australia
 
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="123">
 
</td>
<td valign="top" width="123">
Average mortgage size
</td>
<td valign="top" width="123">
Monthly repayment at current benchmark variable rate (7.11%)
</td>
<td valign="top" width="123">
Monthly repayment if benchmark variable rate cut by 0.25%
(6.86%)
</td>
<td valign="top" width="123">
Monthly saving if rate cut by 0.25%
</td>
</tr>
<tr>
<td valign="top" width="123">
National  
</td>
<td valign="top" width="123">
$288,300 
</td>
<td valign="top" width="123">
$2,058 
</td>
<td valign="top" width="123">
$2,012 
</td>
<td valign="top" width="123">
$46
</td>
</tr>
<tr>
<td valign="top" width="123">
First home buyer
</td>
<td valign="top" width="123">
$283,900
</td>
<td valign="top" width="123">
$2,027
</td>
<td valign="top" width="123">
$1,981
</td>
<td valign="top" width="123">
$45
</td>
</tr>
<tr>
<td valign="top" width="123">
NSW
</td>
<td valign="top" width="123">
$320,500
</td>
<td valign="top" width="123">
$2,288
</td>
<td valign="top" width="123">
$2,237
</td>
<td valign="top" width="123">
$51
</td>
</tr>
<tr>
<td valign="top" width="123">
VIC
</td>
<td valign="bottom" width="123">
$290,700
</td>
<td valign="top" width="123">
$2,075
</td>
<td valign="top" width="123">
$2,029
</td>
<td valign="top" width="123">
$46
</td>
</tr>
<tr>
<td valign="top" width="123">
QLD
</td>
<td valign="top" width="123">
$279,300
</td>
<td valign="top" width="123">
$1,994
</td>
<td valign="top" width="123">
$1,949
</td>
<td valign="top" width="123">
$45
</td>
</tr>
<tr>
<td valign="top" width="123">
SA
</td>
<td valign="top" width="123">
$228,400
</td>
<td valign="top" width="123">
$1,630
</td>
<td valign="top" width="123">
$1,594
</td>
<td valign="top" width="123">
$36
</td>
</tr>
<tr>
<td valign="top" width="123">
WA
</td>
<td valign="top" width="123">
$265,300
</td>
<td valign="top" width="123">
$1,894
</td>
<td valign="top" width="123">
$1,851
</td>
<td valign="top" width="123">
$42
</td>
</tr>
<tr>
<td valign="top" width="123">
TAS
</td>
<td valign="top" width="123">
$188,700
</td>
<td valign="top" width="123">
$1,347
</td>
<td valign="top" width="123">
$1,317
</td>
<td valign="top" width="123">
$30
</td>
</tr>
<tr>
<td valign="top" width="123">
NT
</td>
<td valign="top" width="123">
$279,200
</td>
<td valign="top" width="123">
$1,993
</td>
<td valign="top" width="123">
$1,948
</td>
<td valign="top" width="123">
$45
</td>
</tr>
<tr>
<td valign="top" width="123">
ACT
</td>
<td valign="top" width="123">
$273,500
</td>
<td valign="top" width="123">
$1,952
</td>
<td valign="top" width="123">
1,909
</td>
<td valign="top" width="123">
$44
</td>
</tr>
</tbody></table>
Source: RateCity, Australian Bureau of Statistics August 2011 Housing Finance data
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