Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Joel Robinson

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

A local downsizer has splashed $6.5 million on a penthouse in Perifa's Alex &amp; Willow development in Crows Nest. 
&nbsp; 
The purchaser sold their long-held family home in the area before embarking on a six-month search for the right apartment. After inspecting a range of options across the Lower North Shore, the buyer returned to <a href="https://www.apartments.com.au/new-apartments/alex-willow-crows-nest-82-90-alexander-street-crows-nest-nsw-2065">Alex &amp; Willow</a>. 
&nbsp; 
The buyer profile reflects the project’s broader purchaser mix. <a>Alex &amp; Willow</a> has attracted predominantly local downsizers looking to transition from larger homes without compromising on space or quality, alongside a smaller cohort of upsizers and investors drawn to the project’s location and design credentials. 
&nbsp; 
The milestone sale comes as the project, developed by&nbsp;<a href="https://www.apartments.com.au/developers/perifa">Perifa</a>&nbsp;and delivered by <a href="https://www.apartments.com.au/builders/versatile-made-construction">Versatile Construction</a>, both part of Versatile Group, reaches 60 per cent sold.

[smartcode_project:default project_id=6680 project_image_fid=371325] 
&nbsp; 
Eddie Mansour, Managing Partner of <a href="https://www.apartments.com.au/project-marketer/ray-white-projects">Ray White Projects</a>, said the result demonstrates not only a headline price but also depth of demand. 
&nbsp; 
“This is an exceptional outcome and a clear reflection of sustained buyer demand for premium, well-located downsizer product,” Mansour said.

“We’re seeing a consistent pattern of local homeowners selling family residences and reinvesting into high-quality apartments that allow them to remain within their community. Alex &amp; Willow has resonated strongly with this group because it offers genuine scale, thoughtful design and immediate proximity to the village.” 
&nbsp; 
The sale reflects a broader and consistent trend of local downsizers actively seeking high-quality, low-maintenance residences close to established village centres. Agents report that demand for this product type has remained resilient, particularly where developments offer a rare combination of scale, design quality and walkable amenity. 
&nbsp;&nbsp; 
Fabrizio Perilli, Managing Director of Perifa and Versatile Group, said the sale marks a defining moment for the project. 
&nbsp; 
“The penthouse sale is a strong endorsement of the quality we have delivered, alongside our partners, and the clear demand from local downsizers for premium, boutique residences in this location,” Perilli said.&nbsp; 
&nbsp; 
“Most importantly, we’re proud to see the Alex &amp; Willow community beginning to take shape. As we move closer to completion, we’re looking forward to welcoming residents and seeing the project come to life.”&nbsp;

[smartcode_project:default project_id=6680 project_image_fid=338516] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/nettletontribe">Nettleton Tribe</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richards Stanisich</a>, Alex &amp; Willow is a boutique collection of generously sized two- and three-bedroom residences in the heart of Crows Nest village.&nbsp;

Completion is slated for early 2027.

[smartcode_project_cta:default project_id=6680]

Alex & Willow, Crows Nest penthouse sells off the plan for $6.5 million

Fresh from launching the first stage of its Wollongong precinct, <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, builder-developer Urban Property Group has unveiled plans for the next phase of the masterplanned community.

Now on public exhibition through the NSW Government's Housing Delivery Authority pathway is a State Significant Development Application for a further 657 homes on the prominent gateway site opposite Beaton Park.

The proposal comprises three buildings, including two build-to-sell towers rising 25 and 30 storeys, delivering 391 apartments, alongside a 12-storey co-living building with 266 residences, making it one of the largest co-living proposals currently planned in regional New South Wales.

Of the apartments proposed in the build-to-sell towers, the majority, 310, are two-bedroom dwellings. The balance comprises 44 one-bedroom apartments and 37 three-bedroom residences. Apartment sizes range from around 50 sqm for one-bedroom homes to approximately 90 sqm for three-bedroom apartments.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="19347059-1612-41a0-9c74-b86a657237f8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%2010.02.18%E2%80%AFAM.png?VersionId=sWXnaCcA.cIC6N8YT1dg5pJ2e1V3Z6z7" />

The submission says the proposal has evolved significantly from its original Housing Delivery Authority application following extensive consultation with the State Design Review Panel and Wollongong City Council.

The final scheme has been designed to align with the emerging vision for the Flinders Street Precinct, an area identified by Council as a future high-density mixed-use neighbourhood capable of accommodating substantial housing growth close to transport, employment and community infrastructure.

According to the design report prepared by COX Architecture, the development aims to "deliver a built outcome consistent with the future character of the Wollongong CBD while responding to the site's unique constraints and opportunities."

"Our vision for the next phase of the site evolution in Wollongong is grounded in three design pillars that guide the design response: place, natural environment and celebration," COX said.

"Inspired by its surroundings and grounded in the stories of place on Wodi Wodi Country, the design proposal acknowledges the established character of its setting while creating a unique and timeless identity that sits harmoniously within it.

"The design proposal responds to its specific site conditions, acknowledging the vegetation, climate, wind conditions and solar access of the site."

The architecture responds directly to the site's position between Wollongong's urban core and its natural landscape setting.

COX identified views towards Mount Keira and the Illawarra Escarpment as defining features of the site, while the upper levels of the towers will also capture expansive views across the city and out to the Pacific Ocean.

The design team has positioned the tallest buildings closer to the rail corridor, where overshadowing impacts can be better managed while establishing a landmark built form on the northern approach into the city.

<img alt="Smith St" data-entity-type="file" data-entity-uuid="79580d5b-500c-4ebf-9629-797146a4a694" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-10%20at%209.51.59%E2%80%AFAM.png?VersionId=WbTB1EKSG.KDfsfz0F3wp1QVa2oCMGR5" />

Urban Property Group secured the 11,000 sqm Smith Street site in 2022 and has since progressed plans for the broader Keira Place precinct.

Construction recently commenced on the first stage of Keira Place, which will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, alongside activated ground-floor retail and commercial space.

Urban Co-CEO Patrick Elias said the commencement of construction marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/groundbreaking-marks-start-of-construction-at-keira-place-in-wollongong-cbd">Groundbreaking marks start of construction at Keira Place in Wollongong CBD</a>

&nbsp;

&nbsp;

&nbsp;

Urban Property Group unveils trio of towers for next stage of new Wollongong precinct, Keira Place

Finance

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The Australian Bureau of Statistics (ABS) released housing finance data for July 2014 earlier this week. 
The headline result was the 0.3% rise in owner occupier housing finance commitments over the month.  In my opinion, a more significant result was the 6.8% monthly rise in investment lending. 
Investment lending had shown signs of slowing over recent months but has come surging back in July.
<img class="aligncenter size-full wp-image-3700" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-11.jpg" alt="Chart 1" width="500" height="182">
Looking at the value of housing finance commitments over the month, the total value increased by 2.7% in July (2.6% excluding refinances).  Owner occupier refinance commitments increased by 3.1%, owner occupier new mortgage commitments fell by -1.3% and investment finance commitments increased by 6.8%. 
Year on year, the total value of finance commitments has increased by 17.4% or 17.2% excluding refinances. The year on year increase in owner occupier refinance commitments was 18.6%, new home loan commitments to owner occupiers were 7.1% higher and lending to investors surged 29.6%. 
In the current climate, subsequent purchasers and investors are occupying the majority of housing finance demand.
<img class="aligncenter size-full wp-image-3701" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-21.jpg" alt="Chart 2" width="500" height="182">
Looking at the same data but focussing on the proportion of total lending reconfirms the high level of lending to investors and subsequent purchasers. 
In July, 41.4% of total mortgage lending was for new loans to owner occupiers, 18.3% was to owner occupiers for refinances and 40.3% was to investors.  The 41.4% of total commitments to owner occupiers (excluding refinances) was the lowest proportion of lending to this cohort on record. 
Conversely, at 40.3% of all mortgage lending, investment lending was at its highest proportion since October 2003 (and second highest ever).  If you remove refinances from the equation 49.3% of lending was to investors which was a record high.
<img class="aligncenter size-full wp-image-3702" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-31.jpg" alt="Chart 3" width="500" height="181">
Data focussing on the number of loans to owner occupiers shows there were 52,251 owner occupier commitments in July.  The number of commitments rose by 0.3% over the month however, it has recorded only a moderate 1.7% rise year on year. Loans for refinancing purposes increased by 2.4% over the month and 6.6% year-on-year compared to a -0.7% fall in non-refinanced loans over the month and a -0.7% fall over the year. 
This data and the data previously detailed suggest that demand from owner occupiers for new loans has slowed with investors and refinances currently driving activity.
<img class="aligncenter size-full wp-image-3703" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-41.jpg" alt="Chart 4" width="500" height="179">
The owner occupiers that commit to finance overwhelmingly commit to finance for the purposes of purchasing an established dwelling. 
In July, there were 25,469 new owner occupier loan s (excluding refinances) for the purchase of established dwellings, 6,157 for construction of new dwellings and 2,871 for the purchase of new dwellings. 
Over the month, established dwelling commitments were down -0.7%, construction of dwellings were -1.3% lower and purchase of new dwellings was 0.5% higher. 
Year on year, commitments for the purchase of established dwellings are -3.6% lower while commitments for construction are 16.4% lower and commitments for purchase of new are -5.1% lower.
<img class="aligncenter size-full wp-image-3704" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-51.jpg" alt="Chart 5" width="500" height="181">
The number of housing finance commitments by first home buyers remains stuck at near record low levels. 
In July, there were 6,717 housing finance commitments to first home buyers, which accounted for 12.2% of total owner occupier commitments over the month. 
The number of first home buyer housing finance commitments is -2.2% lower over the month and -15.7% lower year-on-year.  While the number of commitments by first home buyers is lower over the year, the average loan size has risen by 7.0%. 
First home buyers largely remain on the sideline in the current market as investors and subsequent purchasers capture much of the mortgage demand.
<img class="aligncenter size-full wp-image-3705" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-61.jpg" alt="Chart 6" width="500" height="181">
Based on current mortgage rates, fixed rate loans generally have a lower interest rate than discounted variable loans. 
This is not necessarily unusual however, housing finance data showed that there were just 7,553 owner occupier finance commitments (or 13.7% of all owner occupier finance commitments) on a fixed rate in July.  The number of fixed rate loans has been trending lower after most recently peaking at 17.4% of all mortgage commitments in November 2013.
<img class="aligncenter size-full wp-image-3706" src="https://blog.rpdata.com/wp-content/uploads/2014/09/Chart-7.jpg" alt="Chart 7" width="500" height="264">
The RP Data Mortgage Index (RMI) which measures mortgage activity across RP Data’s proprietary platforms recorded a fall in August.  As this index is closely correlated with owner occupier housing finance commitments, we anticipate a fall in the number of owner occupier commitments next month when the ABS releases August data.
In volume terms, owner occupier loan demand is pretty steady and appears to be at or close to its peak.  Focussing on the value of lending it continues to climb as home values continue to increase. 
After seemingly topping out over recent months, investor commitments recorded a sharp rise in July.  As a proportion, investment lending is at its second highest monthly level ever and highest ever level if you exclude refinances.
The high level of investment lending remains a key area of concern.  With returns on safe asset classes extremely low many investors are purchasing property, mainly in Sydney and Melbourne where capital growth is strong and interest costs on loans are historically low.  As we have mentioned many times, such high rates of capital gain won’t continue forever and our concern remains what will happen if once the growth dissipates and interest rates move higher there may be a high number of these investors looking to exit property. 
We know that historically once value growth slows demand also eases, if these investors look to sell as demand drops a risk develops that value falls could become greater as these investors enter a discounting war in order to sell their homes. 
Obviously this may be good news for those first time buyers which are currently sidelined from the market, however it would be bad news for the two thirds of Australians that own or have a mortgage and have the majority of their wealth stored in their home in the form of equity.
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ckusher-ujnxiKuFQs

Investor demand for housing reaches an historic high

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First home buyers are often working with a different set of requirements than more experienced investors.
With fewer working years behind them, beginners are likely to have a smaller deposit to work with and fewer assets than upgraders or downsizers - and much less experience.
Financing is a large part - perhaps the largest part - of securing your own home, and many lenders are aware of the circumstances facing first home buyers.
Once upon a time, the Rudd government introduced First Home Savers Accounts, where savers could receive a government co-contribution of up to $1,020 on the first $6000 savers deposited each year. They were also eligible for a range of tax concessions, but were faced with a number of restrictions on when they could withdraw their money.
The First Home Saver Account scheme was <a href="/expert-insights/buying/four-things-you-must-know-about-the-axed-first-home-saver-accounts">scrapped by the Abbott government</a> this year, leaving some confused as to whether the <a href="/expert-insights/buying/do-the-first-home-saver-account-eligibility-requirements-still-apply">restrictions still apply to their accounts</a>. While ME Bank have <a href="/expert-insights/finance/me-bank-looks-for-an-answer-to-scrapping-of-first-home-saver-accounts">suggested they may offer a similar product</a> in the future, it has not yet eventuated.
Now, with no federal scheme supporting first home savers, it's up to them to seek out the best deals from lenders to finance their first purchase.
Lenders Mortgage Insurance
One option is seeking out a lender that will accept a small deposit. When putting down a deposit lower than the standard 20%, many lenders will require you to pay for lenders mortgage insurance (LMI), which will protect them against a loss should you default on your home. This isn't a product that is unique to first home buyers, but can be used by buyers across the board who don't want to make a 20% deposit.
While it might be <a href="/expert-insights/buying/what-can-you-buy-with-a-25-000-deposit">tempting to put down a 5% or 10% deposit</a> and pay the few thousand dollars for LMI, keep in mind that you're not exchanging money for equity in your home (as you would be if you increased your deposit size) and the money cannot be recovered when you sell your house.
Beyond grants, it's mostly up to mortgage brokers and lenders to deliver products that may make life easier for first home buyers. Here are some of the available options.
Guarantors
While some parents don't want to contribute money to their child's deposit, they can support a first purchase by acting as a guarantor. A guarantor has a legal obligation to pay back a loan if the borrower (often their child) can't continue making their repayments. Occasionally, a lender will require a guarantor to use their home or a large asset as security for a loan. Sometimes guarantors can set a limit on the amount they'll contribute to a loan.
With a guarantor, a first home buyer making a 10% deposit can often forgo or reduce LMI. A number of different lenders accept guarantors - Beyond Bank has a <a href="https://www.beyondbank.com.au/personal-banking/home-loans/first-home-buyers-loan" target="_blank">"Parent Equity" scheme</a>, while St George refers to the practice as a <a href="https://www.stgeorge.com.au/personal/home-loans/tools/home-loan-features/family-pledge" target="_blank">"Family Pledge"</a>.
While guarantees are often associated with parents, some lenders accept friends as guarantors. Resolve Finance offers guarantor home loans where a friend or family members use the equity in their own homes to guarantee a loan, allowing borrowers to go without a deposit.
While guarantors sound good, beware. If there is any doubt over your ability to repay your loan, you could end up costing your guarantor their home or retirement savings.
First home buyer packages
A number of lenders offer first home buyer "packages" or specialist products. The discounts or benefits they offer vary (as does their value).
Commonwealth Bank offers a <a href="https://www.commbank.com.au/personal/home-loans/first-home-buyer-offer?gclid=cotw6i6av8acfdr8vqodjbkaiw&amp;c" target="_blank">$1,000 cash bonus on your first loan</a>, which could be straightforward and appealing to some.
In South Australia, first home savers using <a href="https://www.homestart.com.au/buying-a-home/I-m/first-home-buyers" target="_blank">Home Start Finance</a> can make a deposit as low as 3% of the value of your loan, and the First Home Owner Grant is included in deposit calculations.
Meanwhile, <a href="https://www.bankmecu.com.au/borrowing/loan-packages/first-home-buyers-loan-package" target="_blank">bankmecu</a> offers a first home buyers loan package where borrowers can pay $350 per year in exchange for lower rates, three months free building insurance during settlement, 10% off  general insurance premiums and no monthly or additional repayment fees, subject to certain conditions.
Other lenders, such as the <a href="https://www.nicu.com.au/loans-home-loan-packages" target="_blank">North Ireland Credit Union</a>, get even more creative, with furniture vouchers and credit card incentives.
If you are considering a first home buyer package, go in with open eyes and take some time to do your calculations. Think about what's valuable to you - would you prefer to pay a set fee every year for the possibility of lower rates? This could be a worthwhile option, but only if the saving in interest is greater than your yearly fee. Don't simply take up first home buyer packages because they look good superficially, but consider as many loan options as you can.
In deals not exclusive to first home buyers, lenders are also <a href="/expert-insights/finance/record-low-fixed-rates-who-is-offering-them">offering record low rates: </a>ME Bank currently offers a 4.94% rate on their three year fixed rate loan. However, bear in mind that added flexibility offered by a variable loan. 
Take the time to look at the short-term incentives available, but don't forget - buying a home is a long-term commitment.
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jrichardson-uRX5hFdKfN

Finance deals for first home buyers 

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When rates are low, prices usually rise and first home buyers can feel shut out. 
But all is not lost if you stick to a few simple tips.
<ol>
<li>Deposit: Lenders want to see you have at least 5% of the purchase price as genuine savings (generally you'll need 10 per cent overall). You can top up with money from your parents or grandparents, but you have to show at least six months of your own savings. Start saving, now. </li>
<li>Savings: Set a goal for your deposit amount and save in a high-interest savings account that's separated from household expenses. Set a weekly deposit goal, use direct crediting and if you're a couple, have one person's income going directly into savings. </li>
<li>Reduce debt: Eliminate or reduce the limits on your credit cards and store cards. Lenders look at the limit on your cards, not your balance. </li>
<li>Grants: The First Home Owners Grant can help with your purchase. But it must be for a new home construction; you can't use it to buy the land and lenders will not treat the FHOG as part of genuine savings. Do your homework because the grant differs slightly between states. </li>
<li>Income: Lenders like to see stability and want to see evidence that you will repay the mortgage. So you should demonstrate at least six months (but preferably one year) of PAYG employment, or two years of financials and tax returns if you're self-employed. </li>
<li>Shop around: You can find variable rate mortgages in the range of 4.6 per cent to 6 per cent. The 1.4 per cent difference, on a 350,000 loan over 30 years, is worth more than $300 a month. </li>
<li>Marketing: Watch for "discount" mortgages and special low offers. The low rates last for a year or two and then revert to a much higher rate. Always look at the "comparison rate". </li>
<li>Fixed: Many first-home buyers like to balance their budget for a few years, and a fixed loan creates certainty. However, once in a fixed loan, your flexibility is restricted and you may encounter break costs if you want to sell or refinance. </li>
<li>Vary it: Variable rates fluctuate with the market but they are flexible, allowing you to repay higher amounts and deposit lump sums from bonuses and tax refunds, speeding your repayment. You can refinance a variable rate loan without penalty. </li>
<li>Offset: When you put all your income into a mortgage offset account, the balance pays down the mortgage by the amount you have in there each day. It stops interest capitalising against you as fast as monthly repayments. Offset accounts suit good budgeters. </li>
<li>Price: Don't be disheartened if you can't buy what you want - buy the next-best and build a strategy for your next property. </li>
<li>Advice: Mortgage brokers are excellent for insights, strategies and getting you a good result. They're worth talking to. </li>
<li>Always remember: When borrowing money and buying property, the same basic rules apply to everyone. So do your homework, be prepared, take some advice and go for it.</li>
</ol>
Mark Bouris is executive chairman of wealth management company <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, which sells financial advice and home loans.
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13 simple tips to help first home buyers save for a deposit

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Saving for a deposit - particularly on a single income - is a difficult task.
If you've cut back all you can but desperately want to purchase your own home, it can be done for less than you think.
A $25,000 home deposit may be tempting, but the reality is more difficult than it seems.
If you're only putting down $25,000 for your deposit, it's likely that you're only paying a 5% or 10% deposit, rather than the 10% to 20% that many people prefer.
Policies will change between lenders but if you're borrowing more than 80% of the value of your property, you'll most likely be required to pay Lenders Mortgage Insurance (LMI). LMI protects your lender against a loss if they sell your home after you default - essentially making up for the additional risk they take on when increasing the proportional value of your loan.
If you want to put down a small deposit, budget in your LMI payment. The two major LMI providers in Australia, <a href="https://www.genworth.com.au/borrower-centre/homebuyer-tools/lmi-premium-estimator/?gclid=CO2R6M2yprgCFQMwpAodTjQASA" target="_blank">Genworth</a> and QBE LMI, both offer calculators to help you budget in the additional cost. (For more on LMI, <a href="/expert-insights/investing/less-than-a-20-deposit-the-8-things-you-need-to-know-about-lenders-mortgage-insurance-lmi">see this article</a>.
While your LMI will most likely cost less than an additional 10% deposit, remember that you are not exchanging that sum for equity in your home - once your LMI payment is gone, it's gone forever - and you'll still have to pay that extra 10% you've dodged now to your lender later on (with interest).
Though buying a home with a $25,000 deposit now can speed up the home buying process, keep in mind the benefits of waiting until you're more financially secure before you purchase a home. It may be the case that <a href="/expert-insights/buying/the-10-signs-that-you-may-not-be-ready-to-buy">you're just not ready to purchase yet</a>.
And while it's probably the biggest financial hurdle you face in purchasing a home, the <a href="/news/vic/how-to-work-out-how-much-buying-a-home-costs">deposit isn't the only cost associated with buying a home</a>. 
But if you do have $25,000 in the bank that you're itching to invest, what can you buy? Assuming you need to pay a 10% deposit (and the bank will approve your loan), Property Observer has tracked down some bargain buys. For each of these homes, a first home buyer could expect to pay an additional $3,060 LMI premium, according to Genworth.
<ul>
<li><a href="https://www.realestate.com.au/property-house-qld-vincent-117792651" target="_blank">254 Palmerston Street, Vincent, QLD</a></li>
</ul>
<img src="/images/2014/08/29/palmerston%20aug%2029.jpg" alt="">
Vendors are accepting offers in the mid-$200,000s for this three bedroom Townsville Queenslander. The currently rented house is within walking distance of the Vincent primary school and shopping centre, and is set on a 731 square metre block.
<ul>
<li><a href="https://www.realestate.com.au/property-apartment-vic-carlton-117792195" target="_blank">523/800 Swanston Street Carlton Vic 3053</a></li>
</ul>
<img src="/images/2014/08/29/carlton%20aug%2029.jpg" alt="">
If you want something close to an urban centre, this one bedroom apartment in Melbourne's inner city is on the market for $180,000 plus. Tenanted until February next year at a 9.3% yield ($1,439 per month), the apartment is a ten minute walk to the CBD. However, it's micro sized, with only 32 square metres of floor space.
<ul>
<li><a href="https://www.realestate.com.au/property-apartment-wa-east+perth-117538663" target="_blank">22/45 Adelaide Terrace East Perth WA 6004</a></li>
</ul>
<img src="/images/2014/08/29/east%20perth%20aug%2029.jpg" alt="">
Another snug apartment is on offer in East Perth, with an asking price of $245,000. The 33 square metre studio apartment is currently rented out at $320 per week.
<ul>
<li><a href="https://www.realestate.com.au/property-house-nsw-scone-114888183" target="_blank">37 Scott Street Scone NSW 2337</a></li>
</ul>
<img src="/images/2014/08/29/scone%20aug%2029%20one.jpg" alt="">
This two bedroom weatherboard house in the Hunter Valley comes with a price guidance of $230,000. Set on a quarter acre block (1,012 square metres), the house has a lounge room with a separate dining area that could be converted to a third bedroom.
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What can you buy with a $25,000 deposit? 

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One of the biggest hurdles for many prospective first time home buyers and first time investors is affording the initial deposit.
While those who already own a home or asset have the ability to either sell or use any equity they have built up, novice investors will be required to stump up a sum of money to get their foot onto the property ladder.
However, short of "buying a cup of coffee less a week" (which is real 'advice' doled out to first timers on a regular basis), what are the actual savings tips that will let you get ahead?
Here are some collected tips on how to boost your savings, push up that deposit and see yourself purchasing a property sooner than expected. There are two basic areas to improve here – earning more or spending less.
Earn
<ul>
<li>Sell unwanted goods</li>
</ul>
If you're an average person in your 20s or 30s you will likely have accumulated a lot of unwanted "stuff". That is, clothes that you don't wear (often with tags attached for the shopaholics), outdated mobile phones, laptops and other electronics, and gifts you never wanted or never used. A bit of time and effort online can quickly turn these into extra space in your current home and cash in your pocket. Websites such as eBay and Gumtree require you doing very little other than uploading a description and some decent photographs. Also try Twitter and Facebook shout-outs.
<ul>
<li>Use your skills wisely</li>
</ul>
While you may not be able to take on that second job, you can still use your skills for some cash. Whether it's writing a freelance article, or creating art to sell online, there are some ways to have sideline projects. Former Property Observer journalist Nicola Trotman has <a href="https://luluscandles.com/" target="_blank">Lulu's Candles</a> - an online vegan soy candle shop - and a number of staff write freelance articles.
You may also be able to fix computer problems, or even teach people (many Community Colleges are looking for people to teach short courses and the demand for private tutors rarely eases off) or perhaps you can bake cakes to sell them to friends or at stalls. Online sites such as etsy.com can be really helpful, as can different markets that often allow you to set up a stall for a small fee. Remember to use flyers in your local area to advertise your services.
<ul>
<li>Do odd jobs</li>
</ul>
While it can be tedious to go from person to person to find out if there's anyone who might be willing to part with a bit of money in return for someone to do the run to the shops, there's now an online solution. The website <a href="https://oneshift.com.au/" target="_blank">One Shift</a> is getting even more popular as a way to get quick short-term employment for a little bit of extra cash.
<ul>
<li>Rent out your space</li>
</ul>
If you have a spare room (or garage space), or you could bring another tenant into your rental to share costs, then either of these can be a practical temporary option.
Tips on how you can save money by spending less are on the next page.
<hr class="system-pagebreak">
Spend less 
<ul>
<li>Home brand/basic brand everything</li>
</ul>
From medicine to baked beans, and from iPods to clothes, there's a generic brand available. If you're in savings mode then you should take full advantage of these cheaper alternatives. While they may not be quite as nice, it's rare that the extra cost actually translates into the product truly being that much better. Make sure you weigh the pros and cons up first. 
<ul>
<li>Keep a coin jar </li>
</ul>
Take out your cash from the ATM (and avoid those pesky $2+ charges at 'other' ATMs) for the week and spend no more than you have. Try to leave the credit and EFTPOS cards at home when possible and limit online buying by having a separate card and separate account where you can limit the money that you put in. Keep access to funds at a distance and provide obstacles, and see yourself spend less.
<ul>
<li>Cancel your unnecessary costs</li>
</ul>
Do you really use that gym subscription? Be honest with yourself about what services you are using and what you can cancel. If having a gym membership is important to you, then keep it, but if you're going once a fortnight then question the cost. Also consider your memberships to organisations, costly subscriptions to titles you may not read and other money drainers. See if there's a way you can minimise these costs as well - are you on any plans that you can bring down a level (or increase, if you're going over every month)? 
<ul>
<li>Get gifts you need</li>
</ul>
If your birthday is coming up, ask for things you'll actually use. Maybe get them to pay for your gym subscription or thr sunglasses that you've needed instead.
<ul>
<li>Shop around</li>
</ul>
You likely hear this one all the time, but if you can give your shipping trip a bit of extra time it'll be worth it. Most shopping centres have a Woolworths and a Coles, so pick up both brochures and look for deals. Keep an eye out for reduced food, and when it gets reduced through the day. Remember to consider secondhand goods and books as well - just as we mentioned selling your secondhand items above, you can also pick up the things you need far more cheaply on these sites.
<ul>
<li>Rent or borrow, don't buy</li>
</ul>
Your library, DVD rental (or iTunes rental) and your acquaintances can be used to good effect when saving money. Instead of buying that DVD you'll watch once for $25, go and pick up a $5 rental. Sign up to your library for books, CDs and DVDs (they also have magazine sections and regularly host free events). And ask friends when you need a bigger item. Perhaps you need a steam cleaner or you find yourself needing an unusual kitchen appliance - ask around and see if anyone can lend you one for the task. Consider sharing items such as books and magazines among friends as well - circulating these luxury items can save you a significant amount in the long term.
<ul>
<li>Use less or use what you buy completely</li>
</ul>
It sounds hard, but it's often just a case of looking a little closer at how you go about your day. If you have food leftovers, see what you can feed to your animals (check for allergens and unhealthy items first - such as avocado, dairy, raisins and more being dangerous for dogs). You might be able to turn some of the food into "other dishes", such as turning a curry one night running into a pie the second night, or turning spaghetti bolognaise sauce into a lasagna. However, these tips do not just apply to food - have a look at your other costs too. Consider using a two-in-one shampoo/conditioner, or toothpaste/mouthwash (a new product we've seen) that can often cost substantially less than buying and using both.
Some further tips and suggestions are on the next page. Please click below. 
<hr class="system-pagebreak">
Extra suggestions
<ul>
<li>Make the most of rewards points</li>
</ul>
Keep an eye on rewards cards and free store cards that can get you access to deals and offers. Ensure there aren't any excess costs to sign up and be a 'member' that may outweigh the benefits. Ensure you only use coupons when you were already intending to buy the item (or when it turns out to be the more economical alternative). There are a number of decent loyalty cards that can provide some significant benefits.
<ul>
<li>Track your spending using an app</li>
</ul>
Keeping an eye on what you're spending and where can be half the struggle. Luckily, if you're a smart phone user, then you can just download an app that will help you keep an eye on it. Consider MoneySmart if you're unsure where to start. For non-smartphone users, a simple written diary of costs and every time you purchase an item will do just as well - as will an Excel spreadsheet that you can update.
<ul>
<li>Check if you're using the best savings account</li>
</ul>
You may be on an interest rate that's low, or an account that charges excess fees when you take money out. Ensure you know the fine print for your accounts, and always check with your banking institution to see if there's a product that may better fit your personal situation. Many have multiple savings-style accounts.
<ul>
<li>Look towards DIY first when you need to fix something</li>
</ul>
You'd be surprised how many YouTube videos and online tutorials there are explaining how to fix some of the most niche items. We've heard of people using online tutorials to build fireplaces, fix car windows and more. While you want to make sure it's not another example of a "false economy" and that you will actually save money (and won't put yourself in danger), it's always worth seeing if you can reduce labour charges by doing it yourself.
<ul>
<li>Check your tax</li>
</ul>
Are you claiming all the exemptions you are entitled to? Sometimes not using an accountant is truly a false economy, and you really want to make sure you maximise your tax return. See the <a href="https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/" target="_blank">claimable deductions by profession</a> to ensure you have put everything on the list. Keep your receipts in order or recorded as you go.
<ul>
<li>Don't miss out on special offers</li>
</ul>
If you are looking to buy something online, the first thing to do is type the name of the shop or item into Google and search for 'coupons', 'promo codes' and 'offers' to see if anything comes up. Once or twice out of 10 you might net yourself a 10% decrease, an added bonus or even a free ticket. You might also want to sign up for free online newsletters (get yourself a 'dummy' email to send these to) for comedy clubs and different events and you'll often see significant reductions being offered to online members last minute. Just be wary that you don't buy anything you weren't initially intending to due to seeing the advertisement.
<ul>
<li>Don't forget to argue</li>
</ul>
If you have an unfair fine - put in a call (and take photos for evidence). They can only say no. And if you have done the wrong thing, pay it on time before it gets out of hand.
YOU MIGHT ALSO WANT TO READ <a href="/expert-insights/finance/getting-a-bigger-home-loan-seven-tips-to-boost-your-borrowing-power">Seven tips to boosting your borrowing power</a>
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Mastering your deposit: Tips to boost your savings

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If you are thinking of developing property then you will need to have a good understanding of construction finance.
As property developers, most of our clients like to highly gear their lending. That means, using as much funding from others to pay the builder rather than use their own cash reserves.
However, you may like to use a line of credit (LOC) set up against another property and/or cash on hand to fund your development. It will depend on your own situation and strategy.
You will require some cash to put into the deal of course for deposits on the land purchase and on the construction loan.  The loan to value ratio (LVR) will vary from lender to lender from just 50% up to 95% with lender's mortgage insurance (LMI).
What Is a Construction Loan?
A construction loan is specifically intended to be used to pay for the construction of new dwellings. The loan will be finalised once you have provided your lender with a number of documents including the DA consent for your project, the construction certificate, council stamped plans and your signed builder's contract.
If you are not sure who to use for construction lending, a good starting point is a mortgage broker. They will look at your individual situation and advise the right lender for you. 
However, make sure you do your finance due diligence before you buy the land/property you intend to develop. It's important the lender you use to finance the purchase of the land/initial property also offers construction loans as not all lenders do. You can brief your broker to only present lenders who offer construction loans.  Early identification of any issues that may impact on your lending, will mean a smoother process once your development application is approved.
Understanding the process
In the builder's contract there will be a draw down schedule. Some banks will accept this and others may ask for it to be changed to suit their policy.  Once your lender gives you unconditional finance approval, they will send a letter to the builder authorising the commencement of construction work.
The first drawdown or payment to your bank will be required after the slab or slabs are laid.  
The second due after frames and trusses are erected.
The third is typically due after brickwork, windows and roof coverings are completed.
The fourth payment will be paid after the internal linings (insulation, plasterboard or internal concrete walls, ceilings) and timber mould out or fit out. This includes timber architraves, skirtings and doors. This can be known also as 'lock up' stage.
The last payment is due after a practical completion inspection is done and you are happy the builder has completed all (but some minor touch ups which they usually have seven days to complete). Your bank will send a valuer out to check that all works have been completed before they pay the final payment to your bank.
At Property Bloom, our role is to ensure the builder meets these milestones before we instruct our client to authorize all payments. We also oversee any credits that may be due to our clients and variations that may be required. It's important property developers do hold a contingency fund for any unforeseen works that may be required that aren't included in the builder's contract. For example, rock excavation is almost always an excluded item and mostly cannot be determined until the site works commence.
It is also possible for you to take out a construction loan for the renovation of your existing home or an investment property. However, the process of applying for a construction loan for renovations may differ to that of construction lending on new dwellings, so be sure to check this with your lender.
What do you need to submit in your application for construction lending?
The more you understand what banks are looking for before you apply for a construction loan, the better this can play out for your development and make the processes as smooth as possible.
We've had some situations where the bank has taken literally six months to process and finalise a construction loan. This is not good for property developers because our main goal is to complete our project as quickly and efficiently as possible. If you are waiting this long before you can start to build, then holding costs can eat into your profit. Here's <a href="https://www.mortgagechoice.com.au/media/2590560/Construction-loans.pdf">a good overview</a> on what you will need to have ready to submit to your lender to ensure a successful loan application as well as required repayments.
Being financially prepared is just as important for property developers as doing your due diligence on the right location for your development and using the right builder.
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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Financial preparation is just as important as due diligence for property developers

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The total value of housing finance commitments increased by 1.0% in June 2014. 
The total value of housing finance commitment is 15.6% higher year-on-year.  Meanwhile the number of housing finance commitments to owner occupiers has increased by 0.2% over the month and has increased by just 2.4% over the 2013/14 financial year.
<img class="aligncenter size-full wp-image-3581" src="https://blog.rpdata.com/wp-content/uploads/2014/08/Chart-1.jpg" alt="Chart 1" width="500" height="179">
The total value of housing finance commitments continues to trend higher however; the strength of the investment segment has waned over recent months. 
Over the month the owner occupier segment fuelled the increase with refinances up 1.6% and non-refinances up 1.9% while investment lending fell by -0.3%.It was the first time investment lending has fallen over consecutive months since December 2012. 
Year on year, the value of housing finance commitments is 15.6% higher with owner occupier refinances up 14.8%, owner occupier non-refinances up 9.4% and investment loans rising 23.8%.
<img class="aligncenter size-full wp-image-3582" src="https://blog.rpdata.com/wp-content/uploads/2014/08/Chart-2.jpg" alt="Chart 2" width="500" height="181">
As a proportion of total lending, the level of lending for investment purposes remains inflated on an historic basis although it has eased slightly. 
Owner occupier non-refinance commitments accounted for 43.4% of total lending in June compared to 18.1% to owner occupiers for refinances and 38.5% for investors. 
Although investment lending has eased it continues to hover at around its highest levels since late 2003. Remember 2003 was the final days of the housing boom in both Sydney and Melbourne which commenced in 2001.
<img class="aligncenter size-full wp-image-3583" src="https://blog.rpdata.com/wp-content/uploads/2014/08/Chart-3.jpg" alt="Chart 3" width="500" height="181">
The number of housing finance commitments to owner occupiers increased by 0.2% over the month and was 2.4% higher year on year. 
The year-on-year increase is the slowest rate of increase since February 2013.  This indicates that although demand for housing demand has increased, the rate of growth in this demand is slowing. 
Looking at the more detailed components, refinance commitments are -0.7% lower over the month and 5.1% higher year on year.  Non-refinance commitments have increased by 0.6% over the month and are 1.2% higher year-on-year.
<img class="aligncenter size-full wp-image-3584" src="https://blog.rpdata.com/wp-content/uploads/2014/08/Chart-4.jpg" alt="Chart 4" width="500" height="182">
The number of owner occupier housing finance commitments can be further broken down in to the type of commitments the finance is for.  The three categories we analyse here are: construction of dwellings, purchase of new dwellings and purchase of established dwellings (excluding refinances). 
Over the month, construction of dwellings rose by 1.1%, purchase of new dwellings was 4.6% higher and purchase of established dwellings edged just 0.1% higher. 
Year on year, the market strength has been associated with construction of new dwellings (+17.0%) rather than purchase of new dwellings (-2.1%) and purchase of established dwellings (-1.7%).  In fact the number of owner occupier finance commitments for construction of new homes is at its highest level since February 2010.
Keep in mind that in June 2014, 17.9% of these non-refinance commitments were for construction of dwellings, 8.2% were for purchase of new dwellings and 73.9% were for purchase of established dwellings.
<img class="aligncenter size-full wp-image-3585" src="https://blog.rpdata.com/wp-content/uploads/2014/08/Chart-5.jpg" alt="Chart 5" width="500" height="179">
The number of owner occupier housing finance commitments for first home buyers fell by -3.6% in June 2014 and are -6.2% lower year-on-year.
First home buyers continue to play little role in the market, accounting for just 13.2% of total owner occupier housing finance commitments in June. 
Interestingly the average loan size for first home buyers is increasing.  As home values rise they need to borrow a greater amount, this is highlighted by the 7.1% year-on-year rise which is the largest since December 2009.
<img class="aligncenter size-full wp-image-3586" src="https://blog.rpdata.com/wp-content/uploads/2014/08/Fianl-chart.jpg" alt="Fianl chart" width="500" height="272">
RP Data’s Mortgage Index (RMI) which provides a lead indicator to the number of owner occupier housing finance commitments indicates that there is likely to be a lift in July.  Activity levels were 6.7% higher in July 2014 compared to June suggesting a likely rise in housing finance commitments over the coming month.
The data shows that while demand for housing finance is holding, we are potentially seeing a slowdown in demand from the investment segment.  Meanwhile demand for owner occupiers is steady, albeit the rate of growth is slowing with the strongest increases arising for those constructing their own home. 
Spring will be the real test for the market from here, investment activity remains elevated, auction volumes and results have been strong throughout winter and we wait to see if this momentum continues for the remainder of the year.  Particularly given that although values are continuing to increase, they are doing so at a more moderate pace than they were throughout late 2013 and early 2014.
Although mortgage demand has picked-up over the past two years, it is important to note that the number of finance commitments remain well below 2009 and much lower than activity levels prior to the financial crisis.
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Housing finance data reveals possible slowdown in investment demand

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Gen Y Australians are increasingly taking on debt, and that’s before they even get to their first mortgage, according to RateCity’s Consumer Study August 2014.
The new research has revealed that respondents aged under 24 received their first credit card at an average age of 20. Of those who are 65 and older, the average first credit card age was 34.
CEO of RateCity Alex Parsons said that the trend is worrying, with young Australians taking on high levels of debt.
“Our research shows 42% of young people under the age of 24 have between $10,000 and $30,000 of personal debt, not including a mortgage,” said Parsons.
“Australians aged 24 and under are also four times more likely to get a weekly cash advance from their credit card than were their parents’ generation.”
He noted that 56% of Gen Y with a credit card have never had a $0 balance on their card in the past year, with 63% unaware of the interest rate they are paying.
“It’s a real concern, given that the average credit card rate is close to 17% – that’s a lot of interest we’re talking about there,” he said.
Credit card use is on the increase, with 1117,000 more incremental cards on the market now than last year, bringing the total to 15.5 million in May, according to the Australian Bureau of Statistics. RateCity noted that Gen Y was the most likely to sign up.
Parsons pointed to a shift in the way money is used – becoming a cashless society – that is potentially making people see funds as disposable.
“These are alarming new statistics and we think a number of factors are at play here, but regardless of the causes I’d urge young people to get in control of their money today to avoid a financial nightmare down the track – starting life in your 20s with tens of thousands of dollars can be crippling,” he said.
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Young Aussies struggling with debt, and we’re not even talking mortgages yet: RateCity

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GUEST OBSERVATION
In the past, many borrowers would often stay with their home loan lender for the entire loan term.
But now that the mortgage industry is even more competitive, it is worth looking for a better deal.
There are a number of myths that may have stopped you from refinancing in the past, but we have busted a number of them below.
<ul>
<li>Too costly to refinance </li>
</ul>
With exit fees being abolished on 1 July 2011 (for loans established after this date), refinancing should no longer cost as much as you may think. Most lenders will charge fees to discharge the loan and possibly a legal fee. These cover the cost of releasing the title and closing down the loan account.
The main cost that may deter a borrower from refinancing is lenders mortgage insurance. If you borrowed more than 80% of the value of the property initially then there is a good chance you would have been charged mortgage insurance. Mortgage insurance is lender specific so if you subsequently look to refinance and the loan is still above 80% of the value of the property then mortgage insurance may be levied again.
Although there may be some fees included to switch lenders, if you find a lender who offers lower interest rates, little or no upfront fees or ongoing fees, you may find that you will receive greater savings over the life of the loan that outweigh these initial fees. But make sure you thoroughly research the options available to ensure you are getting the best deal.
<ul>
<li>Too much hassle to refinance</li>
</ul>
Refinancing will require some research, but won’t necessarily be a hassle. With competition between lenders being extremely strong, most lenders are eager to bring in new borrowers and make the application process as stress free as possible. To make things easier for you, collect as much financial paperwork as you can (e.g. payslips, work summaries etc) to help speed up the process.
If you find that a lender is not making the effort to respond to your enquiries or process the paperwork promptly, they may not be the most suitable option for you. Poor service before you apply could mean that service ongoing is poor and be an ongoing frustration.
One of the best places to start is comparing interest rates being offered by different lenders and then contacting your current lender to see if they will reduce your rate to match. If you are successful then you will have been able to reap the benefits of refinancing without much hassle at all!
<ul>
<li>Not worth refinancing if rate is only 0.5% lower than current rate</li>
</ul>
No matter how big or small the interest rate discount is, it can help save you money. For example, if you had a $400,000 loan over 30 years with a 5.5% interest rate, but then switched to a loan of 5.0%, you could save close to $125 a month or close to $45,000 over the loan term.
However, the interest rate isn’t the only factor that can help save you money on your home loan. Factors such as the differences between the ongoing fees for your current and new loan will need to be considered. A discount of an annual fee from $495 to $299 or even no ongoing fees could mean more money in your pocket over the long term.
There are a number of features that can save you a significant amount of money over the life of the loan. An offset account, free redraw and unlimited extra repayments are just some examples.
<ul>
<li>Borrower’s with a fixed rate loan cannot refinance</li>
</ul>
Borrowers are able to refinance with a fixed rate home loan, but there is a good chance there will be extra break costs.
Calculating break costs is complicated and takes into consideration how much your fixed rate is and how much variable rates have changed plus the term remaining on your fixed rate. However, you may discover that the savings you receive from refinancing could be more than the break fees you will incur. Before making any decisions, speak with your current lender about what break costs are involved to ensure these costs do not outweigh the benefits of refinancing.
<ul>
<li>I was approved for my current home loan, so I’ll be approved for a refinance</li>
</ul>
Many borrowers make the mistakes of assuming they will be approved for a refinance home loan because they were approved for their current loan.
When you apply to refinance, you will go through the same application process. The lender will look at your current financial situation and this may cause problems if you have taken on more debt since taking out your current loan.
The value of properties generally increase over time, but you may find that the value of your property has actually gone down. Research property values in your area to help ensure that you have sufficient equity to refinance.
The new lender will most likely get a valuer to inspect the property. A property in bad repair, termite damage or a partially completed renovation could mean that the new lender is not willing to use the property as security for the new loan.
Gavin Smith is director and general manager of <a href="https://www.statecustodians.com.au." target="_blank">State Custodians</a> and has over 20 years’ experience in leadership roles within the banking services sector.
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Five myths that may have stopped you from refinancing

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GUEST OBSERVATION
How long could you survive financially if you lost your job, suffered a major illness or encountered some other life set-back?
How high could interest rates rise before your loans became a worry? If you saw a great investment opportunity, would you be in a position to raise the finance to buy it?
Now is the ideal time to talk to your financial advisors about how to build your financial resiliency. There are a number of ways you can maximise your cash flow to hedge against unplanned events and it is important to get the right advice about strategies that best suit your specific circumstances. 
Here are some ideas to explore:
<ol>
<li>You can often build a cash buffer to tide you through hard times and reduce non-deductible interest on your mortgage by using an offset bank account instead of paying extra on your mortgage. </li>
<li>Keep an eye on the interest you’re paying on your debts. Make sure your interest rates are competitive. If they’re not, speak to your bank’s customer team about a discount. </li>
<li>If you’re negatively geared, you can arrange to reduce the amount of tax that is taken out of your pay each week rather than waiting for a big end-of-year refund. You can find the tax withholding variation form online. </li>
<li>While Australia’s new credit reporting regime means it’s more important than ever to pay your bills on time, you don’t get any bonus for paying them early. Set up a reminder system so that you pay accounts a few days before the deadline, rather than as soon as you receive them. </li>
<li>Don’t forget to claim depreciation even if you own an older property.  </li>
<li>Be organised – if you can’t find receipts at tax time, you can’t claim the expenses. One way to make this easier is to get your property manager to pay your rates, land tax bills etc so they’ll be included in the statement you receive at the end of each financial year. </li>
<li>If you have a partially paid-off investment property, do the sums to see if there is any benefit in refinancing to a fresh 30-year term. Although your monthly repayments could fall, you will end up paying more interest over the life of the property. </li>
<li>Consider the pros and cons of going from principal and interest loans to interest only, particularly for mortgages on investment property. </li>
<li>Regularly check the rent you’re receiving against the market and consider whether there is scope to raise it. </li>
<li>Ask tenants if there’s anything you could add to the property that they would be happy to pay more rent for – there could be a win-win improvement to be made such as the addition of a dishwasher or air conditioner. </li>
<li>Creative ways to increase cash flow can include adding a granny flat, allowing pets, furnishing a property or renting “by the room”. If you’re considering going down one of these paths, it’s essential to do the maths, check with the local council as different regulations apply, and make sure you take out appropriate insurance. </li>
<li>While it’s tempting to renovate a property to add value and rental returns – especially if you can do so cheaply – many fail to recoup their investment so careful consideration is worthwhile. </li>
<li>It’s not rocket science but, by cutting your spending, you will have greater cash flow and build assets more quickly. All the usual savings tips come into play, from making your own lunch to ditching the gym membership in favour of a pair of jogging shoes. </li>
<li>Similarly, look for ways to increase your income by taking in a housemate or boarder or taking on a second job. </li>
<li>Make sure you have appropriate life and income protection insurance, to avoid yourself or a loved one being forced to sell assets quickly. This is even more critical when you don’t have much of a cash buffer. </li>
<li>Protect your property investment and rental income by using an experienced property manager and taking out quality landlord insurance – shop for value not just price as standards and inclusions vary significantly. Don’t forget to regularly raise your sum insured to account for rising building costs, and to cover any renovations or improvements you have made. </li>
</ol>
Sharon Fox-Slater is the General Manager of EBM Insurance Brokers’ <a href="https://www.rentcover.com.au/" target="_blank">RentCover </a>landlord insurance division.
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