<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

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

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

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

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

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

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

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

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

NAB bring forward first RBA cut to February 2025

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One of the biggest changes for investors has been the repricing of investment home loans, in response to the removal of the interest-only investment lending caps from January 2019 and the continuing slowdown in demand, according to Canstar.
Since September 2018, 47% of the lenders on Canstar’s database have decreased one or more of their investment interest-only offerings across fixed or variable rate loans.
The average interest rate for interest-only has come down across variable, one-year fixed, two-year fixed, three-year fixed and five-year fixed by up to 0.08%.
“What’s interesting is while we’re seeing the average investor home loan rates decrease, the lowest offer in the market is where the greatest movement has happened over the last six months with decreases of up to 0.20% on fixed loans,” Mickenbecker adds.
When comparing the average one-year fixed interest only loan amount of $400,000, the average decrease could mean a saving of up to $253 per year. Looking at the market minimum the rate cuts could mean a potential annual saving of up to $518 for investment property owners.
On the reverse side, the majority of increases for investment lending that occurred since September 2018 have been on variable rate loans, with an average increase of 0.15%, meaning that investors are paying higher rates for their existing loans.
While that market has observed more increases on variable rate investment loans than fixed, there has still been a 0.01% reduction on the average variable rate for new borrowers. The reduction has resulted from a number of large downward movements with the average decrease being 0.25%.
Mickenbecker says with great deals out there for new loans it’s a good time for investors, and homeowners for that matter, to check their rate, fees and loan features to see if they could be getting a better deal.
With lenders’ home and investment loan interest rates on the move in both directions, Australia’s biggest financial comparison website, Canstar, released its latest Home Loan Star Ratings research.
Canstar considered more than 4,800 home loans finding that on average a 5-Star Rated home or investment loan had access to lower interest rates compared to the market average.
Canstar’s finance expert, Steve Mickenbecker says it’s not hard to see how borrowers may be left confused as to whether they’re getting a good deal or should look to refinance their home loan.
While the latest Australian Bureau of Statistics figures show a 17.1% year-on-year decline in value for new lending commitments to owner occupiers compared with a 28.6% decline in value for lending commitment for investment dwellings, the door is still wide open for investors, he said.
Canstar has awarded a 5-Star Rating to 26 home loan lenders after they were found to offer outstanding value.
Owner-Occupier Home Loan Star Ratings
Outstanding Value – Home Lender
This award goes to home loan lenders that provided outstanding value products to owner-occupiers across variable and fixed-rate loan terms considered in these ratings. Home loans were assessed across four loan amounts ranging from $200,000 up to $750,000, for borrowers making principal and interest repayments. Here are the winners, listed in alphabetical order:
<ul>
<li>Bank Australia</li>
<li>Freedom Lend</li>
<li>Greater Bank</li>
<li>Heritage Bank</li>
<li>Homestar Finance</li>
<li>HSBC</li>
<li>ING</li>
<li>Qudos BanK</li>
<li>RACQ Bank</li>
</ul>
The new Canstar research found owner-occupiers with a 5-Star Rated home loan had access to lower interest rates compared to the market average.
Outstanding Value – Variable Home Lender
This award recognises lenders that consistently offered outstanding value products to owner- occupiers across varying loan amounts. Home loans were assessed across four loan amounts ranging from $200,000 up to $750,000 for borrowers making principal and interest repayments. Here are the winners, listed in alphabetical order:
<ul>
<li>AMO Group</li>
<li>Easy Street Financial Services</li>
<li>Freedom Lend</li>
<li>Homestar Finance</li>
<li>HSBC</li>
<li>MOVE Bank</li>
<li>Pacific Mortgage Group</li>
<li>Reduce Home Loans</li>
<li>SCU</li>
</ul>
The research shows owner-occupiers who choose a 5-Star Rated home loan have the potential to save themselves thousands of dollars over the life of the loan. For instance, the average variable interest rate for a 5-Star Rated residential loan valued at $350,000 with an 80% loan-to-value ratio (LVR) and principal and interest repayments was 3.68%. This compares favourably to the marketaverage of 4.47% out of all products on Canstar’s database. Over a 25-year loan term, that difference could equate to more than $50,000 in savings on the total cost of the loan.
Outstanding Value – Fixed Home Lender
This award recognises home loan lenders that consistently provided outstanding value products to owner-occupiers across one, two, three and five-year fixed rate loan terms. Home loans were assessed across four loan amounts ranging from $200,000 up to $750,000 for borrowers making principal and interest repayments. Here are the winners, listed in alphabetical order:
<ul>
<li>BankVic</li>
<li>Freedom Lend</li>
<li>Greater Bank</li>
<li>ING</li>
<li>Newcastle Permanent</li>
<li>Qudos Bank</li>
<li>RACQ Bank</li>
<li>TicToc Home Loans</li>
<li>UBank</li>
</ul>
Borrowers looking to fix their home loan for a set period may want to consider the difference in interest rates between a 5-Star Rated loan and the market average. For example, the average 5-Star three-year fixed interest rate for a residential loan valued at $350,000 with an 80% LVR and principal and interest repayments was 3.83%, compared to the average from our database of 4.19%.
Investment Home Loan Star Ratings
Outstanding Value – Investment Home Lender
This award acknowledges lenders that consistently offered outstanding value products to investors across the variable and fixed-rate loan terms considered in these ratings. Home loans were assessed across four loan amounts ranging from $200,000 up to $750,000 for borrowers making principal and interest and interest-only repayments. Here are the winners, listed in alphabetical order:
<ul>
<li>Freedom Lend</li>
<li>Greater Bank</li>
<li>Homestar Finance</li>
<li>loans.com.au</li>
<li>Newcastle Permanent</li>
<li>RACQ Bank</li>
<li>TicToc Home Loans</li>
<li>Virgin Money</li>
<li>Reduce Home Loans</li>
<li>Suncorp Bank</li>
</ul>
The research revealed 5-Star Rated home loans offer investors lower interest rates when compared to the market average within the investor home lender profile.
Outstanding Value – Investment Variable Home Lender
This award goes to home loan providers that consistently offer outstanding value products to investors across variable loans. Home loans were assessed across four loan amounts ranging from $200,000 up to $750,000 for borrowers making principal and interest and interest-only repayments. Here are the winners, listed in alphabetical order:
<ul>
<li>Freedom Lend</li>
<li>Gateway Bank</li>
<li>Homestar Finance</li>
<li>loans.com.au</li>
<li>Newcastle Permanent</li>
<li>Pacific Mortgage Group</li>
<li>RACQ Bank</li>
<li>Reduce Home Loans</li>
<li>State Custodians</li>
<li>Community First Credit Union</li>
</ul>
The research revealed there were potential savings to be found for investors if they chose a 5-Star Rated home loan. For instance, the average 5-Star variable interest rate for an investment loan valued at $350,000 with an 80% LVR and principal and interest repayments was 4.25%, while the interest-only rate was 3.98%. These average rates compare favourably to the market averages from our database of 5.08% and 4.77%, respectively. These differences can potentially add up to be quite significant over time. For example, over a 25-year loan term, that difference means investors making principal and interest repayments could save more than $51,000 on the total cost of the loan.
Outstanding Value – Investment Fixed Home Lender
This award recognised lenders that consistently provided outstanding product offerings to investors across one, two, three and five-year fixed rate loan terms. Home loans were assessed across four loan amounts ranging from $200,000 up to $750,000 for borrowers making principal and interest and interest-only repayments. Here are the winners, listed in alphabetical order:
<ul>
<li>Aussie</li>
<li>Freedom Lend</li>
<li>Greater Bank</li>
<li>Newcastle Permanent</li>
<li>RACQ Bank</li>
<li>Suncorp Bank</li>
<li>TicToc Home Loans</li>
<li>Virgin Money</li>
</ul>
For borrowers looking to fix their investment home loan, the difference in interest rates between a 5- Star Rated loan and the market average can be significant. For instance, the average 5-Star three- year fixed interest rate for an investment loan valued at $350,000 with an 80% LVR and principal and interest repayments was 4.01%, while the interest-only rate was 4.11%, compared to averages from our database of 4.32% and 4.53% respectively.
Line of Credit Star Ratings
Outstanding Value – Line of Credit
Canstar’s Research team compared the price and features of 48 lending institutions that provided a line of credit secured by a property. Here are the winners, listed in alphabetical order:
<ul>
<li>Aussie</li>
<li>BankVic</li>
<li>Suncorp Bank</li>
<li>State Custodians</li>
</ul>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Canstar reveals top rated lenders for investors

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Moody's Investors Service says that the 30-plus day delinquency rate for prime Australian residential mortgage-backed securities (RMBS) increased in the fourth quarter of 2018.
It tips they will likely continue to rise moderately amid declining house prices, high levels of debt, and the conversion of interest-only mortgages to principle and interest loans. 
The 30-plus day delinquency rate for prime RMBS increased to 1.58% in December 2018 from 1.49% in September 2018.  
The increase was driven in part by declining house prices, with house prices in Australia declining by 6.3% for the 12 months to February 2019, and by 10.4% and 9.1% in Sydney and Melbourne.  
Moody's expects prices will continue to decline moderately through 2019, while record-high household debt – at 191% of annual gross disposable income – will also contribute to a moderate increase in delinquencies.  
"Nevertheless, we expect the increase in mortgage delinquencies to be limited, while defaults and losses will remain low, as continued GDP growth and low unemployment will continue support borrowers' ability to meet mortgage repayments," says Alena Chen, a Moody's Vice President and Senior Analyst.  
<a href="https://www.propertyobserver.com.au/images/2019/3/22/RMBS%20.jpg" target="_blank">Click here</a> to enlarge:
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/22/RMBS%20.jpg" alt="">
Specifically, Moody's forecasts real GDP growth of around 2.5% in both 2019 and 2020, and for Australia's unemployment rate to remain relatively stable at 5.5% over the same period.  
"Mortgage delinquencies will likely increase over the short term in areas hit by the far north Queensland floods in February 2019, as borrowers may lose income or face costs while dealing with the aftermath of the disaster," adds Chen.  
However, Moody's says this is unlikely to translate into a material increase in defaults, given that insurance payouts, government assistance and financial hardship arrangements entered into with lenders will ease the burden on borrowers.
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Australian RMBS delinquencies to rise as house prices fall: Moody's

How the RBA looks at property, debt and financial stability: RBA's Michele Bullock

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GUEST OBSERVATION 
The Royal Commission has sparked fresh discussions in Australia surrounding mortgages, in particular, what it means for homeowners who are currently paying interest only loans and how this will shape the Australian property market in years to come.
In-depth investigations during the commission put newfound pressure on Australian Financial Institutions to significantly improve their lending standards and reduce higher risk lending. Currently, approximately 200,000 Australians have interest-only loans but with the government removing the interest-only benchmark at the start of 2019, this figure is set to change drastically.
In the past, Australian banks offered interest-only mortgages to customers which could be renewed every five years. However, the removal of the benchmark now means that homeowners cannot renew interest-only loans and instead, must begin principal repayments as part of their mortgage repayments.
In addition to this, commissioner Kenneth Hayne proposed changes to the mortgage broker industry, whereby the consumer would be required to pay the mortgage broker’s commission, instead of the banks.
These proposed changes have the ability to drastically affect the landscape of the mortgage industry by potentially wiping out the whole mortgage broking system, leaving larger financial institutions with the freedom to set the interest rates however high they choose.
But who will be the most affected if these changes are confirmed? Unsurprisingly, it’s fairly widespread and will impact current Australian homeowners as well as those looking to borrow money, even impacting those in the rental market.
Homeowners will be paying more for their mortgages
There is approximately $360 billion worth of money wrapped up in interest-only mortgages. In the past, mortgage repayments have been dependant on interest rates, which fluctuate due to mortgage brokers and banks offering competitive rates.
But with the expiration of interest-only loans after three-years, homeowners will be required to fork out a lot more for their mortgage repayments, potentially increasing a massive 70%. An example of this is if you are currently paying $3,000 a month in repayments on interest only, interest and principal would escalate monthly repayments to $4,700.
The impact of requiring to pay principal will depend on the financial situation and lifestyle of the homeowner but those with a large property portfolio of interest-only will be hit the hardest.
This means having a buoyant property portfolio will only be available to those who are cashed up, which then leads to a flow on affect in the rental industry.
Tenants will likely experience an increase in rent
Even with the current market experiencing price declines, the prospect of purchasing a home will now seem even more daunting to prospective buyers due to these changes, driving one-third of Australians to rent instead.
Typically, most interest-only loans are covered by the rental income on an investment property. But with investors now set to be more out of pocket due to principal repayments, it’s only natural that this will affect how tenants are charged, with some landlords opting to charge more in rent in an effort to cover the difference.
Less money in the tenant's pockets means less money to put towards their own house deposit and this creates a vicious cycle. It’s unfortunate that salaries do not increase the same way houses do.
The fallout from the commission has led many people to debate how they should react but the truth is, it’s still a bit blurry. Once the new government is in place in May and the new budget is announced, things will start to cement.
But one thing that is certain is it going to be a lot tougher to borrow money, whether it be for investment or as an owner occupier. It’s not that banks don’t want to lend, more the Royal Commission has governed them to be more responsible when it comes to lending. We live in a society where it is very easy to shift the blame to others but at the end of the day, it comes down to each individual’s financial situation and the lifestyle they lead.
Bruce Oliver is the co-founder of Xynergy Realty, a Melbourne-based real estate agency.
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How the Royal Commission will affect the property market: Bruce Oliver

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EXPERT OBSERVER
The RBA Board has taken a step closer to cutting rates by emphasising the near-term importance of data releases. Westpac sees this approach as consistent with its expected timetable of rate cuts in August and November.
<div>
<div>
<div>
<div>
The Minutes of the March Reserve Bank Board meeting emphasise the Board’s uncertainty around the slowdown in output data while labour market data remains robust.
In the final paragraph of the section on the policy outlook, the Board noted “they assessed that it would be appropriate to hold the cash rate steady while new information became available that could help resolve the current tensions in the domestic economic data”.
Presumably, the release of the December quarter national accounts the day after the Board meeting will have further accentuated this tension. In the minutes, the Board speculated that “GDP growth over 2018 had been a little lower than anticipated at the time of the February Statement on Monetary Policy”. In fact, annual GDP growth in 2018 printed 2.3% compared to the RBA’s estimate in February of 2.75% - hardly consistent with the description “a little lower”. The minutes also noted that the accounts were likely to confirm a “markedly slower pace of growth in the second half of 2018 than in the first half”. In fact, the accounts printed a 4% annualised pace in the first half, down to a 1% annualised pace in the second half.
The tension that the minutes refer to is around conditions in the labour market, which “had continued to improve”, while “leading indicators continued to suggest that employment growth was likely to remain above average, although some indicators have turned down a little recently”.
Based on the key policy conclusion, developments in the monthly labour market series and associated lead indicators will be very important for the policy response, although the sharper than expected slowdown in 2018 H2 will probably make the RBA more prepared to act than appears to be the mindset in these minutes.
Because the forecasts are only reviewed every three months, it is entirely unsurprising  that the minutes confirm the current GDP growth forecast in 2019 of 3 per cent and a further decline in the unemployment rate to 4 ¾ per cent over the next couple of years. With the momentum in the economy having slowed to a 1% pace in the second half of 2018, it remains a courageous call that growth could lift to 3% in 2019. Westpac expects that the RBA will lower its forecast for 2019 to 2.75% and to 2.5% in 2020 in its May Statement on Monetary Policy and adopt a specific easing bias.
We are disappointed to note that the RBA is persisting with a view that “the pipeline of work to be done remained large and was expected to support dwelling investment through 2019”. It appears that dwelling investment peaked in mid-2018 with around a 6 per cent fall in the second half of 2018. We support the RBA’s expectation for a “marked slowing in dwelling investment”, but expect that this has come earlier than their expectation of “in 1-2 years’ time”.
Nervousness around consumer spending remains a consistent theme in these minutes. Indeed, the expectation was that “consumption was expected to have contributed more to growth in the December quarter than in the September quarter”. In fact, December’s consumption growth of 0.4% was only slightly greater than the 0.3% reported for September. A 1.5% annualised growth pace for consumption is around half the expected trend.
The discussion around housing remains quite understated, “the process of adjustment in the housing market had continued”, although there is some recognition of the spill-over of housing prices to activity, “some part of the slowdown in retail and motor vehicle spending in NSW was likely to have been related to declines in housing prices”.
We are always interested in how the Board describes market pricing. According to our pricing model, the market was giving an 88% probability of a rate cut of a full 25bps by December 2019 as at 4 March. In contrast, the minutes note “financial market pricing implied the cash rate was expected to remain unchanged in 2019, but a reduction in the cash rate was expected by early 2020”.
Finally, it is important to note that “members noted significant uncertainties around the forecasts remain, with scenarios where an increase in the cash rate would be appropriate at some point, and other scenarios where a decrease in the cash rate would be appropriate”. As the Federal Reserve likes to emphasise, policy has become “data-dependent”.
Conclusion
The Board has raised the importance of data releases over the next few months and has left open the possibility to cut rates should those releases disappoint. Certainly, the December quarter national accounts would have fitted into that category, although the emphasis remains on the labour market data.
Westpac does expect that consistent with the slowdown in spending and deterioration in both business and consumer confidence, we will see emerging evidence of a slowing labour market over the course of the next six months.
Westpac’s timetable for policy action remains a 25bps cut in August to be followed by a second 25bps cut in November. These dates will give the RBA appropriate scope to explain their decisions in the context of weaker growth, employment and inflation forecasts in an orderly fashion, rather than be seen to overreact to any particular data report.
BILL EVANS is Chief Economist at Westpac
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</div>
</div>
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bevans-rYk9SxEa4r

Reserve Bank Board minutes emphasise importance of data releases: Bill Evans

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Despite pressures to cut rates, the RBA have held firm, suggesting there is no need for an adjustment to the cash rate in the near term.
"Members agreed to continue to assess the outlook carefully," RBA Governor Philip Lowe said in the <a href="/expert-insights/finance/minutes-of-march-2019-monetary-policy-meeting-of-the-reserve-bank-board">March meeting minutes</a>.
"Given that further progress in reducing unemployment and lifting inflation was a reasonable expectation, members agreed that there was not a strong case for a near-term adjustment in monetary policy.
"Rather, they assessed that it would be appropriate to hold the cash rate steady while new information became available that could help resolve the current tensions in the domestic economic data."
On housing, Lowe said the process of adjustment in the housing market had continued. 
"Housing prices in Sydney, Melbourne and Perth had declined further, and turnover in the housing market had fallen significantly," he said.
Lowe noted that available data showed continued declines in Sydney, Melbourne and Perth into 2019, however also said the data was difficult to interpret when taking into account the always quiet January period.
"In Sydney, housing prices were 13 per cent lower than their July 2017 peak, while in Melbourne housing prices were 10 per cent lower than their November 2017 peak," Lowe suggested.
He highlighted the auction clearance rates picking up in Sydney and Melbourne over February, although added that demand for housing credit had slowed 'noticeably' as conditions in the housing market changed.
Lowe noted that despite the likelihood dwelling investment was expected to decrease in the December quarter, however the pipeline of work to be done remained large.
"Members noted that the pipeline of work to be done remained large and was expected to support dwelling investment through 2019, particularly in New South Wales and Victoria," Lowe said, although added there will be a marked slowing in dwelling investment soon.
"Residential building approvals and information from the Bank's liaison program pointed to a marked slowing in dwelling investment in one to two years' time, unless pre-sales increased significantly in the following few quarters.
"The recent weakness in sales of detached new houses had been most pronounced in Sydney and Melbourne, but had also been evident in other locations.
"Contacts had reported that tighter access to credit for off-the-plan and project homes had been constraining buyer demand," Lowe said.
The RBA are still hopeful of growth in GDP of around three percent of 2019 and a further decline in the unemployment rate to 4.75% over the next couple of years.
 
 
 
 
 
 
 
 
 
 
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jrobinson-rf4aSBido9

No strong case for cash rate hike as housing turnover 'falls significantly': RBA March 2019 minutes

Minutes of March 2019 Monetary Policy Meeting of the Reserve Bank Board

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The RBA held the cash rate firm at 1.5 percent at the March meeting, making it 28 consecutive meetings since the rates last moved.
There is growing expectation from economists, and pressure from housing markets, for the RBA to cut rates.
In February Westpac's Bill Evans was the first to <a href="/expert-insights/finance/westpac-now-expects-the-rba-to-cut-the-cash-rate-twice-bill-evans">forecast two rate cuts</a>, one in August and one in November.
He was joined earlier this month by <a href="/news/nab-now-predicting-two-cash-rate-cuts-in-2019-alan-oster">NAB's Alan Oster,</a> who said cuts may come sooner, in July, and November.
The RBA March chart pack has given the central bank little relief from the expected looming rate cut by commentators.
The RBA's biggest concern will be to growing gap between the declining house prices and housing debt.
The pair have continued to go in opposite directions, and as far as the RBA is concerned, the wrong direction, for well over a year.
Household continues to hit record highs month after month, with no sign of debt, nor the house price decline, slowing down.
Click here to enlarge.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/19/RBA0.jpg" alt="">
With house prices declining, home owners are cautious.
They're not wanting to spend money on unnecessary items until house prices have stopped declining.
Growth in consumption has been slow, but it is somewhat holding firm, unlike a households disposable income.
The average household's disposable income is declining toward levels not seen since half way through 2016.
Click here to enlarge.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/19/RBA1.jpg" alt="">
Home loan approvals are continuing to decline across the board.
When house prices started declining and investors were hit with higher home loan rates, first home buyers were back in the driving seat.
But due to the continued declines, first home buyers are in no hurry to enter the market just yet.
Back in late 2018 Finder's RBA survey suggested tightened lending could <a href="/expert-insights/finance/tightening-lending-practices-could-negatively-effect-economy-finders-rba-survey">affect the economy negatively</a>.
However in February the RBA stressed that the tightening of lending <a href="/news/tightening-in-lending-standards-not-the-cause-of-housing-credit-growth-decline-rba">was not the cause</a> for the house price falls.
Click here to enlarge.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/3/19/RBA3.jpg" alt="">
To see the full chart pack <a href="https://www.rba.gov.au/chart-pack/" target="_blank">click here</a>.
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Little relief in housing finance could trigger rate cuts: RBA March chart pack

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GUEST OBSERVATION
What a backdown.
On Tuesday, with all the grace he could muster, Treasurer Josh Frydenberg declared that he wouldn’t be implementing as many of the banking royal commission recommendations as he had said he would.
As he <a href="http://jaf.ministers.treasury.gov.au/media-release/040-2019/" target="_blank">put it</a>:
"Following consultation with the mortgage broking industry and smaller lenders, the Coalition Government has decided to not prohibit trail commissions on new loans, but rather review their operation in three years’ time."
Trail commissions are the small annual payments lenders make to mortgage brokers to reward them for loans they have arranged, typically between 0.165% and 0.275% of the amount outstanding per year.
They are paid in addition to the upfront commission, which is typically between 0.65% and 0.7% of the amount lent.
On a loan of A$500,000 they could amount to A$1000 per year, a payment which, in the words of Royal Commissioner Kenneth Hayne is “<a href="https://financialservices.royalcommission.gov.au/Pages/default.aspx" target="_blank">money for nothing</a>”.
Hayne recommended that the borrower, not the lender, pay the mortgage broker a fee. Trail commissions would be axed straight away, and after a period of two or three years upfront commissions would go too.
In responding to the report on Day 1, Frydenberg more or less endorsed Hayne’s recommendation.
From July 1, 2020, the government would <a href="https://static.treasury.gov.au/uploads/sites/1/2019/02/FSRC-Government-Response-1.pdf" target="_blank">outlaw trail commissions on new loans</a>.
It would ask the Council of Financial Regulators and the Australian Competition and Consumer Commission to review the impact of the changes and implications of moving to complete borrower-pays remuneration in three years time.
The backdown means trail commissions are also safe for three years, which, given the likelihood of another lobbying campaign from brokers in three years time, means they are probably safe forever.
There’s a case against commissions
Anyone who has seen the movie “The Big Short” has seen a dramatic and only somewhat fictional representation of what can go wrong in the mortgage broking industry.
In that rendition, a bunch of highly incentivised, all care and no responsibility brokers help borrowers get loans they have no reasonable ability to repay. The brokers make out like bandits and the world economy is brought to the brink of total collapse.
We can all agree that was a bad outcome. According to Hayne, the problem with commissions is that they make brokers act in their <a href="https://financialservices.royalcommission.gov.au/Pages/reports.aspx" target="_blank">own interests</a>, rather than those of their customers.
But commissions are common…
It’s a legitimate concern, but let’s not forget that a range of actors in the economy act in their own interests all the time. Consumers buying everything from orange juice to health insurance to television sets act in their own interests. And firms selling them do too. Many pay their sales staff commissions.
Deferred commissions are common too. For executives, they ensure that they have something at risk after their term of services. For mortgage brokers, they create an incentive to recommend loans their customers won’t later switch out of.
Hayne thought that wouldn’t be needed. He recommended (and the government agreed) that the law be amended to require mortgage brokers to act in the best interests of borrowers.
It’s a nice idea, but tricky to police. It might be better to properly align the incentives to ensure the interests of the broker and borrower coincide, which is the position the government has belatedly adopted.
If it keeps commissions, as it now seems determined to do, it might need to apply some latitude to the term “best interests”. It is hard to require brokers to act in the literal best interests of their clients when the best loans for many of them will be the cheapest – mortgages from lenders that don’t pay commissions.
…and so is politics
The politics are complicated. Mortgage brokers account for more than half of all new mortgages written.
Notwithstanding the desire to look tough and adopt all of the Hayne recommendations, both sides of politics are aware that brokers are typically small(ish) business people of the kind they usually court aggressively, and that many would not survive having to charge upfront fees.
If the old adage is right, that the most dangerous place is between a politician and a camera, then another fairly hazardous spot is between a voter and property.
Mortgage brokers play an important role. At their best they help borrowers get better terms and inject some competition into an otherwise very concentrated banking market.
But if their incentives are not well-aligned then things can go awry, Big Short style.
We’ll have to wait
The best solution might be to make sure brokers get paid for getting their clients a good mortgage, rather than just a big mortgage.
This could involve “bands” of commissions based on mortgage size, rather than a bigger commission for every extra dollar borrowed.
And it could involve “skin in the game” where the size of the repayment is related to the commission.
Doing nothing would be a bad idea. So too might be doing something radical as Hayne has proposed.
But nothing might be exactly what we’ll get. The Coalition appears to have put off designing a proper commission structure for the next three years in order to buy some peace.<img src="https://counter.theconversation.com/content/113544/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Richard Holden, Professor of Economics, UNSW
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/vital-signs-its-one-thing-to-back-down-on-haynes-recommendation-about-mortgage-brokers-its-another-to-offer-nothing-in-its-place-113544" target="_blank">original article</a>.
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It’s one thing to back down on Hayne’s recommendation about mortgage brokers, it’s another to offer nothing in its place: Richard Holden

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The Independent Pricing and Regulatory Tribunal (IPART) is reviewing the fees associated with electronic conveyancing (eConveyancing) for the first time.
Around 85% of property transactions in NSW will be required to use eConveyancing from 1 July 2019.
Transactions such as transfers, mortgages and caveats will have to be lodged electronically.
eConveyancing is designed to be a more efficient and accurate way of conducting the settlement and lodgment stages of a conveyancing transaction.
IPART Chair, Dr Paul Paterson, said IPART’s review is focused on the fees charged by and to the electronic lodgment network operators (ELNOs). 
ELNOs operate electronic workspaces allowing lawyers, conveyancers and financial institutions to exchange data and collaborate to prepare conveyancing documents, settle funds, pay duties and lodge documents with the land registry online instead of on paper.  
“Essentially, eConveyancing allows parties to complete conveyancing transactions (like a sale of land) and disburse settlement funds electronically,” Paterson said.  
“The electronic lodgment network also allows other documents that are not necessarily part of a sale, such as caveats, to be lodged electronically.”
Currently there is only one ELNO in NSW, PEXA.  Another ELNO, Sympli, is expected to commence operations in NSW during 2019, with the prospect of more entering the market soon.
A paper released by IPART today seeks feedback on a range of issues to be considered as part of the review. These include: 
<ul>
<li>The state of the eConveyancing market, including possible barriers to entry such as the lack of arrangements for different ELNOs to participate in a transaction</li>
<li>The maximum fees that ELNOs charge lawyers, conveyancers and financial institutions to use the electronic lodgment network </li>
<li>The maximum fees that the NSW Land Registry Services charges ELNOs </li>
<li>The maximum fees that Revenue NSW can charge ELNOs in the future. </li>
</ul>
“We are also looking at the costs that will be incurred to connect multiple ELNOs when more enter the market, and how these costs should best be recovered to drive efficient outcomes and avoid excessive charges,” Paterson said. 
Submissions on the Issues Paper will be received until 30 April and considered by IPART before a draft report is released by July.
Recommendations on the final prices will be provided to the NSW Government by October 2019.
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