<a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.

Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.

The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.

[smartcode_project:default project_id=509 project_image_fid=365685]

"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.

Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.

"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."

[smartcode_project:default project_id=509 project_image_fid=368869]

That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.

Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.

Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.

[smartcode_project:default project_id=509 project_image_fid=365689]

Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.

They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.

The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=368872]

The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.

With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.

A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.

Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.

[smartcode_project_cta:default project_id=509]

Joel Robinson

Far East Consortium brings Eliza Collection to 640 Bourke Street ahead of October construction start

By the time S&amp;S Projects began planning <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia</a>, the developer already had three Rainbow Bay projects from which to draw.

Flow, Awaken and Esprit had given <a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a> experience developing in the southern Gold Coast enclave, as well as buyer feedback that could be carried into its fourth project, a boutique collection of 38 residences at 271 Boundary Street.

“We have experienced a lot of success in this location and as this was our fourth building we had taken all of the learnings and buyer feedback from previous projects to arrive at a design and apartment mix that we believe had captured all of that experience and remained a true S&amp;S Project in its design and amenity,” the developer said.

That experience has translated into a collection of two, three, four and five-bedroom residences including two penthouses positioned on an elevated corner in Rainbow Bay, where the site opens to multiple coastal view corridors and the area's distinctive north-facing bay.

[smartcode_project:default project_id=140491 project_image_fid=284542]

S&amp;S Projects says the Boundary Street site took years to assemble, having previously comprised six units, a house and a duplex. The developer worked individually with the existing owners to bring the properties together after an earlier attempt to sell the site had been complicated by the number of parties involved.

“We are constantly looking for properties that meet our brand standards of location, views, and sites that are rare with unique aspects that we can develop to maximise the lifestyle of residents who live in our buildings,” S&amp;S Projects said.

The Boundary Street site gave <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a> a different set of conditions to work with.&nbsp;

“Our design brief was to design a building that took advantage of its unique elevated corner siting offering a range of spectacular view corridor opportunities,” Cottee Parker said.

“The design had to reinforce the strong brand pillars of S&amp;S which are quality, luxury and superior resident amenity.”

[smartcode_project:default project_id=140491 project_image_fid=284543]

Cottee Parker responded with a sculptural floorplate and strong horizontal banding, with continuous balconies and landscaped planters wrapping the building. Operable screens along the balcony edges allow residents to manage light and shade while creating an additional layer of pattern across the facade.

The tower rises above a heavily landscaped podium incorporating the entry lobby and recreational level, while the broader architectural expression takes cues from Rainbow Bay's coastal environment through its organic forms and light material palette.

Cottee Parker says the design has also been developed to complement S&amp;S Projects’ three previous Rainbow Bay developments while retaining its own architectural identity.

Inside, the residences continue that coastal response through two interior schemes centred on warm timbers and neutral tones, alongside patterned natural stone and fluted detailing.

Floor-to-ceiling sliding glass doors connect open-plan living areas to wraparound balconies, while natural stone is used across benchtops, splashbacks and bathroom walls. Specifications also include light-washed timber flooring, gas fireplaces, integrated bar and wine fridges, freestanding stone baths and 100 per cent wool carpet.

[smartcode_project:default project_id=140491 project_image_fid=284559]

Cottee Parker Director Sandra Brown said the intention was to create an architectural response closely connected to its surroundings.

“Imagine architecture that breathes with the rhythm of nature, where every curve and line flows seamlessly – creating spaces that dance with the elements, where sunlight kisses every surface and the gentle sea breeze fills every space,” Brown said.

The lessons S&amp;S Projects carried into Radia also extend to its resident amenity, with a substantial collection of shared facilities planned for just 38 residences.

A dedicated Residents Club will include a lap pool and spa, gymnasium, ice bath, sauna, steam room and hot rocks sauna. A residents' lounge, private dining room, outdoor dining and barbecue area and business centre are also planned, along with storage and dedicated surfboard and beach lockers.

S&amp;S Projects Founding Director Paul Gedoun said the facilities were also designed around the project's Rainbow Bay setting.

“Each amenity is designed to capitalise on the lifestyle of Rainbow Bay, ensuring residents can enjoy the relaxed coastal experience the enclave is famous for,” Gedoun said.

[smartcode_project:default project_id=140491 project_image_fid=284555]

<a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a> says purchasers to date have predominantly included local downsizers, interstate lifestyle investors and families, alongside a strong contingent of repeat S&amp;S purchasers.&nbsp;

According to the project sales team, feedback has centred on the natural stone and joinery, generous floorplans, natural light and the ability for residences to capture views in multiple directions. The completed Flow, Awaken and Esprit developments have also provided prospective purchasers with an existing reference point for S&amp;S Projects' delivery in Rainbow Bay.

There has also been interest from high-profile surfers and people connected to the surf community, with the elevated building providing outlooks towards several of the area's recognised surf breaks.

Radia continues S&amp;S Projects' concentration of development in a tightly held part of the southern Gold Coast, close to Rainbow Bay Beach, Snapper Rocks, Duranbah Beach, Greenmount Beach and the Tweed River. The neighbourhood also includes a growing collection of hospitality venues, while Coolangatta Airport provides connections beyond the southern Gold Coast.

Hutchinson Builders is now delivering Radia, continuing the project from early works privately funded by S&amp;S Projects. The $250 million development is expected to reach completion in the third quarter of 2027.

“With our history in Rainbow Bay, we have been fortunate to be heavily involved in how the development landscape has unfolded and this project slides into the property landscape comfortably and will feel like it was always there,” the developer said.

[smartcode_project_cta:default project_id=140491]

How three Rainbow Bay projects shaped S&S Projects' fourth, Radia

Nearly 40 years after <a href="https://www.apartments.com.au/developers/sheida-group">The Sheida Group</a> began working on the northern Gold Coast, the family-owned developer is continuing its involvement in Hope Island with Marina Point Apartments, where apartment scale has been a central part of the development.

Across the 235-apartment waterfront community, the developer has prioritised larger floorplans, substantial open space and marina access, responding to a purchaser base that has predominantly comprised local owner-occupiers and downsizers moving from larger homes.

"Having already delivered Anchorage nearby, we also understood this particular market and how people live here," developer Rick Sheida said.

"<a href="https://www.apartments.com.au/new-apartments/marina-point-apartments-hope-island-66-view-line-terrace-hope-island-qld-4212">Marina Point&nbsp;Apartments</a> gave us the opportunity to build on those lessons and create the next evolution of our work in Hope Island."

[smartcode_project:default project_id=136992 project_image_fid=293151]

The Sheida Group acquired the Marina Point land around 2018. Its appeal, Sheida says, went beyond having a waterfront address.

"What attracted us was not simply that the site was waterfront, but the way it meets the water," he said.

"It sits at the junction of broad waterways, creating long sightlines, changing views and a sense of movement throughout the day. Its shape also allowed us to orient the buildings outward, improve privacy between residences and make better use of natural light and breezes."

The buildings have subsequently been positioned around the perimeter of the site, allowing most apartments to take in water views while others look across the resort amenity or hinterland. Once all four buildings are complete, approximately one hectare of the site is expected to remain as open space.

The waterfront also provides the potential for up to 50 marina berths, with berths ranging from 15 to 24 metres and options designed to accommodate wider vessels including catamarans. Access from the marina to the Gold Coast Seaway is bridge-free.

[smartcode_project:default project_id=136992 project_image_fid=293149]

The developer says purchasers to date have predominantly been owner-occupiers and downsizers from <a href="https://www.apartments.com.au/new-apartments/marina-point-apartments-hope-island-66-view-line-terrace-hope-island-qld-4212">Hope Island</a> and elsewhere on the Gold Coast, generally aged between 45 and 70. Many have sold larger family homes or properties requiring significant upkeep.

That purchaser profile informed a design brief centred on retaining the space and functionality of a larger home within an apartment format.

"Many of our buyers are coming from large, well-appointed homes in Sanctuary Cove and the surrounding area," the project team said.

"They are accustomed to generous spaces and thoughtful design, so it was important that the apartments delivered the same sense of comfort and functionality.

"Every room needed to feel well proportioned, every space needed a clear purpose and nothing could feel compromised."

Residences range from 139 sqm through to 319 sqm penthouses, with two car spaces provided to apartments and three to penthouses. Minimum 2.7-metre ceilings, floor-to-ceiling glazing, entertainer's kitchens with butler's pantries, substantial storage and balconies ranging from 18 sqm to 37 sqm further reflect the emphasis on space.

One purchaser from Sanctuary Cove has taken the concept further, combining two of Marina Point's largest apartments to create a 552 sqm residence with raked ceilings reaching up to 4.5 metres.

[smartcode_project:default project_id=136992 project_image_fid=293155]

With Building 1 now complete, the developer is also seeing its original design assumptions tested against purchaser feedback.

Three completed display residences allow prospective purchasers to compare apartment sizes, layouts, finishes and outlooks in person. The sales team says one of the most consistent responses has been to the scale of the apartments, with visitors describing them as feeling more like homes than conventional apartments.

The first stage of resident amenity is also operational, including a 25-metre heated lap pool, Technogym-equipped gym, infrared sauna, golf simulator and yoga room. Future facilities are set to include a resort-style pool and spa, waterfront barbecue area and a residents' lounge with a library, fireplace, pool table, kitchen and bar.

Rather than treating the four buildings independently, the design brief called for a complete waterfront neighbourhood, balancing private residences with landscaping, open space, marina access and shared amenity.

[smartcode_project:default project_id=136992 project_image_fid=293152]

For Sheida, Marina Point Apartments is ultimately an extension of the developer's longer-term involvement in Hope Island and its view of how the suburb is evolving.

"We were equally interested in the long-term future of Hope Island," he said.

"Its position between Brisbane and the central Gold Coast gives residents access to both, while improving transport connections are making the northern Gold Coast increasingly attractive as a permanent place to live."

Hope Island Marketplace is 1.3 kilometres from Marina Point, while Sanctuary Cove and Paradise Point are within six kilometres. Links Hope Island, The Pines and The Palms golf courses are also nearby, and the new Hope Island train station is under construction around five kilometres from the development.

Building 2 is under construction, with completion scheduled for 2027.

[smartcode_project_cta:default project_id=136992]

Marina Point Apartments continues The Sheida Group's 40-year Hope Island story

Sydney-based fund manager and developer EG is seeking to turn part of the former Roche pharmaceutical campus in Cromer into a 130-home residential community, introducing a mix of low-rise apartments, townhouses and duplexes to the tightly held Northern Beaches market.

The SJB-designed masterplan has been prepared for the 3.2-hectare site at <a href="https://www.apartments.com.au/new-apartments/100-south-creek-road-cromer-nsw-2099">100 South Creek Road</a>, part of the former Roche landholding that EG acquired for $55 million in 2017 through its Yield Plus Infrastructure Fund No. 2.

EG is proposing what SJB describes as a new "urban village" set within the site's significant existing tree canopy.

<img alt="Cromer" data-entity-type="file" data-entity-uuid="482c9a58-49f1-4c53-a12e-aaa02336229f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-24%20at%2011.20.57%E2%80%AFAM.png?VersionId=hZP8_XfPnfNq500dbcjlpVwYU1ebhF9_" />

Around three hectares of the site is considered developable, with the balance incorporating a riparian corridor that would be rehabilitated and revegetated as part of the proposal.

The indicative masterplan comprises approximately 72 apartments in low-rise residential buildings and another 58 townhouses and duplexes.

The apartment component would include around five one-bedroom, 37 two-bedroom and 30 three-bedroom residences, while the townhouse and duplex component would be spread across several different housing typologies. The overall scheme would deliver around 19,500 sqm of gross floor area at an FSR of 0.6:1.

Parking for the apartment component is currently estimated at around 112 resident spaces and 14 visitor spaces, while the townhouse and duplex component would have 116 resident and 12 visitor spaces.

A significant part of the masterplan revolves around retaining the established landscape character of the former Roche campus.

SJB's plans show heavily treed setbacks along both Campbell Avenue and South Creek Road, a centrally located collection of significant native and exotic trees retained as communal open space, and the regeneration of the northern bushland area.

The existing creek corridor along the site's western edge would also be rehabilitated and revegetated, creating additional separation between the new homes and the neighbouring Northern Beaches Business Park.

A heritage-listed cottage and its garden setting would be retained and restored, with SJB flagging its potential adaptive reuse as communal space.

The proposal also includes new communal recreation areas, pedestrian connections to Campbell Avenue and South Creek Road, and a contribution toward improvements to the adjoining Michele Reserve.

Vehicular access would be restricted to South Creek Road, with no vehicle entry proposed from Campbell Avenue. The main internal road would largely follow the site's existing driveway to minimise the impact on established trees.

SJB said residential redevelopment presented an opportunity to retain the majority of the site's heritage-listed mature trees while delivering a broader range of housing types than typically seen across the Northern Beaches.

"The site being 3.27 hectares in area represents one of the largest vacant sites in common ownership in the Cromer and Dee Why area capable of residential renewal," SJB noted in the masterplan.

The architect said the proposal would particularly target housing diversity through townhouses and other "missing middle" typologies suitable for singles, young families, downsizers and retirees.

<img alt="Cromer" data-entity-type="file" data-entity-uuid="e3f5d841-8491-427e-8ada-c70d3d03d6bc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-24%20at%2011.21.02%E2%80%AFAM.png?VersionId=xTV7r.q8lrTzC9vKzMS9zMbjm9wKwhgm" />

The site emerged following the subdivision of the former Roche campus into eastern and western parcels.

EG has already transformed the western portion into the Northern Beaches Business Park, which incorporates heritage-listed office space, modern warehouses and indoor recreation facilities.

The proposed residential community, referred to as Cromer East in SJB's plans, adjoins established housing to the north, east and south-east, while the business park sits beyond the creek corridor to the west.

It is also within 250 metres of Pittwater House School and Northern Beaches Secondary College, while bus stops within a three-to-five-minute walk provide connections to Dee Why, Brookvale and express services to the Sydney CBD. Cromer Park and the South Creek open space corridor are also nearby.

EG acquired the broader 7.5-hectare former Roche campus in 2017 for $55 million through its Yield Plus Infrastructure Fund No. 2. The campus at the time comprised more than 25,000 sqm of industrial and office buildings set within landscaped grounds.

The current residential site represents the eastern portion of that original holding.

EG's investment strategy for the fund has centred on acquiring income-producing real estate with longer-term rezoning and repositioning potential, particularly assets benefiting from infrastructure and changing land-use patterns.

EG also has an established residential track record across Sydney, including Bosco in Five Dock, Tempo in Drummoyne, The Flour Mill in Summer Hill and Pindari in Randwick.

The developer says it has delivered more than 1,000 homes to date, with a further 3,000-plus residences across its development pipeline.

First look: EG plans 130 apartments on former Roche pharmaceutical campus in Cromer

<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

SP Setia plans three-tower finale for Carlton’s former CUB precinct

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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All 30 panelists in the monthly Finder.com.au survey of the RBA rate decision suggested the central bank will hold at the November 2017 meeting.
There reasons are below:
Jordan​ ​Eliseo,​ ​ABC​ ​Bullion:​ ​(Hold)​ "Despite​ ​concerns​ ​about​ ​a​ ​slowdown​ ​in​ ​retail​ ​sales​ ​growth over​ ​the​ ​last​ ​few​ ​months​ ​-​ ​the​ ​RBA​ ​still​ ​appear​ ​confident​ ​in​ ​the​ ​outlook​ ​for​ ​the​ ​Australian economy,​ ​though​ ​their​ ​rhetoric​ ​around​ ​tightening​ ​policy​ ​has​ ​changed​ ​appropriately.​ ​We​ ​still see​ ​the​ ​next​ ​move​ ​as​ ​down,​ ​but​ ​it​ ​will​ ​not​ ​come​ ​until​ ​Q1​ ​2018​ ​at​ ​the​ ​earliest." 
Tim​ ​Nelson,​ ​AGL​ ​Energy:​ ​(Hold)​ "Little​ ​change​ ​in​ ​conditions." 
Shane​ ​Oliver,​ ​AMP​ ​Capital:​ ​(Hold)​ "RBA​ ​expectations​ ​for​ ​stronger​ ​growth​ ​ahead,​ ​high​ ​levels of​ ​business​ ​confidence​ ​and​ ​strong​ ​employment​ ​growth​ ​all​ ​argue​ ​against​ ​a​ ​rate​ ​cut.​ ​But​ ​a slowdown​ ​in​ ​the​ ​housing​ ​cycle,​ ​risks​ ​around​ ​consumer​ ​spending,​ ​weak​ ​wages​ ​growth​ ​and inflation​ ​and​ ​the​ ​too​ ​high​ ​Australian​ ​dollar​ ​argue​ ​against​ ​a​ ​rate​ ​hike.​ ​So​ ​the​ ​most​ ​likely outcome​ ​is​ ​rates​ ​remaining​ ​on​ ​hold​ ​-​ ​out​ ​to​ ​late​ ​2017​ ​at​ ​least." 
Paul​ ​Dales,​ ​Capital​ ​Economics:​ ​(Hold)​ "The​ ​economy​ ​and​ ​inflation​ ​are​ ​not​ ​strong​ ​enough​ ​to warrant​ ​higher​ ​interest​ ​rates,​ ​but​ ​nor​ ​are​ ​they​ ​weak​ ​enough​ ​to​ ​justify​ ​lower​ ​interest​ ​rates.​ ​" 
Michael​ ​Blythe,​ ​CBA:​ ​(Hold)​ "Low​ ​inflation​ ​means​ ​[there​ ​is]​ ​no​ ​rush​ ​to​ ​act." 
Peter​ ​Gilmore,​ ​Gateway​ ​Credit​ ​Union:​ ​(Hold)​ "Looks​ ​like​ ​we​ ​are​ ​in​ ​an​ ​inflation​ ​trap." 
Scott​ ​Morgan,​ ​Greater​ ​Bank:​ ​(Hold)​ "Domestic​ ​economic​ ​data​ ​is​ ​mixed​ ​and​ ​does​ ​not​ ​yet support​ ​a​ ​move." 
Mark​ ​Brimble,​ ​Griffith​ ​Uni:​ ​(Hold)​ "Economy​ ​is​ ​still​ ​struggling​ ​to​ ​gather​ ​any​ ​meaningful moment." 
Shane​ ​Garrett,​ ​Housing​ ​Industry​ ​Association:​ ​(Hold)​ ​"No​ ​need​ ​to​ ​increase​ ​rates​ ​at​ ​this​ ​time: economic​ ​growth​ ​has​ ​to​ ​have​ ​enough​ ​space​ ​to​ ​recover​ ​to​ ​its​ ​trend​ ​rate​ ​and​ ​inflationary pressures​ ​are​ ​weaker​ ​than​ ​expected." 
Paul​ ​Bloxham,​ ​HSBC:​ ​(Hold)​ "Inflation​ ​is​ ​still​ ​below​ ​target." 
Alex​ ​Joiner,​ ​IFM​ ​Investors:​ ​(Hold)​ "Economic​ ​signals​ ​are​ ​mixed,​ ​especially​ ​outside​ ​the​ ​labour market.​ ​Added​ ​to​ ​this​ ​inflationary​ ​pressures​ ​are​ ​subdued​ ​and​ ​wages​ ​growth​ ​are​ ​anticipated​ ​to remain​ ​soft." 
Michael​ ​Witts,​ ​ING​ ​Bank:​ ​(Hold)​ "The​ ​RBA​ ​is​ ​comfortable​ ​with​ ​the​ ​current​ ​setting​ ​of​ ​rates​ ​and does​ ​not​ ​appear​ ​to​ ​be​ ​in​ ​a​ ​rush​ ​to​ ​change​ ​the​ ​policy​ ​settings.​ ​the​ ​low​ ​CPI​ ​print​ ​supports​ ​a further​ ​extension​ ​of​ ​stable​ ​rates." 
Leanne​ ​Pilkington,​ ​Laing+Simmons:​ ​(Hold)​ "Recent​ ​data​ ​pointing​ ​to​ ​flat​ ​price​ ​growth​ ​and subdued​ ​clearance​ ​rates​ ​reinforce​ ​the​ ​case​ ​for​ ​a​ ​hold​ ​decision.​ ​Of​ ​course,​ ​the​ ​housing​ ​market is​ ​more​ ​complicated​ ​than​ ​this,​ ​with​ ​different​ ​suburban​ ​markets​ ​performing​ ​according​ ​to​ ​their own​ ​fundamentals." 
Matthew​ ​Tiller,​ ​LJ​ ​Hooker:​ ​(Hold)​ "Despite​ ​strong​ ​employment​ ​numbers,​ ​inflation​ ​and​ ​wage growth​ ​remain​ ​soft.​ ​Property​ ​price​ ​growth​ ​has​ ​moderated,​ ​relieving​ ​pressure​ ​on​ ​the​ ​RBA​ ​to shift​ ​rated." 
Stephen​ ​Koukoulas,​ ​Market​ ​Economics:​ ​(Hold)​ "RBA​ ​will​ ​continue​ ​to​ ​ignore​ ​weak​ ​inflation and​ ​wage​ ​results​ ​and​ ​instead​ ​create​ ​a​ ​perception​ ​of​ ​concerns​ ​about​ ​financial​ ​stability.​ ​A​ ​rate cut​ ​is​ ​long​ ​overdue.” 
John​ ​Caelli,​ ​ME:​ ​(Hold)​ "The​ ​RBA​ ​has​ ​signalled​ ​the​ ​next​ ​move​ ​will​ ​be​ ​up." 
Michael​ ​Yardney,​ ​Metropole​ ​Property​ ​Strategists:​ ​(Hold)​ "Our​ ​housing​ ​markets​ ​have​ ​slowed down,​ ​so​ ​there​ ​is​ ​no​ ​need​ ​for​ ​the​ ​RBA​ ​to​ ​raise​ ​rates,​ ​and​ ​even​ ​though​ ​inflation​ ​is​ ​below​ ​target and​ ​the​ ​economy​ ​is​ ​flat,​ ​they​ ​dare​ ​not​ ​lower​ ​rates​ ​in​ ​fear​ ​of​ ​fuelling​ ​the​ ​property​ ​markets." 
Mark​ ​Crosby,​ ​Monash​ ​University:​ ​(Hold)​ "Pressures​ ​to​ ​cut​ ​rates​ ​have​ ​diminished​ ​to​ ​near zero,​ ​so​ ​the​ ​question​ ​now​ ​is​ ​on​ ​the​ ​timing​ ​of​ ​rate​ ​increases​ ​-​ ​which​ ​should​ ​hinge​ ​on international​ ​developments." 
Jessica​ ​Darnbrough,​ ​Mortgage​ ​Choice:​ ​(Hold)​ "The​ ​domestic​ ​and​ ​international​ ​economies are​ ​starting​ ​to​ ​show​ ​signs​ ​of​ ​improvement,​ ​which​ ​could​ ​encourage​ ​the​ ​Reserve​ ​Bank​ ​to​ ​lift the​ ​cash​ ​rate​ ​at​ ​some​ ​point​ ​over​ ​the​ ​coming​ ​months.​ ​That​ ​said,​ ​for​ ​right​ ​now,​ ​inflation​ ​remains below​ ​target,​ ​which​ ​will​ ​no​ ​doubt​ ​lead​ ​the​ ​Board​ ​to​ ​leave​ ​the​ ​official​ ​cash​ ​rate​ ​on​ ​hold.​ ​" 
Chris​ ​Schade,​ ​MyState​ ​Bank:​ ​(Hold)​ "The​ ​economy​ ​is​ ​showing​ ​some​ ​promising​ ​signs, including​ ​the​ ​drag​ ​on​ ​growth​ ​from​ ​the​ ​unwinding​ ​of​ ​the​ ​mining​ ​investment​ ​boom​ ​being​ ​near its​ ​end,​ ​business​ ​confidence​ ​and​ ​conditions​ ​solid,​ ​strong​ ​levels​ ​of​ ​public​ ​infrastructure​ ​work, dwelling​ ​construction​ ​plateauing​ ​as​ ​opposed​ ​to​ ​declining,​ ​and​ ​quite​ ​high​ ​levels​ ​of​ ​job creation.​ ​There​ ​remain​ ​some​ ​weak​ ​spots​ ​however​ ​(e.g.​ ​wage​ ​growth,​ ​consumer​ ​confidence​ ​in their​ ​personal​ ​finances),​ ​and​ ​some​ ​areas​ ​of​ ​the​ ​economy​ ​that​ ​are​ ​in​ ​transition​ ​(e.g.​ ​housing market​ ​following​ ​numerous​ ​regulatory​ ​changes​ ​-​ ​albeit​ ​localised​ ​conditions​ ​vary​ ​widely). 
Overall,​ ​while​ ​it​ ​appears​ ​the​ ​economy​ ​is​ ​on​ ​the​ ​right​ ​track,​ ​the​ ​RBA​ ​will​ ​likely​ ​continue​ ​to​ ​hold the​ ​cash​ ​rate​ ​at​ ​1.5%​ ​and​ ​allow​ ​the​ ​economy​ ​some​ ​more​ ​time​ ​to​ ​develop.​ ​On​ ​current information,​ ​it​ ​would​ ​seem​ ​probable​ ​the​ ​RBA​ ​will​ ​hike​ ​in​ ​2018,​ ​most​ ​like​ ​the​ ​second​ ​half." 
Saul​ ​Eslake:​ ​(Hold)​ "The​ ​RBA's​ ​made​ ​it​ ​clear​ ​that​ ​it​ ​has​ ​no​ ​desire​ ​to​ ​cut​ ​rates​ ​further​ ​in​ ​the absence​ ​of​ ​any​ ​currently​ ​unforeseen​ ​negative​ ​shocks;​ ​while​ ​the​ ​data​ ​flow​ ​since​ ​the​ ​last meeting​ ​won't​ ​have​ ​done​ ​anything​ ​to​ ​prompt​ ​the​ ​RBA​ ​to​ ​bring​ ​forward​ ​any​ ​thoughts​ ​about tightening.​ ​In​ ​particular,​ ​the​ ​slightly​ ​lower-than-expected​ ​inflation​ ​outcomes​ ​for​ ​Q3​ ​have​ ​left 'underlying'​ ​inflation​ ​still​ ​below​ ​the​ ​RBA's​ ​target​ ​range." 
Jonathan​ ​Chancellor,​ ​Property​ ​Observer:​ ​(Hold)​ "The​ ​recent​ ​decisions​ ​of​ ​central​ ​bank​ ​board and​ ​other​ ​regulatory​ ​authorities​ ​may​ ​have​ ​faded​ ​in​ ​time,​ ​but​ ​are​ ​still​ ​working​ ​their​ ​way through​ ​the​ ​economy,​ ​so​ ​no​ ​need​ ​just​ ​yet​ ​for​ ​any​ ​fresh​ ​adjustment." 
Matthew​ ​Peter,​ ​QIC:​ ​(Hold)​ "The​ ​lack​ ​of​ ​inflation​ ​pressure​ ​takes​ ​out-of-play​ ​any​ ​chance​ ​of rate​ ​hikes​ ​over​ ​coming​ ​months.​ ​Rate​ ​cuts​ ​are​ ​off​ ​the​ ​table​ ​unless​ ​the​ ​labour​ ​market​ ​slumps and​ ​the​ ​housing​ ​market​ ​has​ ​showed​ ​sustains​ ​signs​ ​of​ ​cooling." 
Noel​ ​Whittaker,​ ​QUT:​ ​(Hold)​ ​"The​ ​housing​ ​boom​ ​is​ ​tapering​ ​off​ ​–​ ​there​ ​is​ ​no​ ​reason​ ​to​ ​raise rates​ ​to​ ​stifle​ ​demand." 
Nerida​ ​Conisbee,​ ​REA​ ​Group:​ ​(Hold)​ ​"Economy​ ​still​ ​not​ ​strong​ ​enough​ ​to​ ​increase​ ​and housing​ ​too​ ​volatile​ ​to​ ​cut." 
Janu​ ​Chan,​ ​St.George​ ​Bank:​ ​(Hold)​ ​"RBA​ ​is​ ​becoming​ ​increasingly​ ​optimistic​ ​in​ ​regards​ ​to the​ ​labour​ ​market​ ​and​ ​a​ ​recovery​ ​in​ ​non-mining​ ​investment.​ ​However,​ ​low​ ​inflation,​ ​slow wage​ ​growth,​ ​spare​ ​capacity​ ​still​ ​evident​ ​within​ ​the​ ​labour​ ​market​ ​suggests​ ​the​ ​RBA​ ​is​ ​still​ ​a way​ ​from​ ​raising​ ​rates." 
Brian​ ​Parker,​ ​Sunsuper:​ ​(Hold)​ "Not​ ​enough​ ​has​ ​changed​ ​in​ ​the​ ​last​ ​month​ ​for​ ​them​ ​to change​ ​course​ ​at​ ​this​ ​point." 
John​ ​Hewson,​ ​UNSW:​ ​(Hold)​ ​"Economic​ ​signs​ ​point​ ​to​ ​the​ ​cash​ ​rate​ ​staying​ ​where​ ​it​ ​is​ ​for quite​ ​a​ ​while,​ ​perhaps​ ​even​ ​for​ ​the​ ​next​ ​twelve​ ​months​ ​or​ ​more." 
Clement​ ​Tisdell,​ ​UQ-School​ ​of​ ​Economics:​ ​(Hold)​ ​"An​ ​increase​ ​may​ ​have​ ​a​ ​negative​ ​impact on​ ​economic​ ​sentiment​ ​at​ ​a​ ​time​ ​when​ ​the​ ​housing​ ​market​ ​effects​ ​have​ ​to​ ​be​ ​carefully managed." 
Other​ ​participants: 
Bill​ ​Evans,​ ​Westpac:​ ​(Hold) 
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j.ballantyne1990-6AQqhLzZaK

RBA tipped to hold at 2017 Cup Day rate meeting

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<div class="article_body">
The ANZ is reducing the headline rate on its Simplicity PLUS home loan for borrowers to 3.99 per cent by increasing the discount by 4 basis points to 56 basis points.
It applies to owner occupiers paying principal and interest only borrowing.
The Teachers Mutual Bank’s Classic Home Loan variable rate has been cut by 30 basis points to 3.84% for new business across its three key brands: Teachers Mutual Bank, UniBank, and Firefighters Mutual Bank.   Fixed rates across a number of home loan products have also been cut for all brands.    “We always seek to provide some of the most competitive rates on the market, and these new rates achieve that aim”, said Teachers Mutual Bank’s head of third party distribution, Mark Middleton.   These rate changes follow on from Teachers Mutual Bank Limited’s recently announced annual results, which highlighted the brand’s strong home loan performance, with first and third party lending growing by a total of 20 percent in 2016-2017.</div>
<div class="article_body">
Macquarie is launching a mortgage and credit card package linked to the variable, principal and interest rate of 3.69 per cent.
The loan offer retains features offset account, a cut in the annual package fee from $398 to $248 and a credit card rate of 5.9 per cent.
Meanwhile the Canstar weekly interest rate summary is below - the number of movements this week in home loan rates has been relatively low. There have been a small number of decreases to owner occupier principal and interest loans while this week marks another consecutive week of little movement in investment loan rates.
Principal and interest only
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<a href="https://www.propertyobserver.com.au/images/2017/11/1/HomeLoansPI.jpg" target="_blank">Click to enlarge</a>
<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/2017/11/1/HomeLoansPI.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/11/1/HomeLoan2.jpg" target="_blank"> Click to enlarge</a>
<a href="https://www.propertyobserver.com.au/images/2017/11/1/HomeLoan2.jpg" target="_blank"><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/2017/11/1/HomeLoan2.jpg" alt=""></a>
 
Interest only 
<a href="https://www.propertyobserver.com.au/images/2017/11/1/HomeLoan3.jpg" target="_blank">Click to enlarge</a>
<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/2017/11/1/HomeLoan3.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/11/1/HomeLoan4.jpg" target="_blank">Click to enlarge</a>
<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/2017/11/1/HomeLoan4.jpg" alt="">
 
 
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jonathanchancellor-7SQnKwU6yx

All the latest home loan rate movements: Canstar

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Recent tightening of lending criteria in the banking sector has not only dramatically reduced financing options for companies, but has also created a perfect storm for what could be described as “predatory” lending practices by some second-tier credit providers.
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This year has seen the big four banks impose stricter lending criteria and companies seeking loans on prime secured assets, second mortgages or unsecured cash flow loans have been forced to turn to private equity style second-tier lenders. 
The largely unregulated and agile capital from second tier lenders is attracting borrowers simply as they have no other choice and from the outset borrowers are disadvantaged. 
This is particularly prevalent in commercial property transactions and development funding. Lenders can see in profitable deals there is available uplift and margin, making the value proposition of post transaction litigation a retrospective unappealing action where money has been made by the borrower. 
Second-tier lenders leverage the fact that funds can be advanced quickly with decision-makers assessing deals much more promptly than the big banks can. However, access to funds in the second-tier market can come with significant financial costs. 
Corporate borrowers can often be burdened by unexpected and significant fees when they discharge their obligations. The fine print in loan documentation can stipulate higher interest rates than what has been used in marketing materials. If there is a breach of the terms, the higher rate will apply and the discounted rate evaporates. 
Another “predator” technique is reliance on strict notice provisions to discharge loans. There are cases when notice is provided, but has not taken the form required under the terms, such as an email instead of a fax. Lenders will reject that effective notice has been given and continue the loan for an additional 
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period, or apply default interest based on defective notice if the loan extends beyond the original term. 
The biggest sting comes when borrowers seek to discharge a loan and settle the arrangement, as in the depths of the paperwork there is usually a “term fee” or “capital repayment fee“. On settlement on the loan, lenders claim a percentage of capital and this is typically an unexpected cost and a significant burden for the borrower. 
Lenders cite risk as the reason for these fees, state that the terms and conditions have disclosed all fees and also rely on a Lawyer’s Certificate to confirm that the terms have been explained to the borrower. 
Furthermore, if a lender considers that the borrower is a future litigation risk, they will demand a Deed of Release be signed to absolve the lender from any claims as a condition of settlement. This effectively strips the borrower of future rights and can leave them in a position where loans rack up exorbitant interest at super-charged interest rates in addition to hefty default fees without recourse. 
We desperately need to maintain quality lending practices and it is now up to the big four banks to develop funding solutions for corporate Australia and for regulatory bodies to open their eyes and look at ways to rein in second-tier lenders exploiting the market. 
Francis Farmakidis is a partner, at <a href="http://vobis.com.au/" target="_blank">Vobis Equity Attorneys</a>.
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jrobinson-rf4aSBido9

Warning that predatory second tier lenders are circling property sector

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<a href="https://theconversation.com/profiles/justin-malbon-110917" target="_blank">Justin Malbon, Monash University</a>
The <a href="https://sjm.ministers.treasury.gov.au/media-release/110-2017/" target="_blank">federal government will be forcing banks</a> to hand over half their credit data ready for reporting by mid-2018 (with the remainder available in 2019).
It seems rather quaint in the age of big data that the big four banks have been able to hold onto their treasure troves of loan data for so long. This data reveals how reliable we are at repaying our loans. This information is gold to a lender.
For the government’s proposed legislation to work well, it would need to ensure effective regulatory systems are in place to protect our data and avoid more mortgage stress. To achieve this, lessons need to be learned from the US experience.
The new legislation on credit data promises to open up the consumer credit market to increased competition. This may in turn lead to cheaper loans.
Nimble competitors using new technologies could offer consumers innovative loan products at competitive interest rates. Non-traditional lenders could aggressively expand their market share at the expense of the banks. Consumers would seem to be the beneficiaries.
<h2>Lessons from the global financial crisis</h2>
Australia has long maintained one of the most restrictive <a href="https://books.google.com.au/books?hl=en&amp;lr=&amp;id=if2xjLv74HYC&amp;oi=fnd&amp;pg=PA273&amp;dq=J+Barron+and+M+Staten+%E2%80%98The+Value+of+Comprehensive+Credit+Report:+Lessons+from+the+US+Experience%E2%80%99+in+Credit+Reporting+Systems+and+the+International+Economy+(MIT+Press,+Cambridge+Mass,+2003)+&amp;ots=uD2_nMsTmX&amp;sig=NcDHHieq7GRoeLAbY_lYdMrYmcI#v=onepage&amp;q&amp;f=false" target="_blank">credit reporting systems amongst OECD countries</a>. Australia’s reporting system had only allowed credit reporting agencies such as Equifax and Dun and Bradstreet to report on consumers’ bad credit histories. These histories include things such as bankruptcies, and late loan and rental repayments.
The US system already has required reporting of the positive aspects of a consumer’s credit behaviour, including their timely loan repayments. This has enabled companies to develop statistical scoring models to estimate a consumer’s loan default risk with remarkable accuracy. Credit scoring became the cornerstone for underwriting <a href="https://books.google.com.au/books?hl=en&amp;lr=&amp;id=if2xjLv74HYC&amp;oi=fnd&amp;pg=PA273&amp;dq=J+Barron+and+M+Staten+%E2%80%98The+Value+of+Comprehensive+Credit+Report:+Lessons+from+the+US+Experience%E2%80%99+in+Credit+Reporting+Systems+and+the+International+Economy+(MIT+Press,+Cambridge+Mass,+2003)+&amp;ots=uD2_nMsTmX&amp;sig=NcDHHieq7GRoeLAbY_lYdMrYmcI#v=onepage&amp;q&amp;f=false" target="_blank">decisions for consumer loans</a>.
Unsurprisingly, this led to intense competition. With more accurate data, lenders no longer had to assume that low income consumers represented a higher risk of defaulting on their loans.
With customer loan histories being made available to competitors, low income consumers with a history of being reliable repayers were offered loans. As competition intensified, an ever-expanding <a href="https://www.emeraldinsight.com/doi/abs/10.1108/S0733-558X%282010%29000030A008" target="_blank">sub-prime loan mortgage market developed</a>. Shoddy loan practices became rife, setting the stage for the 2008 global financial crisis.
Australian households overall are <a href="https://www.imf.org/en/Publications/GFSR/Issues/2017/09/27/global-financial-stability-report-october-2017" target="_blank">already heavily in debt</a>. Intense competition resulting from the proposed new legislation risks pushing households deeper into debt. Low income consumers risk becoming more vulnerable to falling into debt traps.
Partly in response to the global financial crisis, Australia introduced responsible lending obligations on lenders, which are designed to stop loans to consumers who lack the capacity to repay them. However, the US subprime experience showed that lenders became adept at dodging the rules, and regulators <a href="https://global.oup.com/academic/product/the-subprime-virus-9780195388824?cc=au&amp;lang=en&amp;" target="_blank">appeared to lack the will to enforce them</a>. The regulators will need to be particularly vigilant to avoid this occurring in Australia.
Compelling the big banks to release loan histories to third parties, such as credit reporting agencies, raises further risks that need to be closely attended to. Lenders will either create their own credit scoring models from the data provided by the banks, or rely on the scores produced by credit reporting agencies.
A bad or inaccurate score will have serious implications for a consumer. They may either be refused loans, or only be offered interest rates that are higher than if their score had been accurate.
There needs to be effective systems in place to ensure consumers have ready access to their score, and that they be able to challenge any inaccuracies. Informational transparency should apply for the benefit of both lenders and consumers.
Yet another risk is that our personal loan information will be stolen by criminals. Earlier this year, credit rating agency Equifax was subjected to a cyber attack affecting <a href="https://www.theguardian.com/technology/2017/oct/11/personal-details-of-almost-700000-britons-hacked-in-cyber-attack" target="_blank">over 143 million Americans and over 600,000 Brits</a>. Australia’s largest credit reporting agency, Equifax Pty Ltd, is a wholly owned subsidiary of Equifax Inc.
The data breach is subjecting US and UK consumers to increased risks of identity fraud and targeted scams. Requiring the banks to release our loan data to third parties increases the risk of data breaches.
Increased competition can offer considerable benefits for consumers. However, overheated competition risks damaging the interests of individual consumers, and the economy as a whole.
<img src="https://counter.theconversation.com/content/86757/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">Consumers also face the increased likelihood of data breaches. The federal government and its regulatory agencies will need to be highly alert to these dangers, and ever vigilant.
<a href="https://theconversation.com/profiles/justin-malbon-110917" target="_blank">Justin Malbon</a>, Professor of Law, <a href="https://theconversation.com/institutions/monash-university-1065" target="_blank">Monash University</a>
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/forcing-the-banks-to-hand-over-our-credit-history-might-help-with-a-home-loan-but-it-has-risks-86757" target="_blank">original article</a>.
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Forcing the banks to hand over our credit history might help with a home loan but it has risks

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Core Logic measures housing affordability in four different ways, the methodologies of which are detailed below:
<ul>
<li>The ratio of median dwelling prices to median gross annual household income. Utilising median household income data which has been modelled by the Australian National University Centre for Social Research and Methods (ANU) and median dwelling price data from CoreLogic we determine the ratio of dwelling prices to household income over time. For example, a dwelling price to income ratio of 5 implies that the typical household will spend five times their annual gross income to purchase the typical dwelling outright within the same region. 
</li>
<li>The number of years of gross annual household income required for a 20% deposit. Using the ANU’s modelled household income data we provide a measure of affordability for those households that don’t yet own a home. This analysis looks at how many years of a household’s annual gross income is required to pay a 20% deposit, based on the median priced dwelling. For example, a city where the median dwelling price is $600,000, a 20% deposit would equate to $120,000. If the median household income was $100,000, the deposit would comprise 1.2 years of the gross annual income for the household.  
</li>
<li>The proportion of household income required to service an 80% loan to valuation ratio (LVR) mortgage. This measure is based on mortgage serviceability and is more applicable for households that already servicing a mortgage. Assuming the owner has borrowed 80% of the median selling price (i.e. they had a 20% deposit) and are making their mortgage payments based on the discounted variable mortgage rate for owner occupiers (4.5% as at June 2017), we measure the proportion of annual household income required to service the mortgage. For example, for a region with a median dwelling price of $600,000, the typical loan amount based on an 80% LVR would be $480,000. Based on the current discounted variable mortgage rate and annual household income of $100,000, the household would be dedicating 32.0% of their gross annual household income to servicing the mortgage. 
</li>
<li>The proportion of gross annual household income required to pay the rent. Utilising household income data and the median weekly rent we measure what percentage of household income is required to service their rental payments. For example, a household with $100,000 annual gross income who is paying $600 per week in rent would be dedicating 31.2% of their annual gross household income to pay their rent.</li>
</ul>
The latest data to June 2017 indicates that, despite the cash rate remaining stable at record lows, housing affordability has generally worsened over the most recent quarter. The changes in affordability at a national level are detailed below: 
<ul>
<li>Dwelling price to household income ratio The national dwelling price to household income ratio was recorded at 6.8 in June 2017, with a higher ratio for houses (7.0) compared with units (6.3). The ratio increased over the quarter for houses and units however, 15 years ago the ratios were much lower at 4.5 for houses and 5.1 for units. The measure for houses is currently at an historic high while for units it has moderated slightly from a high of 6.5 in early 2015. 
</li>
<li>Years of household income required for a 20% deposit A 20% deposit was equivalent to 1.36 years of gross household income at the end of June 2017, with the figure recorded at 1.40 years for houses and 1.26 years for units. At the same time in 2002 it took 0.92 years to save a 20% deposit, 0.89 years for houses and 1.02 years for a unit. As the cost of housing has increased and household income growth has slowed it has become increasingly challenging for some segments of the market to raise a 20% deposit which has required a longer period of savings in order to enter the housing market. 
</li>
<li>Proportion of household income required to service an 80% LVR mortgage At the end of 2016-17 financial year it took 36.2% of the median gross annual household income to service a mortgage, with the proportion higher for detached houses (37.2%) and lower (33.7%) for units. Although mortgage rates have fallen over the past year, the ongoing increases in dwelling prices and low level of household income growth means serviceability has deteriorated. Despite the higher reading over the June quarter, mortgage serviceability is currently at similar levels to what was recorded in early 2004, highlighting how lower interest rates have made it easier for home owners to service and pay off their mortgage debt. 
</li>
<li>Proportion of gross annual household income required to rent a home Over the past 15 years there has been very little movement in the proportion of household income required for rent. This highlights that increases in rental costs are constrained by movement in household incomes. At the end of June 2017, 27.6% of the median gross annual household income was required to pay rent with the figures similar for houses (27.2%) and units (27.6%) across the country. The data also highlights that despite historic low interest rates, it generally remains cheaper to rent than to take out a mortgage in many areas.</li>
</ul>
For the purposes of this analysis we have just focussed on two metrics, the dwelling price to household income ratio and the proportion of household income required to service an 80% LVR mortgage.
Dwelling price to household income ratio
<img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-10/2017-10-30-blog_img1.png" alt="2017-10-30--affordabilityblog_IMG1" width="570" height="344">
The above charts highlight how much of the deterioration in housing affordability, based on a dwelling price to household income ratio, is occurring in Sydney and Melbourne. Five years ago Sydney’s ratio was 6.7 times and Melbourne’s was 6.5 times, fast forward to June 2017 and the ratios sit at 9.1 times and 7.5 times respectively.
Over the past five years, median dwelling prices in Sydney have increased by 59.6% and Melbourne prices are 29.9% higher. Meanwhile, Sydney household incomes are 18.4% higher and Melbourne household incomes are up 13.2%.
Outside of Sydney and Melbourne, most other capital cities have actually seen very little change in affordability over the past five to ten years based on this metric. This highlights that while deteriorating housing affordability is viewed as a national problem, Sydney and Melbourne (where 40% of the population live) is very much the focal point.  
<img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-10/2017-10-30-blog_img2.png" alt="2017-10-30--affordabilityblog_IMG2" width="570" height="343">
Proportion of household income required to service an 80% LVR mortgage 
This analysis takes into consideration mortgage rates and the impact of changes in them over time. Keep in mind that this analysis relates more to the cost of servicing a mortgage so is related more so to someone that already owns a property whereas the price to income ratio is more about the cost of entering the housing market.
This analysis highlights that not only is it more expensive to enter the market in Sydney and Melbourne but once you own a home the mortgage currently eats up a much larger chunk of household income than it does elsewhere.
Mortgage rates for owner occupiers are at historic lows however, someone buying under these conditions would still be spending 48.4% of their gross annual household income to service that debt in Sydney and 39.9% in Melbourne. Of course, these figures have been higher peaking at 54.4% in Sydney in March 2008 and at 49.1% in June 2008 in Melbourne.
Importantly, in March 2008 mortgage rates sat at 8.7% and in June 2008 they were 8.85% compared to rates of 4.5% in June 2017. Outside of Sydney and Melbourne the cost of servicing a mortgage is much lower but again, it is important to remember that mortgage rates for owner occupiers are at historic lows and likely to start moving higher at some stage, potentially in 2018 or 2019.
The data presented highlights that housing is expensive across the country and that over recent years housing affordability has deteriorated however, much of that deterioration has occurred in Sydney and Melbourne where the pace of capital gains has far exceeded growth in household incomes.
The latest CoreLogic Home Value Index data shows that dwelling value growth is slowing however, moderate falls are unlikely to result in a significant improvement in housing affordability. As mentioned, despite mortgage rates for owner occupiers tracking at record lows, servicing a mortgages is taking-up a large proportion of household incomes in Sydney and Melbourne. 
Should mortgage rates start to rise without a commensurate rise in household incomes it will mean that households will have to spend an increasingly greater proportion of their household income to service their mortgage. If that was to occur it would likely impact on other areas of the economy, particularly with regards to areas of expenditure such as retail trade.
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ckusher-ujnxiKuFQs

Mortgage rates for owner occupiers are at historic lows: Cameron Kusher

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GUEST OBSERVER
The Reserve Bank of Australia could join the likes of Estonia and Lebanon in creating a cryptocurrency based on the Australian dollar, to reap the benefits of technology like the blockchain but with more stability than other well known currencies like Bitcoin.
The RBA has already been approached by interested startups to create this new digital currency, known as the “DAD” or Digital Australian Dollar.
In contrast with other cryptocurrencies a state-backed digital currency has the advantage of being backed by the government as in fiat currency, but at the same time has the technological advantages shared by other cryptocurrencies.
A digital Australian dollar could remove the role of middlemen and create a cheaper electronic currency system, while at the same time enabling the government to fully regulate the system.
It would also allow transactions to settle faster (several minutes to an hour) than the traditional banking system (several hours to several days), especially in a situation where an international payment is involved.
The difference between a digital Australian dollar and Bitcoin
We already use the Australian dollar in a digital form, for example paying via your smartphone. But banks are essential in this system, moving money on our behalf.
When using a cryptocurrency, you interact with a system like the blockchain, an online ledger that records transactions, directly. Bitcoin, Litecoin, and Ethereum are examples of cryptocurrency that use the blockchain in this way. These currencies are created by the community that use them and are accepted and trusted within the community.
However, since the community runs the system, the price of the cryptocurrency solely depends on the market mechanism. When the demand increases, the price increases, but when the demand decreases, the price also decreases. While it might create an opportunity for speculators to gain profit from trading, it also creates risk for the cryptocurrency holders.
In comparison to cryptocurrency, the digital Australian dollar might be well managed that the price volatility could be reduced significantly. The government holds the capability of increasing or decreasing the money supply in the system. This power can be used to stabilise the market supply of the new digital currency.
The blockchain technology also reduces the fee for every payment made. This is made possible by removing the role of banks or other intermediary parties charging fees for their services. However, a small transaction fee still needs to be introduced to protect the system from being flooded by adversaries with insignificant transactions.
The characteristics of cryptocurrency itself might limit its usage to daily transactions. As the pioneer of cryptocurrency, Bitcoin was created to become a payment system, but the users gain incentive by simply saving their cryptocurrency and not using them to purchase goods or services.
They believe the future price of the cryptocurrency is higher than the current price and thus does not make a good medium of exchange nor a store of value. There is no guarantee that the cryptocurrency will hold any value in the future. Since there is nothing to back up the value, users will lose their wealth when the community no longer acknowledges the value of cryptocurrency.
Cryptocurrency might also jeopardise the local government’s effort of implementing regulations to minimise illegal activities. Perpetrators create cryptocurrency transactions easily without being detected by the government’s financial monitoring system.
The privacy features of cryptocurrency also make it hard for law enforcement agencies to determine the actors behind illegal activities. Although most governments in the world have enforced the coin exchange services to identify their users, the operation of the cryptocurrency is beyond their reach.
There are other state-backed digital currencies
The idea of creating a national cryptocurrency is not new. Estonia has explored ways to create Estcoin, following an initiative on the blockchain-based residency registration called e-Residency. Lebanon’s central bank has also started to examine the possibility of creating one.
Despite the efforts of those central banks, several questions must first be addressed before launching the real product to the public. The user’s financial data could be exposed since the blockchain will make all transactions created in the system transparent.
<img src="https://counter.theconversation.com/content/86621/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">Consumer protection is also a concern since all transactions made in the blockchain are permanent without the possibility of being reversed. Without firm solutions to those problems, the digital Australian dollar will not satisfy all requirements to be the next groundbreaking innovation for the country’s financial system.
Dimaz Wijaya, PhD Student, Monash University
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/why-the-rba-would-want-to-create-a-digital-australian-dollar-86621" target="_blank">original article</a>.
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Why the RBA would want to create a digital Australian dollar: Dimaz Wijaya

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<div>
Westpac Group hopes to thwart "liar loans" by introducing stringent tests on residential property borrowers' existing and future capacity to meet repayments.
<div>
Mortgage brokers' onus of proof will be switched from establishing whether a loan is suitable for a client to making a declaration as to why it is "not unsuitable".
<div>
There are concerns lenders and brokers, paid by commission linked to the size of the loan, have overestimated borrower incomes and underestimated expenses.
</div>
<div>
<a href="https://www.afr.com/business/banking-and-finance/liar-loans-hit-500b-mortgagors-are-more-stretched-than-banks-believe-ubs-20170911-gyew5j">Investment bank UBS estimated recently there are about $500 billion</a> "liar loans", which could cause problems when rates rise from record lows.
<a href="https://www.afr.com/business/banking-and-finance/banks-face-margin-squeeze-as-borrowers-forced-out-of-interestonly-loans-20171016-gz1ury">The tough new lending changes </a>from November 14 will apply to Westpac and Bank of Melbourne, BankSA and St George Bank.
</div>
</div>
<div>
"Westpac is committed to responsible lending and meeting our conduct obligations," a bank spokesman told Fairfax Media.
<div>
"The questions are designed to help understand your client's motivations and align the product to their requirements."
</div>
<div>
"The declarations are there to prompt [a mortgage broker] to explain the implications of product choice and their features so a client can make more informed decisions."
 Clients will even be quizzed on having dependents with special needs that might require long-term spending on care and treatment.
It will apply to eight types of loans including fixed interest, interest only, loans for refinancing and debt construction and mixed purpose.
</div>
</div>
</div>
<div>Questions will cover clients' foreseeable changes, but also special circumstances, such as those approaching retirement age during the loan term.</div>
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"Liar loan" crackdown by Westpac, St George, BankSA, BoM loan applicants

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The Reserve Bank is set to leave interest rates unchanged again when it meets next Tuesday, according to an analysis of 23 leading economic indicators.
Comparison website <a href="https://ratecity.com.au/" target="_blank">RateCity.com.au</a>’s ‘Rate Forecaster’ found that 21 of the 23 indicators suggested the RBA would leave the official cash rate at a record-low 1.50 per cent, where it has been since August 2016.
It’s now been seven years since the Reserve Bank lifted the official cash rate.
RateCity money editor Sally Tindall said it is unlikely the RBA will hike rates anytime soon.
“It’s incredible to think there is a now a large number of first home buyers who’ve never experienced a rate hike. Seven years is a long time between increases.
“However, when the RBA meets on Tuesday there is currently no strong case to move official interest rates.
RateCity’s analysis of official data shows there has been little change in GDP, unemployment, construction, auction clearance rates and retail sales figures.
“Lower than expected inflation figures and wage growth stalling at just 1.9 per cent provide an argument for the Reserve to cut rates, but that’s unlikely.
<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/2017/11/2/inflation5.jpg" alt="">
<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/2017/11/2/Wages1.jpg" alt="">
“The RBA will also be concerned Australia’s household debt-to-income level increased from 190.0 per cent to a record 193.7 per cent in the last quarter – a worrying trend that that leaves them in a difficult position.
“If they hike rates, they will risk sending thousands of Australians into financial hardship. Conversely, if they lower rates, it will encourage others to take on more debt.
<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/2017/11/2/Debt4.jpg" alt="">
“In short, it’s hands are tied until wages growth, and the broader economy, strengthen.
“Until then, home owners can rest easy in the knowledge that their mortgage repayments won’t be increasing anytime soon,” said Tindall.
<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/2017/11/2/Econ3.jpg" alt="">
 
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RBA’s seven-year itch: the growing number of Australians who’ve never experienced a rate hike

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The Reserve Bank of Australia (RBA) released its Financial Aggregates figures for the month of September 2017, which revealed a softer month for credit growth ex-housing, with total credit growth still tracking at +5.4% over the year. 
Annual business credit growth is no more than ticking along (+4.3%), while personal credit remains in negative territory. 
Housing credit expanded by +6.6% over the year to September, actually a little faster than the +6.4% pace seen a year earlier, contrary to what you might think.
However, a closer inspection shows that the monthly rate of growth was +0.48% in seasonally adjusted terms, the slowest increase since March 2016, so lending constraints are gradually taking effect.
Total housing credit is now sitting at a tick under $1.7 trillion.
Still powering along for now then, although there has been a concerted push to get borrowers off interest-only products lately. 
<a href="https://4.bp.blogspot.com/-VyrolIM2qwM/WfiUErmafEI/AAAAAAAAmzQ/qJxnfgl2pGsGhtlVvAkW5Mc1SrihyYiVwCEwYBhgL/s1600/RBA.jpg"><img src="https://4.bp.blogspot.com/-VyrolIM2qwM/WfiUErmafEI/AAAAAAAAmzQ/qJxnfgl2pGsGhtlVvAkW5Mc1SrihyYiVwCEwYBhgL/s640/RBA.jpg" width="640" height="380" data-original-height="833" data-original-width="1400"></a>
The purpose of some $59 billion of loans has now been switched from investor to owner-occupier since July 2015.
The RBA data showed that after accounting for loan switching, the growth in investor credit slowed to +7.2%, with further declines almost certain to follow. 
Watch your speed
APRA also released its monthly ADI figures, which showed investor credit growth slowing to a crawl - implying that the non-banks have picked up some market share in this sector - with the total value of owner-occupier loans up by +0.48% in the month. 
None of the major banks is now even remotely close the 10% 'speed limit' or regulatory threshold for investment lending, with only Westpac of the main players still pushing this sector along. 
<a href="https://2.bp.blogspot.com/-Q1KGns0a0u4/Wfjbk122nmI/AAAAAAAAmzw/wMne730nv6QKoU4k3kOGWmAuv6DoPzvZQCLcBGAs/s1600/APRA.jpg"><img src="https://2.bp.blogspot.com/-Q1KGns0a0u4/Wfjbk122nmI/AAAAAAAAmzw/wMne730nv6QKoU4k3kOGWmAuv6DoPzvZQCLcBGAs/s640/APRA.jpg" width="640" height="386" data-original-height="827" data-original-width="1368"></a>
A number of the second-tier lenders, including Suncorp, Macquarie, and others, have significantly cut back their investment mortgage exposure, perhaps suggesting some regulatory pressure. 
The wrap
While total housing credit is still rising at a solid pace, investor lending is clearly being snipped back sharply.
With population growth now tracking at historically high levels <a href="https://petewargent.blogspot.co.uk/2017/09/population-growth" target="_blank">as I looked at here</a>, it remains to be seen whether rents begin to rise sharply in the two largest cities in 2018 (personally, I believe that this is likely, especially in Melbourne, though few appear to agree with me at this juncture). 
The major banks are now growing their investment loan books at way below the arbitrary 10% cap, so theoretically at least investor loans could begin to feature more prominently again next year, but this may need the regulator to remove its foot from lenders' throats.
New home sales plunge 
In other news, new home sales continued the decline begun in 2015 with another -6.1% drop in September 2017, according to Housing Industry Association (HIA) figures.
<a href="https://3.bp.blogspot.com/-sgUUszsRNUI/Wfjb5Uoa7AI/AAAAAAAAmz0/hivavx8-7-k1Cv8pYtl358qVwZSnONLdQCLcBGAs/s1600/HIA.jpg"><img src="https://3.bp.blogspot.com/-sgUUszsRNUI/Wfjb5Uoa7AI/AAAAAAAAmz0/hivavx8-7-k1Cv8pYtl358qVwZSnONLdQCLcBGAs/s640/HIA.jpg" width="640" height="404" data-original-height="461" data-original-width="727"></a>
The drop was driven by a significant -16.7% drop in multi-unit sales.
New home sales are a leading indicator for building approvals, and following the longest ever upturn in building there now comes the dwelling construction downturn. 
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pwargent-M4siyDbqQY

RBA data shows the brakes on lending: Pete Wargent

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Hi Margaret,
I converted my main residence to a rental property and bought a house to live and then sold the old/rented property. The property was my principal home, built in 2009 and I occupied it from 2009 to 2015. I then rented and sold it with settlement in 2017 February. 
When calculating capital gains tax (CGT) for my old property, can I add unclaimed interest and rates  to the market valuation I got from when it first started producing income? 
For rental schedule can I include interest up to settlement date, even though the rental contract ended?
Thanks,
Todd
 
Hi Todd, 
When a former family home is subsequently rented out, there are specific rules around the subsequent capital gains tax treatment which will now apply to you.
If you do not wish to claim your principal place of residence on any other property, you can employ the absence rule which allows you to rent that property out for up to six years and, if you either sell it or move back into it within that time, you still don’t accrue a capital gains tax responsibility.
In your case, you may decide to shift that exemption to the new home you bought from the date you moved in, in which case there will be a small CGT liability for you.  Assuming you have a valuation from the date you moved out, you can reset the cost base to being that market valuation, and CGT will apply to any gain made since that time.  As your contract date is December 2016, it will qualify for the over 12 months hold period for the discount, and so the gain will be halved and then CGT applies according to your marginal rate of tax, on that amount.
You ask if you can add any unclaimed interest and rates which occurred while you lived in the property to the market valuation.  The answer to this question is no – as it was a principal place of residence, and these items have no benefits attached.  The market value is the cost base, and it is only any expense incurred after the property becomes income producing which become allowable deductions.
As for the interest, costs associated with owning a rental property can only be claimed as a yearly deduction when the property in question is ‘available’ for rent, and your property ceased being available when the rental contract ended.  However, you may be able to account for this interest in the calculations for assessing the amount of gain – essentially they may become an addition to that cost base.  It’s important that you chat to your accountant about this, as they are qualified to know all of these little nuances of property tax law, and can guide you to ensure that your tax return is prepared legally.
Kind regards,
Margaret
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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