Lewis Land's latest apartment release within its <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan is targeting one of the Gold Coast's fastest-growing buyer groups, with almost a third of apartments at Solis priced below $1 million.

The seven-storey building at Biggera Waters will comprise 91 apartments, including 24 one-bedroom residences starting from $778,000, a price point Lewis Land says is aimed squarely at first home buyers struggling to enter the Gold Coast market.

<img alt="Harbour Shires" data-entity-type="file" data-entity-uuid="e7486e37-22f6-4c92-b212-9b0622070b8f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.34%E2%80%AFAM.png?VersionId=W8MJwJUCf6HkIyl_EVSksnd.QI6MZryY" />

<a href="https://www.apartments.com.au/developers/lewis-land-group">Lewis Land</a> Head of Development Michael Long said the developer deliberately allocated a significant proportion of the project to more affordable apartment types.

"First home buyers have been priced out of many parts of the Gold Coast, and we saw a clear opportunity to address this and play our part in a longer-term housing solution," Long said.

"That's why 24 of the 91 apartments being delivered at Solis have been designed and priced for the city's next generation of homeowners, quality one-bedroom apartments, half of which include an additional multipurpose room to maximise space and flexibility.

"This approach places 30 per cent of apartments in Solis under $1 million, and with close proximity to Harbour Town's future light rail extension connecting residents to the city's major employment and knowledge hubs, it's a win for buyers looking to secure their first property."

<img alt="Sores" data-entity-type="file" data-entity-uuid="550526d3-73ba-4710-9739-c5f4294a30ef" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.29%E2%80%AFAM.png?VersionId=cQQdXHt9wS0UXwZEm5Py5bH_3kAmzyhu" />

Designed by BDA Architecture, Solis will deliver a mix of one, two and three-bedroom apartments, with residences ranging up to 232 sqm. Apartments feature generous balconies and contemporary finishes, while residents will have access to Harbour Shores' lagoon pool, clubhouse, tennis court, gym, yoga studio and sauna.

The focus on first home buyers resonated with purchaser Holly Humphreys, who said she and her boyfriend spent more than a year searching for their first property before shifting their attention from houses to apartments.

"We fell in love with the first house we bid on and got our hopes up, but after repeated knockbacks we learned not to get too attached," Humphreys said.

"We offered at the high end of price guides, but sales kept going even higher. That's where we really struggled and we needed to re-evaluate our budget and our expectations. Standalone houses were off the table, and we pivoted to apartments and townhouses."

Humphreys said it was encouraging to see developers recognising the growing demand from first home buyers.

"There's a growing number of young buyers looking to enter the market earlier because they understand that getting in now can make a real difference as prices continue to rise," she said.

"It's fantastic to see a developer recognise this and then actively take measures to deliver an apartment with us in mind."

Solis is the first development planned within the second stage of the Harbour Shores masterplan, with early works expected to commence in September 2026.

[smartcode_project_cta:default project_id=113271]

Joel Robinson

Lewis Land targets first home buyers at latest Harbour Shores release, Solis

Luxury apartment developer Abadeen has recorded $19.25 million in apartment sales across two of its Lower North Shore developments in the lead-up to the end of the financial year, headlined by the sale of a $6.75 million penthouse at <a href="https://www.apartments.com.au/buildings/koyo-crows-nest-5-rodborough-avenue-crows-nest-nsw-2065">KOYO in Crows Nest.</a>

The transactions also included the sale of a newly completed three-bedroom apartment at <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences in Cremorne</a> for $6.35 million, with the residence selling shortly after the project's first public inspections following completion.

The sales come as completed, owner-occupier-focused apartments continue to attract strong demand across Sydney's Lower North Shore, particularly from buyers looking for certainty and immediate occupancy.

The penthouse at KOYO spans 491 sqm across a single level and was designed by architect Koichi Takada. The development is one of Abadeen's flagship boutique projects in Crows Nest.

[smartcode_project:default project_id=108800 project_image_fid=370093]

Abadeen Executive Chairman and Founder Justin Brown said buyer activity lifted noticeably in the lead-up to the end of the financial year.

"We saw a clear increase in enquiry levels, inspection numbers and buyer engagement across our completed projects leading into the end of the financial year," Brown said.

"Buyers have become far more decisive over the past six months. The combination of improving confidence, limited supply and the ability to physically inspect completed residences is creating strong competition for premium apartments in the best locations."

Brown says the&nbsp;response to Park Residences following completion has been particularly strong.

"Buyers want certainty and are responding positively to the opportunity to walk through a finished product, inspect the quality firsthand and move in immediately," Brown suggested.

"Projects such as Park Residences and KOYO demonstrate that when the product is exceptional and the location is irreplaceable, buyers are prepared to act quickly."

[smartcode_project:default project_id=114246 project_image_fid=370116]

Abadeen CEO Joe Tack said quality continued to differentiate projects in the current market.

"Today's buyers are incredibly discerning," Tack said.

"They are seeking larger floorplans, premium finishes, walkability, lifestyle amenity and confidence in the developer delivering the project. Well-designed boutique developments continue to outperform because they offer something genuinely difficult to replace.

"The enquiry we are seeing across our completed and recently completed Lower North Shore portfolio is very encouraging, and we expect this momentum to continue into spring."

The sales follow increased enquiry across Abadeen's Lower North Shore portfolio which also includes <a href="https://www.apartments.com.au/buildings/northcote-collective-naremburn-2-northcote-street-naremburn-nsw-2065">Northcote Collective in Naremburn</a> which also completed recently.

KOYO penthouse headlines Abadeen's $19.25 million EOFY sales flurry

The City of Sydney has approved plans for <a href="https://www.apartments.com.au/developers/billbergia">Billbergia Group</a> and Metrics Credit Partners’ $3.5 billion Castlereagh Place project in the heart of the Sydney CBD

The towers will be among the tallest in <a href="https://www.apartments.com.au/developments/sydney-nsw-2000">Sydney</a>'s CBD, with more floors than any other residential tower in the city.&nbsp;

The 6,000 sqm site was acquired by the joint venture partners in 2024. It is the largest amalgamated land parcel in the Sydney CBD and comprises eight individual sites fronting Castlereagh, Pitt and Liverpool Streets.&nbsp;

<a href="https://www.apartments.com.au/new-apartments/castlereagh-place-sydney-324-348-pitt-street-sydney-nsw-2000">Castlereagh Place</a> will transform an underutilised city block into a landmark mixed-use destination, anchored by two 82-storey towers comprising 607 luxury residences above an 8-level podium housing a 209-room luxury hotel. A 1,000 square metre civic park on ground level features a curated mix of food, beverage and retail.

The plans have been refined over the past year to rebalance the residential and hotel offering, and reconfigure the retail footprint to create a stronger, more dynamic dining experience.

A three-level flagship building on the prominent corner of Pitt and Liverpool Streets will be the gateway to the Castlereagh Place lifestyle precinct. Set to become a Sydney icon, the building is capable of housing multiple hospitality venues.

“Castlereagh Place is designed to be the City's next great urban oasis - an energetic mixed-use precinct that pulses with life, day and night,"&nbsp;said Joseph Kinsella, Group Director of Billbergia.

"It will bring the vibrancy of places like Barangaroo and Darling Quarter into a more accessible, central destination at the very heart of Sydney."

Kinsella said the project will build on&nbsp;Sydney’s growing laneway culture with the City’s largest network of new activated lanes - an expanded, next-generation take on precincts like Angel Place, Palings Lane and Ash Street in Wynyard.

[smartcode_project:default project_id=134477 project_image_fid=374401]

Castlereagh Place has been designed by architects <a href="https://www.apartments.com.au/architects/fjc-studio">fjcstudio</a> in collaboration with Trias Studio, Aileen Sage and Polly Harbison Design, joint winners of an international design competition in 2018.&nbsp;

Signature design elements from the original scheme remain unchanged, while the public domain has been significantly enhanced, delivering 60 per cent more open-to-sky space.

Pedestrian access will also be enhanced through new laneways linking Pitt, Liverpool and Castlereagh Streets, drawing people into a new civic park with outdoor seating, landscaping and integrated public art.

With activated laneways supported by strong hospitality offerings, Castlereagh Place is tipped to become a vibrant new dining destination in the heart of Sydney’s CBD.

It marks the largest undertaking to date for the Billbergia and Metrics Credit Partners partnership. Together they are developing other underutilised Sydney sites into mixed-use precincts, including the $2.2 billion Concord Central and the $1.3 billion Chatswood Grand Residences.

Metrics Managing Partner and Group CEO Andrew Lockhart said Castlereagh Place is a landmark project that will redefine Sydney’s skyline.

"As the tallest residential high-rise development, the revitalised site will offer panoramic views across the CBD and surrounds. We are excited to partner with Billbergia to reinvigorate an underutilised site and create a sophisticated and contemporary mixed-use offering situated in the heart of Sydney.”

Total apartments within the towers have increased to 607 dwellings, with a focus on larger floorplans. Aligned to growing market demand, Castlereagh Place now comprises 299 three-plus-bedroom apartments, 198 two-bedroom units and 110 one-bedroom configurations.

[smartcode_project:default project_id=134477 project_image_fid=374402]

Resident amenities will include an exclusive residents club containing a gym, rooftop pool, dining rooms, co-working spaces, library, golf simulator, games room, cinema room, and access to an exclusive concierge service. There will be around 500 basement car spaces below the towers.

The development will also include a state-of-the-art wellness centre, set to feature a bathhouse with magnesium pools, hot/cold plunge pools and premium amenities.

&nbsp;

According to fjcstudio, the towers will feature distinctive yet elegant architectural design reflecting Sydney’s geometry and urban character, with a network of through-site links and intimate public spaces activating the streetscape.

"Castlereagh Place is a city-making project of significant scale and ambition," said Richard Francis-Jones, Design Director at fjcstudio.

"It will create a rich urban complex of public open spaces, landscaped gardens, and vibrant laneways. Defining these new public spaces and the important streetscape of Castlereagh Street is a sequence of fine-grained, diverse retail and hotel architecture designed in collaboration with Aileen Sage, Polly Harbison Design and Trias.

“Rising above the tree-lined, human-scale streetscape are two slender residential towers that will transform the city skyline and look towards the Harbour, Hyde Park, and the Royal Botanic Garden.”

Demolition and early construction works have commenced onsite at Castlereagh Place.

[smartcode_project_cta:default project_id=134477]

Billbergia, Metrics, approved for $3.5 billion Sydney skyscrapers

International developer&nbsp;<a href="https://www.apartments.com.au/developers/spg-land">SPG Land</a> is preparing to re-launch its long-awaited $1.5 billion <a href="https://www.apartments.com.au/new-apartments/paradiso-place-surfers-paradise-103-ferny-avenue-surfers-paradise-qld-4217">Paradiso Place</a> development at Budds Beach, bringing a new price point to the Surfers Paradise apartment market.

The developer will release one-bedroom apartments from $825,000 and two-bedroom apartments from $1.24 million in the three-tower development.

According to Urbis, the starting price for the two-bedroom apartments is more than $400,000 below the weighted average sale price for comparable two-bedroom apartments in Surfers Paradise during 2025, which was pinned at $1.7 million.

&nbsp;

Urbis reported quarterly average sale prices for new two-bedroom, two-bathroom apartments ranged from around $1.2 million to $1.7 million throughout 2025, peaking in the December quarter.

[smartcode_project:default project_id=106566 project_image_fid=185853]

Paradiso Place is now moving into its formal sales campaign, with a limited early-release opportunity available ahead of the public launch.

The development will comprise 845 apartments across three towers rising 40, 41 and 44 storeys from a 1.15-hectare site spanning an entire city block. The towers will sit above a new retail precinct.

"Paradiso Place represents a rare opportunity in today's market, offering premium apartments at a price point that is significantly more competitive than anything else currently available," SPG Land Sales Director Brad McMahon said.

"When you look at comparable new developments across Surfers Paradise, Main Beach and the Southern Beaches precinct, buyers are typically paying hundreds of thousands more for a similar product.

"The scale of this project and the developer-builder construction model allows us to unlock efficiencies that smaller developments simply cannot achieve. We are passing those benefits directly to buyers, while still delivering a five-star residential experience with an unmatched lifestyle."

[smartcode_project:default project_id=106566 project_image_fid=374280]

Each of the three towers designed by Rothelowman will have its own podium, connected by an elevated skybridge network to create a beachside village for residents. The resident amenity has been designed to rival a five-star hotel, with private dining rooms, resident lounges and entertainment spaces.

McMahon said the pricing strategy was a deliberate response to the current market.

"What Paradiso Place offers is a unique balance, genuine value within a premium market. Buyers are not compromising on quality, design or amenity, they are gaining access to it at a more competitive price point at a time when prices across the Gold Coast continue to reach new highs."

[smartcode_project:default project_id=106566 project_image_fid=362498]

Located around 100 metres from the beach and within walking distance of the Surfers Paradise North light rail station, Paradiso Place occupies one of the Gold Coast's most tightly held beachfront precincts.

Construction is continuing to progress, with eight of the project's 112 foundation piles now complete. Excavation has also commenced on the first diaphragm wall panel, with the first concrete poured on 15 June, marking a key milestone in the project's early works program.

[smartcode_project_cta:default project_id=106566]

SPG Land launches $1.5 billion Paradiso Place at attractive price point

Luxury developer-builder <a href="https://www.apartments.com.au/developers/lowe-living">Lowe Living</a> has achieved a new Victorian benchmark for an off-the-plan apartment, with the sale of two penthouses at its ultra-exclusive Maison Savoy development in Brighton.

The two penthouses achieved a combined sale rate of $49,926 per sqm. Both transactions eclipsed the previous identified Victorian off-the-plan price-per-square-metre benchmark, set by the 449 sqm apartment at Como Toorak, which sold at $46,659 per sqm.

[smartcode_project:default project_id=140818 project_image_fid=366473]

<a href="https://www.apartments.com.au/new-apartments/maison-savoy-brighton-150-esplanade-brighton-vic-3186">Maison Savoy</a>, Lowe Living's redevelopment of the former Brighton Savoy Hotel on absolute beachfront land at 150 The Esplanade, Brighton, has gained significant momentum since launching just eight weeks ago. Around 30 per cent of the project's 19 residences have already been secured, generating approximately $45 million in sales.

"Securing two of the three penthouse sales at this stage, within eight weeks of launching to market speaks to the confidence our clients place in Lowe Living," Lowe Living co-founder Emma Lowe said.

"They know we'll be with them through every stage of the journey, and that assurance is something we've worked hard to earn and never take for granted."

[smartcode_project:default project_id=140818 project_image_fid=366474]

Lowe said Maison Savoy was conceived as a genuine alternative to a prestige Brighton home, combining house-scale proportions with the convenience, security and lock-up-and-leave appeal of apartment living.

Lowe Living co-founder Tim Lowe said the early sales success demonstrated the resilience of Melbourne's prestige market and highlighted the growing demand for house-sized apartments among ultra-high-net-worth buyers.

"The Melbourne market has definitely been tested in recent years, with interest rates and global economic factors all creating a period of uncertainty across the real estate sector. The sales success at Maison Savoy however demonstrates that confidence remains exceptionally strong at the top end of the market.

"The prestige market is being driven by long-term lifestyle decisions rather than short-term market sentiment, which continues to create a level of certainty that befits an absolute beachfront property in a blue-chip location like Brighton.

"Brighton's fundamentals remain among the strongest in Melbourne, with limited new supply, enduring demand from an overwhelmingly local owner-occupier market, and a rare combination of beachfront amenity and proximity to the CBD."

[smartcode_project:default project_id=140818 project_image_fid=374378]

According to Cotality, Brighton remains one of Melbourne's most tightly held prestige suburbs, with an average ownership tenure of 15.3 years for houses and 12.3 years for units, while more than 73 per cent of homes are owner-occupied.

Tim Lowe said selling two of the project's three penthouses so early in the campaign was an uncommon result.

"This sales result is a reflection of quality and understanding the local market. It's incredibly rare to transact the penthouses so early in a sales campaign in any project so to have sold two of the three penthouses at Maison Savoy so soon after launch, all in-house without any external sales agency appointed, is reflective of our careful consideration of our buyers' needs and lifestyle.

"This is knowledge that is accumulated not just from data and demographic analysis, but via a deeply embedded understanding of how this type of buyer wants to live and feel in their home. We pride ourselves on getting to know our clients personally, and over the last 10 years we have been able to refine our product offering by talking one-on-one with our clients about their design and floorplan preferences.

"Being a fully integrated developer-builder with an in-house design and sales team allows us to lead every part of the process and ensure the highest quality of product and service at every touchpoint. It's a really important part of our DNA and the recent sales success at Maison Savoy indicates that our clients and purchasers are resonating with this point of difference.

"It reinforces that demand remains strong for thoughtfully designed residences that offer rarity, lifestyle and long-term value in tightly held locations, which ultimately validates Maison Savoy's positioning as creating a new benchmark for house-scale, wellness-led apartment living on Brighton's beachfront."

&nbsp;

[smartcode_project:default project_id=140818 project_image_fid=366480]

The residences at Maison Savoy start from 295 sqm, with most enjoying uninterrupted views across Port Phillip Bay. The project sits moments from the Brighton Bathing Boxes, Royal Brighton Yacht Club, Middle Brighton Baths and Church Street's retail and dining precinct.

A key feature of the development is its private residents-only bathhouse, curated by the founder of Aurora Spa &amp; Bathhouse and modelled on traditional European bathing rituals and the award-winning Sorrento bathhouse.

The wellness offering includes a hydrotherapy pool, salt room, sauna, steam room, cold plunge pool, foot activation zone and a Vichy rainfall bed, one of only a handful in Australia. Residents will also have access to a Technogym studio, lounge spaces and a dedicated concierge service offering everything from morning coffee delivery and restaurant bookings to dry cleaning and home coordination.

"Wellness-led design has become a defining factor for luxury buyers," Emma Lowe said.

"Purchasers increasingly value homes that enhance wellbeing through thoughtful design, private amenity, privacy and liveability."

The penthouse purchasers are now undertaking a bespoke customisation process curated personally by architect Pete Kennon and the Lowe Living team, one of the developer's signature service offerings.

Construction on the $160 million transformation of the former Brighton Savoy Hotel site commenced last month, with completion expected in early 2028. The project has secured funding from NAB alongside development partner Monark.

Just one penthouse remains available, along with a limited number of two and three-bedroom residences starting from $3.75 million.

Lowe Living currently has eight projects on the market across Melbourne and recently celebrated its 10th anniversary, having grown a $1 billion development pipeline alongside a $350 million construction pipeline.

&nbsp;

[smartcode_project_cta:default project_id=140818]

Lowe Living set new Melbourne off the plan apartment record

National Australia Bank (NAB) has brought forward the timing of the first RBA cash rate cut by three months.

NAB is now expecting a cut in February, in line with ANZ and Westpac, having initially thought a cut wouldn't come until May.

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB changed its call following the August monthly inflation figures that were released at the end of September, showing it had dropped to 2.7 per cent.

"The risk has been skewed to a first cut earlier in 2025, and today’s change acknowledges the balance of risks has likely shifted sufficiently for the RBA to feel comfortable cutting a little sooner than we earlier expected," NAB noted in its latest update.

They added that the cadence of the cuts may be faster than its central profile.

"Domestic inflation pressures are cooling, but only gradually, and we continue to expect the conditions for a cut will not be in place this year.

NAB believes the easing cycle will end at 3.1 per cent by early 2026, which is five cuts from the current 4.35 per cent cash rate.&nbsp;

CBA also thinks 3.1 per cent will mark the end of the cutting cycle, while Westpac is forecasting 3.35 per cent, and ANZ is the most pessimistic at 3.6 per cent, which would be just three interest rate cuts.

<h2>What would a rate cut in February look like for borrowers?</h2>

According to&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2vK2ujS77CHs9VRvSSXzLC" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG" target="_blank">Canstar</a>, if there is a cut in February, a borrower with a $600,000 loan today and 25 years remaining would see their monthly repayments drop by $92.&nbsp;

<table border="1" cellpadding="0" cellspacing="0">
	<tbody>
		<tr>
			<td colspan="3">
			Impact of 0.25% pt cut in February 2025
			</td>
		</tr>
		<tr>
			<td>
			Current loan size
			</td>
			<td>
			Drop in monthly repayment
			</td>
			<td>
			New monthly repayment
			</td>
		</tr>
		<tr>
			<td>
			$600,000
			</td>
			<td>
			-$92
			</td>
			<td>
			$3,907
			</td>
		</tr>
		<tr>
			<td>
			$750,000
			</td>
			<td>
			-$114
			</td>
			<td>
			$4,884
			</td>
		</tr>
		<tr>
			<td>
			$1M
			</td>
			<td>
			-$153
			</td>
			<td>
			$6,512
			</td>
		</tr>
		<tr>
			<td colspan="3">
			Source:&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2qVnp6oqATgqDUi2Frm22q" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL" target="_blank">www.canstar.com.au</a>. Starting rate is the RBA existing average owner-occupier variable rate of 6.36%. Assumes banks pass the cash rate cut on in full the month after the meeting.
			</td>
		</tr>
	</tbody>
</table>

Canstar Data Insights Director, Sally Tindall, says if core inflation continues to track in the right direction, or unemployment starts to accelerate significantly, we could well see a cash rate cut as early as February of next year.

“All four big banks now believe the RBA will be ready to cut the cash rate in just over four months’ time, if not before, in the case of CBA.

“However, the outlook for both inflation and unemployment is still highly uncertain. A couple of wobbly sets of inflation data could see the RBA holding for longer, particularly if unemployment remains relatively steady."

&nbsp;

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB bring forward first RBA cut to February 2025

<html><body>
The battle for fixed-rate borrowers continues with NAB cutting its one-, two- and three-year fixed rate mortgages.
The bank’s one year fixed-rate product has been cut by 15 basis points to 6.34%, bringing it under that of its major bank rivals but still higher than <a target="_blank" href="/news">Greater Building Society’s one-year rate</a>.
Commonwealth Bank’s one-year fixed rate is 6.38%, followed by ANZ on 6.39% and <a target="_blank" href="/news">Westpac on 6.49%</a>.
NAB has also cut its two-year and three-year fixed-rate products by 10 basis points to 6.39% and 6.34% respectively.
NAB’s rate cuts follow September figures put out by AFG showing <a target="_blank" href="/news">a big jump in fixed rate mortgages processed by its brokers</a>.
About 16.6% of all new home loans processed by AFG brokers in September were fixed-rate products, compared with 9.4% in August.
Yesterday, NAB’s head of business lending Joseph Healey claimed <a target="_blank" href="/news">the bank was feeling no ill effects from consistently cutting its mortgage rates.</a>
NAB executive general manager of consumer product solutions John Salamito points to the latest Reserve Bank of Australia figures that show that NAB continued to grow its home lending above average market growth for the 20th month in a row.
He also turned up the heat on its big four rivals.
“NAB has offered the lowest standard variable interest rate amongst the major banks for more than two years, as well as continuing to offer competitive fixed rates,” he says.
“Our latest adjustments to fixed rates reflect current markets and our commitment to offering customers competitive rates.”
</body></html>

lschlesinger-FZcF9M3vE6

NAB undercuts big rivals on one-year fixed rates

<html><body>
The almost constant stream of lenders cutting fixed mortgage rates have struck a chord with borrowers, with AFG recording a big jump in fixed-rate mortgages processed over September. 
Around 16.6% of all new home loans processed by AFG brokers in September were fixed-rate products, compared with 9.4% the month before, and even lower figures for most of 2011. 
The uptick was strongest in New South Wales and Western Australia. 
“In September we have seen very aggressive competition, with lenders cutting their fixed-rate offers. The combination of more realistic property prices, attractive financing options, and lack of confidence in the share market seems to be coaxing first-home buyers and investors back into some markets,” says Mark Hewitt, general manager of sales and operations at AFG. 
According to mortgage comparison website Ratecity.com.au, 70% of lenders, including<a target="_blank" href="/news"> St George</a>, <a target="_blank" href="/news">Westpac</a>, <a target="_blank" href="/news">Greater Building Society</a>, <a target="_blank" href="/news">Credit Union Australia</a> and <a target="_blank" href="/news">ING</a>, have cut their fixed mortgage rates recently. 
The benchmark average three-year fixed mortgage rate has dropped from 7.43% in January to 6.7% in September, according to Ratecity.com.au research. 
Besides an uptick in fixed rate borrowers, the AFG Mortgage Index also shows a strong return of first home buyers in New South Wales, Western Australia and to an extent Queensland during September. 
While the national figure of 15.7% of first-home buyers is in line with the long-term average, in NSW first-home buyers accounted for 18.9% of the market, in WA 17.4% and in QLD 15.8%. 
First-home buying activity was more subdued in Victoria (13.3%) and South Australia (10%). 
Overall sales volume for September was up 12.8% compared with September 2010, with refinancing comprising 38% of loans processed.
</body></html>

Jump in demand for fixed-rate mortgages in September as lenders fight to be lowest

<html><body>
NAB’s cut-throat mortgage discount battle with its major bank competitors, which began with its “Break up” campaign on February 15, is helping its overall business, according to its head of business banking.
Rather than hurt its overall business profitability as some claim, Joseph Healy says it is having quite the opposite effect. He claims the mortgage wars have had a “halo effect”.
Healey tells the Australian Financial Review the bank’s business customers are impressed by its “bold” personal banking strategy.
“It has been a marvellous help to differentiate NAB in the marketplace.”
Earlier this month, JP Morgan banking analyst Scott Manning said bank mortgage discounts were about as competitive as they could get “prior to diluting group returns”. 
Manning says banks are currently offering average discounts of 90 basis points off standard variable rate products and anecdotally 1.15% on larger loans. 
“We would consider discounts in excess of 120 basis points off a standard variable product originated via the branch network as uneconomic, or discounts in excess of 90 basis points via [mortgage] brokers [as uneconomic],” Manning says. 
The major banks have been seeking to steal mortgage market share from each other during a period of weak overall credit growth. 
Despite NAB’s “break up” campaign, its share of the mortgage market remains well below that of the CBA and Westpac. 
Estimates by the Royal Bank of Scotland put NAB’s market share of outstanding home loans at 15% compared with Commonwealth Bank’s 27% and Westpac’s 25%. ANZ has the smallest market share of the Big Four at 14%. 
According to August figures put out by the RBA last week, housing credit increased by 0.4% over August, the weakest pace since July 2009 and following an increase of only 0.5% over July 2011. 
Over the year to August, housing credit is up just 5.8%.
</body></html>

NAB says mortgage wars a boon to business

<html><body>
Participants at this week’s Canberra Tax Forum should look at developing a “package” approach to reforming housing tax in which “the federal government supports state governments in reforming their systems”, according to Miranda Stewart, co-director of taxation studies at the Melbourne Law School at the University of Melbourne.
Stewart calls the current taxation system a “complex mess of federal, state and local taxes, exemptions and concessions” in an article for academic commentary website www.theconversation.edu.au.
“The combination of our capital gains tax 50% discount, the ability to negatively gear investment in rental property as a deduction in the income tax, state stamp duties and poorly designed land taxes causes a biased investment housing market that contributes to Australia’s lack of affordable housing,” she says.
Executive director of the Australian Housing and Urban Research Institute Ian Winter agrees, saying<a href="https://www.propertyobserver.com.au/residential/housing-academic-says-landed-gentry-destroying-fair-go/2011092851716" target="_blank"> the current tax system favours property investors (or the “landed gentry”)</a>. 
Ahead of the start of the Tax Forum tomorrow, Stewart says reforms to improve the taxation of housing would fix some of the worst problems in state tax systems, and would make income tax fairer and more neutral in its treatment of different kinds of income and investment.
“A tax reform that rebalances the system to tax housing assets more neutrally and fairly can make a significant contribution to improving housing fairness, efficiency and affordability,” she says.
Her recommendations include:
<ul>
<li>adopting a 40% discount on net savings income where investors would “net off their income and gains on investments, against expenses and losses on those investments”</li>
<li>retaining the 50% capital gains discount and the ability to “negatively gear” interest for rental housing investments that are developed in the National Rental Affordability Scheme</li>
<li>reforming land taxes to improve valuation rules and rate structures. Land taxes would usually be lower on apartments than on houses, supporting city planning goals and affordable rental housing.</li>
<li>abolishing stamp duties.  Land tax to be reformed so that it applies to all real estate, including the main residence, at a low flat rate.</li>
<li>designing tax concessions in the new land tax, so that people without sufficient cash flow, such as pensioners, can delay payment until sale of their house</li>
</ul>
</body></html>

Academic calls on Canberra to fix housing tax 'mess'

<html><body>
A heated battle is brewing between Lachlan Harris, founder of the One Big Switch mortgage campaign, and mortgage broker AFG.
AFG, which counts about 2,000 brokers on its books, has slammed the Choice-backed quasi-mortgage broking offering for not having any major lenders on board after email offers finally started reaching subscribers inboxes <a target="_blank" title="One Big Wait for One Big Switch" href="/news">six weeks after the registration process closed</a>.
Mark Hewitt, general manager for sales and operations at AFG, says it does not have a problem with “the concept of helping consumers get the best possible deal in the market” but says the problem for consumers is that “One Big Switch has failed to attract any major lenders to its panel”. 
“The proposition would be laughable if they weren’t putting people’s property on the line. And are they called One Big Switch or Big Bank Switch – judging from their own website, they don’t seem to know,” he adds. 
Harris has hit back strongly, telling Property Observer he stands behind the five non-bank lenders who have signed on to date and is “astounded” by the AFG attack.
“I cannot believe AFG think it’s their job to attack the quality of non-bank lenders in Australia,” he says. “They need to reflect and take a long and hard look at themselves.
“First people said it could not be done and now that we have done it, they are saying they don’t like our lenders.
“We have five lenders on board and we are very happy with who we have so far,” Harris says.
Property Observer can confirm lenders who have signed on include FirstMac, Resimac and MortgageEzy.
Discounted variable rate offers range from 6.69% to 6.85%, with the cheapest offering coming from Hemisphere Financial Solutions, a 0.25% discount for the life of the loan.
MortgagePort offering is a 0.24% discount off its three-year fixed-rate loan to 6.35% as well as $500 cash back.
The cheapest advertised variable rate product on mortgage comparison website Ratecity.com.au is 6.58% from loans.com.au, the online brand of FirstMac, while the cheapest three-year fixed rate is 6.29% offered by AMP.
</body></html>

One big barney: Lachlan Harris defends One Big Switch after AFG attack

<html><body>
Mortgage arrears are on the rise, with 28 of Australia’s 65 regions now considered to have high mortgage delinquency. 
According to Moody's, <a href="/news">Queensland and WA have been the hardest hit</a>, with NSW not far behind. 
The five worst postcodes for mortgage arrears in NSW are:
2766 (Eastern Creek, Rooty Hill)
2761 (Colebee, Dean Park, Glendenning, Glendenning DC, Hassall Grove, Oakhurst, Plumpton)
2760 (Colyton, Oxley Park, St Marys)
2753 (Agnes Banks, Bowen Mountain, Grose Vale, Grose Wold, Hobartville, Londonderry, RIchmond, RIchmond Lowlands, Yarramundi)
2262 (Blue Haven, Budgewoi, Buff Point, Doyalson, Halekulani, San Remo)
 
The five worst postcodes for mortgage arrears in Queensland are: 
4655 (Booral, Bunya Creek, Craignish, Dundowran, Eli Waters, Ghost Hill, Great Sandy Strait, Happy Valley, Hervey Bay, Kawungan, Kingfisher Bay, Nikenbah, Point Vernon, River Heads, Scarness, Sunshine Acres, Susan RIver, Takura, Toogoom, Torquay, Urangan, Urraween, Walieburn, Walligan, Wodunna)
4575 (Birtinya, Bokarina, Buddina, Kawana Waters, Minyama, Parrearra, Warana Warana Beach, Wurtulla)
4567 (Castaways Beach, Little Cove, Noosa Heads, Sunrise Beach, Sunshine Beach)
4217 (Benowa, Bundall, Chevrol Island, Gold Coast, Isle Of Capri, Main Beach, Paradise Island, Sorrento, Surfers Paradise, The Spit)
4213 (Austinville, Bonogin, Mudgeeraba, Springbook, Tallai, Worongary)
 
The three worst postcodes for mortgage arrears in WA are:
6168 (Cooloongup, Garden Island, Hillman, Peron, Rockingham)
6167 (Anketell, Bertram, Calista, Casuarina, Kwinana Beach, Mandogalup, Medina, Orelia, Parmelia, Postsans, The Spectacles, Wandi) 
6172 (Port Kennedy)
</body></html>

po-LsXgBTHBmX

The worst five postcodes for mortgage arrears in NSW and Queensland

<html><body>
The battle to lock in fixed rate mortgage customers continues to heat up with online bank ING Direct reducing its three-year fixed-rate mortgage below the offerings of the major banks.
The online bank has cut its three-year fixed-rate home loan to 6.29%, below that of Westpac, St George as well as Greater Building Society and Credit Union Australia (CUA) who have all cut their fixed rates in the last seven days.
The bank has also cut its four- and five-year rates to 6.59% and 6.69% respectively.
ING Direct executive director of delivery Lisa Claes says the cuts are aimed at the bank maintaining its “competitive position in what is a very active market for fixed rate loans".
"Historically customers would need to pay a premium for a fixed loan. Currently that is not the case. We haven't seen such a difference between the variable rate and long-term fixed rates for some time.”
<a target="_blank" href="/news"> St George’s is offering its three-year fixed-rate mortgage at 6.39%</a>, while parent bank <a target="_blank" href="/news">Westpac is offering a rate of 6.44%</a>.
Commonwealth Bank’s three-year fixed rate stands at 6.59%, as does NAB’s online offering UBank.
<a target="_blank" href="/news">CUA is offering a rate of 6.34%</a> while the<a target="_blank" href="/news"> Greater is offering a three-year rate of 6.35%</a>.
The new ING Direct three-year fixed rate matches the rate offered on AMP Select Package Residential 3 Year Fixed, currently the cheapest fixed rate product offering according to comparison website <a target="_blank" href="/news">Ratecity.com.au</a>.
</body></html>

ING slices fixed rates to undercut all competitors

<html><body>
The Rockingham property market is not in distress, but showing some signs of struggle, according to recent sales data and observations from mortgage brokers and estate agents.
According to Moody’s latest mortgage delinquency report for post code 6168, comprising the suburbs of <a href="/news">Rockingham</a>, <a href="/news">Cooloongup</a>, <a href="/news">Garden Island</a>, <a href="/news">Hillman </a>and <a href="/news">Peron</a>, has a 30-day-plus mortgage delinquency rate of 5.31%, three times the national average of 1.67%.
Borrowers living in the post code are also the most heavily geared, with loan-to-value ratios of 86.5% on an average loan balance of about $172,000.
The neighbouring postcode 6167 (encompassing suburbs such as Bertram, Kwinana Beach and Parmelia) rated fifth with 5% of borrowers 30 days or more delinquent.
Joe Desousa, principal of Aussie Home Loans in Rockingham, says he has not noticed any higher rates of delinquencies and says refinancing work is easier than it has been for the last two years.
He says if the 5% arrears figure were for 90-day-plus delinquencies that would be cause for concern.
“A borrower being 30 days in arrears means they have missed just one payment, which could just be due a problem with a direct debit as happened with one of my clients today,” he tells Property Observer.
Val Pagett, a Mortgage Choice broker in Port Kennedy, Secret Harbour and Warnbro, has a different story to tell and says some borrowers are “struggling like crazy” due to falling property values at the lower end of town.
“People are getting into strife because when they try to consolidate their debts, they find the values of their homes have declined so they have no equity,” she says.
“Some homes in Rockingham and Warnbro have dropped $60,000 to $70,000 in value.”
According to Pagett, properties values are coming down by mortgagee sales in the area.
Realestate.com.au lists just under 2,000 properties for sale in postcode 6168, with five listed as mortgagee sales. A key word search using the word “reduced” brings up 65 listings.
Recent sales suggest houses and apartments located near the ocean have sold at or below their original listings prices.
According to RP Data a one-bedroom apartment on Rockingham Beach Road listed at $475,000 in early May sold two weeks later for $410,000.  It last sold in 2004 for $330,000.
A three-bedroom apartment on the same street sold for $940,000 in February having been listed for sale at $1.25 million in January 2009. It last sold for $745,000 in May 2004.
A little further away from the beach, a three-bedroom house on Seawind Drive sold for $447,500 in May just above its listing range of $445,000 to $465,000 in March 2010.
Land is also selling cheaply.
A 291-square-metre plot of land just one street from Cockburn Sound sold for $375,000 in April, having been listed in February for $425,000
James Eaves from the Mortgage Gallery in Rockingham says he was shocked to read about the high arrears rate.
He says many borrowers fly in and fly out of the area and earn healthy incomes working on the mines.
“It’s a blue-collar area, the average loan size is around the $400,000 mark,” he says.
According to Eaves, those in trouble might be borrowers who bought at the height of the boom and are trying to sell at the bottom of the market.
Estate agent Jim Baker from LJ Hooker Rockingham says from his point of view the market has not softened drastically.
“Properties in the right location, well presented and at the right price are moving. I have sold three this month,” he says.
He says the primary appeal of Rockingham is its beaches and recreational opportunities.
“Investors are popping their heads out,” he says, with demand for rental properties coming from the nearby naval base.
He also notes a lot of “fly in, fly out” renters who work in Port Headland but set their families up in Rockingham.
“Rents in Port Headland can be $1,000 a week. In Rockingham $400 gets you a three-bedroom house.”
Roger Moorhouse, co-owner of Fruit Property, describes the market as fairly “tight and tough” but says houses do sell if priced correctly. He has dealt with a few mortgagee sales but says they equate to less than 1% of sales and the percentage has not increased.
Recent figures suggest the WA market as a whole is struggling.
According to the latest WA Supreme Court statistics, there has been a 28% increase in the number of homes repossessed in the last financial year – 1,242, or more than three per day – compared with the same period a year ago.
A report by RP Data says recent property price declines have largely contributed to the state's high level of negative and low equity.
<a href="/news">Moody’s </a>does not provide 90-day-plus arrears data.
</body></html>

The most delinquent town in Australia says it's not that bad

<html><body>
You need to consider selling your home if:
1. You cannot afford your loan repayments
2. You will be unable to afford your loan repayments for some years to come
You need to make this decision as early as possible because it is better to sell your home yourself rather than have the lender sell the home for you. You are more likely to get a better price for your home and avoid lots of legal costs if you sell your own home.
The decision whether to sell your home is most difficult when:
1. You are unemployed and trying to get a job, or
2. You are ill and trying to get well but you just don’t know when you will be well, or
3. You are waiting for a compensation payment.
In these situations you are hoping that you can make the loan repayments soon but you just don’t know when this will happen. The difficulty is that as time goes on things are going to get worse and you will get further and further behind on your loan repayments and incur lots of extra interest.
In these circumstances, it is recommended that you:
1. Make a repayment arrangement with the lender for up to six months;
2. If by the end of the six months you still cannot make the loan repayments you should put your home on the market;
3. Go back to the lender and negotiate a further arrangement on the basis you are selling your home.
Remember: If you get a job, get well or get a large lump sum of money before your home sells you still have the option of trying to negotiate a further arrangement on the basis you can now pay the loan (as long as the lender does not have a court judgment).
Important: You should file in an independent external dispute resolution scheme (EDR) if:
<ul>
<li>you are unable to make a repayment arrangement with the lender or</li>
<li>the lender is threatening to commence legal action or</li>
<li>the lender has issued you with a statement of claim but has not obtained a court judgment</li>
</ul>
When do I have to make a decision?
You need to make a decision to sell your home as early as possible but preferably before the lender commences any legal proceedings. It is never too late to ask for time to sell, but the lender is less likely to agree later in the enforcement process and enforcement costs will be added to your loan as the legal proceedings progress.
You need to give yourself as much time as possible to sell your home and get a good price for it.
I’ve decided to sell my home, what do I do now?
Step 1
You need to place your home on the market. You need to price the home realistically so that it will sell but for the best price possible. If you are using a real estate agent you should explain what time frame you need to sell the home within. This will usually be under six months but could be under three months depending on what arrangement you make with your lender.
Step 2
You need to give copies of evidence that you are selling your home to the lender. This evidence should include (where available):
(a) Copy of the contract with your real estate agent
(b) Evidence of advertising of your home
(c) Front page of the contract of sale
(d) Marketing plan
Step 3
Negotiate a repayment arrangement on the grounds of financial hardship with your lender. See Fact Sheet: <a href="https://www.cclcnsw.org.au/fact-sheets/financial-hardship-3/financial-hardship/">Financial Hardship</a> and <a href="https://www.cclcnsw.org.au/sample-letters/request-for-hardship-variation/">Sample Letter: Financial Hardship</a>.
You are negotiating the arrangement on the basis that:
(a) You are in financial hardship
(b) You can make regular repayments of what you can afford until the home is sold
(c) You have a reasonable time to exchange contracts for the sale of your home (ask for six months, but you may need to consider agreeing to three to four months).
(d) When the home is sold your loan will be repaid. 
Step 4 
If the lender:
(a) Will not agree to the proposed variation, or
(b) Threatens legal action, or
(c) Commences legal action
You need to consider filing in EDR and get advice.
What if my home is worth less than the amount of my loan?
If you think your home may be worth less than the amount you owe on your home loan, get legal advice.
For the 20 worst-performing suburbs for mortgage arrears, click <a target="_blank" href="/news">here</a>.
<a target="_blank" title="cclsnsw" href="https://www.cclcnsw.org.au/">Consumer Credit Legal Centre NSW</a> is a community legal centre specialising in financial services, particularly matters and policy issues related to consumer credit, banking and debt recovery.
</body></html>

What to do if you are in mortgage stress

<html><body>
The latest mortgage arrears report by Fitch suggests smaller lenders and non-banks are doing as good a job as the major banks in managing their mortgage risk. 
The Fitch Dinkum 30+ Days RMBS Index (the Dinkum 30+) decreased to 1.69% in the second quarter of 2011 (from 1.79% in the first quarter). 
Over the same period <a target="_blank" href="/news">Moody’s calculated the national mortgage delinquency rate for 30 days plus rose</a> from 1.36% to 1.67%, attributing this increase to weaknesses in the non-mining job sectors of the economy. 
Residential mortgage-backed securities (RMBS) are a means for lenders to raise funds by selling bundles of loans to investors.
Major RMBS issuers include FirstMac, Challenger, Macquarie Bank’s PUMA fund, Resimac and Liberty Financial.
The percentage of borrowers more than 30 days behind on their mortgage repayments decreased in the second quarter of the year but remains at historically high levels, according to the latest Fitch Dinkum Index.
The index measures the performance of mortgages backed by residential mortgage backed securities (RMBS) – a means of funding loans outside of bank deposits.
<img src="/images/stories/fitchsept27.gif">
The benchmark Fitch Dinkum 30+ Days RMBS Index (the Dinkum 30+) decreased to 1.69% in the second quarter of 2011 (from 1.79% in the first quarter).
The 0.1% decline was in line with forecasts, as the variables which negatively affected households during the first quarter of the year – increasing interest rates, natural disasters, seasonal spending – tailed off.
According to Fitch, 30+ days arrears have stabilised as a result of the RBA leaving the cash rate unchanged at 4.75% since November last year.
“The stable mortgage rates over the second quarter of 2011 have allowed households to slightly adjust to the challenges which hampered mortgage performance during the first quarter, such as increasing interest rates, natural disasters, and seasonal Christmas spending,” says James Zanesi, associate director in Fitch’s Structured Finance team.
“Mortgage performance is also expected to continue its stabilisation through the third quarter of 2011 as the effect of Christmas spending continues to pass through, borrowers affected by natural disasters in the first quarter continue to cure their delinquency status and households adjust their spending to the increases in mortgage rates over the last two years,” he adds.
The biggest threat to the performance of the mortgage market in the long term is the increasing cost of living, together with potentially higher levels of mortgage rates. 
Fitch believes the current unemployment rate is not a concern for arrears in 2011.
Other key findings over the second quarter of 2011:
<ul>
<li>Borrowers that take out low-doc loans, primarily those self-employed, employed) remain under pressure despite 30+ days delinquency rates decreased to 6.55% from 6.74% in the first quarter of the year. </li>
</ul>
<ul>
<li>Arrears rates for non-conforming borrowers low-doc borrowers (loans for borrowers with poor credit history) decreased by 1.05% to 15.83%. </li>
</ul>
<ul>
<li>The percentage of loans 30 to 59 days in arrears decreased by 8 basis points to 0.71%. Fitch expects this trend to continue, although eventual monetary policy decisions and the increased cost of living may potentially elevate mortgage arrears for longer. The percentage of loans 60-89 in arrears decreased to by 3 basis points to 0.31%.  As is the case for the Dinkum 30, the stabilisation of household expenditure has positively affected 60-89 days arrears. Fitch does not expect volatility in the 60-89 days delinquencies bucket in the long term. </li>
</ul>
<ul>
<li>The percentage of loans more than 90 days in arrears increased marginally (1 basis point) to 0.66% but is still below the 0.72% peak reached in December 2008 (following the liquidity crunch). In the current scenario of relatively flat house prices, a strong economy and stable employment, it is very unlikely 90+ days delinquencies will reach a new peak.</li>
</ul>
</body></html>

Latest Finance Insights

NAB bring forward first RBA cut to February 2025

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Finance Insights

NAB bring forward first RBA cut to February 2025

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News